Best Binary Options Broker!
Perfect For Beginners!
Free Trading Education!
Free Demo Account!
Good Choice For Experienced Traders!
The 24option cooperates only with banks authorised and regulated by EU member states and that are highly rated by credit rating agencies. The 24option is a CySEC regulated broker operating under license number 207/13
|Headquarters||39 KOLONAKIOU ST., AYIOS ANTHANASIOS, CY-4103 LIMASSOL, CYPRUS|
|Support Number||+357 25 262063|
|Support Types||Live Chat, Phone, Contact Form, E-mail|
|Languages||English, Italian, German, French, Russian, Spanish, Portuguese, Arabic, Japanese, Swedish, Danish, Dutch, Finnish, Norwegian|
|Trading Platform||Tech Finacials|
|Minimum 1st Deposit||$250|
|Minimum Trade Amount||$24|
|Bonus||BONUS UP TO 100%|
|Payout||Up to 88%|
|Free Demo Account||Open Demo|
|Regulation||CySEC (Cyprus) № 207/13|
|Account Types||Standart, Beginners, Gold, Platinum, Diamond, Islamic|
|Deposit Methods||Credit/Debit Cards, Bank Wire, Skrill (MoneyBookers), CashU, Neteller, Sofort, Neosurf, Webmoney, etc.|
|Withdrawal Methods||Credit/Debit Cards, Bank Wire, Skrill (MoneyBookers), CashU, Neteller, Sofort, Neosurf, Webmoney, etc.|
|Number of Assets||130+|
|Expiry Times||60sec, 2minutes, 5minutes|
|Option Types||High/Low, One Touch, Boundary, Short Term|
|Account Currency||EUR, USD, GBP, RUB, TRY, CNY, JPY, CHF|
|US Traders Allowed|
The 24option began operations in 2020, and was one of the first brokers in the market. Since then, many new tools have been designed and introduced to simplify and improve trade sessions for users.
When starting to work with 24option, you will first be able to open a demo account to practice. This will greatly reduce the chances of losing your money as a result of inexperience. There is also a 24option Education Center, which can bring you lots of benefits in learning the rules of trade.
In addition, you will be offered one-to-one training with an expert. Clients of 24option receive a chance for permanent contact with a financial adviser through a live chat, email or telephone to discuss potential profits and different strategies. We believe that this is a great advantage for all traders, even experienced ones.
One of the main advantages is that the 24option broker is regulated by CySEC and follows all regulatory rules (Cyprus Securities and Exchange Commission), to ensure safe and secure trading.
Deposit and withdrawals
A good sign is that the amount of money you can earn is not limited! There are brokers who will not allow you to withdraw all your profits if the profit is too large. This fact can create a lot of trouble and cause anxiety among traders. The 24option refrains from doing this, allowing applications for withdrawals, so the traders can get their money as quickly as possible. The customers receive a payout within 3-5 working days (or within 1 day if you have a VIP account). In order to withdraw funds, you can use credit/debit cards, Moneybookers, bank transfers, Neteller, Qiwi, Webmoney and a number of other payment systems, which are represented in the image below.
You should keep in mind that the 24option allows 1 free withdrawal per month; if you withdraw money more often, a commission is applied. The commission depends on the account level you have reached. For the platinum accounts, no commission will be charged for withdrawal of funds.
Owners of regular and gold accounts only get 1 withdrawal free of charge per the calendar month.
Complaints about 24option
Our team searched the information on the Internet for any complaints, and we found some negative comments, but it seems to be the manipulation of competitors; the criticism that has been objective has been resolved by the company in a positive way.
On several forums, some customers complained that they did not receive the approval of a withdrawal and waited a week. We do not believe this because, firstly, their problems have been successfully resolved by the broker, and secondly, in the «Terms and Conditions» section, you can find the dates within which the broker must meet its obligations and how long it takes to perform the procedure.
Best Binary Options Broker!
Perfect For Beginners!
Free Trading Education!
Free Demo Account!
Good Choice For Experienced Traders!
If we find complaints about 24option, we will post it on social media. Follow us to be well informed:
The 24option is a scam? The 24option is currently one of the most law-abiding of brokers on the market. It has been regulated by the Cyprus Commission for the Securities and Exchange Commission (CySEC).
The 24option was one of the first brokers that received a license from the financial regulator. Trading with a regulated broker provides a high level of service and protection to clients. Being regulated by CySEC (Cyprus Securities Commission and Exchange Commission), the 24option has a so-called «EC passport» to provide services within the European Union in accordance with MiFID (EU Directive «About Markets in Financial Instruments»). Thus, the 24option is one of the safest brokers for European traders.
If you were not registered earlier and just opened an account for the first time, you can earn a bonus. The amount of the bonus varies depending on the type of account you open. It is usually 30% of the initial deposit but can reach up to 100%.
We recommend you to follow the news: the 24option often announces information on additional bonuses or prizes. For example, a current bonus gift is a MacBook. They also hold many other trading contests with real prizes. If you decide to take a bonus from 24option, you should carefully read the terms for the use of the bonus, because every broker has certain conditions that must be followed by traders.
A final summary on 24option broker. All in all, the 24option is one of the leading brokers on the market. The company has more than 6 years of experience as a broker, and every year they increase the number of services and bonuses offered to their customers. The minimum deposit is only $250, and the minimum bet size is $24. They also offer free trading signals which can be used on the trading platform.
The broker has a large section devoted to education, with free e-books and many videos. Most importantly, the broker is regulated by CySEC, so you can enjoy a safe and secure trade.
In summary, we can say that the 24option is a regulated, 100% reliable and safe binary options broker. The company is fully compliant with the high level of service standards set by the EU. The minimum deposit amount is only $250, making it easy to start trading.The 24option takes first place in brokers ranking at FraudBroker.com and is the best choice for European, Arabian and Asian traders.
I have been trading at 24Option for over a year. The platform is quite excellent, I have a few things to warn you about – Upon the registration, you must enter your real personal data for the future verification for further profit withdrawals. Also, read their bonus policy for problem-free obtaining. Overall, a good, safe broker, I would recommend it personally. Thanks. Marc.
Why most of you keep losing to your trade brokers is because you don’t make use of any strategy in trading binary, Note binary has gone beyond all that trading without a strategy, no broker account would want you to make profit while they are losing… so it the other way round you lose while they win, have been trading for over two years now and it has been a very different dimension for me because i have been trading with a very new strategy that has been able to lift my trades accurately giving me wins of about 7-8 daily…it no fluke have been able to help enough people raise up there investment with enough proofs to show you, my one to one masterclass strategy would save you years of time wasting and funds wasting if only you are prepared to learn binary trade is one thing i have come to understand ,it’s all about you having a nice broker, using the rite strategy and above all knowing how to read the trend and if you need assistance on how to make withdrawal from your account easily even when bonus was giving to you or recover the money you have lost email me at [email protected]
Here is a list of issues I have had with 24Options:
Impossible to try the demo account without putting in a £400 deposit, basically tying me up to 24Options even though I hadn’t tried the platform yet to check it would meet my expectations and requirements, as in others I tried in the past.
I didn’t use the account for a while and then realised I had been charged a withdrawal fee of about £50, although I had not been notified, as per section 2, Inactivity Fees’ paragraph in their General Fees Terms and Conditions. I am not entirely sure exactly how much I was charged as this sum doesn’t figure on the account banking history.
The dormant fee was withdrawn a second time and still with no notification, although this time, it did figure in the account history.
The General Fees T&Cs specify the dormant fee will be applied if there are no transactions on the account. I did use the demo account and therefore assumed that it would be classified as transactions. If that wasn’t the case, this should have been made clear in the T&Cs.
Online customer service is very slow and abrupt: the guy I was chatting with suddenly closed the chat saying he had to go, even though I wasn’t finished with my questions.
100% SCAM. STAY AWAY FROM THEM, I repeat STAY AWAY FROM THEM. All they want is your money once they get it, they’ll be done with you.
IQ OPTION Review 2020
Last updated: October 8th, 2020
Is IQ OPTION a scam OR one of the best trading platforms in the world ?
Table of Contents
Don’t sign up before you read this IQ OPTION review
Me and my colleague have performed a thorough IQ OPTION review, without the broker knowing it of course.
Here is our true experience!
- Forex + FX Options + Binary Options+ Crypto
- Min. deposit only $10
- Large community of traders who interact
- Very user friendly trading platform
- Easy to use
- Good customer support
- Demo account free
- Many local payment options for your country
- Islamic account available
- No VPS
- No MT4/MT5
- Slightly more expensive
- Not accepting USA traders
- No Bonuses
**Your capital might be at risk.
Details about this broker:
|✅ Visit broker|
|✅ Name of company||IQ OPTION|
|✅ Trading platforms||+ Forex Trading Platform
+ Binary Options Trading
+ Cryptocurrencies Trading
+ CFD on Stocks, Stock Indices
|✅ Forex pairs available||22 currency pairs available !!|
|✅ Minimum first deposit||$10|
|✅ Max. leverage||1000:1
30:1 for E.U. clients
|✅ Languages available||English, German, Espanol, French, Indonesian, Italian, Portuguese, Swedish, Thai, Chinesse .|
|✅ Max payout if winning for binary option trades||92%*|
* max.payout in case of a winning trade
IQ OPTION trading instruments
The investor initially has a choice of 79 trading instruments in the following categories: commodities
- foreign exchange (forex)
- binary options (not for EU citizens)
- forex options
- crypto currencies
- equities (stocks)
While gold is the only one commodity and only six different stock indices are offered, the selection for the other two categories is significantly larger.
Even if one or the other may find this selection too small, our experience has shown that the values for the trade seem to have been carefully chosen. With the exception of indices, 24 hours a day trading is possible in all categories, with at least one asset from a specific sector being always available in the equities category. Thus, strategies that focus on a specific economic segment are very well possible.
**Your capital might be at risk.
1. FOREX TRADING
A quick glance at the foreign exchange offer: All combinations of the majors and some other currencies such as the New Zealand dollar, the Russian ruble or the Swiss franc can be traded here. There are a total of 22 pairs are available.
IQ OPTION offers you the opportunity to trade a total of 22 currency pairs. You have at your disposal not only the major currency pairs (EURUSD USDGBP, etc.) but also some smaller world currencies such as the New Zealand dollar, Russian ruble which can also be traded in combination with major currencies €, USD, British pounds etc.
2. BINARY OPTIONS
As the name of broker implies, IQ OPTION started as top notch binary options brand but has quickly turned into global trading brand (not only binary options but all kinds of trading instruments!
You can choose between two types of trading, as is the case with binary trading:
Put options and call options
Traders can use put options to speculate on falling prices, and use call options to bet on rising prices. Turbo options with particularly short expiration time frames with durations of 30 and 60 seconds are also available for trading, but due to the associated high risk, they are more suitable for more experienced traders.
The following time frames are available for binary options platform:
- 30 seconds
- 60 second
- 2 minutes
- 3 minutes
- 4 minutes
- 5 minutes1
- 5 minutes
- 30 minutes
- 60 minut es
- 24 hours
- 7 days
- 30 days
Particularly noteworthy is the fact that investors can also trade on the weekend when the regular trading venues are closed. For this, IQ Option offers OTC trading. This abbreviation stands for “over the counter” and means that trading takes place directly between the parties, ie between the broker and the investor, outside the regular stock exchange. Interesting are the regularly organized competitions in which traders can compete against other traders.
As of 2nd July 2020 ESMA European Union has forbidden the trading of Binary Options to retail traders who are European Union citizens.
3. FX Options from IQ OPTION
A brand new offering that was recently added into portfolio of trading instruments.
FX Options are basically a combination of real option trading and forex trading.
Why is it better than binary options ?
- there is not anymore “0 or 1” OR “earn something or loose all” principle – meaning even in case you dont guess the trade right, you will not lose the whole amount you put at stake !
- earning potential in case your assumption was right is unlimited
- if you think the currency pair will go up in specified time frame then you do CALL OPTION and vice versa use PUT OPTION for declining market price
- you will not lose more than you put at stake
Currently (beginning of 2020) there are totally 12 different cryptocurrencies that you can trade on IQ OPTION platform:
- Bitcoin / Bitcoin CASH
- ETHEREUM Classic
We think they will add more and more cryptos over time, as new ones become popular. So far we think this choice is wide enough.
As the only commodity currently available, the precious metal gold can also be traded as a binary option.
6. Equities and Stock Indices
At the moment there are 49 Stocks available for trading.
Nowadays traders have up to 79 different asset classes available from commodities, forex, indices and stocks. The only commodity currently available is only GOLD and the stock indices are only six, the choice of stocks is much wider than the other two categories.
Stock indices are focused on London stock exchange index (FTSE 100), Frankfurt (DAX 30), Paris (CAC40) and New York (S&P500 / NASDAQ / Dow Jones). Besides many European and American stock titles, some Asian shares such as Toyota and Bank of China are available for trading. Overall we can say that the emphasis is put on stocks from banking and financial services, energy, the internet and telecom industry with which you can speculate.
You can trade via mobile Apps, webtrader or standalone platform.
Unfortunately, there are currently NO bonuses offered!
IQ Option Europe Ltd. is registered at Cyprus, and is regulated by CySEC. IQ Option Ltd. is registered at Seychelles, this entity is not regulated.
How fund to your account
In addition to the two credit card variants VISA and MasterCard, IQ Option investors also have the option of using a number of internet payment services for deposits and withdrawals. The list of available providers includes Skrill, Neteller, Webmoney, and of course WireTransfer. These services handle payments very reliably. However, no detailed information is available on the fees charged when using IQ Option service for payment services. It is therefore advisable to contact customer service on this matter in order to clarify this. Because even the general terms and conditions help in this case only conditionally, as these currently, like many other contents, are only available in English. Here, from the customer’s point of view, there is still room for improvement. Incidentally, the minimum deposit that IQ Option requires from customers is relatively modest at just $10.
IQ OPTION demo
There is, of course, a demo account where you can practice your trading strategies without any risk using $10.000 virtual money. You can trade all types of assets completely stress free.
Quality of customer support
The conclusion of IQ OPTION review
“During this test we noticed that IQ OPTION platform and OVERALL services THEY OFFER are a step ahead compared to the competition! No wonder that they survived the big cleanup in binary options industry and now start to take their share in forex trading industry.”
Let us explain you why.
First of all, during our test, we noticed, that this brand puts really strong emphasis on trader’s education + on the quality and constant improvement of their trading software and last but not the least on the security of client’s funds.
Secondly, according to what we noticed, the client verification process is in line with the strictest regulation rules. In other words, IQ OPTION is one of few brokers out of all forex brokers that we tested, where you as a trader have the feeling that they want you to trade profitably and stay with them for long term, instead of just taking your money and run away (which is usually the case with many other brokers in this industry). That’s indeed a good signal for a new trader!
Last but not the least .. we think they have really knowledgeable customer support.
Similar as competition, IQ OPTION is available by phone, email, and live chat. In addition, there is also a mailing contact (a little old-fashioned but you never know when you will need it). Upon calling for customer service, a responsible client support person will either immediately pick up the line and and try to resolve your issue right away OR the system will create a so called “Problem Ticket Nbr.” where you report a problem, and employees will call you back later. This is a nice service to have, because it could perhaps save you a lot of money on your phone bills.
Broker contact details:
|IQOPTION EUROPE LTD|
|Yiannis Nicolaides Business Center, Agiou Athanasiou Avenue 33, 4102, Agios Athanasios, Limassol, Cyprus|
|Phone||+357 25 262 010|
|LiveChat||Yes for clients|
Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. 76% of retail investor accounts lose money when trading CFDs with this provider. As a result, CFDs may not be suitable for all investors because it is possible to lose all of your invested capital.
Great info. Lucky me I found your website by chance (stumbleupon).
Binary Options Brokers and Platforms – Reviews and Comparison
We have compared the best regulated binary options brokers and platforms in April 2020 and created this top list. Every broker and platform has been personally reviewed by us to help you find the best binary options platform for both beginners and experts. The sortable broker comparison list below shows which binary trading sites came out on top based on different criteria.
You can sort the list using payout (maximum returns), minimum deposit, bonus offers or if the operator is regulated or not. You can also read full reviews of each broker, helping you make the best choice. Below the comparison list is some advice on how to pick the best trading platform for you, as this will often come down to your personal requirements and needs.
Top Brokers in Russia
|Spectre||$10 (ETH)||Up to 200%*||» Visit|
|OptionField||$5||93%||Pro Account Discount and 10% Cashback||» Visit|
|Nadex Exchange||$250||100%||» Visit|
|RaceOption||$250||90%||100% Deposit match bonus||» Visit|
How to Compare Brokers and Platforms
In order to trade binary options, you need to engage the services of a binary options broker that accepts clients from Russia. Here at binaryoptions.net we have provided a list with all the best comparison factors that will help you select which trading broker to open an account with. We have also looked at our most popular or frequently asked questions, and have noted that these are important factors when traders are comparing different brokers:
- What is the Minimum Deposit? (These range from $5 or $10 up to $250)
- Are they regulated or licensed, and with which regulator?
- Can I open a Demo Account?
- Is there a signals service, and is it free?
- Can I trade on my mobile phone and is there a mobile app?
- Is there a Bonus available for new trader accounts? What are the Terms and
- Who has the best binary trading platform? Do you need high detail charts with technical analysis indicators?
- Which broker has the best asset lists? Do they offer forex, cryptocurrency, commodities, indices and stocks – and how many of each?
- Which broker has the largest range of expiry times (30 seconds, 60 seconds, end of day, long term etc?)
- How much is the minimum trade size or amount?
- What types of options are available? (Touch, Ladder, Boundary, Pairs etc)
- Additional Tools – Like Early closure or Metatrader 4 (Mt4) plugin or integration
- Do they operate a Robot or offer automated trading software?
- What is the Customer Support like? Do they offer telephone, email and live chat support – and in which countries? Do they list direct contact details?
- Who has the best payouts or maximum returns? Check the markets you will trade.
We cover as many of these comparison factors as possible in our list above, but we go into much more depth within each review.
Regulated Binary Brokers
Regulation and licensing is a key factor when judging the best broker. Unregulated brokers are not always scams, or untrustworthy, but it does mean a trader must do more ‘due diligence’ before trading with them. A regulated broker is the safest option.
|Binary.com||Malta GA||BO, CFD|
|IQ Option||CySEC||BO, CFD, Crypto, Forex|
|BDSwiss||CySec||BO, CFD, Crypto, Forex|
|24Option||CySEC||BO, CFD, Crypto, Forex|
|Nadex Exchange||CFTC||BO, Forex|
Leading regulatory bodies include:
- CySec – The Cyprus Securities and Exchange Commission (Cyprus and the EU)
- FCA – Financial Conduct Authority (UK)
- CFTC – Commodity Futures Trading Commission (US)
- FSB – Financial Services Board (South Africa)
- ASIC – Australia Securities and Investment Commission
There are other regulators in addition to the above, and in some cases, brokers will be regulated by more than one organisation. This is becoming more common in Europe where binary options are coming under increased scrutiny. Reputable, premier brands will have regulation of some sort.
Regulation is there to protect traders, to ensure their money is correctly held and to give them a path to take in the event of a dispute. It should therefore be an important consideration when choosing a trading partner.
Both sign up bonuses and demo accounts are used to attract new clients. Bonuses are often a deposit match, a one-off payment or risk free trade . Whatever the form of bonus, there are terms and conditions that need to be read.
It is worth taking the time to understand those terms before signing up or clicking accept on a bonus offer. If the terms are not to your liking then the bonus loses any attraction and that broker may not be the best choice. Some bonus terms tie in your initial deposit too. It is worth reading T&Cs before agreeing to any bonus, and worth noting that many brokers will give you the option to ‘opt out’ of taking a bonus.
Using a bonus effectively is harder than it sounds. If considering taking up one of these offers, think about whether, and how, it might affect your trading. One common issue is that turnover requirements within the terms, often cause traders to ‘over trade’. If the bonus does not suit you, turn it down.
Binary options demo accounts are the best way to try both binary options trading, and specific brokers’ software and platforms – without needing to risk any money.
You can get demo accounts at more than one broker, try them out and only deposit real money at the one you find best. It can also be useful to have accounts at more than one broker. For example, payouts for two different assets might be best at different brokers. You can shop around, and use whichever account has the best payout for that asset.
Demo accounts offer the best way to try out a brand, risk free. Likewise if we recommend a brand, you can try it first, before risking anything.
Low Minimum Deposits
If you are looking to get involved with binary options for the first time, low minimum deposit requirements may be of interest. For traders just looking to try binary options, a low minimum deposit broker might be best. A small initial deposit keeps risks low. Minimum deposits start at just $5 and there are a growing number of brokers offering low minimum deposits – “low” would be any minimum under $50.
Likewise, all brokers will have a minimum trade requirement or trade amount too. These can vary greatly between platforms. Minimum trade figures range from $1 to $25 – which is a large difference if a trader plans to trade frequently. For some traders, this might be less of a factor in terms of finding the best broker for them, but for others it will be very important. Practice accounts are a zero risk way of learning to trade.
One element many traders use to find the best binary options trading account, is the payout percentage on offer. This is not always a simple comparison however. Payouts will change based on the underlying asset being traded, and the expiry time of the option. In addition, payouts will change as the broker manages their own risk. So if one broker was originally the best price, things may then revert and mean that another now has the top payout.
So the most an investor can do, is to check the payouts for assets, and expiry times they are most likely to make, and judge which brand offers the best terms most often. Demo accounts are good when researching payouts on specific assets and trades.
Exchange traded and over the counter brokers will have different payouts – and they will not be easy to compare. In general, exchange traded options offer superior value. Nadex are one example of an exchange.
So as you can see, finding the best trading account and broker is not always easy – but it is worth noting that you are free to move between brokers whenever you like. So even if an account turns out to be poor, it is easy to up sticks and find a new trading firm. Likewise, a trader could have multiple accounts, and open trades at the broker with the best terms for that particular trade.
Which is the Best Binary Trading Platform?
Naming the best trading platform is not easy, simply because trading platforms and proprietary (bespoke) software are normally a question of personal taste. One user might like a simple layout, while others might need a lot of data on screen all the time.
However, platforms do have different levels of quality, both in terms of ease of use, and features. Broadly speaking, brands which offer Contracts for Difference (CFDs) in addition to binary options, deliver a more feature-rich trading platform or advanced software.
So the likes of Nadex and IQ, will deliver a very professional trading platform. MetaTrader integration is also normally provided at the more professional brokers (Some use both mt4 and mt5 functionality) . This difference in quality is evidence of the maturity of binary options as a product, but binary brands will catch up very quickly.
Intro To The IQ Option Platform
How do Brokers Make Money?
Binary options brokers make money via one of two business models:
- As a counter-party, ensuring an ‘over round’ via payout percentages. Known as ‘Over the counter’ (OTC)
- Via a spread or commission on an exchange traded model
People who have experience of other forms of trading, and are now approaching over-the-counter (OTC) brokers for the first time may find themselves asking the question: “Where is the commission?”.
With OTC binaries however, there is no commission. In theory, the term ‘brokers’, is not correct. Binary firms are not arranging a deal or acting as a middleman, or as a market maker; What they are, is the counter-party to each of their customers’ positions. So there is no fee or commission for the trade. Instead, each customer is essentially betting against the house. Where brokers have both sides of a trade covered, they have a handsome margin. Where they do not, the payout still gives them a level of protection. In certain circumstances, the broker will also hedge it’s own position to mitigate risk.
Those companies (Nadex, for instance) that trade binary options via an exchange operate much more like a ‘broker’. Unlike the OTC market where the platform is the counter party, with exchange traded options, the broker is the middleman – matching buyers with sellers and charging a commission. This charge is normally hidden within the spread, rather than an explicit cost. There is far less risk involved for the broker, and therefore generally better returns per trade for the trader. Brokers can be actively compared using the spread – the tighter the spread (difference between buy and sell prices) the cheaper it is to trade.
Brokers using the spread model often also offer leverage, or trading on ‘margin’ via their software. This increases the trade size for the trader – and profit for the platform.
Should You Use Multiple Brokers?
There are some very good arguments for having more than one binary trading account:
- Brokers suit certain trades. Different brokers will suit different trading styles, or trade types. So one broker might be excellent for shorter term trade types, and have great payouts on forex pairs. But that same brand may be slightly less good when it comes to offering boundary trades or indices payouts. If a rival had a full set of long term expiries with great payouts, and lots of choice of boundary trades – it makes sense to have accounts with both platforms, and place trades with the broker that offered the best deal for each trade.
- Demo accounts. Multiple demo accounts makes perfect sense – you want to try as many brokers and trading platforms as possible before deciding where to trade.
- Reduce risk. Accounts at more than one broker protects you from any issues with a particular firm. From issues as serious as insolvency, to smaller things, like website downtime, software issues or a market being closed – multiple accounts reduces your risk of being affected by any hardship a broker might face.
- Multiple offers. Each sign up can mean a new bonus, so it might be worthwhile taking up more than one account to receive all the offers. As ever, read the terms – and also note that on occasion, larger deposits might mean larger bonuses – so splitting them may not be the best choice.
- Spread winnings. Some brokers may look for winning traders on their books, with a view to restricting their trading, perhaps limiting trade size – or worse. While this threat is thankfully small, multiple accounts means spreading the winnings out. Most brokers will search for “winners” based on total profit rather than strike rate, so hiding the volume across broker accounts can help you stay below their radar.
Exchange versus OTC (Over the Counter) Brokers
A broker that offers an exchange is much closer to a traditional ‘broker’ than OTC brokers. An exchange performs the job of ‘middleman’. They will match a seller of an asset, with a buyer of the same asset, and charge a commission for putting the deal together. The market itself will decide the prices – if there are more sellers than buyers, the price will drift down until demand rises. If there are more buyers than those willing to sell, the option price will rise.
A broker operating an exchange does not mind who wins and who loses. They take no risk on the trade themselves (unless the traders are trading on credit). The broker will make their commission on the trade regardless of the outcome.
Due to this reduced risk for the broker, the returns for a winning trader are generally larger. Commissions are usually small relative to the size of the trade, meaning they do not impact the payout too much. Other benefits include the fact that stop losses can be applied, and also that trades can be closed at any time (to take a profit or reduce losses).
The complications with exchanges, comes from the structure. An exchange traded binary option will “trade” somewhere between 0 and 100. Where 0 is the figure used where an event did not occur, and 100 where it did. If the current price is currently 30, a ‘buyer’ would risk 30 times his trade size, to potentially win 70. A ‘seller’ therefore, would risk 70 to win 30. While not a complicated equation, it is slightly more complex than the straight forward over the counter option.
OTC (Over The Counter) Brokers
The most common type is the Over the counter (OTC) broker, but this type of firm is not really a ‘broker’ at all strictly speaking. They are the counter-party to one side of the trade. So where a trader opens a position, the broker will win or lose money, based on whether the trade wins or loses. Only where the broker has another trader who has made the exact opposite trade, will they have assured profits.
Due to this increased risk, the brokers will offer a lower payout which mitigates some of the risk they are taking. It is therefore likely to be lower than an exchange traded broker. Some firms will also have built in ‘hedging’ mechanisms to reduce risk further. In some cases, one side of trade might be made unavailable if liabilities get too large.
The simplicity of binary options is retained with OTC brokers. They have also made great strides in competing with exchanges by offering ‘cash out’ values for options, allowing traders to close positions early, and set up stop losses. Once those features become common the gap between OTC and exchanges will get smaller. For now, traders are better off trading on an exchange – but might be advised to learn the differences via demo account.
Have you had a problem with your broker? Submit a complaint
Deposit and withdrawal options do vary at each brokerage. Each of our reviews will explain which each firm offer, but below is a list of the most common options.
If you are looking for brokers that support a specific payment method:
- Wire Transfer
- Credit cards / Debit cards
All of the factors covered above will ultimately affect the way a trader plays the market, and therefore, their profitability. The ideal situation is to get a binary broker that offers:
- Several financial assets spread across several markets
- Offers a reasonable bonus with a good payout approaching 90%
- Offers flexible expiration dates without boxing traders into very long expirations.
Trading using a broker’s platform will only be enjoyable, and profitable, if you are using a reputable operator. You also need to choose one that suits your trading style best – only you will know what that is. Read the above binary broker reviews carefully before making that crucial trading decision, but remember you are not tied in to any single broker, and can pick and choose.
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