How do Binary Options Brokers Make Money

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect For Beginners!
    Free Trading Education!
    Free Demo Account!
    Sign-up Bonus:

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

Is It Possible to Make Millions While Trading Binary Options?

How much money can you make trading binary options? The ultimate goal for anyone getting involved in trading binary options is to make profits. The most obvious question for any beginner is, does trading binary options really make money? If it can, how much money can you make off trading in binary options? We will explore various dynamics in a bid to find answers to these questions. Binary options trading needs to be looked at objectively when trying to judge whether you can make money from it. They are a lot of myths and misconceptions going around about binary options.

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Is It Possible to Make Millions While Trading Binary Options?

Instead of talking about whether you can make millions off binary options trading, let’s explore the probability of making millions trading in binary options. First, the binary options traders you trade with making money through your losses. That aspect screams louder than anything else that the probability of making millions trading in binary options is almost zero. There are a lot of unverifiable stories of binary options millionaire. Those could be binary options brokers advertising they sited though.

That’s the probability though. There is still a possibility that you could make millions though. Hypothetically it is possible to make millions in binary trading. This is also under the caveat that your trading works out all the time. Unfortunately, the chances of any strategy working out consistently enough to make you a binary option trader millionaire are pretty slim.

The maximum amount you can trade in binary options differs from broker to broker. At most, it goes up to $2000. To get to a six-figure, you would have to win your trades for quite a while consistently. While that may be hypothetically possible, you and I know its realistically impossible. Also, if you take a look at the statistics depicting the earnings of traders on various platforms, the thought of making millions trading in binary options becomes far-fetched.

For instance, one of the binary options brokers records average earnings per trader of $1217 per month. It would take over 800 months, or 68 years to make a million. The energy and skills invested could be more useful somewhere else as far as making a million is concerned. Keep in mind it is difficult to profit from binary options trading if you don’t have skills. The systems are set against anyone treating it as gambling. Anyone making over $1000 trading in binary options, must have good analytical skills.

No matter how enticing and caring the brokerage firms seem, they are also there to make money. They make money when you lose. It is, therefore in the best interest that you lose. If everyone on the platform was winning, they certainly close down. They are operational because a big number of the traders on the platform are losing.

Having said all that, that does not mean you cannot make any money trading binary options. There are professional binary options traders who make decent money. You got to have the right strategy though. You are doomed to fail if you treat it like gambling.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect For Beginners!
    Free Trading Education!
    Free Demo Account!
    Sign-up Bonus:

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

So, how much money can you make with binary options? Let’s find out!

How much money can you make trading binary options?

It is estimated that only 5% of the people who engage in binary options trading profit from it. That seems like a small percentage. It is still a considerable number of people, considering we are talking about people from all over the world. So, if you were lucky or skilled enough to be among the 5% what’s the maximum amount would you make from it?

To get a better picture, let’s consider two real binary options brokers.

My Recommended Brokers

Broker Min Deposit ($) Min Stake ($) Max Payout (%)
IQ Option 10 1 95 1st Choice
ExpertOption 50 1 95 2nd Choice
Olymp Trade 10 1 92 3rd Choice

IQ Option

IQ Option is arguably the largest binary options broker today. It boasts of over 25 million subscribers. The Seychelles-based broker is licensed and regulated by Cysec. The minimum deposit on IQ Option is $10 and the minimum investment is $1.

The large number of people, is because of the low entry threshold, and the low investment amount. IQ Option is one of the binary options brokers that many people believe they can profit from. Unfortunately, many of the traders on IQ Option trade with small amounts. It is going to be difficult to rack up winnings from $1 investments , until they reach one million.

Raceoption

Raceoption is currently recording trader earnings of $1.9 million in a month and has 1570 traders on the platform. That’s average trader earnings of $1217 a month. Well, a majority of the traders are losing (that’s what we have established).

Let’s say 10% of the people on the platform are winning more than they are losing. That would be 157 people winning. If the total trader earnings are $1.9 million, then the average trader earning per month for those winning would be a little over $12000. That impressive! Of course, the figures could be higher or lower depending on how much people are actually winning, and the spread.

Binarymate

Binary mate claims to be recording a little over $3 million in trader earnings, while it has a little over 5000 traders on the platform. That’s an average of $600 per trader per month. Let’s take the global percentage of people profiting from binary options trading, in this case, the 5%, since it has more subscribers than raceoption. If only 5% of the traders on Binarymate are actually winning, that is 250 people. The average earning for them would roughly be $12000. Quite similar to Raceoption above. You expect the exact figures for each of the traders to be different depending on the spread.

The figures above indicate that you could be making anything between a few dollars and tens of thousands of dollars depending on your winning rate. Actual statistics show that the highest earners on the binary options brokers’ platforms earn somewhere between $3000 and $5000. More people than the 10 or 5 percent could be winning making the actual figures more spread out. Therefore, it is certainly possible to make decent money from binary options trading.

As already mentioned, the high earnings take practice, discipline, high-energy and skill. Without these, your best bet is probably a few hundred. You probably lose for quite a while before you get to the high earnings. Keep in mind that it doesn’t make sense that the binary options brokers should help you win when they earn when you lose. Regardless of how legitimate they are, you will probably always lose if you depend on their advice alone. That does not mean you cannot win. If you are smart, persistent and patient enough, you won’t have to lose a lot, and you’ll probably get into the winning bracket with time. Hope you are better informed. Happy trading!

How Does IQ Option Make Money?

IQ Option No. 1 Software

Millions of traders will not trust their investment using the IQ Option platform if they are not making money through it. But in this article, we want to turn the question on its head–how does the binary options broker actually make money?

One of the areas where IQ Option has become a popular choice is in binary options trading. As of the latest figures, over 17 million trader accounts have been processed and managed by IQ Option since its launch in 2020. Its rapid growth in just a few years has been attributed to the company’s transparent dealings. Knowing how it earns only adds more transparency to it.

While we’re at it, we will show how the chances of better returns are realized through IQ Option and why it has become one of the leading binary options brokers today. But first, we’ll take a look at what binary options trading is all about.

How does IQ Option make money?

Binary option is a financial instrument that allows you to invest by predicting the price movement of various assets such as commodities (gold, silver, oil), indices (stocks), currencies, and others that are freely traded in the world market and national exchanges. They are also called all-or-nothing options or the more commonly used “high/low” because you only have two options to chose from – either the asset price goes up or down during a specified period.

If you make the wrong prediction, you lose all the money that you invested. If you make the right trade, you get your payout – investment, plus other bonuses and extras as offered by the brokerage company. The mechanism is not quite different from other forms of investment, like stock trading or forex. The distinction is that binary options trading is simpler (made possible by easy to use online trading platforms like IQ Option), can give larger payouts, and has basically black-and-white risks. Furthermore, its straightforward approach means you can confidently trade using online services through apps or websites.

While many financial analysts and brokers themselves will advise you beforehand that trading in binary options may not be suitable for all investors, binary options is generally considered legal, albeit, subjected to regulations, as are other financial instruments.

All high-risk financial undertakings, such as binary options, carry the reminder that “You should never invest money that you cannot afford to lose.” The risk, however, is mitigated because you can have ample time to study price movements through historical charts and other features provided by binary options brokers such as IQ Option to help you analyze and predict movements, increasing your chances of making the right trade.

While luck will play out in almost anything you do in life, in binary options, you get a better chance of making money because you have precedents in how assets move in the markets which you can study. Nasdaq defines binary option as: “possessing all the characteristics of a financial instrument that can be used to realize investment goals.” While it may take time to learn its ins-and-outs, you need to learn the answer to the most important question first: how do binary options service providers make money?

1. How Does IQ Option Earn Through Binary Options?

Binary options are very much different from the stock or forex markets. Brokers are obviously making money on binary options, but how do they exactly do that?

Brokers such as IQ Option make money in several ways. Liquidity providers typically provide pricing structures that are slightly marked up compared to market prices. When you pay closer attention to asset prices on trading platforms, along with the potential payout, you will notice that these are not calculated according to the true percentage payout. Binary options brokers retain a portion of the latter, which serves as their commission and earnings.

Of course, the majority of broker earnings come from trading activities. Consider a simple scenario below:

Let’s suppose that IQ Option has 200 clients. Now, 100 of those clients bet 100 USD each that the GBP/USD will go up during the hour. On the other hand, the other 100 bets 100 USD each that GBP/USD will go down within the hour. Now, the total market pool of all clients is 20,000 USD. Let’s assume that the expected payout ratio is 80%, according to the trading platform.

After the hour, let’s say GBP/USD ended up. That means those who bet that GBP/USD will rise will receive 180 USD each while those who bet otherwise ended up with zero returns. Thus, the total payout is 18,000 USD. IQ Option now earns the 2,000 USD balance from the trade.

While the example above is simplistic and ideal, it shows how binary options brokers earn from trading. Imagine multiple trades during the day with many more clients. Brokers can easily end up with thousands of dollars in 24 hours!

2. IQ Option Corporate Profile

Industry experts are one in saying that IQ Option is one of the most transparent, reputable, and innovative binary options brokers around. They have a basis for saying that. Not counting the millions of traders that use IQ Option’s platform, let’s round-up some corporate facts and figures.

  1. Over a dozen awards and recognitions for its customer service and trading app/platform
  2. $11 billion average trading volume per month as of 2020
  3. $5.7 million average withdrawals by traders per month.
  4. 1 business day processing time for withdrawal requests
  5. 178 countries accepted and being serviced as of 2020
  6. More than 43,000 affiliates in 2020 from 4,000 plus in 2020
  7. Over $2 million in affiliates’ earnings per month

The company consists of two legal entities – IQ Option Europe Ltd. located in Cyprus and regulated by the Cyprus Securities and Exchange Commission (CySEC), and IQ Option Ltd., which is registered in Seychelles. The company is also listed in the registry of several European regulators such as the UK Financial Conduct Authority (FCA), the Italian Consob, the German Federal Financial Supervisory Authority (BaFin), and the Spanish CNMV, among others.

IQ Option

Try out IQ Option with their free trial

What does being registered with a number of regulators mean? For traders, the big advantage of this is that it’s easier to lodge any complaints if issues arise with the broker. For IQ Option, those are plus points for transparency, legitimacy, and reputation. Going back to the question – how does IQ option make money? User trust is key.

If ever there was a gold standard in binary options trading services, IQ Option easily has the attributes to be considered as such. It boasts of the following:

  1. Award-winning online trading platform/app
  2. Dependable customer support team
  3. Fast same day withdrawals
  4. Free demo trading account
  5. Small minimum investment and deposit
  6. Great payouts
  7. Top-notch trading conditions

Started only in 2020, IQ Option’s phenomenal growth and achievements in the industry despite being relatively young is a testament to its strict adherence to policies and regulations set down by government authorities, efficient company management, genuine dealings with customers and partners, and it’s leveraging of technologies to come up with innovative trading platform and features.

3. IQ Option Trading Features

Before you trade and earn with IQ Options, you must first know the tools, components, and features offered that you’ll be using. Here are the essentials:

  1. Online trading platform : IQ Option has its own in-house HTML5 trading platform developed by IT and financial specialists with advanced analytics tools to facilitate trading for both beginners and long-time traders. It allows for viewing of multiple charts, undertaking historical and technical analysis, and doing full-featured demo trading. The platform has won industry awards and accolades for its modern, intuitive, and responsive design and features. It supports various operating systems and can be run on Windows, Mac OS X, and even Ubuntu. Also available are native mobile trading apps for iPhone and Android for enabling trading on the go.
  2. Types of binary options: IQ Option offers two ways to trade – regular options and turbo options. The first is binary options contracts with expiry times of 3 min, 5 min, 15 min, 30 min, hourly, and even up to the end of the month. The second one involves options with 30-sec and 120-sec periods.
  3. Available assets: IQ Option gives you more than 500 assets to trade in – currencies, stocks, and commodities. Currency pairs include EUR/USD, USD/JPY, GBP/JPY, EUR/GBP, AUD/CAD, EUR/JPY, USD/RUB, NZD/USD, AUD/USD, USD/CHF, USD/CAD, GBP/AUD, GBP/CAD, AUD/JPY, EUR/CAD, CHF/JPY, USD/NOK, EUR/NZD, and CAD/CHF. Among the stocks you can trade in are those of Facebook, Twitter, AIG, Baidu, Google, Ferrari, Gazprom, JP Morgan, Lufthansa, Intel, Goldman Sachs, Hang Seng, McDonalds, Nike, Apple, Amazon, Alibaba, CitiGroup, BMW, Cisco, DAX30, Dow Jones, Commerz Bank, CocaCola, Deutsche Bank, Daimler, General Motors, Vodafone, and others. You can also trade in a dozen cryptocurrencies. The only commodity available for trading is gold.
  4. Payouts: These would depend on the assets being traded and the expiry term you choose. But generally, medium and long-term options pay more than the short-term options. The big edge with IQ Option is that payout can reach up to 90% on successful trade with no commissions or fees charged by the broker when opening or closing trades.
  5. Investment amount: You just deposit $10 in your standard account (using leading credit cards, wire transfer, or online payment gateways) and start live trading at a minimum of $1 or a maximum investment of $1,000. There is the option for a VIP account, which requires an initial deposit of $3,000.
  6. Withdrawals: You can withdraw as soon as you make your first profit. The withdrawal process is quite easy and does not entail complicated steps with various methods available. They can be facilitated through credit cards, payment gateways, or e-wallet. Minimum withdrawal is $2, while the maximum is $1 million. Withdrawal requests are processed within 24 hours, but the length of time for you to get your payment varies (for e-wallet around one day and banks about 7-9 days).

4. Investing and Earning Through IQ Option

Now comes the exciting part. One of the most common queries when it comes to binary options are variations of this – “do people really make money with binary options trading?” The answer is yes, and IQ Option is there to help you realize that with lesser risks and more chances of success.

Bear in mind, though, that how you earn through binary options trading rest entirely on your good judgment and preparation, things that IQ Option thought out to help you through its services, offerings, and features. We’ll go through some of them.

  1. Use the free demo account. You do not dive right into something without first knowing about it, especially if you are a first-timer. IQ Option’s free demo account lets you get the hang of things; hence, it would do you well to familiarize yourself with the trading platform, which is designed to be user-friendly. Through the online platform, you can set out trading strategies and plan your trade so that you’ll be ready come real trading time.
  2. Go through the historical quotes. IP Option provides historical currency trading and financial instruments’ quotes, which contain information on the exchange rates of currency pairs and other financial instruments over various periods. You view previous figures and rates and how they settled in the market and use them to test out strategies as well as do technical analysis.
  3. Scour their knowledge base. Still, to get you prepared, the IQ Option website provides pages for video tutorials detailing trading techniques and how to use the platform, comprehensive FAQs, and insights from financial analysts and trading experts. All are meant to equip you considerably even before you make your first trade.
  4. Be alert for market developments. Market volatility is a given, and any world-impacting events – conflicts, disasters, corporate takeovers, popular product launches, etc. – are sure to influence currency rates and share and stock prices. For example, the dates of product launches of Apple, Google, or Microsoft are known in advance, and their corporate stock prices usually pick up during or after the day of the product launch. You can take advantage of this window of opportunity to put in your trade – especially longer-term options, which pay more – knowing previous stock market patterns of such major events.
  5. Short term trades. While long-term trades pay more, shorter ones like IQ Option’s turbo options of 30- and 120-second expiry times can make you money much quicker. Having gained more experience with long-term trade, your next step is to trade for shorter terms. However, it’s riskier because, with short expiry periods, you won’t be able to depend on upcoming news events that can have an impact on asset prices. You can instead read the charts of various assets to again look for trends or use strategies such as the “Candlestick” or “Bollinger band” to help you find profitable trading opportunities for short term options.
  6. Trade prudently. In all your excitement, do not go for large investments hoping to strike it big on your first trade. Remember, this is not gambling, and having that bettor’s mindset will set you in for big losses and much bigger disappointment. It is wise to start with small, manageable amounts and, knowing price trends and trading patterns, go on sustained successful trades.
  7. Manage withdrawals. Just like in investing, also manage your withdrawals with smaller amounts. While with IQ Option, you can withdraw your winnings up to a million dollars, do not wait for it to reach staggering amounts before you decide to withdraw and have it transferred to your bank account. Experts suggest that you do frequent withdrawals/transfers of smaller amounts, which can easily be facilitated without raising red flags with your bank.
  8. Join their affiliate program. This is one way of earning without having to trade per se. All you have to do is invite potential traders and investors to use and join IQ Option and earn in the process. It is well-known in the industry that IQ Option has one of the most profitable affiliate programs.

Should You Go with IQ Option?

If you’re just about to try binary options trading as part of your investment portfolio, IQ Option is a highly recommended entry point. If you’re a seasoned trader, you know the many benefits that can be gained with IQ Option. Either way, making money with this broker gives you the means to manage risk, the knowledge to get you ready, and the opportunities to make the right trade, and eventually make money on your investment.

Every investment, especially ones like trading in an erratic market, brings with it certain risks. The levels of risk vary, and you’ll be advised in advance that the risk is high with binary options trading. Despite that, hordes of investors worldwide go for binary options because of the proven returns when trading is done properly with the right preparation, consistency, and mindset.

IQ Option will not promise you that you’ll win all the time in binary options using their platform, but you’ll soon realize that with IQ Option, the risk will be much more manageable and that profiting off your investment is very much a reality. The 17 million traders of IQ Option is proof of this. If you want to explore more investment platforms, you can check out the most popular binary options brokers in the market today, starting by comparing IQ Option with other top binary options brokers.

How to Make Money with Binary Options

Internet, now-a-days seems to be the most trending and easiest way to make money Online. Not only it helps people to generate passive income, it has also created thousands of millionaires who are living a lavishing life which a brick and mortar Businessman not able to achieve in the whole life. In the previous post I have published a beginners guide on What exactly are “Binary Options“. In the series of that, this article is solely created to help the traders(specifically newbie traders) to be successful in this and able to make money with Binary Options. But it’s a strong recommendation that you must read that article first, as it covers all the basics, and you will find very hard to understand this article without that.

What you need to understand very clearly?

1) You will not generate money always:

Almost everything in this World comes up with risk and Trading & Options just tops the list. Not every day will be the day you can say that “I have earned…”. Pitfalls will always be there. But what you need is to stick with it. You need to learn from your mistakes and with every trade you will gain experience that will spark you future.

2) Beginning may not always be a good time

“Start” is the thing everyone wants to be the best but only few of them are so lucky. And what mostly has seen in this industry is that new traders invest a particular amount, they trade 2-3 times, lose it and than quit. And this is the fear you have to overcome on. We all are somehow Beginners, and that’s why it’s our birth right to do mistakes. But this doesn’t mean that we should stop doing what we have started. This only means that we need to revise over selves. And the best advice i can give you is to seek guidance from Experienced Traders. Be in touch with them, ask questions, joins forums and learn.

3) The maximum amount to invest

I don’t have an advice to a professional trader as to what amount he/she should risk in Binary options. But what I have for starters is an exact module that will help you to gain enough and not loose your hope(P.S- if you follow it).

Suppose you have invested 100$ binary options with your brokers account. You are damn sure that a particular asset(say Gold) will increase till the end of the day. So you have entered all your amount in it and at the end of the day it’s price fall and you are empty handed.

What you need to do is to only spend 3%-5% of your invested amount. If you have invested 100$, than you will only trade for 3$-5$ in a particular asset. For 200$, you will only trade for 6$-10$ and so on. If you will continue to follow this model than it will give you an outcome you never have imagined.

What to do to Earn Right from the Start with Binary Options?

This will be 3 step guide that you need to follow as suggested Below

Understanding the Basics

If you have never invested any amount in trading before(be it a forex, stock or commodity), than you need to learn a lot to understand the most common terms. No doubt you will learn the most when you have practically played with it, but at-least you have an overview of what’s going on in the whole trading market.

Recognize the trend

Research, Research & Research. The whole mantra behind any successful trader. Whenever you are investing any money on a particular asset, analysis it deeply. See if there are future events that will surely have an impact on it(rise or fall). There is always one thing that all the professional traders and market analyst believes in i.e “monitoring of trends” . An asset will definitely have an impact in the direction of great financial powers like investment Funds and Banks.

What we need to focus is on the asset history. If the asset value is continuously increasing, than the chances that the asset will rise in the future are much more as compared to it’s decreasing value. And therefore you need to choose that asset and invest on it. The logic will be same in case of decline.

An example so that you can understand easily

Uptrend graph

The time frame of this graph is set for every 5 minutes

You can clearly see that the value of the asset is increasing continuously. And if you put a CALL to it than the probability of getting returns are much more as compared to the loss.

Downtrend graph

The time frame for this graph is set for every 5 minutes

Same is the case of this. If you take PUT option for this than you will definitely generate money.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect For Beginners!
    Free Trading Education!
    Free Demo Account!
    Sign-up Bonus:

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

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Best Binary Options Trading Guide For Beginners
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Broker Min Deposit ($) Min Stake ($) Max Payout (%)
IQ Option 10 1 95 1st Choice
ExpertOption 50 1 95 2nd Choice
Olymp Trade 10 1 92 3rd Choice