How to choose binary options broker

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How To Choose Binary Options Broker

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Choosing the right broker can be a fateful step that will determine your success in binary options trading. There are some specifications that differ binary option brokers’ quality from forex brokers’ characteristics. Here are some points to take into account when you want to pick a binary options broker.

Choosing the right broker can be a fateful step that will determine your success in binary options trading. The increasing popularity of binary options among online traders have caused the emergence of many binary options brokers, as well as the addition of binary options trading in some forex brokers’ features. It is a common knowledge that the more choices we have, the more difficult it is to find the best ones, as each of them has its own services with different quality and regulation.

There are some specifications that differ binary option brokers’ quality from forex brokers’ characteristics. In choosing forex brokers, traders need to consider hidden fees emerged from things like requotes and slippages, while binary options traders have to think over payouts and option types offered by brokers. However, problems in deciding the best binary options brokers also arise from general matters, such as regulation, deposit and withdrawal process, and customer service.

Thus, choosing a binary options broker can be a difficult beginning if you do not know what should be considered in each broker’s features. Here are some points to take into account when you want to pick a binary options broker.


To guarantee a safe and secure binary options trading, regulation is the first aspect to look for when reading a review of binary options broker. You need to acquire a good understanding in regulations that are able to provide assurance for your trading prospect. You cannot just believe in what is stated by the broker. In fact, you need to search for more information concerning with regulations, since binary options itself is not yet regulated officially in some countries.

The dilemma with binary options is that it is basically a derivative of financial trading derivative, which makes many call it betting rather than trading. Still, despite of the regulation problem, some countries provide binary options license for brokers. Regulators like Cyprus’ CySEC, France’s AMF, Italy’s CONSOB, and Germany’s BaFin are some instances that issue bonafide licenses for binary options brokers.

Deposit and Withdrawal

A broker’s quality can be easily discovered by its deposit system. Simplicity is what matters most in this area. If you have difficulties in depositing your trading capital, there is no guarantee for you to withdraw your money safely.

A good binary options broker should provide an easy, safe, and low cost withdrawal system for its traders. It also needs to have a trusted termination facility that warrants safe withdrawal process when traders decide to close their trading accounts. A broker’s initial purpose is to keep the traders’ money, not to manage it in their own will. Hence, it should be able to provide a safe and easy withdrawal process when traders want to withdraw their money whenever they would like to. If you meet troubles in withdrawing your money, then it is safe to say that your broker is irresponsible in managing your money.

Choices in how to deposit and withdrawal can be a good point too in deciding a decent broker. Here, you should be provided with various ways to deposit and withdraw your money as in wire transfer, by credit card, or even e-payment. With many choices of different methods to choose, you will have a bigger chance to deposit and withdraw your money in the most convenient way.

Best Binary Options Brokers 2020:
  • Binarium

    Best Binary Broker!
    Perfect for beginners!
    Free Demo Account! Free Trading Education!

  • Binomo

    Only for experienced traders!

Trading Software

With a good trading software, you can analyze market movements and place your option with ease. If sometimes you have troubles in your trading platform that do not come from your gadget’s internal problem, then it is better for you to seek other brokers with better trading software. Being able to watch the latest price movements, applying indicators, and placing options with certain expiry times are the most crucial parts in binary options trading. Your trading will not end successfully if your broker’s software cannot give proper support to your trading.

Other than software quality, the accessibility of platforms through various gadgets also need to be considered, for technology advancements in this era has allowed traders to trade anywhen and anywhere. A broker with platform available in smartphones and other gadgets will be a better choice than those that only provide desktop platform.


Brokers usually offer various different payouts, depending on what the instruments and trading types used by the traders. Most brokers give fixed payouts in each area, but there are also those that give choices to traders in determining their desired payouts.

Different instruments have different payouts. The same thing goes with the trading types. For instance, EUR/USD has payout as much as 83% in high/low options, while oil’s payout is only 73%. Those instruments will have different payouts when traded in other trading types. Brokers usually do not offer refunds for out-of-the-money options. Thus, it is a real all-or-nothing kind of trade when dealing with these types of brokers.

On the other hand, there is also a kind of broker that gives you choices to pick your own payouts. Although ranges also differ for each instrument and trading type, you can choose the amount of profit and refund in your option. Here, the bigger the profit is, the lower the refund you will get. For example, if you choose a profit of 80%, you will obtain the minimum level of refund, which is 5%. But if you pick a small percentage of profit like 10%, your amount of refund will be as high as 25%. This kind of payout can support your money management by either keeping your loss at a minimum risk, or by taking the highest profit in one option trading.

Trading Types

Trading binary options does not mean that you will forever stuck with choosing the right price movement by high/low options. There are also other kind of options like deciding a certain level in touch/no touch options, or determining a price range that is made possible by in/out of boundary options.

In this matter, you should be provided by a wide variety of trading types. Brokers with small numbers of trading types can limit your possibilities to gain profit through various ways. Furthermore, you also need to learn brokers’ policy in each trading types. The transparency in providing the rules is also important before picking a certain binary options broker.

Bonuses and Comissions

It is no wonder that the terms “bonus” or “comission” can attract traders’ interest in ways that are far more promising than other advertising tools. It is normal since traders always look for profits and will not waste a single chance that will probably allow them to earn more. The catch is, brokers sometimes give bonuses which eventually inflict bigger loss than what the traders will lose when trading with no bonus attached.

It is certainly not wrong to make use of brokers’ bonuses if they are realistic about it. You need to always remember that brokers always look for benefits. There is no way they give large numbers of bonuses without asserting certain conditions that will end up doing more harm than good to your balance. Therefore, it is strongly suggested for you to not easily be attracted by unbelievably high bonuses. You can always make benefit of bonuses that offer normal comissions and usual conditions that do not burden you with more risks. In this case. you can take an example from deposit bonus. As a rule of thumb, the bonus should stay lower than 40% for it to be considered normal. Brokers that offer deposit bonuses higher than that will have rules that will eventually make you suffer more losses.

Customer Service

Brokers with proper system should be supported by good customer service. You can check their quality by calling their service center and see how they manage questions and complaints. It really makes a difference when you trade in a broker that is supported by a very informative, amiable, and communicative customer service. Aside from helping you with the troubles you may find when trading with a broker, a nice customer service also signifies broker’s transparency level. A decent broker surely needs to be very transparent as it will keep your money for you to manage by trading. Low transparency can indicate a scam broker.

Though seems trivial if compared with payouts and trading types, customer service is one feature that determines the real quality of a broker. The availability of service supports in other systems like e-mail and live chat can be a good point to consider when judging a broker’s customer service.

Privacy Protection

When you open an account in a broker, you will need to fill a registration form with your private identity and bank account. It is better for you to assure the privacy policy of your broker before trusting it with your most private data that may expose your identity and financial security.

The aforementioned points are meant to be parameters for you to consider before choosing a binary options broker. You can read broker reviews or perform a complete analysis on brokers’ specifications before deciding to pick the right one. Browsing through several sources can help you to compare information about certain brokers. It is also suggested for you to surf comments from your brokers’ clients. Information in sites can be fabricated, but real users’ opinions will express their real experience with the broker. This way, you will be well-equipped with enough sources and methods to choose the right broker before beginning to trade in binary options.

How To Choose Your Binary Option Broker

Do you want to become a binary options trader? If yes, then the binary options broker that will choose will determine whether you will get the success that you are looking for or not. The popularly of binary options trading has increased tremendously over the past decade.

This is because binary options trading is highly profitable and straightforward. The worst thing that you can do as a trader is choosing a broker based on guesswork and emotions. We cannot dispute the fact that there are many legit brokers out there. We also cannot ignore the fact that there are many shady brokers.

You have probably heard stories of traders who have lost huge amount of money from unscrupulous brokers. To avoid falling into the trap of this crooked brokers, you need to do your research well.

Below are 10 tips on How to Choose Your Binary Option Broker.
1. Check if the broker regulated

Most traders only check if the broker is licensed. Although being licensed is a good move, the fact this remains that it does not prevent brokers from being crooked. There are many scam brokers who are licensed. In addition to checking if the broker is licensed, you need to go a step further and check if the brokerage firm is regulated by a relevant regulatory body.

If a binary options broker is regulated, then it means that they have proven to follow a certain code of ethics. As a result, such brokers are more reliable and trustworthy.

2. Ensure that you read the terms and conditions of the broker

Most traders don’t pay attention to the terms and conditions because of obvious reasons. They are long and boring to read. However, ignoring to read terms and conditions is a huge mistake. Most crooked binary options brokers know that very few traders read terms and conditions.

As a result, they usually take advantage of that to include certain things that are not friendly to traders. You should, therefore, read the terms and conditions section before you make your final decision.

3. Consider the broker’s experience

For how many years has the brokerage firm been in this business? The general rule of thumb is that more experienced brokers are more reliable and trustworthy. If a binary options broker has managed to render their services for a long period of time and has a huge customer base, then it means that most traders are happy and satisfied with their services.

Choosing a broker who is new in the industry is a big gamble. Chances are that you may end up choosing a broker who will disappear with your hard earned money. Experts recommend that traders should choose a broker who has more than 5 years’ experience in this industry.

4. Consider if the broker offers trading tools

Genuine and reputable brokers care about the welfare of their clients. Their main aim is not just to make profits at the expense of the trader. Instead, they provide important trading tools to also help traders make wise decisions when trading. Following your instincts can sometimes lead to you making costly mistakes.

The only sure way to increase your chances of making profits from binary options trading is by using trading tools such as indices, live stocks currency data among many others. This tools will help you analyze the market and make an informed decision when trading. Prioritize brokers who provide trading tools to traders.

5. Consider if the trader offers demo accounts

Demo accounts are very important, especially for novice traders. A demo account gives you a chance to practice and gain the much-needed experience without putting your money on the line. If you are new to binary options trading, then we recommend that you choose a broker who offers a demo account to practice before you get into the actual trading.

6. Check deposit and withdrawal options

Most binary options brokers have set deposit or withdrawal limits. This means that you cannot deposit or withdraw an amount that is below the set limit. Before you make your final decision, check to see if the broker has set deposit and withdrawal limit.

If yes, then check to see if they are manageable. If not, then you should search a brokerage firm that has a limit that you can comfortably manage. The deposit and withdrawal procedure should also be simple and straightforward.

7. Multiple asset investing

Assets offered by binary options brokers varies. There are some who only offer 2 assets while others offer up to 5 assets. We recommend that you choose a broker who offers more assets such as currency pairs, stocks, and commodities to traders. This will increase your profit margin.

8. Consider if the broker offers support

It is prudent to choose a binary options broker who will always be there for you when you need them. You should, therefore, choose a broker that offers customer support to its clients. Customer support not only shows that the brokerage firm cares about its clients but it also demonstrates their professionalism.

Choose a broker that provides multiple contact options including email, Skype, live chat, phone among many others. This will allow you to contact the support team using a means that you are comfortable with. The level of support also differs between brokers. Make sure that you are comfortable with the level of support that the broker offers.

9. Check the broker’s user interface

Before you make your final decision, take your time and analyze the trading platform that the broker has provided. Check if the trading platform is user-friendly and easy to use. Only choose a broker whose trading platform is efficient but easy to use. This will help you save time and effort that you would otherwise have used to learn how the platform works.

10. Check return and pay-outs

All binary options traders want to make more money from their investment. Choosing a broker who offers higher payouts and returns means that you will make even more money. In most cases, returns usually range from 60%-80%. Although there are many other important factors that make a good broker, finding a good broker who also offers higher return is indeed an added advantage.

How to choose a binary options broker

As we see more and more binary options brokers soliciting customers, for a trader who wishes to trade binary options, it can get difficult and confusing in choosing a binary options broker. A quick look at various online forums and websites gives out conflicting reviews and opinions which only tend to add to the confusion. So how does a trader go about choosing a binary options broker? Read this article to help you choose a binary options broker.

Just like with choosing a forex broker, the task of researching into various binary options brokers before you blindly sign up and deposit your funds is essential. While there are many legit brokers, there are equally dodgy and shady binary options brokers. This is one of the main reasons why there are so many complaints about various binary options brokers. In most cases, the trader has not done their research into the broker and only realizes that they have been scammed when it comes to withdrawing their funds. In some cases, traders have lost as much as $1000 for failing to research for the right and legit binary options broker. You can spare a couple of minutes to read through this article, or you could risk giving your money to a shady binary options broker.

Choosing a binary options broker – What to look for

When it comes to selecting a binary options broker, any trader should first look into the following checklist criteria which we briefly explain.

Start by reading the About Us Section

One of the easiest way to filter out dodgy binary options brokers is to simply read the ‘About Us’ section. It is very simple to identify how legit a binary options broker is by simply reading the contents of this page. A legit binary options broker tends to give out as much of details as possible. Traders should specifically look for the following:

The broker’s company details including registration number, country of domicile, number of years in the business.

Validate the address of the broker

Look for the address of the broker. Now-a-days more and more brokers conveniently set up a virtual office in places like London just to make their company look fancy. Doing a search of the company can instantly reveal if the company is indeed legitimate or just has a virtual office. Stay away from binary options brokers that have a virtual office. If the broker is hesitant to give out their details, there is no guarantee that you can trust them with your money.

Read the Terms & Conditions

The terms and conditions although lengthy and complicated as they might seem is in fact a very good place to get all the finer details. It is essential for traders to read through the terms and conditions as it makes for a legal document. Pay attention to the sections dealing with deposit and withdrawal of funds, look for any restrictions or any fees that may be charged and so on. You would be surprised to know that of the many traders who feel they were cheated, simply did not pay attention to the terms and conditions. Again, it pays to spend some time reading through the binary options broker’s website rather than deposit your funds and then have difficulties during withdrawal.

Check for Regulation

Regulation is a grossly misunderstood area for traders. Just because a binary options broker is regulated doesn’t mean that they are legit. Regulation from CySec in Cyprus is one of the most common licenses held by binary options brokers. Yet, despite the broker being licensed, there have been instances when traders were cheated out of their money. Having a license does not guarantee anything and there have been no documented evidence of a financial regulation authority intervening to help out a trader. However, when a binary options broker is regulated, it does mean that they are subject to fair and transparent business practices which make it a little bit better to trust the broker.

Number of years in business

Logically, the longer a binary options broker has been in business, the less likely that they will cheat their customers. Always check when the binary options broker’s business was established in order to learn how long they have been in business. For a new binary options broker, it is much easier to disappear with funds overnight or to cause problems with withdrawals than it is for a broker that has been in business.

This is also the reason why you get to see big bonuses being offered mostly by new binary options brokers rather than the established ones. See here List of best bonuses from BinaryOptions brokers

Check their customer support (Chat/Email and Phone)

The next step is to contact the binary options broker’s customer support via Phone/Email and Chat. This will help you know how professional and helpful the support staff is while at the same time allows you to get an idea about the broker’s operations.

To conclude, despite doing the above research, there is no guarantee that the broker who meets all the above criteria is legit. There are many cases of well established business going bust and thus taking their customer’s money with them as well. However, by sticking to the above criteria, a trader has a better chance of choosing the right binary options broker.

Choosing a Binary Options Broker

One of the most important decisions you are going to make as a Binary Options trader is of course just which Broker to join up to and place your real money trades at.

Be aware that there are hundreds of different Brokers available to you, and as such finding one that is going to offer you everything you are looking for and one that is going to offer you a fully rounded trading experience may take some time.

However, as we have fully researched all of the Broker listed and showcased and also fully reviewed on this website you are going to be best off researching those Brokers we have chosen to present to you as they are all at the top of their game and have a solid track record in giving trades an unsurpassed and first class trading experience.

Never just pick out a Binary Options Broker to sign up to, for you will find not all of them you will come across online operate to the highest standards that each of our featured Brokers do.

Questions and Answers

If you do fancy signing up to a Binary Options Broker and wish to start placing trades online or on a mobile trading platform then the follow questions and answers section of this guide will be worth reading through. As below you will find the answers to the most commonly asked questions asked by traders regards to what they should be demanding from any Broker they are thinking of signing up to.

    What Country Restrictions are in Place?

One very important thing to note is that not all Binary Options Brokers are going to be able to accept traders from every single country of the world. It is with that in mind you should always ensure that the Broker or Brokers that you are thinking of signing up to and registering an account at is going to welcome traders based in your country of residence.
What banking Options are Available?

You will need to ensure that the Broker you are thinking of joining is going to be offering a wide and diverse range of different banking options. For you will often find that there can be fees and charges attached to some of the many different banking options available and as such you need to use one that is never going to see you being hit with additional fees or charges when topping up your account balance.
Can I Deposit in My Own Currency?

You will find that many of our featured Brokers are going to allow you to select one of several different currencies when you sign up to their sites, and as such you should always ensure you set your trading account to use a currency option that you tend to use the most as you will then not have to pay any Forex related fees when making a deposit or making a withdrawal.
Should I Sign Up to Unlicensed Brokers?

You will find more than enough fully licensed and regulated Binary Options Brokers are available to you and you should never be tempted to sign up to a Broker that is not licensed or regulated, for by doing so you will run the very real risk of experiencing all manner of problems which you may never get a satisfactory outcome of. So always stick to fully licensed Brokers of which all of our featured ones are.
Are Sign Up Bonuses Worth Claiming?

The fine print of any Broker bonus is where you are going o find out whether any trader bonus being offered to you is going to be worth claiming or not. You should be ideally looking or the bonus offers that will see you being able to claim a high percentage of your deposited amount as bonus funds whilst also looking out for bonuses that require you to only place a small volume of trades to turn the bonus funds into real money funds.
Should I Open a Demo Trading Account?

You are always going to be best advised to initially open a demo trading account at any Brokers you are thinking of placing real money trades at. By doing so you can then see firsthand by using that demo trading account whether the platform is as easy to use as you have hoped it would be plus you will also be able to see just what trading opportunities are available to you at that Brokers.
Will I Find Mobile Platforms Easy to Use?

You are probably going to find the mobile Binary Options Broker trading platforms and apps much easier to use that the online trading platforms. That is down to the fact that you simply need to tap your mobile devices screen to place your trades as opposed to having to move your mouse here there and everywhere when utilizing an online Binary Options Brokers trading platform.
Which Brokers Offer the Most Trading Opportunities?

As all of our featured Brokers are going to offer you the very highest number of trading opportunities no matter when you log into their trading platforms you will find those we have showcased to you throughout this website offer more than enough trading opportunities and as such should be the sites you sign up to and trade at.
What Fees Will I be charged?

There may be some fees attached to some of the banking options you can use at most Binary Options Brokers and be aware that some Broker may charge you for making withdrawals, so always check thorough the respective banking information pages at each Broker for details of additional fees and charges.
What Gains Can I Expect?

The amount of cash you can make when placing real money Binary Options trades online or via a mobile trading platform can be varied, and as such we would suggest you spend a little time looking through our reviews of the leading Brokers, as that is where you will find information as to how much you can make on each trade your place.

A Guide to Trading Binary Options in the U.S.

Binary options are financial options that come with one of two payoff options: a fixed amount or nothing at all. That’s why they’re called binary options—because there is no other settlement possible. The premise behind a binary option is a simple yes or no proposition: Will an underlying asset be above a certain price at a certain time?

Traders place trades based on whether they believe the answer is yes or no, making it one of the simplest financial assets to trade. This simplicity has resulted in broad appeal among traders and newcomers to the financial markets. As simple as it may seem, traders should fully understand how binary options work, what markets and time frames they can trade with binary options, advantages, and disadvantages of these products, and which companies are legally authorized to provide binary options to U.S. residents.

Binary options traded outside the U.S. are typically structured differently than binaries available on U.S. exchanges. When considering speculating or hedging, binary options are an alternative—but only if the trader fully understands the two potential outcomes of these exotic options.

Now that you know some of the basics, read on to find out more about binary options, how they operate, and how you can trade them in the United States.

U.S. Binary Options Explained

Binary options provide a way to trade markets with capped risk and capped profit potential, based on a yes or no proposition.

Let’s take the following question as an example: Will the price of gold be above $1,250 at 1:30 p.m. today?

If you believe it will be, you buy the binary option. If you think gold will be below $1,250 at 1:30 p.m., then you sell this binary option. The price of a binary option is always between $0 and $100, and just like other financial markets, there is a bid and ask price.

The above binary may be trading at $42.50 (bid) and $44.50 (offer) at 1 p.m. If you buy the binary option right then, you will pay $44.50. If you decide to sell right then, you’ll sell at $42.50.

Let’s assume you decide to buy at $44.50. If at 1:30 p.m. the price of gold is above $1,250, your option expires and it becomes worth $100. You make a profit of $100—$44.50 = $55.50 (minus fees). This is called being in the money. But if the price of gold is below $1,250 at 1:30 p.m., the option expires at $0. Therefore you lose the $44.50 invested. This called out of the money.

The bid and offer fluctuate until the option expires. You can close your position at any time before expiry to lock in a profit or a reduce a loss, compared to letting it expire out of the money.

A Zero-Sum Game

Eventually, every option settles at $100 or $0—$100 if the binary option proposition is true and $0 if it turns out to be false. Thus, each binary option has a total value potential of $100, and it is a zero-sum game—what you make, someone else loses, and what you lose, someone else makes.

Each trader must put up the capital for their side of the trade. In the examples above, you purchased an option at $44.50, and someone sold you that option. Your maximum risk is $44.50 if the option settles at $0, and so the trade costs you $44.50. The person who sold to you has a maximum risk of $55.50 if the option settles at $100—$100 – $44.50 = $55.50.

A trader may purchase multiple contracts if desired. Here’s another example:

  • NASDAQ US Tech 100 index > $3,784 (11 a.m.).

The current bid and offer are $74.00 and $80.00, respectively. If you think the index will be above $3,784 at 11 a.m., you buy the binary option at $80, or place a bid at a lower price and hope someone sells to you at that price. If you think the index will be below $3,784 at that time, you sell at $74.00, or place an offer above that price and hope someone buys it from you.

You decide to sell at $74.00, believing the index is going to fall below $3,784 (called the strike price) by 11 a.m. And if you really like the trade, you can sell (or buy) multiple contracts.

Figure 1 shows a trade to sell five contracts (size) at $74.00. The Nadex platform automatically calculates your maximum loss and gain when you create an order, called a ticket.

Nadex Trade Ticket with Max Profit and Max Loss (Figure 1)

Best Binary Options Brokers 2020:
  • Binarium

    Best Binary Broker!
    Perfect for beginners!
    Free Demo Account! Free Trading Education!

  • Binomo

    Only for experienced traders!

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How To Choose Binary Options Broker
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