Trading binary options has become popular in the US ever since 2008. In 2008, the SEC approved trading binary options in the United States. Since then, we have had tons of brokers that claim to be the best. Before you grab any broker, I will teach you what to look for before you do it. There are so many elements to being a good broker, so please stick with me.
A broker would give you a trading platform that belongs to him. This platform is the middleman between “you” and the “exchange.” Knowing this, you should always compare brokers based on only the services they offer you. No more. No less. Along with that, there are some other criteria you check to get an all-around decision.
Some brokers allow you to trade everything, while others limit your trading options. Of course, your options will be limited if you choose the wrong broker. Brokers offer many types of trading; boundary, ladder, touch, pairs, and more.
So brokers have different trading costs, bonuses, environments, and payouts. Compare all these before you choose your trade.
Some shady traders do NOT provide flexible expirations. Instead, they will get you stuck in a deal with long expiration dates. Just Beware!
Look at the minimum deposit brokers allow. It can range anywhere from five dollars to two hundred fifty dollars.
Check if the broker allows a demo account facility for testing.
Make sure your broker has customer support. Some don’t have any, and others have 24 Hr instant support.
Check if these brokers are regulated. If they are, research the authority.
The best scenario is this. You would get a secure trading platform, numerous bonuses, and a 90% payout rate. Along with that, make sure your broker has good flexibility for trade expiration.
As I said, the broker is the middleman. So, how do they make money? Firstly, they get a margin of an OTC trade by simply being a counterparty. The margin is significant mainly because both sides are hedged. The broker does have protection in case he wouldn’t get enough margin. Secondly, they make money from being the middleman. They charge a commission for matching the buyers and sellers. The commission is an amount inside the transaction. The tighter spread in buy and sell prices makes your trading cheaper.
There are so many brokers in the market, and they all have different features.
Some brokers are only good at short-term trades, while others excel at boundary trades. In this case, you would want two accounts to benefit from both.
You might open lots of demo accounts with different brokers to get experience. People do this to train before they get into the real trading world.
Having accounts with multiple is the same as having your eggs in different baskets. If one loses money, you have it diversified enough.
You would get various signup bonuses from opening accounts with multiple traders. In other cases, large deposits will give you rewards. So if you are depositing large amounts to get a bonus, having multiple accounts may not be for you.
You NEED to assess a lot of factors before choosing a broker. Some of them are listed below.
Choose based on the financial you want to trade. Some brokers may not offer the one you are interested in trading.
Brokers will take a fee from your payout. Usually, this is around 10-15%. So make sure you choose one that will maximize your profits.
Brokers sometimes set outlandish minimum deposits. Just get one that offers a reasonable minimum.
Ensure that trader allows demo accounts. It is a testing facility for you to practice trading.
Lots of countries regulate their brokers. So make sure the broker you choose is up to snuff. I would hate for you to get legal complications.
Brokers offer many different methods of payouts. Be sure the payout options are secure: and you are comfortable with them.
We live in an instant. Confirm that the broker you choose allows instant payouts. It will be so much better in the long run.
We are all busy and can’t always use our laptops for trading. Make sure the platform you choose has an IOS and Android app.
There are a lot of restrictions on the financial market. The regulatory bodies from other countries make these rules. They regulate the brokers and help protect us as traders. They can legally provide help if you have a dispute with a trader. Some of the regulatory bodies are:
Australian Securities and Investments Commission in Australia (ASIC)
Commodity Futures Trading Commission in the United States (CFTC)
Financial Conduct Authority in the UK (FCA)
The Cyprus Securities and Exchange Commission in Cyprus and the EU (CySec)
Financial Services Board in South Africa (FSB)
I would recommend getting a regulated broker. They are more reliable, and they can ensure your protection.
You should ensure the broker does what it “says” and has reviews. A lot of brokers are scammers and take your money. When you spot a reliable, use it. These factors can help spot a reliable one.
A Regulatory Authority
Free Demo Account
Reasonable Minimum Deposit
No Hidden Fees
Now that you know what is in a good broker, we will compare the top ones for you. You will see the details and features of each broker in this list.
Gembell Limited manages the pocket Option broker. It started its operations in 2017 and has its registration in the Marshall Islands.
The platform is safe and secure
Many assets to trade (100+)
Demo Account allowed
Deposit bonuses for new traders
24/7 support year-round
Zero deposit and withdrawal fees
IQ is an older and more experienced option. This company started in 2012.
Free demo account
500+ trading instruments
24/7 fast support
$10 minimum deposit; $1 minimum trade
A trustworthy and reliable option
Cypriot Finacial Holding owns and manages Quotex. Cypriot is a certificate authorized by the Center for Regulation of Financial Markets Relation (CROFR). The company itself resides in Seychelles. Quotex offers advanced trading indicators and plenty of trading assets
Secure and safe. No data leaks
Lots of technical indicators. Advanced universal platform
Easy to use. Quick and fast
24/7 support with multiple languages
Binomo, being very client-focused, makes it a popular choice. Binomo was founded in 2014 and has tons of trading tools. These tools make for winning trades and quality investments
More than 70 assets to trade
Different trade options: Binary, Pair, Long Term, Touch, and 60 Seconds
Up to 110% deposit bonus
Free demo trading account
SpotOption platform: Easy to use, Client-friendly
Smartex International owns Olymp trade. They are based in Russia and started the platform in 2014.
Olymp Trade is a convenient trading platform
100% sign up trade bonus
Demo Accounts allowed
Broker (Olymp) keeps funds in a European Bank
Expert registered in the United Kingdom since 2015.
Russian Federation Certified
Minimum deposit: $10
The downside to Expert is the limited trading options.
Binarium was founded in 2012 as the best platform for multilingual traders.
Enhanced trading platform
Learning and training material
Great trading assets
Minimum deposit and transaction insurance
FinRally focuses on data protection. They are international and use enhanced technology. Features:
Cent Project Ltd. owns Binarycent. Features:
Race projects own the Race Option platform.
Many withdraw methods
24/7 customer support
Nadex belongs to the IG Group in London. Features:
This broker has a robotic trading system. They launched in 2017. Features:
Spectre allows traders to open purses on resources and contracts to regulate transactions. Features:
currency pairs and crypto
This broker is browser-based, which makes it very easy to use. Features:
Metals & raw materials.
Equities & options
LCG has its shares on the London stock exchange. They have 20 years of experience and are trusted. Features:
Bonds, ETFs, CFD
Ally started in 2016. Features:
This broker has 40 years of experience in this industry. Features:
$ 600 for advertising
This broker was started in the 70s. Features:
Bonds, CFDs,futures,stocks, etc.
E-Trade has been going since 1996 with efficient hardware. Features:
This broker originates in Russia but claims the UK.
This broker started in 2016. Features:
This broker started in 1971. Features:
Stocks, Recious metals
Saxo is a well-known bank from Denmark. Features:
Bonds, CFDs, etc.
OptionClub started in 2013. Features:
stocks, raw materials,
binary options, etc.
This broker is based in Georgia. Features:
Easy Option will make you money from Binary and crypto. Features:
This broker was the first to give binary services in Kyrgystan. Features:
They use the EtherZero blockchain for exchange and practical work. Features:
The financial guarantor is a cryptomonetEtherZero. The change in resource value within a specific time interval can give the trader a decent payoff.
*General Risk Warning: Your capital might be at risk
Do your research on the best one for your scenarFirst, makeMake sure you know all the requirements, caveats, and features of each one you consider. Then, after you have evaluated everything, choose the one you think fits you well.