Best Binary Options Broker!
Perfect For Beginners!
Free Trading Education!
Free Demo Account!
Good Choice For Experienced Traders!
Best Binary Options Signals and Software
On this page you will be able to find the best binary options signals and software programs rated. I will provide links to reviews, to the sites and the readers of binary today can contribute. I am always adding more information to this page so please come back from time to time to see what changes I’ve made, and what trading systems have crept into the top rated section.
Established Binary Options Signals and Software
Here we can really see the impression that the established binary options strategies and methods have been having on the market. In this table you will see what the binary today.com readers believe is the best system and they have rated them accordingly. Please click on the stars to leave your own rating if you have any experience with these binary options products.
All Ratings Updated: April 5th, 2020
Currently, I am utilizing two binary options software / signal products that are compatible with all brokers and provide quality trading signals 24/5 in all trading sessions. Once you sign up with either of these systems, the members area will guide you on the exact processes to follow, even if you’ve never traded before.
|15M Signals||$189 (coupon available)||Try Now||Review|
|5M Signals||$119 (great value)||Try Now||Review|
Automated Trading (Forex)
If you prefer completely automated solutions, we recommend Forex expert advisors. These are the two trading robots we use, that are completely MT4/MT5 compatible, that will trade on your behalf.
|$229 (coupon available)||Try Now||Review|
|$117.99 (great value)||Try Now||Review|
All Binary Options Software Reviews
This list includes every single binary options software I’ve ever reviewed. If you are looking for a specific review, just use the search function.
All Binary Options Signals Reviews
This list includes every single binary options signal provider I’ve ever reviewed. If you think I missed a company, make sure to email me and I’ll make a new review.
Since we’ve been doing this for a long time we have reviewed hundreds of systems and we are approaching the 1000 mark. With that being said we have tables with all the older systems available as well.
Best Binary Options Broker!
Perfect For Beginners!
Free Trading Education!
Free Demo Account!
Good Choice For Experienced Traders!
New Binary Options Signals and Software
Here you will find some of my latest reviews and hopefully some of the up and coming binary options strategies. I update this website regularly and part of that duty is providing information on new systems for us to profit from.
Many of the systems in the lower rated list are unproven and untested so this has to be taken into account. Make sure that if you’re interested in the systems in the new binary options list that you understand that the risk level is very high because the amount of customer reviews is low.
Binary Types Explained
- Signal Software
This type of binary options product will provide you with signals generated with help from a software. These are often systems that take advantage of meta-trader four using indicators and expert advisors to watch the market and pick out trading opportunities. Most of these software’s also provide the option to send signals to your email as well.
This type of binary options product is generally simpler than the software approach. You will receive emails either in a members area or in your email inbox. In the emails you will have signals that will tell you whether to put or call.
This type of binary options product I have a huge problem with. The issue with auto trading binary options is the fact that binary options don’t use independent platforms. This means that auto trading software gives too much control to the brokers and there is no way that a broker will allow and auto trading software to take their money. Until binary options broker start using independent trading platforms like meta-trader four you should not buy any automated binary system.
This type of binary options product is very simple to explain. The developers of these systems will educate you on binary options and generally provide you with strategies and methods sometimes including software as well. The issue with educational courses in the binary options market at this point in time is that the price is often too steep. There can be a lot of value in these type of binary options products but they don’t always pay off and at high price points the risk you take can be a deterring factor.
Rating Categories Described
Pretty self-explanatory, this is the category that provides the product name and link to the binary options software or signal service review.
The rating is given by the readers of Binary Today. They can vote on a scale from 1-5 stars. This essentially means that if a service has anywhere in the 1-2 rating range it is best to stay away from it. Anything in the 4+ range immediately is placed into our top rated category. To place a vote simply click on the stars.
I just went into this in great detail above, this is the type of product whether it be a binary options signal service, software, education program, live trading room etc.
This category describes whether or not the product is easy to navigate, install and utilize. Many of the rankings here are justified based on past experience with a specific type of service.
Price is pretty straight forward in most cases, /mo stands for monthly which means you will have to pay on a subscription basis. There are also many systems in the binary options market that are deemed as “free software.” These systems require a deposit of anywhere between $200-300 to get started and are generally disregarded and distrusted by the Binary Today community and often seen as binary options software scams.
Disclaimer: Binary Today would like to remind you that the content contained in this website is not necessarily real-time nor accurate. Past performance does not guarantee future performance, the above is not indicative and is purely for educational purposes only. Relying on the above for investment, trading or betting in binary options or Forex is not advised unless done so with virtual money only.
Binary Today or anyone involved with Binary Today will not accept any liability for loss or damage as a result of reliance on the information including reviews, recommendations, charts, software, income reports and signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Binary Today is a cutting edge binary options review site with the main goal of providing helpful tools and information on brokers, signals, strategies and more. We hope to develop a large community of successful traders and condemn the vendors that aren’t responsible for their actions or respectful to their customers.
In order to maintain the utmost transparency I now provide a monthly report on my trading figures:
Binary Options Affiliate Programs
The Complete Guide To
Binary Option Affiliate Marketing
So youвЂ™ve heard a few things about Binary Options. Some good, some not so good, and some just downright confusing. В You may not even be sure what these are let alone how to become an affiliate orВ start promoting this instrument.
Good news.В This article is going to solve all these questions for you and maybe a couple you didn’t know to ask. ItвЂ™s going to provide a definition with some easy to understand examples, you will see how and why you should be promoting binary option trading, how to sign up to an affiliate program and youвЂ™ll even see some examples of the earning potential these programs offer.
What are Binary Options
Binary Options are a simple financial instrument which allows anyone to trade price fluctuations in markets throughout the world – without having to own anything.В
ItвЂ™s easier to think of these options as a cross between the more technical financial market trading and simple gambling. You basically pick the market you are interested in, for example: NASDAQ share market or EUR/USD foreign exchange pair, decide whether you think the price will go up or down over a certain period of time and then purchase the corresponding Binary Option.
Types of Binary Options
As these Binary Option markets have grown, platforms/brokers have started to offer different types of Binary Options. В
The traditional method – outlined above, is whatвЂ™s known as a вЂHigh-Low Binary OptionвЂ™ and is the one we will focus on today.В
Others you might come across include: вЂOne-Touch Binary OptionsвЂ™ (where the price just has to touch a certain point during your specified time) and a вЂRange Binary OptionвЂ™ (which allows traders to select a high and low to determine a range the price will fluctuate between during the course of their OptionвЂ™s time frame.)
It will depend on the specific broker as to what types of Binary Options are offered so you will just need to do a little research to make sure the type you want is offered when considering a broker.
Typically, when you buy a Binary Option, you have to hold it until it finishes (or is вЂexecuted.вЂ™) Again, this can vary between brokers and some may allow you to exit the trade before the Option is executed but there will generally be a lower pay out or a fee associated with this action. В You need to read the terms and conditions for each broker to find out their exact processes.
U.s. vs Rest of the World
WeвЂ™ll just take a second here to advise that the Binary Option market has some big differences between the US and the rest of the world. В
The most important thing to note is that most foreign binary option brokers are not legally allowed to sell to residents of the U.S. unless they have been registered and regulated with the Securities Exchange Commission (SEC) or Commodities Futures Trading Commission (CFTC.)
This just means that if you are considering the idea of becoming an affiliate for a Binary Options brokerage, you need to identify where your target audience lives and thus what Binary Option brokers are appropriate for you to promote.
В If you will be targeting people living in the U.S. you might want to check out some Binary Option platforms that are operating there.
A trading example
A more thorough example of a traditional High-Low Binary Option trade including some technical terms is explained below:
Earlier I mentioned that you could think of the Binary Option as something between a straight up gamble and a fully blown financial market activity like buying shares or trading foreign exchange.
This is because Binary Options use the financial world markets as a base to calculate the вЂwinвЂ™ or вЂloseвЂ™ scenario for the option. В ItвЂ™s like you are gambling on the price change, however, because itвЂ™s based on real world actions (and not just a dice roll or flip of a card) anyone trading Binary Options will feel more in control as they can make decisions based on research.
Binary Options are also known as вЂAll-or-Nothing OptionsвЂ™ or вЂFixed-Price Options.вЂ™ This is because there are only two outcomes to your Binary Option contract – you win or you lose. В And both outcomes have pre-determined numbers.В
LetвЂ™s say youвЂ™ve been researching about Company X. YouвЂ™ve looked at their financials, read about their Board and seen some positive articles in the news lately. В You decide that you quite like this company and feel itвЂ™s going to increase in value. В One method for investing based on this research is to buy a Binary Option. В You might purchase one stating that the share price of Company X will be above $12.54 at 3:15pm on a particular day.
You pay $100 for your Binary Option and it has a pre-agreed payout of 65%. В That means that when the option is executed (or completed) – which will be at 3:15pm on the particular day you chose when purchasing it – you will either be right or wrong with your investment. В
The share price will be above $12.54 as you thought, or it will be lower.В
If you were right and the price was higher at the specified time, you вЂwinвЂ™ (or your option has finished вЂin-the-moneyвЂ™) and you receive $165 back.В
В If you lose (finish вЂout-of-the-money) then you receive $0 back. В
No matter where the price ends up when the Option is executed, you cannot вЂwinвЂ™ more or less than $65 and you cannot вЂloseвЂ™ more or less than $100. Your risk and return is fixed from the outset.
ProвЂ™s and ConвЂ™s of trading Binary Options
The simple nature of Binary Options means itвЂ™s a great instrument to allow people to be involved in the financial world without needing to have complete understanding of how the sharemarket works or how to buy and sell foreign exchange. В ItвЂ™s also more interesting than simply gambling as the results are based on real world contracts and activities, giving investors more control in the outcomes.
There are no liquidity concerns, as you are not purchasing any underlying assets and platforms/brokers can create any number of different options which provides plenty of variance for traders to choose from. В This also means that traders can buy Binary Options based on any asset class around the world – giving them exposure to any product desired.
The fixed price aspect of these options provides a safety net in a sense that you cannot lose more than the option cost. В You cannot become liable for any further losses no matter how вЂwrongвЂ™ or how вЂout-of-the-moneyвЂ™ you were when the Binary Option was executed. On the flip side, your return or вЂwinвЂ™ is also set to the predetermined amount. This means when trading Binary Options itвЂ™s easy to consider the risk-reward scenarios as you already know your exact two outcomes before any purchase is made.
The downside of these Binary Options are that unlike traditional options, the holder does not have any right to purchase or sell the underlying asset. В This means in the example above, your investment is simply mirroring the changes in the share price of Company X – at no time do you own any shares or have the option of owning any shares from your Binary Option.
Trading in binary options is highly speculative, involves an outstanding risk of loss and is not suitable for everyone but only for those investors who: (a) understand and are willing to assume the economic, legal and other risks involved; (b) are financially able to assume the loss of their total investment; and (c) have the knowledge to understand binary options trading and the underlying assets.
How do Binary Option affiliate programs work?
Now that you know what Binary Options are and how they work, we need to learn how to sign up to act as an affiliate and how to promote Binary Option trading to your audience. В
How To Register
This is the easy part. В All you need to do is browse through the available affiliate programs and compare them to find the best one for you – services differ in terms of commission rates, customer service and support in creating adverts and content. В
Once you know who you want to sign up for (and it may be more than one depending on your personal situation) you can simply click on their sign-up link, fill in your details to create an account and begin advertising your affiliate link to your audience.В
This is where it can get a little trickier and where some of you may prefer the programs with more customer service and support overВ higherВ commission.
How do you promote Binary Option trading to your audience
Now that youвЂ™ve signed up to an affiliate program and have your very own affiliate link you need to consider how to promote this to your audience to get the best results.
You might have a website with a certain number of visitors each month, a dedicated email list or maybe even a growing Facebook page or twitter account. There are many forms that your lists can take these days but no matter what platform you use, itвЂ™s important to tailor your adverts to your specific audience.
Generally there are three types of traffic interested in Binary Options trading; Traders, Gamblers and those who want to вЂmake money online.вЂ™ Each of them have different вЂneedsвЂ™ in terms of what they are looking for online and what type of advert or content will convert them into a user and earn you that commission. В
Gamblers are more likely to be after a thrill or a quick, simple way to get started. В They may be attracted by the flashing banners or an interesting sign up bonus (as an affiliate member, your program partner may offer you some exclusive sign up bonuses you can promote.) В Make sure you donвЂ™t bore them with in-depth technical terms or even too much detail on what Binary Options are.
The other group not too interested in technical terms are those who fall into the category of вЂwanting to make money online.вЂ™ В These people donвЂ™t want a lot of jargon or big financial phrases in the explanations but they will require more nurturing than the gamblers. Adverts targeting this group need to throughly explain the process and the risk/reward presented by Binary Options trading in layman terms and probably walk them through various examples.
Traders are the final group likely to be interested in Binary Options and are probably the most вЂfinanciallyвЂ™ educated audience. В You can make use of more technical terms in explanations and adverts containing more information, in-depth reviews or comparisons are likely to be more effective in achieving a conversion.
Now that we know there are different platforms your audience is connected on AND that your audience might fall into different categories of traffic based on their needs, we need to think about the most effective way of delivering your affiliate link to them. HereвЂ™s a few ideas to get you started:
- Banners – this is probably the most common method of promoting your affiliate link and simply means placing a banner on your website or within an email. В This will just look like another advert except your payoff is potentially a lot higher. This is also the easiest as most affiliate programs will already have a supply of pre-built banners you can simply add to your webpage. Likely to be more effective with the gambling traffic type.
- Discussion – if your audience is built around reviewing financial products, or ways to make money online then it could be as easy as doing a write up about Binary Option trading. You can even use the information in this article to help explain it if you need. With this method youвЂ™re simply telling your audience about Binary Option trading and then recommending your chosen partner and sending your audience to their page through your affiliate link which is inserted into your article. В If youвЂ™ve used simple terms in your explanation then this might be the best method to target those who вЂwant to make money online.вЂ™
- Reviews/Comparisons – this is a slightly more in-depth method and may involve building a new website or adding pages to an existing one. В If youвЂ™re targeting an email list, Facebook page or twitter account then perhaps it will be in the form of a blog post series. This strategy really starts to pay off if youвЂ™ve joined multiple affiliate programs. As you review and compare each program, just insert your your affiliate link at the bottom of each write-up and then no matter who your readers choose to go with, you should be rewarded with a commission. В The other benefit of this strategy is that you are providing education about this relatively new concept and beginning to set yourself up as an expert in the Binary Options trading arena – meaning more traffic and more commissions.
Why Promote Binary Option brokers?
The world of Binary Options trading is exciting. Once youвЂ™ve explained to someone how it works, and they realize the simplicity and speed with which they can get started and begin earning profits, conversions can be a lot easier than through other affiliate products.
The Binary Options market has experienced incredible growth since 2008 when the US Securities and Exchange Commission (SEC) ruled that Binary Options no longer had to be traded on an exchange and the advent of online trading kicked-off.
Since then, growth has been exponential and experienced a serious increase of interest after 2020 when some jurisdictions reclassified Binary Options trading from a gambling product into a financial instrument.
Even if we just look at the Nadex, which is a regulated US exchange for Binary Options, we can see that in the last year, when comparing the second quarter (Q2) of 2020 with Q2 2020, the volume and total number of trades is up nearly 40%. вЂThe growth in trading volume reflects continued mainstream enthusiasm for exchange-traded binary options and spreadsвЂ™.
As the Binary Options trading market matures and becomes more regulated, growth will continue. If you can establish yourself as a respected source of information, comparisons, reviews or discussion to your network now, then there is great future potential for your business.
There are numerous benefits of becoming an affiliate and promoting Binary Options trading to your audience. These are some of the reasons why you will achieve great responses to your promotions and high conversions:
- Simple processes – from opening an account to doing your first trade, operating in the Binary Options market is very simple. Accounts can be set up in minutes online and the individual brokers you are promoting generally have great customer support which assists with conversion of your audience.
- Education material – most brokers offer free education materials and demo accounts. В This is a great lead in for your audience, especially if they are unsure and want to learn more about the market. В Whilst itвЂ™s very simple to understand and get started, there is also a lot of education available to enhance their chances of becoming a successful trader.
- Scale of Complexity – this market appeals to a wide range of groups because traders can be as involved as they want. В If they are more of a вЂgamblingвЂ™ type then they can get started immediately and place their trades. However, for those that like to feel more in control and make вЂcalculated decisionsвЂ™ there is a lot of education they can undertake in order to learn principles about the financial markets or a specific commodity they intend to trade on. This in turn builds confidence and excites them about the prospect of trading through Binary Options.
- Competition – as the market grows it becomes more competitive and brokers offer all sorts of promotions to attract new clients. The more offers there are, the more likely your reader will sign up to trade with one of your affiliate brokers.
- Trading System – low trade size (low minimum deposits and trade values), high returns (up to 90%), limited risk (your potential loss is known and set at the beginning of a trade), and short term trade periods (from 60 seconds) all work to create a trading product that is very appealing to a wide range of different people.
Types of commissions
There are multiple different ways for you to earn a revenue as an affiliate of these brokerage firms. You will need to decide what type of revenue suits your needs best and then compare what methods are offered by each broker.
- CPA (Cost per Acquisition) – you will be paid a certain amount for every new client that signs up with the brokerage firm after using your link. The revenue really does vary between firms but you may commonly see $200 – $400 per acquisition. One important thing to find out is how your reader will be tracked (how the вЂcookieвЂ™ is treated) – which means if someone uses your link but ends up signing up a few weeks later do you still get paid? В Some firms offer вЂforever cookiesвЂ™ meaning that at any time in the future if that person signs up you receive your commission. В
- CPL (Cost per Lead) – similar to CPA, cost per lead pays a set amount per lead provided to the firm. This typically generates a smaller fee of around $10-$40 per lead, however not many programs offer this type of commission structure.
- Revenue Share – this deal rewards you for every trade the investor makes with that brokerage in the future. В The rate is usually around 35%-40% and is either based on new deposits or net revenue generated by the investor.
- Hybrid – this is a mix of the CPA or CPL and Revenue Share options. В Generally you will receive a smaller lump sum payment for each acquisition and a lower percentage return for the revenue share. В This may be something like $150 per CPA and 20% revenue share.
How much is possible to earn?
ItвЂ™s very hard to estimate how much you could earn because of all the varying factors – how big your audience is, how successful your promotions are, which affiliate program you join and what commission structure you choose.
For arguments sake, lets say you have 10,000 site visitors per month and convert 0.1% of them into a customer for your chosen affiliate program which pays you $300 CPA. This means that every month, you are converting 10 people into traders for your brokerage firm and are receiving commissions of 10*$300 = $3,000.
It gets harder to predict potential income under revenue share or hybrid commission structures but have a play around with this equation based on your own audience size, conversion rate and commission details. You might be quite surprised.
What to consider when choosing a Binary Options affiliate program?
Congratulations on making it this far. Now that you have a solid understanding of what Binary Options actually are and how the various affiliate programs work, itвЂ™s time to drill down and identify the right program(s) for you. В
You can visit our list of trusted affiliate brokers to compare them against your new-found knowledge. В
Remember that the key points to look out for are:В
- Location – whether the program is legally allowed to offer services to clients in the US if thatвЂ™s where your audience is.В
- Reviews – read as much about each broker as possible to make sure you have an understanding of how they work and what their track record is.В
- Support and Customer Service – how easy is it to work with each firm and what level of service do they provide to the clients you send their way.В
- And finally, commission – what payment structures are offered and what are the rates. How does this compare to what you need?
If you go in open-minded and remember to research each broker using the points weвЂ™ve covered here, you should come out feeling very confident as an affiliate partner for a trusted Binary Options brokerage, and ready to start converting your hard-earned audience into real dollar returns.
Your Starting Guide to Binary Options
Have you ever wondered what the term “binary option” means?
If you’ve looked into online trading and financial investment before, then the answer is probably “yes.”
Usually, the term “binary option” refers to a kind of trading term, where you get a fixed payout by predicting the outcome of a trade from two potential results. It’s a bit like flipping a coin. If you’re right about whether heads or tails will come up, you’ll receive all the money agreed to. If you’re wrong, then you lose the stake you made on the option, and that’s it.
The reason that binary options have their name is that there are no extra possibilities that might happen. Either you win, or you lose – it’s that simple.
What are the Benefits of Binary Options?
The most obvious benefit of binary options investments is that it’s incredibly simple. There’s a basic YES or NO proposition to consider – and that’s all. Binary options are also very flexible. They allow you to trade in a range of markets, including Forex, commodities and indices, and a variety of market conditions.
With binary options, you’ll also be able to choose between a short-term or long-term investment window, with durations that last anywhere between 10 seconds and a whole year. While your losses are limited by the initial stake that you place into the trade, you can earn huge payouts, up to tens of thousands of dollars.
Which Are The Best Brokers?
There are lots of brokers on the market which offer binary options trading. They differ in: regulation, safety, trading tools, trading assets, support, fees and other factors. Among option brokers with the best reputation we have selected the top 2 choices to make it easier for you to make a decision.
Highly sophisticated platform:
– easy to use
– perfect for beginners
– demo account for training purposes
– lots of different financial instruments
– Great research tools
– Forex, Metals
– Oil, Commodities
– Indices, Stocks
– ETF’s, Gold
+ Mobile App
+ Web Trader
– Credit Card
– Wire Transfer
– Skrill, Qiwi
– Allows Hedging
– Offers MT4
– Offers social trading
Offers mobile trading apps
– Allows scalping
– Accepts credit cards
+ Mobile App
+ Web Trader
– Credit /debit cards
– Bank transfers
Our Top Choices in Overview
IQ Option (Best Binary Options Trading Company)
- USD $10 Account Minimum
- Average fees of 1.2 pips (EUR/USD)
- Best For Binary Options Trading
IQ Option has a long trading services history. The company started operating in 2020. Having their main quarters in Limassol, Cyprus, they are authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) only. IQOPTION LTD is registered at St. Vincent and Grenadines, this entity is not regulated.
IQ Option index brand has been recently updated to make sure the UAE clients get the same advanced tools and platforms, internationally available to other customers. They provide an improved in-house advantage platform different from the most known Metatrader 4/5 platform.
Those powerful tools are available without any risk – you can open a demo account with no limitations. $10,000 in virtual currency is also provided for you to practice with and is not limited in any way.
IQ Options has won many awards due to the quality of their services. IF you are looking for a solid platform you don’t have to look any further.
Olymp Trade (Best trading techology – beginners and advanced traders)
- Allows hedging
- Offers MT4
- Offers social trading
- Scalping allowed
- Offers trading app
Olymp Trade is an online digital options broker from St. Vincent, operating since 2020. Since 2020, they are a member of the International Financial Commission. By becoming a Finacom member it is under Finacom supervisory. Finacom is a third party regulator guaranteeing security against fraudulent brokers. This gives Olymp Trade the trustworthiness needed to become an authority broker as you have to meet strict rules in order to be approved by this regulator.
All in all, it is a trustworthy platform as it is regulated by FinaCom and comes with a Verify My Trade audit. It also has a lot of interactive learning material. The interface is user-friendly, the design is clean and very intuitive. The broker has a lot of awards, and many positive reviews from traders, on the platform. Overall we would recommend it, especially if you are a trading beginner.
What Are Binary Options?
Binary options are a financial asset that can be traded on any instrument and in (almost) any market. Binary options are considered “all or nothing” trades because the total profit or loss is known before the trade is ever made. Their straightforward nature means that there are no complicated calculations that need to be done.
When you’re adequately informed through news announcements, global trends, or quarterly reviews, you may be able to make an accurate determination about the direction a price may go. Making binary options trade based on this information could generate significant profit for you.
Another significant benefit to binary options is that you can choose from many different kinds of derivatives. Commodities, stocks, and cryptocurrencies are just some of the areas that can be traded using binary options. Examples include aluminum and corn for commodities; Apple and Google for stocks; the dollar and the Euro in Forex; and Ethereum and Litecoin in cryptocurrency. All of these can be traded with binary options.
Knowing how and where binary options came to be can be very helpful when you start trading binary options. This is especially true when beginners are attempting to shift to full-time trading. Binary options (also known as “digital” options) came about many decades ago. In the beginning, only large brokerages had access to binary options. After the 2008 recession, the US Securities and Exchange Commission began allowing binary options to be traded through an exchange.
More than a decade later, binary options are now accessible to the entire world, the demand for binary options trading is continuously increasing and, since the investments on binary trades are so small, demand is likely to only increase.
What Types Of Binary Options Are There?
There are many different binary options types that can be treated. Four of the more frequently treated are listed below.
This option answers the question, “Will the future price be above or below the current price at a specific point in time?” This type of binary is, by far, the most common.
- In/Out (Range or Boundary)
With this type of option, a range of prices is determined based on whether or not the price will finish inside those boundaries or outside of them.
When you set this type of binary options, your position indicates whether the price will “touch” a specific level between the start of the trade and the end. The trade is considered complete as soon as the “touch” happens.
The “ladder” type of binary options is similar to up/down trades with the crucial difference that the future prices are predetermined.
When Do Binary Options End?
One critical component of binary options trading is knowing when the trade will end. This is known as the “expiry time.” The expiry time is the point that determines whether or not you have made or lost money. These times frames can vary from 30 seconds to a year, but the unique variable is that they will end at a predetermined time.
While 30-second expiry times to technically exist, the majority of day traders use the 5 to 30-minute expiry timeframe. This increases the potential for profits while still limiting the risk of loss. Also, by shortening the expiry time of your binary options trades, you can complete more trades within a single day. This, in turn, increases your potential for profit.
The Legality Of Option Trading
Even though it’s occasionally debated on national television, binary options are legal. While some companies use binary options to operate scams, the majority of companies follow the laws and regulations correctly.
Frauds And Scams
Government regulators are actively looking for brokers who promise “quick cash” as this is a sign of a scam. The reputation of binary options was damaged by such dishonest marketing, but it is hoped that the problem will be resolved quickly.
Even though binary options are legal, it is wise to avoid “quick money” promises, telemarketers that claim to be brokers or any claim that connects “free” with “binary options.”
You should always be aware of and knowledgeable about the dangers of fraud and carefully vet any broker you come in contact with.
CFD Trading Vs. Binary Options
Many people wonder whether or not binary options and CFD trading are the same thing. While they are similar in many ways, CFD’s have potentially unlimited risk. For example, if the price goes up, the change in value must be paid by the seller. Alternatively, if the price goes down, the seller gets paid.
Binary options work differently because your risk is limited. If you put in a call option at 10%, it doesn’t matter if the price sinks by 99% you will only lose 10%. Conversely, if the price goes up by 99%, you will only earn 10%. Both the risk the potential for profit are limited. Both options are considered as day trading.
If you want to find the most suitable online trading platforms for options trading then check the article here.
What Speaks For and What Factor Against Binary Options?
Below is a short list of benefits to binary options trading.
- Low Financial Risk
- Trade Control
- Profit Potential
There are four significant variables to remember when considering trading in binary options.
Those factors are your risk tolerance, capital requirements, trading style, and the benefits and risks of binary options.
Despite the long list of benefits to binary options, there are several risks.
- Reduced Trading Odds
- Limited Trading Tools
- Price Of Losing
- Risk Management
What Are The Steps To Becoming A Binary Options Trader?
The pathway to becoming a binary options trader is just as simple as binary options themselves.
Step 1 – Find A Broker
Finding your broker is probably one of the most difficult, and most important, decisions that you will make in day trading. So how do you determine which broker is right for you? We would definitely recommend to go with IQ Option UAE if you are from the UAE
If you’re going to day trade binary options with high-frequency, you’re going to spend a lot of money on commissions. The key here is broker transparency. This lets you know in advance how much each trade will cost and how much you need to make on each trade in order to pay the fees for each trade.
Most brokers require a minimum deposit of approximately $50 in order to begin options trading. When first starting out as a binary options trader, it may be worthwhile to find brokers who offer low minimum deposits.
Focusing on a specific asset type – though not required in options trading – can be beneficial for beginning traders. Finding a broker who specializes in your asset of interest may accelerate your success in that asset class.
You should always verify that your broker is registered and compliant with the proper regulatory bodies in your region.
Trading binary options is done through some kind of platform. You will also spend many hours per day on that platform, so you should make sure that you like it, it provides the data you need, and it’s easy for you to use. Without the proper platform, it’s almost impossible to make profitable trade decisions. Before paying for a trading platform, do your due diligence by comparing and contrasting platforms and checking reviews from other traders.
For day traders, maximizing your time directly correlates to your profit. Because of this, errors or problems in systems or support can cause significant losses. Be sure to verify that your broker offers 24/7 customer support in the format that you prefer (live chat, phone support, email, etc.)
Smartphones and iPads have come a long way in recent years, and many brokers now offer valuable mobile apps for enhancing day trading. Be sure to check with your brokerage about compatibility and the tools that would best support you in your trading.
One technique that brokerages use to attract customers is through creating an offer around their services. Examples of this would be online courses or certain trading situations that are “fee-free.” Be sure to evaluate their offer to see what extras are beneficial for your specific situation.
However, be wary when the offer seems “too perfect.” This is also a technique that scammers use to attract victims.
- Demo Accounts
After filtering through the hundreds of different brokerages that offer options trading services and arriving at a list of 2-3 that you like. Now is when the decision becomes more difficult. Since there’s no such thing as a “perfect broker,” the better brokerages have set up “demo accounts” where you can “play” with different assets and options.
Since demo accounts are updated using live data but do NOT use real money, they are an excellent place to practice trading. This gives you experience with trading, but it also helps you learn the systems that the brokerages use.
Using this technique, you can improve your trading skill while saving for the initial deposit of capital you will need when you open your trading account.
Our recommendation for trading binary options is IQ Option platform. You can read our detailed review, insights and trading experience here.
Step 2 – Which Market And Which Instrument?
Since binaries can be traded on pretty much anything from Forex, stocks, wheat, or Google, you can trade in pretty much anything. However, it is wise to begin with an asset class you are already familiar with in order to shorten the learning curve.
Step 3 – When To End The Trade?
Profitable binary options trading balances the number of daily trades with the movement in price. Day traders usually focus on shorter trades with expiry times from 30 seconds to 6 hours. Even though a higher trading volume potentially means higher profits, it’s advisable to trade based on accurate data, not just the number of trades possible.
Step 4 – What Size Should Your Trade Be?
The more you bet, the more you could make. In contrast, the more you bet, the more you could lose. Careful risk management will help you make enough disciplined trades to make a profit without risking everything in a single trade.
Step 5 – What Option Should You Choose?
After going through the previous steps, you should have a list of options to choose from. That may, in fact, be very large. This is a dangerous situation for a beginning day trader as the temptation is to focus on the trades that have the most substantial returns. However, it’s almost always better to focus on the trades that are relatively safe as these virtually guarantee that you will get a return. Remember, the goal isn’t just to win, it’s to win over and over again.
Step 6 – Confirm The Trade
This is the final step, and after all of the previous steps, you should feel very confident about your choice. The only thing you need to do now is wait for the trade to expire. After that, you just collect your payout and repeat the process.
Strategies for binary options are more straightforward than trades for other asset types, so the strategies for them are less complicated. However, you must have a strategy.
One primary reason why you must have a strategy is that it helps limit emotional decision making when trading. One of the most subtle emotions, overconfidence, always leads to errors in the long term. The time tested way to limit emotional decision making is to follow a strategy.
A second primary reason a strategy is essential to professional trading is that it allows you to repeat your successes. Without a strategy in place, you never know if your profitable trades were because of intelligent decision making or just luck.
Building A Strategy
Two critical parts of your binary options strategy are creating your signal and money management.
Step 1 – What Is A Signal, And How Do You Create One?
A “signal” is the direction that a price will go. Knowing the signal allows you to make a prediction about that price movement. Technical analysis and the news are the two main ways of creating a signal.
It is possible to predict price movements in advance if you are able to identify patterns using financial charts. Using appropriate charts and identifying the data patterns in those charts is the first step in building your strategy.
Since those patterns form the foundation of your strategy, you should triple check that your brokerage has the right tools available for your research.
But remember, this research does not have to be as nuanced as other forms of market analysis. Common indicators such as price actions, trends, mirrors, support and resistance levels, and MACD indicators are all useful in options trading.
If technical analysis is not your strong point, you can also base your decisions on the news. One benefit of this approach is that the information is easy to understand. Techniques for using the news as your data source are to look at the release of company financial reports or global news that affects an entire market.
One negative of depending on the news for your information is that key details for your particular strategy can be left out of the report, leaving you with insufficient data to make your trading decision.
By staying up to date on market changes, you should be able to make your trades before most traders. A few useful new sources for trading information are:
(Insert your own list here)
Step 2 – Trade Amount
It is always a good idea to keep things simple when beginning to trade. A straightforward strategy is to set a fixed amount to trade for each day. This provides you predictable income and helps you know when you’re “done” for the day.
What is the Martingale Strategy?
The idea behind the Martingale Strategy is to quickly win back what you have lost. This is done by trading simply trading more than you usually would after a loss. For example, a person who loses on a $500 trade would bet more money on the next bet (around $1000) in order to quickly recuperate the lost money.
Obviously, if you make a series of losing bets, this strategy could go very wrong, very fast. This strategy is best used in conjunction with mistakes or accidents in estimation to predictions. If however, you are still in the learning phase, it’s more likely that it was an error in the strategy that needs to be fixed. If this is the case, you should focus on identifying and correcting the error as quickly as possible so that you can go on to predictably generating income.
What Is The Percentage Strategy?
Many binary options traders recommend a system based on percentages. This means that you identify a specific percentage of your total funds that you are willing to risk and then make a bet for that amount. For example, if you have $20,000 available to trade, a 1.5% risk rate would mean that your trades would be at most $300.
You would then adjust your trade amount based on your risk assessment. If, for example, your risk rate was 10%, you could make larger trades, and therefore more substantial profits (or more substantial losses). Maintaining a low percentage helps prevent you from trading more than you can afford.
What Is The “Straddle Strategy?”
In simple terms, the straddle strategy is when you place a bet on both the increase and decrease in value of an asset. This is best to use during periods of high volatility because the price change can occur rapidly; thus, you can profit on both the increase in price and the decrease in price at the same time. As this strategy is based on rapid movements over short periods, it works best in 60 seconds to five minutes intervals. However, it can apply to periods of up to one day.
Should You Use Algorithmic Trading And Bots?
One of the benefits of using a strategy is that it can be automated after that strategy is producing a consistent profit. Different software services provide “bots,” which rely on algorithms and signals that you can program beforehand.
All of the analysis and trading is done for you by the bots. This is beneficial because the bots can do more trading than you can since they are directly integrated into the trading systems. This increases your potential for profit.
The “quality-of-life” improvement provided by these bots is so significant it is worth researching and discussing your brokers offering regarding the availability and use of algorithmic trading. Some brokerages have a bot that you are allowed to use. Other brokerages give you tools so that you can build your own bot and program it according to your preferred entry points and moving averages.
However, algorithmic trading with binary options can be risky because if there is a mistake in the program that you have given to the bot, then that mistake will be in repeated rapidly and you can lose a lot of money in a short period of time.
How Is Timing Important?
The timing of your trades can dramatically affect the strategy you choose and the success you have. Some strategies performed well with expiry times of five minutes while other strategies are more successful with 15 minute or 60 minutes time frames. All strategies and all time frames can produce a significant profit. However, combining the right strategy with the right timeframe will significantly increase your potential for profit.
Success in binary options trading depends on finding a strategy that complements your style of trading. In order to do this well, carefully choose the instrument you’ll be trading. You should then use a trusted system to manage your money. The next step is to use patterns and charts in order to identify signals and other indicators about when the trade should occur and in what direction. All of these things together for your strategy.
As always, when you start something new, it’s good to get some practice in first. Demo trading accounts were invented for precisely this purpose.
To succeed at trading, you should start learning now and never stop. Each day, the markets change, and this means you need to change with them. In order to help you with that, we have provided a short list of resources below that you can use as you immerse yourself in the world of binary options trading.
Each day, a new webinar, video tutorial, or video course becomes available. These tutorials can be beneficial as they walk you through the process of making your trades. This is particularly useful when you have first started with a new piece of software or a new brokerage.
Books & Ebooks
While many internet influencers exclaim that “books are dead” and that “nobody reads anymore,” the reality is that more books and ebooks are sold today than ever before. Financial literature like Joe Duarte’s book “trading binary for dummies” or other more technical manuals give invaluable insights into the world of binary options day trading. By reading the books written by experts, you are able to learn in days or weeks what took them decades to master.
Forums & Facebook Groups
One often overlooked the benefit of social media is how beginners are able to contact and communicate with experts in their market that they would otherwise be inaccessible. This means that if you’re in the right forum or the right Facebook group, you might be able to get online feedback from experience traders about situations that are specific to your life and your trades. While not the same as having a true “mentor,” this is support can be an invaluable as it accelerates your ability to profitably participate in binary options trading.
PDFs & Instruction Guides
Similar to the video tutorials, instruction guides and PDFs provide you with a breakdown of steps that is clear and easy-to-follow. These PDFs instruction manuals are almost always completely free and downloadable, so you get instant access.
Copy Trading/Social Trading
Copied trading or social trading is an area of social media where experienced traders post their results and information from their trades for others to follow. You can then analyze their strategies and model their success. Many of social trading networks are paid, so be sure to evaluate them carefully by checking the reviews.+
Newsletters & Blogs
Similar to staying up to date with the major news outlets, company newsletters, and blogs from individuals who are “in the know,” can help you to stay aware of new developments that can cause your markets to change.
Each of these recommendations is important for successful binary options trading. Maximize on these free resources before you pay for more advanced material.
One of the best practices of many successful traders is to keep a trading journal. By keeping a record of all of your trading results, you are gathering data that you can utilize to answer the question of “Why?”
“Why was that trade successful?”
“Why was that trade unsuccessful?”
Since very few beginning traders are able to afford a mentor, which in cost upwards of $50,000 a year, your best teacher is your past. If you have accurate data, you can answer his questions. In addition, having this record helped you to answer questions from your government tax authority in the case of an audit.
Having the right strategy is only one part of successful binary options trading. Another Central component is your ability to control your emotions. Overreacting emotionally can cause you to make expensive mistakes. For example, becoming overconfident can cause you to make trades that are larger than you can afford. In contrast, becoming fearful can cause you to make trades that are too small and therefore limit your profitability.
This is why we have a strategy. If your strategy is based on technical analysis and accurate calculations, you will make money. However, if you start basing your decisions on your emotional response, your future success as a daytrader is doubtful.
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