Trading binary options has been popular in the US ever since 2008 when the SEC approved the trading of such options in the United States. Since then, many brokers have claimed to be the best. Before you hire just any broker, I will teach you what to look for before you do so. There are so many elements to being a good broker, so study carefully what I have to say.
A broker lets you use 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 only on the services they offer you; nothing more, nothing less. Along with that, there are other criteria you must check to make an informed decision:
Some brokers allow you to trade everything, while others limit your trading options. So, your options will be limited if you choose the wrong broker. Brokers offer many types of trading; boundary, ladder, touch, pairs, and more.
Different brokers have different trading costs, bonuses, environments, and payouts. Compare all these before you choose your broker.
Some shady traders do NOT provide flexible expirations. Instead, they will get you stuck in deals with long expiration dates. Beware!
Look at the minimum deposit brokers allow. It can range from five dollars to two hundred and fifty dollars.
Check if the broker offers a demo account facility for testing.
Make sure your broker has customer support. Some don’t have any while others have 24-hour instant support.
Check if the brokers are regulated. If they are, research the regulatory authority.
The best scenario is this – you get a secure trading platform, numerous bonuses, and a 90% payout rate. You also want to be sure your broker is flexible on trade expirations.
As I said, the broker and his trading platform represent the middleman. So, how do brokers make money? Firstly, they get a margin of an OTC (over-the-counter) trade by simply being a counterparty. That margin is significant mainly because both sides are hedged. The broker does have protection in case he doesn’t get enough margin. Secondly, they make money from being the middleman. They charge a commission for matching 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 types of trade.
You might open lots of demo accounts with different brokers to get experience. People do this to train before they get into real trading.
Having accounts with multiple brokers is the same as having your eggs in different baskets. If you lose money with one, any profits earned with others go some way to reducing that loss.
You would get various sign-up bonuses from opening accounts with multiple brokers. In other words, large deposits earn 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 instruments you want to trade. Some brokers may not offer the one you are interested in trading.
Brokers will take a commission from your payout. Usually, this is around 10-15 percent. So, make sure you choose a favorable commission rate to maximize your profits.
Brokers sometimes ask for excessive minimum deposits. Look for one that requires a reasonable minimum.
Ensure that the broker’s trading platform offers demo accounts. Such an account 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 standard. The last thing you want is legal complications.
Brokers offer many different payout options. Be sure those options are secure and you are comfortable with them.
We live in an ‘instant’ world, so make sure the broker you choose offers instant payouts. It will be so much better for you 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 financial markets. 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 & Investments Commission (ASIC) in Australia
Commodity Futures Trading Commission (CFTC) in the United States
Financial Conduct Authority (FCA) in the UK
Cyprus Securities and Exchange Commission (CySEC) in the EU
Financial Services Board (FSB) in South Africa
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 it will and has good reviews. A lot of brokers are scammers and take your money. When you find a reliable one, use them. These factors can help you identify a reliable broker:
A Regulatory Authority
Free Demo Account
Reasonable Minimum Deposit
No Hidden Fees
Now that you know what makes 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 broker. 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 Financial Holding owns and manages Quotex. Cypriot holds a certificate authorized by the Center for Regulation of Relations in Financial Markets (CRRF). 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
Race Projects Ltd. owns the Raceoption platform.
Many withdrawal methods
24/7 customer support
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
Expert has been registered in the United Kingdom since 2015.
Russian Federation certified
Minimum deposit: $10
The downside to Expert is the limited trading options.
Binomo, being very client-focused, is a popular choice. Binomo was founded in 2014 and has numerous 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. It is 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 keeps funds in a European Bank
Demerits – There are two disadvantages to Olymp:
Finrally focuses on data protection. It is international and use enhanced technology. Features:
Cent Project Ltd. owns Binarycent. Features:
Nadex belongs to the IG Group in London and has the following 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, and options
LCG has its shares on the London Stock Exchange. It has 20 years of experience and is 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 brokerage 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 to be registered in the UK.
This broker started in 2016. Features:
This broker started in 1971. Features:
stocks, Recious metals
* Federal Deposit Insurance Corporation
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:
EasyOption will make you money from binary and crypto. Features:
This broker was the first to give binary services in Kyrgyzstan. Features:
Blockoptions uses the EtherZero blockchain for exchange and practical work. Features:
The financial guarantor is a cryptomonet EtherZero. 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 broker for your personal scenario. First, make 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.