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What are Binary Options? The Complete Guide
We often get asked: What are binary options? Binary options are one of the popular ways to make money trading financial instruments. They’re quite different from traditional options in terms of who offers them, their liquidity, rewards and risks as well as payouts. Also, they’re more accessible to traders compared to traditional options thanks to online brokers that allow you to trader from anywhere in the world.
Any trader wishing to invest in binary options must understand the risks and potential rewards involved. It’s also important to understand that not every company offering binary options is legit. That’s why we’ve created this site to guide you through some of the top binary options brokers available today.
What are binary options?
Often classified under exotic options, a binary option is a financial option where the returns are either a fixed amount or nothing at all. Usually, the fixed monetary return is $100. Binary options go by different names depending on where you’re trading from. The names include fixed return options (US), all or nothing options and, digital options.
Another way to describe binary options is how they operate. A single transaction dealing with binary options is based on a simple yes or no proposition depending on how the trader speculates a financial instruments price will move. The trader will simply make a purchase (call) or sell (put) depending on how they answer the question:
Will the price of the financial instrument traded be higher or lower than the current price at the expiry period
If the trader speculates that the price will be higher, making a call will be the next step. If however, the trader speculates a drop in price, he or she will place a put. Upon expiry, traders who make correct speculations make profit. However, those who speculated incorrectly will lose their investment.
But what happens if at the expiry period, the price hasn’t changed?
In most cases, you will get your investment back and won’t incur any loss or gain profit. The amount refunded however depends on your broker. Binary options allow traders gain access to different globally traded assets including precious metals, currency pairs, indices, commodities and stocks.
However, rather than actually buying the underlying asset (for example buying Google stocks), you’re trading on the underlying asset’s price movements. This allows you to invest as little as $10 on a single trade.
A detailed example showing how binary options work
You have decided to trade the S&P 500 index which is currently trading at $1430. After consulting the different charts and technical tools, you conclude that the price is going to rise over the next few hours. However, you cannot predict by how much. You therefore decide to place a call (buy).
Since the broker offers several expiry periods that range from 5 minutes to 1 month, you decide to hold the trade position for 10 minutes. That is, if after 10 minutes the price of the S&P 500 index is over $1430, you’ll make a profit. If it’s lower, you’ll lose your investment. Your broker indicates that you’ll earn a 70% on your investment (profit).
Depending on your account management strategy, you decide to invest $100 on the trade (we usually recommend about 2% of your total account value). At expiry time, the price of the S&P 500 index is $1432. An increase of $2. This means that you have made a $70 profit (70% of $100). You account is therefore credited with $170.
Note that the $2 increase in the price of the S&P 500 index is not your profit since you don’t actually own the asset. Your profit is earned on the amount you invested. Therefore, if S&P index price dropped to $1429, you would have lost your $100 investment. On the other hand, if the price at expiry remained at $1430, it’s likely that your broker would simply refund your $100.
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This example describes a simple high/low options trade. Today’s brokers often offer other exotic options trades that include one touch and range. Here’s a brief overview about how each one works.
How one touch binary options trades work
Using the example above, one touch trade rules require the S&P 500 price movement must touch a predetermined price level before the expiry period. You are usually provided with two price levels, one above the current price and one below it.
Still using the S&P 500 current price of $1430, your broker might provide a price range between $1400 and $1460. After analysis, you conclude that since the price is rallying, it should hit $1437 before it starts dropping. You also conclude that it will hit $1437 within 150 minutes.
Using the one-touch trade, you simply place your price level at $1437 or lower and an expiry of 150 minutes.
If the price reaches $1437 before the expiry period, you’ll make a profit. If however, it never reaches $1437, you’ll lose your investment.
How range binary options trades work
As the name suggests, range binary options trades allow you to speculate a specific price range within which you expect the underlying assets price to remain within for a specific amount of time. Profits are earned if the price remains within the selected range upon expiry of the trade.
Using the example above, the range would be between $1430 and $1437 within 150 minutes. If the price drops below $1430 or rises above $1437, you’ll lose your investment.
As you might have noticed, exotic binary option trades come with high risk and reward potential compared to high/low trades. While classic high/low trades offer returns between 50% and 85%, exotic trades can offer returns of up to 500%.
A higher return makes it easy to make enough profit to cover losses you might incur on other trades. However, you’re advised to be careful when entering trades that offer unrealistically high returns since potential of incurring loss is usually higher than that of making a profit.
Trading binary options from different regions in the world
If you’ve been shopping around for a reliable binary options broker, you might notice that some brokers will reject traders from specific regions. The reason for this is that binary options brokers need to be licensed and regulated to offer their services to citizens of specific countries. Many binary options brokers have actually been charged and fined by regulators from different countries. For example, the US Securities and Exchange Commission (SEC) charged and fined a Cyprus based broker for selling binary options to US citizens illegally in 2020. The same firm was also fined by its regulator CySEC.
Choosing a binary options broker, therefore, requires that you first consider your home country and the local laws that regulate binary options trading. Some countries have actually banned binary options. It also requires that you consider whether the broker is licensed and regulated by the financial authorities within your country. Regulation ensures that your funds are insured and thus protecting you against investing your money with scam businesses.
Comparing binary options trading in the US and non-US countries
Binary options trading in the US is heavily regulated. Brokers that are allowed to offer binary options to US citizens must be licensed and regulated by either the Securities and Exchange Commission (SEC) or the Commodities Futures Trading Commission (CFTC). As such few brokers from outside the US offer their services to American citizens.
Binary options trading outside the US is also heavily regulated. However, there still exist brokers that offer their services without having a license or being fully regulated. Some of the well known regulating bodies include Cyprus Securities and Exchange Commission (CySEC) and, Australian Securities and Investment Commission (ASIC). Countries such as
Israel and Canada prohibit binary options trading.
In the US, binary options are typically offered byexchanges. These simply provide a platform where a willing buyer and seller meet to trade options. Exchanges earn money by charging a small fee on every trade entered. One of the popular exchanges operating in the US is Nadex. It’s regulated by the CFTC.
Outside the US, binary options are usually offered by individual brokers. Brokers earn money by calculating a percentage difference between what they pay out on winning trades and what they deduct on losing trades. Some brokers will also charge fees and commissions on trades and individual trader accounts.
The price of binary options for both brokers and exchanges in all regions of the world are quoted between 1 and 100. This price fluctuates throughout the trade period. The price fluctuations are what make it possible to earn profit or loss on a trade.
Also, traders will always know the profit or loss potential of every trade regardless of the broker they’re investing with. The profit and loss are capped at $100 and the invested amount respectively.
Many exchanges and brokers from all over the world also offer special tools that allow traders to minimize losses or close in profits. These include stops and ability to exit a trade before the expiry period. In some instances, the broker might deduct a small fee for exiting a trade before it
Advantages of binary options trading
One of the main advantages of binary options trading is that you’ll know the potential profit or loss. Every trade usually has two potential outcomes. If the trade is successful, you’ll earn a fixed profit. If the trade isn’t successful, you’ll lose your investment. This makes it easy to identify trades where the profit potential is higher than loss potential.
Another advantage is that many brokers won’t charge any commissions or fees on trades entered. This allows you to keep as much of your earnings as possible. However, brokers vary so it’s important that you choose a broker that doesn’t impose fees or commissions on your trades. Some brokers will even cover the transaction fees that you might be charged by a payment
processor when depositing or withdrawing funds from your account.
Trading binary options is also quite simple. All you need to do is analyze a particular financial instruments price movements and speculate whether the price is going to rise or drop over a specific time span.
As a binary options trader, you can invest as little as $1 on a trade that involves an instrument that’s worth much more than this amount. There are no liquidity concerns since you don’t actually own the underlying asset.
Many binary options brokers are offering a wide range of useful tools and features that make it easy to keep track of the financial markets, manage your account and try out different trading strategies. These usually come at no additional cost and, are available on their platform.
Finally, binary options trading gives you access to different assets classes available in financial markets across the globe. As long as you have access to your trading account, you will be able to access any market that’s open.
Disadvantages of binary options trading
One of the main disadvantages of binary options trading is that a single loss might require several winning trades to cover. Several losing trades can essentially drain your entire trading account. It’s therefore important that you use a proven trading strategy and carefully analyze a specific instrument’s price movements before entering a trade. And easy way to try out your trading strategy is through a demo account where you don’t have to risk your own money.
Many brokers operating outside the US are unregulated. Investing your money with such brokers doesn’t guarantee that your money is insured. We always advise that you carefully research a broker before opening an account with them.
Binary options trading is an easy way to earn a fixed return by speculating on a financial instruments price movements. It’s one of the best
ways to start trading financial instruments without having to invest a huge amount. There are many brokers and exchanges to choose from both in the US and in other countries. Regulators across the globe have made efforts to control protect traders from scam brokers by licensing and keeping an eye on legit brokers. However, the number of unregulated brokers operating outside the US remains high.
Trading in binary options has several advantages that include low capital requirements to get started and, easy access to global financial markets. As with any other market that involves trading financial instruments, binary options trading involves some risks. A single losing trade might require several winning trades to recover. Even so, many traders are making money in this market by adopting proven trading strategies and using available broker provided tools.
If you want to start trading binary options, it’s important that you first have a good understanding about how financial markets work and take time to find a reputable broker.
Top 10 Most Popular Binary Options Brokers
User Satisfaction 99%
IQ Option has used the latest technologies to create a trading platform that gives its clients an easy, smooth, and fun trading experience. Read Reviews
User Satisfaction 100%
MarketsWorld is owned and operated in the Isle of Man, Great Britain by MarketsTheWorld Limited. Read Reviews
User Satisfaction 100%
We are the market leader in Europe in the online trade in Binary Options. We make trading in Binary Options reliable, convenient and simple. Read Reviews
User Satisfaction 97%
Ayrex offers the most popular types of binary options and the minimum investment required is just $5. Read Reviews
User Satisfaction 71%
OptionFair is a reliabble binary options broker that provides traders with the ability to trade by investing in a variety of assets. Read Reviews
User Satisfaction 100%
BinaryTilt provides trading solutions for active Binary Option traders, as well as traders that are new to the Binary Options market. Read Reviews
User Satisfaction 100%
Founded in 2020, GTOptions offers high returns of 70% to 90% for a successful trade. Read Reviews
User Satisfaction 100%
OneTwoTrade is a leading provider of binary options trading services to individual traders around the globe. Read Reviews
User Satisfaction 100%
Stockpair is a world leading online platform for binary options and pair options trading. Read Reviews
User Satisfaction 100%
99Binary provides a simple, safe, and informative trading solution for traders to profit from the fast-growing binary options trading market. Read Reviews
How To Choose The Best Binary Option Broker
Binary options trading is a relatively new investment method where you can profit by predicting the price movements of a range of dynamic stocks, commodities, indices, and currency pairs. The main reason why binary options trading has become popular so quickly is because you only have to select Yes or No when placing a trade. This dual choice gives binary options trading its name, and is also the reason why most binary trades are called ‘ Call or Put ’ trades.
Traders do not have to buy the actual asset. You simply have to decide whether the asset price will rise or fall within a specific time period. Binary trading services help individual traders and financial institutions participate in the field of binary options. These brokers provide a range of convenient features, advice and tips, special offers, and reliable customer support to help traders invest successfully. Our financial experts analyzed all the leading binary options brokers in the industry to find out which ones are the best. Below we provide the details of our test and we list the most promising and reliable binary trading services we found on the market.
Methodology of our reviews
To review the services of binary options brokers we carefully studied information available on review websites, business sites, and other reliable online sources. We analyzed all the leading binary options brokers and the services they offer. We also examined the information and details available on the official websites of these brokers. Plus, our experts contacted the brokers to get information on particular aspects of their services.
We used the following criteria to evaluate each binary options broker:
- Trading platform
- Account options
- Available assets
- Customer service quality
- Offered bonuses and rewards
- Unique features
- Trade types
- Payout ratios
Best European Binary Options
People living in a European Member state are allowed to trade freely with any binary options broker based in another Member State. A number of regulatory authorities and bodies license and regulate binary options products and brokers in Europe. Trading with a broker that has a license from a European country means your investment is safeguarded by a number of security requirements and protocols. The Financial Conduct Authority (FCA) is the UK regulatory body for all financial products and services. The Banque de France (BDF) regulates all finance companies and their products in France. The Commissione Nazionale per le Società e la Borsa (CONSOB) does the same job in Italy. The Comisión Nacional Del Mercado de Valores (CNMV) is the regulatory body in Spain. The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) ensures Germany has strict regulations for financial products and services.
Banc de Binary: Banc de Binary is a good choice for newbie traders in the EU as this broker offers extensive trading programs to guide you on how use its trading platforms. US and Israeli residents are barred from using Banc de Binary’s services. The advantages of Banc de Binary are it offers an intuitive and easy-to-use trading platform and there are no fees for deposits and withdrawals. Banc de Binary is a reliable broker as it is licensed by CySEC (Cyprus Securities and Exchange Commission). This broker is also regulated by the countries’ respective financial regulators for its operations in Germany, Italy, Spain, France and the UK. Banc de Binary was established in 2009 and has more than 250,000 customers.
IQ Option: IQ Option is a reliable broker as it is regulated by the Cyprus Securities and Exchange Commission (CySEC). This broker offers returns as high as 92%. Plus, its trading platform is versatile as its supports mobile trading with Android and iOS apps.
24option: 24option is a popular broker that uses an innovative trading platform created by Tech Financials. It offers returns as high as 89% for winning trades. 24option is also a reliable broker as it is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC).
Best US Binary Options
There is no clear legal landscape for binary options trading in the US. There are two bodies that regulate online financial trading in the US. They are National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC). Both bodies have not shown interest in licensing and regulating binary options brokers in the US. So, US customers have to depend on offshore-based brokers for binary options trading. To avoid becoming victims of fraud, US customers are advised to investigate the broker thoroughly before investing their hard-earned money in trading with them. Make sure the broker offers advantages such as easy deposit and withdrawal methods for US customers, trading in US dollars, and multi-platform access that includes both desktop and mobile trading options.
Porter Finance: Porter Finance is a reliable broker run by experienced professionals. Its trading platform is easy to use and versatile. Plus, Porter Finance employs personal account managers to ensure customers get full attention and support. This broker’s website offers useful information to help you trade profitably. Porter Finance offers a wide range of trading tools. The maximum payout is 85% and the maximum bonus is 100%. Porter Finance is a recommended broker for US traders.
Tradorax: Tradorax is a good choice for US clients. It uses the proven TechFinancials trading platform which is popular among many other brokers too. You can expect returns as high as 85%. Plus, this broker offers welcome bonus ranging from 50% to 200%.
Finpari: Finpari uses the latest version of the proven and reliable SpotOption trading platform. This broker offers average payouts as high as 83%. Plus, it gives 100% bonus as well as first three risk-free trades.
Best UK Binary Options
The Financial Conduct Authority (FCA) supervises and regulates all financial service companies including binary options brokers based in the UK. As the UK is part of the European Union, you are free to use the services of any binary options broker that has a license in any other European country. You can also trade with any broker licensed outside the UK and Europe. However, we recommend you try the services of the three brokers listed below as they have the reputation of providing a secure and safe trading environment.
IQ Option: IQ Option requires a very low minimum deposit of just $10. The minimum investment amount is just $1. IQ Option offers advantages such as a user-friendly interface, excellent returns, wide variety of options, and handsome deposit bonus. Plus, it is a reliable broker as it is regulated by the Cyprus Securities and Exchange Commission (CySEC). IQ Option offers interactive learning tools and a stand-alone demo account for the benefit of customers.
Banc de Binary: Banc De Binary offers a simple trading platform with a range of attractive trading instruments to help traders make profitable trades. Newbie traders can get personal training from their account manager, and trade with a minimum amount of just $1. Experienced traders can make use of trades that expire in nine months.
24option: 24option is a good choice for both high and low volume traders. This broker stands out as it provides useful trading and strategy guides and videos for all levels of traders. Plus, 24option offers handsome bonuses and fast withdrawals as well as excellent support.
How to choose a reliable binary option trading service
Scams occur in all businesses. The skyrocketing global popularity of binary options trading means it has become the target of brokers and hackers who operate fly-by-night services to make a fast buck on the sly. So, it is a good idea to do your research and enter the binary options market slowly and cautiously. Binary options trading began only a few years ago and it is difficult to control and monitor their operations. About 95% of binary options brokers are not regulated by any financial institution.
This means the majority of brokers do not have the backing of a government financial institution to provide traders the assurance their money is safe. Therefore, consider the following points and features to select a reliable and efficient binary options broker:
Is It a Regulated Broker?
Double-check the credentials of the binary brokers you are interested in. This is a time-consuming task but you have to be sure you can trust the broker. Select a broker who is monitored by the regulations of an institution. This ensures the broker is above board and trustworthy. Usually brokers are regulated by institutions in the country they operate in. In the US, brokers are regulated by Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). In the UK, the Financial Conduct Authority (FCA) regulates binary options trading. Other EU countries have their own respective regulatory bodies (CySec, BaFin, etc.), that have the power to try your binary options broker if you suffer a scam.
Try out the demo to learn about the features and practice trading
A demo account, or simulator, can help you to practice trading binary options in a real time environment without risking much money. A few brokers offer a free demo account, while others ask for a small deposit to start using the account. Simply register for an account using your phone number. When customer support contacts you, ask for the demo account and start learning about the features of the particular broker. The following brokers offer a demo account that you can utilize to practice trading at a low cost or for free: CTOption , MarketsWorld , OptionsClick , and OptionBit .
What Trading Platform is Offered?
The broker should offer a trading platform that has a simple user interface. Time is important in trading and each second is vital especially if you have selected the 60-seconds option or your option is near the expiry time. Make sure the software is easy to navigate and straightforward to use. Experienced traders and those who wish to keep track of constant market updates should select a broker that provides a mobile trading app.
What are the Investment Options?
The trader should offer a range of investment options. Apart from the usual Put/Call (Up/Down) option, the broker should also offer Boundary, Option Builder, Touch/No Touch and 60-Seconds options. Except for currency pairs, the broker should enable you to trade stocks, commodities, and indices. Select a broker that offers a platform with graphs that have good history time frames that go back beyond yesterday. This will boost your decision-making and increase the chances of successful trading.
What are the Payment and Withdrawal Options?
The broker should offer convenient payment and withdrawal options. Read the “ Terms and Conditions ” of the broker to know all the details. Select a broker that accepts the largest range of payment and withdrawal methods. The most widely used payment methods are bank transfer, credit/debit card, Moneybookers (Skrill), and Western Union.
When You Lose, Do You Lose Everything?
In binary options trading, you are fully aware of the amount you can win or lose before investing. However, newbies can make wrong investment choices. If you are an inexperienced trader, select a broker that provides a “payout” for losing trades. This means, if you suffer a losing trade, you can get back about 10-15% of the invested money.
You can also select a broker that offers risk-free trades. This is a novel concept where the broker gives 5 to 10 risk-free trades if you deposit the minimum required amount to trade ($200-$250).
Is the Customer Support Prompt and Efficient?
Make sure the broker offers good quality customer support with clear communication. Check out the customer support languages and foreign trading currencies offered. Does the broker offer 24-hour customer service and multiple channels to contact agents? Do they provide loyalty bonuses? Read at least some user reviews of leading binary options brokers on our site. Are traders satisfied with a broker’s services? Do agents respond promptly and thoroughly to questions? Good quality customer support is one of the most important criteria to select a reliable binary options broker.
Leading Binary Trading Services
OptioNet: OptioNet uses the Tech Financials trading platform. Its London operations are governed under the regulations of the UK’s Financial Services Authority (FSA). Payout ratios range between 85% to 89% depending on the trading account. OptioNet offers a welcome bonus of up to $5000.
GlobalOption: GlobalOption accepts US clients. It uses an in-house trading platform that is similar to that of EZTrader. GlobalOption offers a payout of 68% to 95% (depending on the asset traded and the type of trades). Traders can get back 15% of their investment amount on losing trades.
EmpireOption: EmpireOption accepts US clients. It uses the SpotOption trading platform and offers a mobile platform for iPhones and Android devices. The average return is 65% to 75% for traditional High/Low binary options. OptionBuilder offers higher payouts at 85%, while the risky One Touch options give the highest payouts at 500%.
TraderXP: TraderXP accepts US clients. It uses the SpotOption trading platform. Payout ratio is between 68% to 75%. This broker uses a wide range of reliable payment and withdrawal methods.
OptionTrade: OptionTrade uses the ProTrader platform, which is modeled after another trading broker called HotForex. Payout ratio is 85%. OptionTrade is fully regulated by the Cyprus Securities and Exchange Commission (CySEC). This broker transacts only with reputed banks and financial institutions.
GTOptions: GTOptions accepts US clients. It uses the reliable SpotOption trading platform. Returns range from 70% to 90% depending on the asset type. One Touch options can yield payouts up to 540%. Bonus of 50% to 100% is offered depending on trading account.
Opteck: Opteck offers an easy-to-use web-based trading platform. Payout ratio is 85% to 100%. Opteck is regulated by the Cyprus Securities and Exchange Commission (CySEC). It offers customer support via phone, live chat, and email.
OnlyOption: OnlyOption uses a sophisticated trading platform provided by Markets.com. Payout ratio is up to 85%. One touch options can yield up to 500% of the investment. OnlyOption’s parent company Safecap Investment Ltd is regulated by the Securities and Exchange Commission (CySEC). This trader offers a welcome bonus of up to 100%.
BNRY: BNRY uses the new generation TradeSmarter trading platform that has sophisticated features. This broker offers a maximum return of 81% for High/Low options. You can get a rebate of up to 10% for losing trades. BNRY is a regulated broker under the Cyprus Securities and Exchange Commission (CySEC).
YesOption: YesOption uses the standard Tech Financials trading platform. Average returns for high/low options are 85%. YesOption offers welcome bonuses between 20% to 100% depending on the amount deposited. It provides one on one coaching and a range of training materials.
GrandOption: GrandOption uses the Tech Financials trading platform. Payout ratio is between 75% to 300%. GrandOption is regulated by the Cyprus Securities Exchange Commission (CySEC). The broker provides a range of bonuses and promotional offers.
Tradesmarter: Tradesmarter uses a simple and reliable trading platform that has been emulated by many other brokers. Payout ratio is up to 85% for successful trades and you can get a rebate of 10% for losing trades. Tradesmarter.com is based in Sydney, Australia and its operations are governed by the Australian Securities and Investment Commission (ASIC).
Alpari: Alpari uses the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading platforms. There are also MT4 and MT5 trading apps for Android and iOS devices. Payout percentage is between 81%-85%. Alpari offers attractive bonuses, competitive tight spreads, and reliable trading support.
Banc de Binary: Banc de Binary uses the popular SpotOption trading platform. This platform supports mobile trading with Blackberry, iPhone, and Android devices. Payouts are between 72% to 81%. Banc de Binary refunds up to 15% for losing trades. This broker is part of the Banc de Binary Group that is listed on the New York Stock Exchange.
Bloombex: Bloombex accepts US clients. Bloombex uses the intuitive, state-of-the-art SpotOption trading platform. Average returns range between 75% and 85%. Bloombex offers at least 30% bonus for any deposit. You can get a 100% bonus for every investment of $100 to $500.
365Trading: 365Trading uses a trading platform called Pip Invest, which is different from popular platforms used by other brokers. Payout ratio is between 60% to 85%. 365Trading has taken the initiative to register itself under the Cyprus Securities Exchange Commission (CySEC). This broker offers 100% bonus on the first deposit.
BinaryBook: BinaryBook accepts US clients. It uses the latest SpotOption Gen 2 trading platform. Average returns are around 80%. You can earn up to 500% with FX/CFD contracts. BinaryBook offers welcome bonus ranging from 25%-100% depending on the trading account.
Magnum Options: Magnum Options accepts US clients. It uses the popular SpotOption trading platform. Average payout ratio is 85%. Magnum Options offers numerous bonuses as well as rebates for losing trades. All transactions are secured with SSL Technology.
OptionRally: OptionRally uses web-based trading platforms powered by SpotOption. Average return is 78% for winning trades and a refund of 10% is given for losing trades. OptionRally is registered in the British Virgin Islands (BVI) and operates under the regulations of the BVI Financial Services Commission (BVIFSC). This broker offers provides up to 100% bonus as well as exclusive offers.
OptioNow: OptioNow accepts US clients. It uses a 2nd generation SpotOption-powered trading platform. OptioNow offers average returns up to 85%. The riskier One Touch trades pay as high as 450%. OptioNow offers bonuses up to 25% and requires a 30x turnover for you to be able to withdraw the bonus cash.
Optionyard: Optionyard uses a web-based trading platform that is easy to use. The average payout ratio is 85%. Optionyard offers high bonuses, five asset classes for trading, and a wide range of trading tools.
BigOption: BigOption accepts US clients. It uses the latest version of the SpotOption-powered trading platform. BigOption offers payout ratios of up to 85% for normal trading. It is a reliable broker as it uses transparent procedures, a SSL certified platform, and segregated accounts.
SetOption: SetOption accepts US clients. It uses the SpotOption trading platform. Payout ratios range from 80% to 750%. You can get a refund of up to 10% for losing trades. SetOption is based in Switzerland and its services are governed by the Financial Market Authority of Switzerland (FINMA).
EZTrader: EZTrader uses its own in-house trading platform that is easy to use. Average payout ratio is between 80% to 95%. EZTrader is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC). It offers bonuses ranging from 30% to 100%.
CTOption: CTOption accepts US clients. It uses a platform supplied by Panda Trading Systems Ltd (Panda TS). Average returns range between 80% to 90% and you can get a rebate of 5% for losing trades. CTOption offers a welcome bonus up to 100%.
IQOption: IQOption has created a trading platform that gives an easy and fun trading experience. The platform supports mobile trading with iOS and Android apps. Returns can go as high as 92%. IQOption is regulated by the Cyprus Securities and Exchange Commission (CySEC).
Stockpair: Stockpair employs a proprietary trading platform that is simple to use. It supports mobile trading with iOS and Android apps. You can get payouts of around 80% for Up/Down binaries, while Pair options can fetch returns as high as 350%. Stockpair is a EU-regulated broker.
24option: 24option uses an innovative trading platform supplied by Tech Financials. You can get a maximum return of 89% for winning trades, and a rebate of up to 15% for losing trades. 24option is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC).
AnyOption: Anyoption employs a web-based in-house trading platform that can be accessed from anywhere. Average returns are up to 80% for winning trades and you get 15% refund for losing trades. Anyoption currently offers a bonus on first deposit.
24bulls: 24bulls uses a trading platform powered by TradeSmarter. It offers returns up to 85%. This broker is regulated by the Cyprus Securities and Exchange Commission (CySEC). 24bulls offers up to $2500 free bonus for new traders.
99Binary: 99Binary accepts US clients. It uses the HTML5 trading platform. 99Binary offers returns of up to 86% on Standard & 60-Seconds, and up to 350% on One Touch. This broker complies with online security and anti-money laundering regulations.
BMBoption: BMBoption (Benedict Morris) uses the SpotOption trading platform. Average payouts are up to 88%. BMBoption has applied for a license from the Cyprus Securities and Exchange Commission (CySEC). It offers a customized cash bonus with its premium plans.
Finpari: Finpari uses the latest version of the SpotOption trading platform. Average payout ratio is 83%. Finpari offers up to 100% bonus plus first three risk-free trades. It provides customer support through phone, live chat, and email.
KeyOption: KeyOption uses the sophisticated yet easy-to-use Keystone trading platform. It offers returns up to 85%. KeyOption has applied for Cyprus Securities and Exchange Commission (CySEC) regulation. It offers a welcome bonus up to $5,000.
Nordex: Nordex accepts US clients. It uses SpotOption’s newest trading platform. Average payout ratio is 85%. Nordex offers up to 100% deposit bonus. It provides customer support through phone and tickets.
Sycamore Options: Sycamore Options accepts US clients. It uses a trading platform powered by SpotOption. You can earn up to 75% profit on winning trades, and more than 600% return on One Touch trade. Sycamore Options offers a bonus on request. The amount depends on your account size and individual package.
Tradorax: Tradorax accepts US clients. It uses the TechFinancials trading platform. Average returns are about 85%. Tradorax offers welcome bonus from 50% to 200%. It provides customer support through phone, live chat, and email.
WeOption: WeOption accepts US clients. It uses the TradeSmarter trading platform. Maximum return is 91%. WeOption is a relatively new company that has applied for regulatory licenses from the FCA in England and CySEC in Cyprus.
Winoptions: Winoptions uses the SpotOption trading platform which is advanced, yet easy to use. It offers up to 88% return rate, and up to 550% on the One Touch option. Winoptions operates as a brand of Spot Capital Markets Ltd, which is authorized and regulated by the Cyprus Exchange Commission.
IvoryOption: I voryOption accepts US clients. It uses the popular SpotOption trading platform. Average payout ratio is 85%. IvoryOption offers up to 100% deposit bonus. It provides customer support through phone, live chat, and email.
Binary Options Trading Strategy – Best 60-Seconds Strategies
Today we are going to share our binary options trading strategy with you. This strategy is designed to help you identify whether you’ll like trading binaries and teach you how to trade binary options the right way. If you prefer to play it safe over gambling, you’ll need a strategy or tactic to help you master binary options and other trading activities. This is where our TSG team comes to the rescue. We will provide you with the best binary options strategy.
The main reason we’re interested in learning about trade binary options is the fact that binaries simplify what we’re already doing in Forex. At the same time, binary options also allow us to make more money in the process. We are also controlling the risk.
Binary options are easy to understand. This is coming from someone who has little or no experience in the area. If your favorite approach to trading forex is to jump in on a fast price movement and ride the intraday trend for as long as the momentum lasts, you can learn how to make money trading binary options very quickly.
When we first discovered binaries, the light bulb in our heads turned on. We figured out the same thing that we’ve been doing in Forex can be done. But walk away with 75%, even 95% winning trades because we only needed to get the direction right. No need to worry about how many pips we could grasp in the process.
And that, my friends, is the real beauty of binary options.
What are Binary Options?
Binary options are a form of derivatives that have a fixed profit or loss. Trading binary options is simple. All you need to do is ask yourself a simple yes or no question. Will the price of the underlying asset be worth more than the strike price at the expiration date?
Now, let’s start by understanding how binary options work.
Essentially, we can trade binary options for any type of instrument. Whether it be commodities (Gold, Oil or Silver), Forex exchange currencies (EUR/USD, GBP/USD or USD/JPY), or stocks (Amazon, Tesla or Twitter).
So, the first thing you need to decide upon is to select the asset to trade.
Second, before submitting our trades, each of these instruments has a current value at any given point in time. How to trade binary options depends on our trading skills. It is used to predict where the current value will be some time in the future. In other words, we must use our skills to predict the market direction. This will determine our success in trading binary options.
The market can only go up or down. If we believe the current value will go up in the near future, then we buy a Call option. On the other hand, if we believe the current value will go down in the near future, we buy a Put option. Read more about call options vs put options.
Third, we need to determine what the most critical aspect of trading binary options is. The expiration time will ultimately determine if you’re making a profit or not.
Trading binary options require you to correctly forecast two things:
- Whether the market will rise or fall.
- Your forecast needs to be accurate during a certain time frame – called the expiration time.
If you’re right on the market direction by the time of the expiration time, you earn a profit. Being wrong means you incur a loss. The way binary options works is that if you’re right on the market direction, you’ll get a percentage of what you initially invested in.
Typically between 75% and 95% and in some cases, even 100% of your initial investment, depending on your Binary Options Broker.
Supposing we’re wrong on the trade, then we’re going to lose the whole amount invested in the short term.
We have made a nice infographic that highlights the four steps on how to master binary options trading.
Now we’re going to focus on step two, which is how to predict the price movement. If you manage to figure this out, then knowing how to make money trading binary options will be a piece of cake for you.
Now, before we’ll outline a method on how to make money trading binary options, we always recommend taking a piece of paper and a pen and take notes on the rules of the best binary options strategy.
In this demonstration, we’re going to look at the buying Calls.
The Best Binary Options Strategy
Our team at Trading Strategy Guides is ready to share with our beloved trading community our 60-second binary options strategy. We don’t just hope this strategy will make you money, we’re certain it will. The mathematical model behind this binary options trading strategy has a proven market edge.
The only tool you need to trade binary options successfully is the RSI indicator.
Even the RSI indicator is not good enough if it doesn’t have the “right” settings. The RSI default settings need a little bit of adjustment if you want to master the 1 minute time frame. We use a 3-period RSI to trade binary options profitably.
Naturally, a lower RSI period means that the indicator will tend to be noisier than normal. But it is more responsive to the immediate price action. Along with the RSI settings adjustments, we also played around with the overbought and oversold readings. We found out that by using an 80 RSI reading for overbought and 20 RSI reading for oversold condition, we get more accurate day trading signals.
*Note: Make sure you adjust the RSI settings before you jump into the binary options trading strategy.
By changing the RSI overbought and oversold line, we have eliminated the noise. So now we’re ready to highlight our binary options step-by-step guide:
Step #1: Find an instrument that is showing a low the last 50 candlesticks. Use the 60-second chart (1 Minute TF)
The 1-minute binary options or the 60-seconds time frame is the best chart for trading binary options. In other words, the best binary options expiration time is the 60 seconds time frame.
We recommend highlighting the starting point on your charts. And the ending point of your 50-candle low that you have identified. Simply draw two vertical lines on your chart through the starting point and ending point of your 50 candle low.
When you count the 50 candle low, you should always start from the current candle. Then go from the right side of your chart to the left side of your chart. If you manage to count 50 candle low, obviously the starting candle point will be your 50 candle low.
Moving forward, it’s time to put the RSI indicator in use and spot if we have extreme oversold reading or not.
Step #2: At the moment the 50 candle low develops, we need an RSI reading of 20 or below
Since this is a reversal trading strategy we need the RSI indicator to show a bullish reversal signal. An RSI reading below 20 shows that the market is in oversold territory and it can potentially reverse.
In our example below, the 1-minute EUR/USD chart is satisfying the two conditions.
Keep in mind that in order to move to the next step, we need the 50 candle low. We also need an RSI reading below 20 to happen at the same time.
We added one more factor of confluence that needs to be satisfied. If used in conjunction with the previous two conditions, it will make you a money maker binary options trader.
Step #3: Look for a bullish divergence to develop between the RSI indicator and the price.
When trading reversals, you need to be as precise as possible. The more confluence factors you have in your favor the more accurate the reversal signal is.
What we need to see here is for the price to continue moving lower after the 50 candle low was identified. At the same time, we need the RSI indicator to move higher in the opposite direction.
If the price moves in one direction and the momentum indicator moves in the opposite direction, it means they are diverging from each other. This signals a potential reversal signal.
Now it’s time to highlight how to find the right entry point for the binary options trading strategy.
Step #4: Buy a Call Option after the first candle that closes above the high of the 50 candle low
The first thing you need to do is to mark on your chart the high of the 50 candles low with a horizontal line. The first candlestick formation that breaks above this high is your trade entry signal to buy a 60-second Call option.
It’s that simple!
After you decide the amount to invest and pick the 60-seconds as your expiration time, it’s time to sit back and wait 1 minute before hopefully collecting your profits.
Step #5: You collect your profits if the next candle closes higher than your trigger candle
If at the expiration time, the price is higher than the price you opened your Call binary options, you’re lucky because you’re about to check-in a big payout.
For example, if you’ve invested $1,000 and your binary options broker offers you an 85% payout, it means that you accurately predicted the outcome of a trade. You get back your initial investment of $1,000 plus the 85% payout which in our case is $850 in profits.
If you want to buy Put binary options, use the same binary options guide, but in reverse.
Conclusion – Binary Options Trading Strategy
Before learning how to make money trading binary options you need a great Binary Options broker. You can’t start hitting home runs right out the gate without making sure you have a binary options broker who wants you to succeed. Secondly, you need a strategy based trading technique to reveal the market direction. You only need to forecast if the price will be up or down during the next 60 seconds, making it very convenient.
We use a heuristic approach to speculate on which way the price is going to move during the next 60 seconds. At the end of the day, traders are looking for a reliable binary options system that will help them make money from trading.
The good news is that the best binary options strategy is exactly that system. Our team is built of many traders with experience in the industry, including binary options traders who know how to make winning trades. We’re ready to help you with every step of the way.
Thank you for reading!
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Don’t forget to read our guide on regular options trading for beginners here.
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Binary Options Guide
In Binary Options Guide, you can find information related to binary options industry, binary brokers and other trading features that can assist you in your trading process. We continuously work on expanding this section and adding more articles on relevant topics for binary options trading. But before we go as much detail, let us explain what binary options are.
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What are Binary Options?
Binary options are type of options with a fixed payout and fixed deadline for expiry time. The key in trading process is to determine will the price of an underlying asset be above or below a target price.
For you to be able to accurately predict will the price go up or down is a specific time frame, it is advised to have some trading knowledge. This element isn’t too hard or even impossible, it just requires patience from trader’s side and invested effort.
For example, we strongly advise you to read as much possible broker reviews and to follow market news so that you can react in real time if certain change occurs in the financial market.
Basically, trading binary options in South Africa isn’t complicated, otherwise it wouldn’t be so popular like it is for years now. With only two possible outcomes, we can say that binary options are popular thanks to its simplicity on the market. Great advantage for traders is that they know possible money gain, even before trade is made.
The Use of Binary Options Guide South Africa
With our Binary Guide section, we try to cover all significant aspects of binary options trading. Starting from advice on how to spot a potentially profitable binary broker and what are main differences between them, to the articles on binary strategies and auto trading in binary options South Africa.
Binary options auto trading is widespread among traders worldwide because it offers them a whole new window of binary options trading. With less effort and activity form trader’s side, auto trading has become very popular and with it, they can have a possibly profitable trading journey.
Binary signals are the main tool in auto trading and based on them, binary robots will make their moves in the financial market that may afterwards result in profit gain.
More about auto trading and trading signals, you can read in articles, available in our Binary Guide.
Usually, Binary Guide is the initial step which traders in South Africa check first.
There, they can find all useful information and tips regarding how to improve trading skills and become expert in trading binary options that can ultimately lead to profitability in the trading process. There are different types of traders, some who have just entered the binary world and others who are experts in this industry.
For all of them, Binary Guide is an excellent place where they can get advice about binary features and numerous binary options brokers, who offer them trading platform. With explanations of different trade options and strategies, we believe that it will satisfy all South African traders who want to participate on the market and trade with a variety of stocks, currencies, commodities and indices.
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