Trading cryptocurrencies with binary options brokers

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    The Best Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education.
    Free Demo Account.
    Get Your Sign-Up Bonus Now!

  • BINOMO
    BINOMO

    Recommended Only For Experienced Traders!

Contents

Binary Options Brokers

Binary Options Brokers in the USA – Trusted Binary Options Brokers

Constantly challenging ourselves to deliver more to our clients

What are binary options brokers

We review the best binary options brokers worldwide. Hi, this is BinarySignalsPro, and today we will discuss how to choose a binary option broker and what is the best broker for binary options for you, whether you are in the US or Australia, or elsewhere.

Currently, there are more than 450 trading platforms or brokers. This was not the case in 2008, when binary options trading began, as there were about 10 trading platforms that were good, as they created High Competition.
The emergence of many brokers, which is beneficial for investors in terms of more bonuses and higher profits.

Best Brokers and Investment Companies 2020

Trade with the best binary options brokers on the market:

If anyone does not know: a binary option is an “all or nothing” option; This option with a fixed price, which, depending on the pre-agreed condition, either provides a fixed income, or does not bring anything.

Brokers Rating

Brokers, rating of investment companies – All brokers and investment companies. The broker rating is an intuitive, functional and convenient tool for a trader who chooses an exchange broker.

The main purpose of the rating is to compare brokers and choose the best investment companies. Each visitor to the site, regardless of whether he is a novice or a professional, is invited to vote for the best brokerage company from his point of view. We also recommend that you review our Binary Options Brokers rating.

The rating of brokers is not responsible for errors in the information provided. To get the latest information, visit the website of the broker or investment company.

TeleTrade-DJ Ltd Sharp ECN Forex Account

IQ Option – CFDs on stocks, Forex, Cryptocurrencies

24option Broker Access the financial markets all in one place

WHY AMARKETS? 11 years of successful trading

Broker HighLow Markets Get a $50 cashback sign-up bonus

Online Trading with Binary com Broker

Most Innovative Multi-Asset Broker 2020 “Best Retail Forex Broker“

At Binomo you can invest in transactions starting at $1 with returns of up to 70%.

Get More than a Forex and CFD Trading Account at XM

easyMarkets® technology breaks not only the administrative barriers, but also the minimum monetary entry level. With our system the user can open a position for as little as 25 USD.

EuropeFX Personal Client Area Broker

Prestige Financial Markets. Why Should You Choose to Trade with Us?

For many traders, US brokers are the benchmark for reliable and high-quality trading in binary options. This is due to the fact that regulators closely monitor the investment activities of the United States, and the requirements for investment companies are very strict.

Thus, the choice of a broker in the US market is an additional guarantee of the security of the invested funds. It is from these considerations that large investors prefer US brokers with extensive experience in the market. As far as this is true, everyone must decide for themselves, but the US regulatory bodies, such as the CFTC, which are subject to US brokerage funds in the stock market, are already a guarantee of the company’s reliability.

The following list of binary options brokers in the US contains the most significant brokers that can provide services to traders from the United States. Choosing DC, you should consider all options, and if the broker is trustworthy, but territorially located and registered in the US, this is not an excuse to refuse to cooperate. Many brokers have sites in different languages ​​and are happy to see customers from all countries, so they provide quality technical support in all languages.

The rating of American brokers, presented in the list below, contains the most respected companies with a good reputation.

IQ Option: Top Binary Options Broker

Ever since the US Securities and Exchange Commission approved binary options in 2008, numerous traders have been interested in expanding their investments and exploring binary options trading. And s ince there’s an expanding list of available brokers today, it’s challenging to narrow down your choices to find the one that suits your preferences. With that, we’ve gathered the popular brokers to help you jumpstart your search.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    The Best Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education.
    Free Demo Account.
    Get Your Sign-Up Bonus Now!

  • BINOMO
    BINOMO

    Recommended Only For Experienced Traders!

To help you, we provide the lowdown on the top 15 popular binary options brokers of 2020 that you can consider for trading. Hopefully, the list will let you find the best broker for your investment needs and expectations, and start successfully trading on your own.

Binary options trading may have gotten a bad rap because of its all-or-nothing premise, but the high payouts keep traders coming back for more. This is why binary options markets remain strong in various regions around the world, particularly in Asia.

To avoid fraud in binary options trading, choose a trustworthy broker. These brokers can help minimize your losses and provide a measure of security for your funds. Some traders turn to smart contract-based binary options transactions to fortify their deals using blockchain technology.

Each broker also offers different options in terms of minimum deposit, maximum returns, and supported assets. Some brokers even allow traders to use cryptocurrency to fund their accounts or get payouts. The benefits of blockchain and the advantages that global fintech trends exert significant influence on the binary options trade.

To match you with the best binary options broker for your needs, we’ll take you on a tour of the top binary options brokers today. Our analysis of each broker lays out the most important features, including deposits, returns, bonuses, and supported platforms. This way, you can make an informed decision and get the best protection for your funds.

Top 15 Binary Options Brokers

1. IQ Option

IQ Option was established in 2020 and had since then received favorable reviews on the internet. It uses in-house software for trading. The maximum returns are 95%. However, traders in the USA, Australia, Canada, Russia, Belgium, Japan, Turkey, Israel, Iran, Sudan, and Syria are not accepted. IQOption Europe Ltd. is well-known for reliable broker services, as it is regulated by the CySEC.

It provides a wide array of web-based and mobile features that help make binary trading transparent, reliable, and more efficient. For instance, it offers a speed trading service with up to 5-minute increments and hourly binary options in 15-minute increments. It also offers trading expiration periods of up to a month. Moreover, its Digital Options service allows users to trade gold in over 500 assets.

IQ Option

Try out IQ Option with their free trial

This popular binary options tool offers a free demo account to help you get started. The minimum deposit is just $10 for the Real Account. And for the premium VIP account, the minimum deposit is $3,000. Customer support is currently offered via email, phone, and live chat. Finally, this broker offers multiple convenient deposit and withdrawal methods to help you trade easily.

IQ Option Key Features

  • Minimum deposit: $10
  • Minimum trade size: $1
  • Maximum returns: 95%
  • Supported trading platform: proprietary web, Android, iPhone

Detailed IQ Option Review

2. 365Trading

365Trading is registered with the CySEC and based in Cyprus. It was founded in 2020 and has since traded in the EU without issues. It primarily trades in binary options. As of this writing, US traders are not accepted.

The minimum deposit is at $100, with profits and bonuses reaching 85% and 100%, respectively. You can open a demo without deposit and try their long- and short-term expiries.

The platform, an in-house system, is robust and ideal for veteran traders. It features charts, lines, and candlesticks and provides historical analysis, functioning as a business analytics tool. The platform allows you to set up three assets with quick access shortcuts. Likewise, you can trade four assets simultaneously featuring a main window and three sub-windows.

Support is available via email and phone.

Detailed 365Trading Review

365Trading Key Features

  • Minimum deposit: $100
  • Maximum returns: 85%
  • Bonuses: up to 100%
  • Supported trading platform: proprietary, web, Android and iPhone

3. Ayrex

Ayrex is based in the UK and has a pending application with CySEC. It trades in 70 assets and is focused on binary options. As of today, US traders are not accepted.

The minimum deposit is $25, one of the lowest, while the bonus is up to 10%, 20% and 30%, based on the amount of your deposit for Ayrex account holders.

The broker uses a proprietary trading platform featuring instant withdrawals, which is unique in the niche. The interface is neat and lets you quickly jump to different trades. It’s ideal for short-term trading. High/Low options are also available.

Support includes 24/7 live chat and via email. Likewise, the system is accessible from Android and iPhone apps.

Detailed Ayrex Review

Ayrex Key Features

  • Minimum deposit: $25
  • Minimum trade size – $5
  • Maximum returns: up to 85-90%
  • Bonuses: $30 no-deposit new account, up to 30% on the trade
  • Supported trading platform: proprietary, web, Android and iPhone

4. OptionFair

OptionFair was founded in 2020 and is based in Cyprus. It is regulated by the CySEC and is also listed on the London Stock Exchange, a first among binary options brokers. US traders are not accepted. The broker trades in forex, CFDs, and binary options on 118 underlying assets.

The minimum deposit is $100, with returns up to 100%. However, there are no indicated bonuses, but you can always contact support for possible terms. The expiry time is shorter than average but makes for quick returns over short-term trading.

The broker uses its own platform that allows you to shift trading from forex to binary and to CFDs, from a single interface. It gives you access to myriad assets and instruments and a wide range of expiries. You can, in fact, trade simultaneously on forex and binaries. Mobile apps for Android and iPhone are available.

There is phone support in five international numbers, including English, Spanish, Italian, and French. Email and live chat support are likewise provided.

Detailed OptionFair Review

OptionFair Key Features

  • Minimum deposit: $100
  • Maximum returns: 100%
  • Bonuses: none
  • Supported trading platform: proprietary, web, Android and iPhone

5. BinaryTilt

BinaryTilt is an unregulated broker with headquarters in London, England, but is wholly owned by Cyprus-based Depix Holdings. Although it isn’t overseen, the broker seems to have a clean record with rare warnings from authorities. US traders are not accepted. It trades in stocks, indices, forex, and commodities across 150 underlying assets.

The minimum deposit is $250, with profits of up to 85%. Likewise, bonuses can reach 100%. Trading styles include high/low, one-touch, range, and on-demand. The stocks are also mainly US or EU-based companies.

The trading platform is SpotOption, a standard but increasingly old school tool compared to newer platforms today. The UI is familiar, and the elements are organized, good enough for first-timers to kickstart their trading without a hassle. Support is via chat, while Android and iPhone apps are available.

Detailed BinaryTILT Review

BinaryTilt Key Features

  • Minimum deposit: $250
  • Maximum returns: 85%
  • Bonuses: up to 100%
  • Supported trading platform: SpotOption, web-based, Android and iPhone

6. GTOptions

GTOptions is another Cyprus-based binary options broker. It uses the SpotOption trading platform, which is one of the most dependable web-based solutions in the market today. Its interface is smart and easy to use, with color-coded buttons and tabs arranged per type of trade offerings and asset offerings to be traded.

This binary options platform also offers several intuitive tools to help traders achieve better outcomes. For instance, it has a risk management feature that allows traders to cash in on their live trades before contract expirations. Likewise, it has a binary meta mode that supports high-level trading, specifically designed for professional traders.

Finally, the vendor offers 24/7 customer support and provides an extensive library for education and reference purposes.

Detailed GTOptions Review

GTOptions Key Features

  • Minimum deposit: $250
  • Maximum returns: 81%
  • Bonuses: Below $1000 50% bonus, above $1,000 100% bonus
  • Supported trading platform: proprietary, web, Android, and iPhone

7. OneTwoTrade

OneTwoTrade uses the popular web-based SpotOption trading architecture. The company provides the latest technological advancements for the benefit of its clients. OneTwoTrade has won an award for providing an efficient and safe trading platform that is relatively easy to use.

This fully-licensed binary options brokerage firm is headquartered in London. It is also highly regulated by government agencies, such as the Malta Gaming Authority. Moreover, OneTwoTrade is rigidly tested to ensure precision, stability, and quality.

OneTwoTrade offers two trading accounts; one is free, while the other is paid. The latter, called Privilege Plus, offers more benefits to users, including comprehensive market analysis, special promotions, and anytime access to senior account managers. Privilege Plus members also get either an iPhone or iPad that’s equipped with a special mobile trading app.

Detailed OneTwoTrade Review

OneTwoTrade Key Features

  • Minimum deposit: $200
  • Maximum returns: 65% to 85%
  • Bonuses: not specified.
  • Supported trading platform: proprietary, web, Android and iPhone

8. 99Binary

99Binary operates from Anguilla, a British overseas territory in the Caribbean. Started operations in 2020, this binary options trading company serves clients in the US and worldwide. It has a well-designed, comprehensive online portal that offers numerous features, tools, and trading information.

This HTML-based binary trading solution offers users the convenience of a clean, clutter-free dashboard design. Users will appreciate how the site presents data on the latest success trades of other users, which can be easily copied for later use.

Another notable feature of 99Binary is its trading turnover requirement. To cash out bonuses, customers must achieve a particular turnover quota, which goes down for every tier. This is an effective motivation for traders who love bonuses.

Detailed 99Binary Review

99Binary Key Features

  • Minimum deposit: $250
  • Maximum returns: up to 86% on Standard & 60-Seconds, and up to 350% on One Touch
  • Bonuses: To cash out bonuses, Starter level users must reach 30x turnover. For Premium users, 20x turnover is required.
  • Supported trading platform: proprietary, web, Android and iPhone

9. Binary.com

UK-based Binary.com is a licensed broker regulated in the British Isles, Malta, Ireland, and the UK. However, US, Canada, Japan, Hong Kong, and Costa Rica traders are not accepted. It is one of the more transparent companies in the industry that declares its owning company and market operations. Formerly the BetonMarkets, Binary.com blends gambling and trading but with transparency. It offers CFDs, FX margin, and crypto trading via MT5.

You can start the trading time aside from the expiry date, and the investment amount is based on the payout you set. The minimum deposit is $10, and for e-wallets, it’s even lower, at $5.

Bonuses are not standard; rather, they consist of two types–the Deposit Bonus and Free Bonus. Likewise, percentages are not specified, but you are required to have as much as 25 turnovers to avail yourself of a withdrawal. There’s also a 1.5% payout commission.

The broker supports various trading platforms, such as Binary Webtrader, Binary Bot, and Binary Next-Gen. Furthermore, it can personalize client trading needs all under one roof.

Th e platform is intuitive to the first-time trader and robust for the veteran. It features a lot of visual tools like charts and technical indicators, and the tutorials on binary options are comprehensive. Likewise, it supports 12 languages and provides a virtual money account. Mobile apps are available, with a mobile payment system.

Binary.com Key Features

  • Minimum deposit: $5 for e-wallet and $10 for debit and credit cards
  • Maximum returns: 100-1000% depending on contracts and trades
  • Bonuses: not specified
  • Supported trading platform: proprietary web, Android and iPhone

10. eToro

Tel Aviv, Israel-based eToro is a social trading network and not a broker. It allows you to copy the leading traders in its community and, hopefully, realize the same margins. Conversely, your trading can be copied, which earns you additional income.

In this platform, you invest in people, not currencies. You will have to be mindful of other traders’ behaviors and analyze their patterns or strategies, instead of learning financial charts and indicators.

No worries, eToro provides more than 16 lectures and video courses on how to hone your skills. These include identifying consistent traders, not just one-shot deals. You also get a list of the best traders on currencies, indices, and commodities across a wide range of underlying assets.

On the B side, you can share your trading insights and enroll in the Popular Investor Program as a trade authority. While the minimum deposit is $200, the maximum returns vary. The network uses its in-house trading platform with Android and iPhone apps.

eToro Key Features

  • Minimum deposit: $200-$10,000, depending on the country
  • Maximum returns: varies
  • Bonuses: not specified
  • Supported trading platform: proprietary, web, Android and iPhone

11. 24Option

24Option has been online since 2020 and is a stable and reliable broker as it is regulated by the CySEC. It uses the third-party TechFinancials trading platform. Maximum returns are up to 88%. This broker does not accept traders from the US and Australia.

The minimum deposit amount is $250, and the minimum investment amount is $24. Trade types offered are high/low, one touch and no touch, boundary, and 60 seconds.

A demo account is offered for new traders. You can enroll in Standard, Gold, or Platinum account depending on the amount you deposit and the features you want. 24Option provides customer support via phone, live chat, and email in English and 13 other languages.

24Option Key Features

  • Minimum deposit: $100
  • Maximum returns: 88%
  • Bonuses: up to 100%; 25% or $500 (whichever is lowest) for first-time depositors
  • Supported trading platform: TechFinancials web, Android and iPhone

12. ETX Capital

ETX Capital is headquartered in London, UK, and regulated by the British Financial Conduct Authority (FCA). It trades in forex, equities, indices, and commodities, but note that binary options are unregulated by the FCA. Likewise, US traders are not accepted as of this writing.

The broker takes pains in educating newbie traders, explaining in detail binary options, risk trading, and other key topics.

The minimum deposit is $100, with returns between 75% to 85%. Bonuses are not specified but are available. A call to their support should specify a personalized bonus based on your investment. Likewise, withdrawals above $100 are free of charge.

The broker uses MarketPulse as a platform. It is clean and intuitive for beginners with expiry times easy to locate. However, it only supports English.

ETX Capital Key Features

  • Minimum deposit: £200 (around $260)
  • Maximum returns: 100%
  • Bonuses: varies, personalized
  • Supported trading platform: MarketPulse, web, Android, and iPhone

13. CMC Markets

UK-based CMC Markets has been a forex broker since 1989 but only went into binary options in 2020. Still, that’s a long history of trust and reliable operations compared to most binary options brokers. On top of that, it is regulated in the UK.

Today, it trades in indices, commodities, shares, treasuries, and forex, but US clients are not yet accepted. There is no minimum deposit, and there are no bonuses, too. Returns also vary depending on the product.

Meantime, the platform is customizable and includes charting tools, pattern recognition functionality, various screen layouts, and multiple timeframes. The system is accessible from Android and iOS devices. Support is UK-based and consists of live chat, email, phone, and fax.

CMC Market Key Features

  • Minimum deposit: no minimum deposit
  • Maximum returns: up to 95%
  • Bonuses: none
  • Supported trading platform: proprietary web, Android and iPhone

14. EmpireOption

Founded in 2020, Uruguay-based EmpireOption with a registered address in London, England. As with most brokers, US traders are not accepted. The broker trades in forex and CFDs with a diverse underlying investment portfolio.

The minimum investment is $200 and up to 80% maximum returns. Likewise, bonuses can reach 100%, but terms apply.

The trading platform is SpotOption but minus the SpotOption payment network. EmpireOption also uses its own branding interface and maintains control of most of the trading aspects.

Phone and email support are available.

EmpireOption Key Features

  • Minimum deposit: $200
  • Maximum returns: 82%
  • Bonuses: up to 100%
  • Supported trading platform: SpotOption, web, Android, and iPhone

15. BinaryMate

Binarymate is a UK-registered broker that is reliable as it follows the strict financial regulations of the UK. It accepts US traders. This broker uses a unique in-house platform for trading. You can earn a maximum return of 90%.

Trading accounts start with the basic Bronze package for which the minimum deposit is $250, and you get a 20% welcome bonus. For Silver account, the minimum deposit is $1,000, and you get a 50% welcome bonus. Finally, for the premium Gold account, the minimum deposit is $3,000, and you can choose between risk-free trades or a bonus of $250.

A unique customer support feature offered by Binarymate is live video chat with agents who are available 24/7. Support is offered in English, French, Spanish, and Russian. Last but not least, you can use the demo account to learn the ropes or to improve your skills. Before you decide on a broker, though, it’s always best to make a binary options brokers comparison first to make sure you pick the best service.

BinaryMate Key Features

  • Minimum deposit: $250
  • Maximum returns: 90%
  • Bonuses: up to $250, risk-free trades
  • Supported trading platform: proprietary web, Android and iPhone

How to Succeed in Binary Options Trading?

Many people pursue to trade in binary options even though many fail. This is because of the ease of trading, coupled with the high-profit potentials it offers. However, with thousands worldwide continuing to trade in binary options every single day, is it still possible to succeed in this lucrative trade?

A good place to start is to have an authoritative list of today’s top binary options brokers. So that’s now a check. Likewise, make sure you have the appropriate payment gateway providers for seamless payment transactions. Finally, check out these key elements that will help you succeed in binary options trading:

  • Learn how to interpret historical, current, and predicted charts.
  • Test various trading strategies and use one that works for you.
  • Always consider market indicators.
  • Learn to control your emotions, use them to your advantage.
  • Trade by capitalizing on your strengths and follow your signals.
  • Prepare and stick to a personal, long-term trading plan.

Yes, because of the high stakes involved, trading in binary options is really difficult and high-risk. But if you’d take the time to learn the ropes and sustain your commitment to it, it is realistic to succeed in the binary options trade.

Check out our 2020年最受欢迎的15家二元期权经纪商:哪一家是最好的? article for a Chinese version of this article and 15 nhà môi giới quyền chọn nhị phân phổ biến của năm 2020: Ai mới là tốt nhất? is available for the Vietnamese audience. There is also a Korean version available here: 2020년 최고 인기 바이너리 옵션 브로커 15개사, 누가 최고일까?

Best Binary Options Trading Brokers for 2020

Below you will find a list of Binary Options Brokers that offer various binary contracts for trading. Although the term may appear to be very confusing, it’s not that complicated. A binary option is a sort of a contract with a value, expiration date and determined conditions of winning. By purchasing it, you technically make a bet. Most common wager is to predict whether the asset’s price will go up or down from a certain level and stay there until the option expires. Most tradable assets are currencies, indices and some commodities. There used to be much more brokers offering binary options, but many regulatory authorities placed restrictions and prohibited that kind of trading.

Binary options for the retail market were instituted in 2008 when the first description of this product was approved by the US Securities and Exchange Commission. The initial description of what is now known as US-style binary options was based on assets that were listed on exchanges, with traders pitting their bets against each other.

A short while later, a different model of binary options was developed and introduced to the world by brokers based in Europe and Israel. This model (European-style binary options) was essentially based on off-exchange trading of CFDs. However, what followed was years of unwholesome practices and remarkable scandals, which led to the shutdown of the industry in Israel by regulators there, and in the UK and EU region by the European Securities and Markets Authority (ESMA).

The industry is presently undergoing a self-cleansing, and we now have offshore brokers who are showing better commitment at playing by the rules and ensuring their clients get a good deal for their money.

What led to the near collapse of the binary options market?

The answer lies in only one direction: shady brokers and their agents all over the globe. But perhaps some portion of the blame can go to regulators, who were generally very slow in rising up to the occasion to protect the clients, whose money constituted the entire financial backbone of the market.

Brokers are meant to create markets for their clients to trade and are supposed to ensure transparency and safety of trading venues, while maintaining some level of neutrality. However, what occurred between 2020 and 2020 was a situation where a lacuna in regulation led to the emergence of fraudulent entities. These fly-by-night operators set up “brokerages” that were essentially criminal enterprises, specifically designed to rob traders of their hard earned cash. These scam brokers devised several means of ripping off their unsuspecting customers.

A) A common method was the use of call center agents, who unscrupulously obtained contacts of prospective traders and literally harassed them into making ever-increasing deposits, with promises of helping them reap bountiful returns on their investments.

B) There was also the use of volume requirements for incentive bonuses, which were tied to the ability to make withdrawals. Traders soon found out that achieving these volume requirements was practically impossible, thus ending any opportunity at retrieving capital or profits made.

C) In some brazen instances, agents in the brokerage house would access trader accounts from the back end, and execute trades that had been deliberately configured to lose on those accounts. There is at least one case known to the writer where $5,000 was stolen in this manner. Prosecutors and law enforcement agents presently have warrants on the identified personalities behind that brokerage.

Perhaps the case that brought binary options into very negative light, prompting calls for an EU-wide ban, was the unfortunate case of a Canadian investor who lost his life savings after patronizing a shady brokerage entity. The eventual suicide of this investor was the breaking point; EU and UK regulators took action and shut down binary options in Europe and the UK.

Lessons learnt

It is not only traders that suffered from the criminal activities of the scam brokers. Legitimate brokers such as Binary.com paid a very heavy price, as they lost a significant amount of the market share in an industry where they could be said to be the pioneers. Binary.com (which is listed below as one of the best binary options brokers of repute today) and several other legitimate companies around the world were forced to make major changes to their operational models, in an attempt to improve transparency and to bring back badly eroded investor confidence into the market.

Some of the changes which have been introduced include:

A) Restriction on issuance of bonuses, a lot of which is now provided as cashback for volume trading.

B) Robust trader education, in order to ensure that only informed traders use the binary options platforms.

C) Provision of demo accounts, which many of the defunct brokers never provided for their clients. No longer will traders be deprived of the opportunity to test their strategies and learn the process using virtual accounts.

D) Enhancement of the analytical tools on the platforms, to replace the archaic methods of the old order which provided traders with only line charts and zero tools for analysis!

E) Elimination of confusing binary options bet types and sticking to the classical binary options.

F) Getting their entities regulated in the countries of operation, to enhance user protection and boost broker accountability to enforcing regulatory institutions.

G) Incorporating new asset classes (e.g. cryptocurrencies) to the mix.

Criteria used in broker selection

In selecting the binary options brokers displayed in our list below, the following parameters were used in the process of consideration and selection to ensure that only the most genuine brokers are available for you. We have thus made the process simple, knowing that it is quite a challenge for traders to be able to select these brokers on their own.

The issue of regulation cannot be emphasized enough. The only way traders are going to be protected is by regulating the binary options providers they operate with. Anything short of this will be inviting the old demons back. Regulation also provides for greater accountability and ensures that investor confidence is never lacking in the market.

2) Corporate Governance Structure

A look was taken at the structure with which the listed brokerages operate. Many of them have been around for more than 9 years, and have invested in improving their platforms and trade offerings. These brokerages also have properly defined corporate hierarchy and a face to which the company can be tied to. For instance, the CEO of Binary.com is well known. Olymptrade has a very active presence in an online forum in Africa. Brokerages like Go Markets have officials who are also well known. There are no faceless companies in our list.

3) Openness and Reachability

The brokers listed here all have verifiable contact addresses and can be reached by phone, email and social media channels. Compare this with the old order where some brokerage operations were essentially husband/wife run establishments, operating out of a kitchen (yes, a “binary options broker” was found to be just that several years ago).

4) Trade Conditions

The trade conditions for each broker were also reviewed. For instance, we looked at factors such as stability of the platform, uptimes and downtimes, accessibility of customer support, latency of price and data feeds as well as how the brokers handled counterparty risks. Brokers that were found wanting were eliminated from the list.

Cryptocurrencies and binary options – faster and more profitable?

Cryptocurrencies, binary options are modern ways of obtaining speculative and investment profit. Consider the pros and cons of crypto and binaries, and how to make money.

The claim that we live in a very fast changing world has long been hackneyed. Another question is that people by nature are quite conservative, and it’s very difficult to get a person moving. But the changes that are taking place around, including in technologies for generating profit, are simply impossible to ignore.

Profit twice as fast

At one time, one of the favorite tricks of Sberbank employees was a quote from “Alice in Wonderland”: “You need to run as fast just to stay in place, but to get somewhere, you must run at least twice as fast.”

A couple of decades ago, trading was very conservative and looked more like a classic buy-and-hold investment. However, now there are products that allow you to get fairly quick profits based on classic trading rules.

Today we’ll talk about two tools that are suitable for extraction quick profit, – binary options and cryptocurrencies. The main thing to remember is that no one has repealed the laws of economics, and often such profits are accompanied high risk of loss of funds.

Yes, we will not argue that cryptocurrencies can be considered as a source of more conservative investment income. But we will be cunning if, with volatility so characteristic of crypto-exchanges, we will consider them only from the point of view of investment. We all start with binary options.

What is binary options?

The definition of a binary option is very simple, it can be found in almost any economic literature on derivatives or derivative financial instruments. We will give one of them.

Binary option – agreementin which the seller of the option is obligated to pay the buyer a certain amount if a negotiated event occurs by the time the option is exercised. If it does not occur, the seller of the option pays nothing to the buyer.

The event that occurs at the time the option is exercised can be absolutely anything. In general terms, this is the movement of the price of an asset selected by a trader above or below a certain price value.

It looks like this:

  1. the trader chooses a financial asset that is convenient for him. As in the case with other derivatives, such an asset can be currency pairs, the same cryptocurrencies, stocks, stock indexes, goods . In a word, almost everything.
  2. After choosing an asset, the trader indicates the amount – in fact, the price of the option, and the time during which the option will be valid.
  3. Then you need to correctly predict the direction of movement of the asset. As when opening a “long” or “short” position with exchange-traded instruments, in order to make a profit, the trader must correctly determine whether the selected asset will fall or grow.
  4. After the transaction, the price of the asset is fixed. Drawing an analogy with a classic option, this is the strike price.
  5. If by the time the option expires, the trader correctly predicted the direction of the price movement, then he receives a fixed percentage of profit to his option price. If he made a mistake, then the lost amount is 100% of the option price. Therefore, as in classical trading, the formula works here: higher risk – higher profitability, lower risk – profitability is also lower.

Making Binary Options Profits

In general, there are two options for correctly predicting price movements and, accordingly, making a profit on binary options.

  1. The first option involves active analysis of the market situation fundamental and technical methods for predicting short- and medium-term market behavior.
  2. The second option, in our opinion, is more popular among traders and involves the use of two main advantages of binary options – time and distance, which the price of the selected asset should “go through” (we will talk about these advantages below).

The second option is called trade “on the news”. The fact is that quite often the market reacts not to long-term macroeconomic forecasts, but to momentary events.

We give a simple example of transactions on the news

The news on good economic growth in Russia (high GDP) will be positively received on the market. And traders are likely to buy the Russian ruble, which will lead to its growth against other currencies.

This movement can be very short-term and almost elusive for the layman. However, for a binary options trader, this can become a real “gold mine” (unless, of course, such a trader learns to correctly evaluate certain events).

News about economic growth, inflation, unemployment and other macroeconomic indicators are constantly published. The time of publication of such news is 99% known in advance and is reflected in special economic calendars. Using these calendars, traders carry out transactions with binary options, short-term working to increase or decrease the market – depending on their assessment of the situation.

Advantages and disadvantages of binary options in terms of profit

It is undeniable that binary options are a very controversial tool. But the same can be said about almost any financial instrument used in speculative trading. And before moving on to cryptocurrency, we’ll talk about the pros and cons of binary options. Let’s start with their negative sides.

Cons of binary options

High risk of capital loss

Yes, statistics are merciless. As well as in trading on the stock market, on the foreign exchange or on the derivatives market, there is a very high probability of losing your funds. The simplicity of binary options does not completely eliminate their riskiness, therefore, to think that they can be a source of “easy money” is, at least, naive.

Time factor

Alas, there are plenty of tools for predicting the so-called price movement goals (for example, “fair price” in the fundamental or support / resistance level in the technical analysis). But time forecasting tools in both types of analysis are extremely few. Even correctly predicting the direction of movement of the asset, the trader may make mistakes over time, which is critical in binary options and may result in losses.

Lack of regulation

Indeed, the binary options industry in Russia is not regulated by anyone. This means that for a trader the issues of protecting their funds and frequently arising conflicts of interest “broker-trader” also come to the fore.

Pros of binaries

The simplicity and accessibility of the “mechanics” of binary options

To understand the principle of bargaining and making a profit, in fact, is not difficult. In addition, the range of assets on which binary options can be acquired is very wide: stocks of both Russian and foreign companies, any indexes and any currencies, etc.

Transaction costs

Imagine that you wanted to buy shares in a company. Unfortunately, we must be prepared for the fact that the acquisition of securities will lead to associated costs. First of all, this is a commission. Binary Options Broker for the purchase and in some cases the depositary commission for accounting for securities. Binary options exclude such commissions, and your associated costs will be zero.

Time

Yes, we remember that it is written by us in the shortcomings of options. But, on the other hand, it is also their dignity. What other financial instrument, in addition to binary options, will allow you to earn, for example, 100% of the invested amount in just one minute?

Trading “on the news”, which we spoke about earlier, suggests the possibility of using a very short reaction time of the market to macroeconomic events. For binary options, this is enough for you to earn.

Distance

If you have already been engaged in trading, then you probably know that your income directly depends on the distance that the price “travels”. But what if the asset, which you considered promising and acquired for your portfolio, moved only a couple of percent up? It is possible that this move will not even cover transaction costs.

In binary options, however, this is out of the question. The profit that the trader receives does not depend on the distance the price goes.

That is, if the direction of the asset’s movement is predicted correctly, the most insignificant price change in the direction necessary for the trader is enough.

Undoubtedly, the binary options industry will continue to remain attractive for both beginners and professional traders. But literally not so long ago, another product appeared that caused genuine interest among many people – cryptocurrencies.

Cryptocurrency Earnings Approaches

The cryptocurrency market, of course, has a number of features compared to more mature, mature markets: increased volatility, less liquidity, the ability to generate excess returns.

However, if we consider the general principles of profit-making, working with cryptocurrencies is not much different from investing or speculating in other assets.

Hold is not for crypto

Exist investment approach “hold” (or “holding”), in which the user buys cryptocurrency and “forgets” about it. It does not trade, but simply waits a long time until the asset grows in value. True, in the current realities, this is undoubtedly not the best strategy. The market is just starting to develop, and there are no guarantees that the coins will survive the price volatility.

A striking example is the dynamics of the reference bitcoin. After the most powerful growth in 2020, when in December its value exceeded $ 19, bitcoin sharply rushed down. Already in February 000, the value of the coin was only $ 2020.

Now imagine how the “holders” are now feeling who bought the coin at the peak price in December 2020 (unless they are Zen Buddhists, of course)?

Portfolio and rebalancing

The optimal solution for the investor is the creation of a cryptocurrency portfolio and its constant adaptation to market realities.

Due to fluctuations in digital money rates, the market situation is constantly changing. Therefore more it is beneficial to carry out regular rebalancing of the portfolio, adapting to the situation in the industry, than just keeping the asset for a long time.

Moreover, the more often the rebalancing occurs, the greater the profit. If you adapt the portfolio every day, yield will be almost five (!) times higherthan in the case of adaptation once a month. However, this scenario of working with digital money is not suitable for everyone. This requires large investments and professional knowledge and experience.

Cryptotrading

Another approach to profit from cryptocurrencies is trading or speculating on the difference in exchange rates. It is available for both beginners and professionals. And here the high volatility of digital money, complicating the life of an investor, will only help the trader.

With this approach, you do not need to deal with the physical purchase and storage of coins. Only need choose a brokerthat you trust, and spend some time researching and analyzing the market.

The advantages of this approach: the ability to trade every day, a low entry threshold and a wide selection of trading instruments – from classic margin trading of the “forex” type to digital options with fixed income. As they say, for every taste and opportunity.

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Nikolay Dudchenko

Financial Analyst Nikolay Dudchenko. Experience in the financial markets – since December 2006. During this time I tried myself in the stock and foreign exchange markets. It prefers long time frames and sometimes uses fundamental analysis when making decisions. Trading styles – swing and positional trading. Technical analysis – Fibonacci levels, wave and indicator analysis.

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