Best Binary Options Broker 2020!
Free Trading Education!
Free Demo Account!
Perfect for Beginners!
2 place in the ranking!
OptionFair ceased trading in February 2020
OptionFair is the binary options service of Finopex Group. They welcome traders from all over the world except the United States. OptionFair has the distinction of being one of the first to introduce a mobile version of the binary trading platform, allowing users to trade on their smartphones.
Bonuses and Promotions
Account opening bonuses are awarded to first-time traders on their platform. Periodic promotions are held as well. The amounts given out in bonuses vary and are arranged for each customer by the account officers.
Account opening balance typically starts from $200, but traders can actually start trading with as little as $100 in their accounts. OptionFair augments this with a generous bonus of 10-30%. Minimum trade amount is $10, and traders can operate accounts in US Dollars and Euros. Account opening is an online affair, after which traders are required to send supporting documents to Optionfair.com.
OptionFair has a vast array of electronic funding and withdrawal options such as Liberty Reserve, UKash, CashU, Skrill, credit/debit cards from almost every major card processing company you can think of.
OptionFair has the distinction of having developed advanced pricing algorithms that allow some of the most competitive pricing in binary options, and permits traders to trade on both sides of the asset. If you call them the equivalent of ECN brokers in forex, you would not be wrong. The range of assets that can be traded is unparalleled. Traders can make as much as 85% on every trade.
Platforms Featured and Markets Offered
The trading platform is a web-based platform that is easy to use and has been simplified for even novices to use without difficulty. One feature of this platform is the availability of an interactive chart for every asset listed for trading. As mentioned earlier, a mobile trading platform for use on smartphones exists, taking away the restrictions of trading with a PC. Assets traded are as follows:
1) Currencies: EURUSD, USDCHF, USDJPY, AUDUSD, GBPUSD and the Yen crosses.
Best Binary Options Broker 2020!
Free Trading Education!
Free Demo Account!
Perfect for Beginners!
2 place in the ranking!
2) Stocks: Telefonica SA, Lloyds, Vodafone, Apple, Google, BP, Barclays
3) Commodities: gold and silver.
4) Stock index futures such as the IBEX, DJ30, NASDAQ100, FTSE100 and Xetra Dax.
The asset index is a lot broader than what has been listed above. A more comprehensive list is available when traders open accounts. Traders can trade the following types on the web-based trading platform.
b) Touch/No Touch Options:
c) Boundary Options: Traders are able to trade the In/Out options with OptionFair.
Traders also have the option of using the option builder to choose the assets that they can trade.
OptionFair has a customer support that is way ahead of its peers. Users to the support section are initially presented with a Frequently Asked Questions section, which addresses basic questions about binary options and their services. At the next level, traders can contact the multi-lingual support team via phone, email, or live chat. The customer support is very robust.
Is Option Fair a Scam?
OptionFair is a binary options trading brokerage registered in the British Virgin Islands and operates out of Cyprus. The brokerage, one of the finest in the industry, came into existence in 2020 and is said to be managed by a group of highly experienced professionals from the financial industry. They are regulated by the prominent regulatory body in the binary options industry, the Cyprus Securities and Exchange Commission. OptionFair has involved itself in a number of innovations since 2020 and has been successful in diversifying their product portfolio. In addition to this, they offer several different secure options to safeguard your transactions.
It is an arguable fact that OptionFair ranks among the best three binary options brokers in the world. Their competitive pricing structure, payout system, wide array of funding and withdrawal options and robust customer support make them one of the most sought-after brokers. Most reviews you will get from traders who have used this service are positive. Until date, there have been no reports of traders encountering some of the problems that are commonplace with certain brokers. This is a good broker to trade binary options with.
The Best Forex, CFDs, Crypto and Options Trading Platforms in Review
Fair Forex Brokers is the leading resource on online trading, be it in forex, CFDs, cryptocurrencies or other financial instruments. Other than broker reviews, our site reviews trading signal providers and auto trading robots. We have not only created advanced trading guides, a trading academy, trading software reviews and but also frequently introduce traders about latest news in the industry as well as potentially dangerous services. The biggest advantage for readers are the tested brokers, recommended by Fair Forex Brokers. Below you can find the the best brokers as judged by our experts.
Between 74-89 % of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
FairForexBrokers.com consists of an international website commonly referred to as FFB, but our portfolio does not stop there and includes a wide range of local websites sites that allow our members around the world to read our reviews in their own languages free of charge. You can get to them by accessing the language menu in the top right corner.
FairForexBrokers.com – The Ultimate Resource for All Traders
Fair Forex Brokers puts a lot of time and energy into following the latest trends and providing a balanced insight into the world of trading, whether it is crypto, forex, binary or CFDs. This is our mission from the very start, when there was still a Wild West situation on the market, without proper regulatory framework. We strive to keep up with the latest market trends and review the newest brokers on the market. FFB also reviews other types of trading products and gives traders a deeper insight on binary and forex trading robots software.
We at FairForexBrokers.com follow changes and developments in online trading industry and review brokers for all major groups of online retail trading instruments.
What is Forex Trading?
Forex trading is the most popular way of trading nowadays. The underlying asset in this case, are currency pairs, and most brokers offer a great variety of major and minor pairs. The most interesting thing is that traders never have to actually own a currency as they are trading foreign exchange (or forex) contracts for difference, and not the currency itself. Traders can trade with many licensed and well-regulated brokers that offer trading with user-friendly minimum deposits that start at only $10 in some cases. Find out more about forex brokers and CFDs trading with FairForexBrokers.com.
Is Forex Trading Legal and How Does It Work?
Forex trading is regulated and legal in many countries, however, every country or entire region like the European Economic Area, has a specific attitude towards online trading via forex, CFDs, cryptos or binary options, so it is recommended to check with the local regulator. Thanks to market regulation, the trading environment has become more reliable for the traders. In Europe (EU) brokers can obtain licenses by CySEC, FCA and other national bodies. Thanks to the EU MiFID directive, all the brokers regulated by one regulator have access to the complete EU single market in financial services through the Union wide passporting rules. It is then up to national regulators to specify rules that should apply in their jurisdiction.
However, since August 2020, the European Securities and Markets Authority (ESMA) has prohibited the marketing, distribution and sale of binary options to retail investors in the European Economic Area. The ESMA has also enforced certain restrictions on contracts for difference (CFDs) trading for retail investors, such as leverage limits, margin close out rules and the use of specific warnings which should be delivered in a standardised way.
Fair Forex Brokers recommends only trading with regulated brokers no matter the country you are coming from.
What is CFDs Trading?
CFDs or contract for difference trading is, in many ways, similar to forex: you can use leverage, you follow the spreads, and you have to trade a minimum lot. However, there is one big difference, as CFDs use underlying assets like bonds, commodities, stocks, etc. Just like with forex, traders never own the actual underlying asset (for example, an Apple stock, in order to trade based on its market movements). This is what makes trading low volumes cheap, while still enables speculation on asset prices. Traders will be happy to hear that most forex brokers offer CFDs as well, and which definitely makes portfolio diversification into stocks or cryptocurrencies possible with just one broker account.
What is Cryptocurrencies Trading?
Cryptocurrencies have slowly taken the spotlight. After a whole decade in shadows, they are now the stars of online trading. Great increase in price of Bitcoin, forced traders (and market specialists, scientists, and analysts) to finally pay attention to this underground trend. Now, not only bitcoin, but other cryptos as well (Ethereum, Ripple, Dash, Litecoin…) are featured as underlying asset with many forex and CFDs brokers. Cryptocurrencies can also be traded in specialized crypto exchanges, but in that case, a special procedure has to be followed. Another important thing to remember is that cryptocurrencies are now a new playground for many investors, so they tend to be quite volatile. Make sure to learn more about cryptocurrency trading.
What is Binary Options Trading?
Options trading has one basic premise: the price of a certain underlying asset can either go up or down, thus meaning the trade can be placed like put or call trade. Binary options trading got a lot of bad publicity lately, mostly due to the fact that it was highly unregulated area of online trading. Still, there are plenty binary brokers who operate under licenses and offer a professional trading environment. Check out more articles about binary options and binary brokers.
Whitelisted Forex, CFDs, Cryptocurrencies and Options Brokers
On our options, crypto, CFDs and forex trading review site, we focus on promoting the most popular brokers in the world, after we have tested them thoroughly. We do not recommend trading without reading our reviews first. We never recommend brokers that we wouldn’t consider for serious trading, and we try to warn about potentially unethical practices and terms and conditions before you even start trading. Brokers which dont satisfy our conditions or even scam customers are added to our Blacklist.
Binary Options Trader Testimonials
Ali-Elie R. from Belgium contacted us regarding a non-payment of €3000 in August 2020. After five months we got the following response:
“Thanks a million John! You made my day!! Because of your help I’ve got my money back. Please let the world know about frauds of Optionsclick.com & let your clients know because of your help I got my own money back. Thanks again.”
Thomas M. from Netherlands contacted us regarding non-payment of €299 in September 2020. He had failed to get a response and payment for months. This is what we heard back from him after posting info about the issues on our site.
“Hi John, Unbelievable. I checked today and WGM Services transferred the amount of €299 to my account. I can tell you I’m very glad about this. Thanks a lot for your help in this one. Not sure what made them move – but it sure worked.”
Top CFDs, Crypto, Binary Options and Forex Brokers Tested
Since FairForexBroker.com broker list is very long, we have tried to make it easy for customers to find the right kind of broker for them. We wanted to put together best brands in the trading industry at the moment under “one roof”.
We Support Trading with Regulated Forex, CFDs and Options Brokers
Online trading industry has grown very fast in a very short period of time. Today, with so many brands competing in the market, it has become to assess which one are safe and which ones are not. Also since the scope of the industry has grown, calls for crypto, forex and options regulation became louder.
Regulated brokers are constantly under supervision from these authorities and this is something that in most cases guarantees quality and customer service.
In our reviews, traders will also find plenty of brokers regulated outside EU. For example, Australian regulator is ASIC, while traders in the US can rely on CFTC regulated exchanges. We suggest you read more about trading regulations.
Regulated Brokers and Binary Options Exchanges in the United States
In the United States, relevant regulatory authorities have a strict set of conditions that only few brokers can fulfill. While they don’t allow traditional binary options brokers, they do allow regulated binary options exchanges and forex exchanges. For United States traders we recommend the one featured on our site – NADEX Exchange. US traders should not trade with exchanges, that are not regulated.
Best Online Trading Platforms and Software for Options, Cryptocurrency, CFDs and Forex
For the best user experience, it is not only up to broker’s staff to provide excellent service. The way customer experiences options, forex, crypto or CFDs trading is heavily tied to the software platform that is utilized by the broker. At the moment there are several big online trading platform providers, however, all platforms can be categorized in two groups.
- Web-based platforms
- Download-based platforms
Web-based Trading Platforms
This type of trading platform is accessible directly via the web browser of trader’s choice. This means that users don’t have to download and install trading platform on their personal computer. Still, they must remember their login credentials that will allow them to access the trading interface. This type of platforms is more practical, as traders can use several devices, but also usually offers less tools and features. The most popular web based platform is Webtrader by Metatrader and SpotOption.
Trading Platforms that Require a Download of the Client Software
In this case, traders first have to download the trading platform and install it on their personal computer. The login credentials are usually delivered in a separate email. The main benefit of using this type of platform is that it is stable and offers a great selection of analysis tools, so it is preferred by more advanced traders. The most popular download-based platforms are MetaTrader4 and MetaTrader5. Others are cTrader and Sirix, which are also used very often. These platforms offer a great variety of features that can help you during market analysis.
Best Auto Trading Sites and Forex Robots Reviewed by FFB
Auto trading has been traders’ favorite for a long time, no matter whether it is options, crypto, forex or CFDs we are talking about. There is something alluring about an algorithm taking all factors into consideration and delivering a trading signal or placing a trade directly in the trading room. And while traders are becoming more and more aware how signals and auto trading software are no final solution for all their trading problems, auto trading software is also becoming more and more advanced and innovative.
Fair Forex Brokers team always gives advantage to auto trading robots for forex, binary options, CFDs and cryptos, that give traders a certain level of control and offer plentiful of features they can apply on their trades. That way, traders can have a trading experience customized to their needs which is a benefit that definitely shouldn’t be neglected. And while there are many robot software solutions available on the market, we chose to put our focus on those we consider to have everything a modern trader needs to navigate often complex waters of online trading, no matter the type.
The most prominent one is the FXMasterBot – the newly launched 2020 online trading software for Forex and CFDs. Traders can also use social trading systems, trough services provided by a regulated copy trading platform eToro and similar products.
Forex and Binary Options Trading Guides
Fair Forex Brokers doesn’t only help traders reach decisions when thinking what broker to choose. We support them every step of the way. After choosing a good and reliable forex or options broker, traders can turn to our website for relevant guides and info on strategies to find out more about analysis and other aspects of online trading, as knowledge is key to success. Choosing a forex or binary options broker is the first step, so the next one should be taking a look at our Guides section in order to cover the basics.
Binary Options and CFDs Trading Academy
FairForexBrokers.com has become one of the most popular resources for high-quality educational materials for traders of all kinds. Our readers get free access to educational articles that provide them a better insight into what trading is all about. Users have an opportunity to go through four levels until they are fully ready to apply all the advanced trading strategies in the market.
In our academy, readers can learn about some basic economic concepts or basic decisions before starting to trade, as well as advanced technical analysis techniques:
iGB Award Winner – Best Finance Affiliate Portal
Our website is an iGB Award winning binary options portal that secures you a safe journey into the world of binary options trading. As the industry has recognized the importance of our website with two iGB awards, as the iGB Awards Best Binary Affiliate 2020 and iGB Awards Best Finance Affiliate 2020, we are sure our visitors will come to realize all the advantages it offers. As the best Affiliate website for finance in two consecutive years, we feature a range of services that are beneficial to traders and to those who are trying to get credible information on binary options.
Binary Options Brokers and Platforms – Reviews and Comparison
We have compared the best regulated binary options brokers and platforms in April 2020 and created this top list. Every broker and platform has been personally reviewed by us to help you find the best binary options platform for both beginners and experts. The sortable broker comparison list below shows which binary trading sites came out on top based on different criteria.
You can sort the list using payout (maximum returns), minimum deposit, bonus offers or if the operator is regulated or not. You can also read full reviews of each broker, helping you make the best choice. Below the comparison list is some advice on how to pick the best trading platform for you, as this will often come down to your personal requirements and needs.
Top Brokers in Russia
|Spectre||$10 (ETH)||Up to 200%*||» Visit|
|OptionField||$5||93%||Pro Account Discount and 10% Cashback||» Visit|
|Nadex Exchange||$250||100%||» Visit|
|RaceOption||$250||90%||100% Deposit match bonus||» Visit|
How to Compare Brokers and Platforms
In order to trade binary options, you need to engage the services of a binary options broker that accepts clients from Russia. Here at binaryoptions.net we have provided a list with all the best comparison factors that will help you select which trading broker to open an account with. We have also looked at our most popular or frequently asked questions, and have noted that these are important factors when traders are comparing different brokers:
- What is the Minimum Deposit? (These range from $5 or $10 up to $250)
- Are they regulated or licensed, and with which regulator?
- Can I open a Demo Account?
- Is there a signals service, and is it free?
- Can I trade on my mobile phone and is there a mobile app?
- Is there a Bonus available for new trader accounts? What are the Terms and
- Who has the best binary trading platform? Do you need high detail charts with technical analysis indicators?
- Which broker has the best asset lists? Do they offer forex, cryptocurrency, commodities, indices and stocks – and how many of each?
- Which broker has the largest range of expiry times (30 seconds, 60 seconds, end of day, long term etc?)
- How much is the minimum trade size or amount?
- What types of options are available? (Touch, Ladder, Boundary, Pairs etc)
- Additional Tools – Like Early closure or Metatrader 4 (Mt4) plugin or integration
- Do they operate a Robot or offer automated trading software?
- What is the Customer Support like? Do they offer telephone, email and live chat support – and in which countries? Do they list direct contact details?
- Who has the best payouts or maximum returns? Check the markets you will trade.
We cover as many of these comparison factors as possible in our list above, but we go into much more depth within each review.
Regulated Binary Brokers
Regulation and licensing is a key factor when judging the best broker. Unregulated brokers are not always scams, or untrustworthy, but it does mean a trader must do more ‘due diligence’ before trading with them. A regulated broker is the safest option.
|Binary.com||Malta GA||BO, CFD|
|IQ Option||CySEC||BO, CFD, Crypto, Forex|
|BDSwiss||CySec||BO, CFD, Crypto, Forex|
|24Option||CySEC||BO, CFD, Crypto, Forex|
|Nadex Exchange||CFTC||BO, Forex|
Leading regulatory bodies include:
- CySec – The Cyprus Securities and Exchange Commission (Cyprus and the EU)
- FCA – Financial Conduct Authority (UK)
- CFTC – Commodity Futures Trading Commission (US)
- FSB – Financial Services Board (South Africa)
- ASIC – Australia Securities and Investment Commission
There are other regulators in addition to the above, and in some cases, brokers will be regulated by more than one organisation. This is becoming more common in Europe where binary options are coming under increased scrutiny. Reputable, premier brands will have regulation of some sort.
Regulation is there to protect traders, to ensure their money is correctly held and to give them a path to take in the event of a dispute. It should therefore be an important consideration when choosing a trading partner.
Both sign up bonuses and demo accounts are used to attract new clients. Bonuses are often a deposit match, a one-off payment or risk free trade . Whatever the form of bonus, there are terms and conditions that need to be read.
It is worth taking the time to understand those terms before signing up or clicking accept on a bonus offer. If the terms are not to your liking then the bonus loses any attraction and that broker may not be the best choice. Some bonus terms tie in your initial deposit too. It is worth reading T&Cs before agreeing to any bonus, and worth noting that many brokers will give you the option to ‘opt out’ of taking a bonus.
Using a bonus effectively is harder than it sounds. If considering taking up one of these offers, think about whether, and how, it might affect your trading. One common issue is that turnover requirements within the terms, often cause traders to ‘over trade’. If the bonus does not suit you, turn it down.
Binary options demo accounts are the best way to try both binary options trading, and specific brokers’ software and platforms – without needing to risk any money.
You can get demo accounts at more than one broker, try them out and only deposit real money at the one you find best. It can also be useful to have accounts at more than one broker. For example, payouts for two different assets might be best at different brokers. You can shop around, and use whichever account has the best payout for that asset.
Demo accounts offer the best way to try out a brand, risk free. Likewise if we recommend a brand, you can try it first, before risking anything.
Low Minimum Deposits
If you are looking to get involved with binary options for the first time, low minimum deposit requirements may be of interest. For traders just looking to try binary options, a low minimum deposit broker might be best. A small initial deposit keeps risks low. Minimum deposits start at just $5 and there are a growing number of brokers offering low minimum deposits – “low” would be any minimum under $50.
Likewise, all brokers will have a minimum trade requirement or trade amount too. These can vary greatly between platforms. Minimum trade figures range from $1 to $25 – which is a large difference if a trader plans to trade frequently. For some traders, this might be less of a factor in terms of finding the best broker for them, but for others it will be very important. Practice accounts are a zero risk way of learning to trade.
One element many traders use to find the best binary options trading account, is the payout percentage on offer. This is not always a simple comparison however. Payouts will change based on the underlying asset being traded, and the expiry time of the option. In addition, payouts will change as the broker manages their own risk. So if one broker was originally the best price, things may then revert and mean that another now has the top payout.
So the most an investor can do, is to check the payouts for assets, and expiry times they are most likely to make, and judge which brand offers the best terms most often. Demo accounts are good when researching payouts on specific assets and trades.
Exchange traded and over the counter brokers will have different payouts – and they will not be easy to compare. In general, exchange traded options offer superior value. Nadex are one example of an exchange.
So as you can see, finding the best trading account and broker is not always easy – but it is worth noting that you are free to move between brokers whenever you like. So even if an account turns out to be poor, it is easy to up sticks and find a new trading firm. Likewise, a trader could have multiple accounts, and open trades at the broker with the best terms for that particular trade.
Which is the Best Binary Trading Platform?
Naming the best trading platform is not easy, simply because trading platforms and proprietary (bespoke) software are normally a question of personal taste. One user might like a simple layout, while others might need a lot of data on screen all the time.
However, platforms do have different levels of quality, both in terms of ease of use, and features. Broadly speaking, brands which offer Contracts for Difference (CFDs) in addition to binary options, deliver a more feature-rich trading platform or advanced software.
So the likes of Nadex and IQ, will deliver a very professional trading platform. MetaTrader integration is also normally provided at the more professional brokers (Some use both mt4 and mt5 functionality) . This difference in quality is evidence of the maturity of binary options as a product, but binary brands will catch up very quickly.
Intro To The IQ Option Platform
How do Brokers Make Money?
Binary options brokers make money via one of two business models:
- As a counter-party, ensuring an ‘over round’ via payout percentages. Known as ‘Over the counter’ (OTC)
- Via a spread or commission on an exchange traded model
People who have experience of other forms of trading, and are now approaching over-the-counter (OTC) brokers for the first time may find themselves asking the question: “Where is the commission?”.
With OTC binaries however, there is no commission. In theory, the term ‘brokers’, is not correct. Binary firms are not arranging a deal or acting as a middleman, or as a market maker; What they are, is the counter-party to each of their customers’ positions. So there is no fee or commission for the trade. Instead, each customer is essentially betting against the house. Where brokers have both sides of a trade covered, they have a handsome margin. Where they do not, the payout still gives them a level of protection. In certain circumstances, the broker will also hedge it’s own position to mitigate risk.
Those companies (Nadex, for instance) that trade binary options via an exchange operate much more like a ‘broker’. Unlike the OTC market where the platform is the counter party, with exchange traded options, the broker is the middleman – matching buyers with sellers and charging a commission. This charge is normally hidden within the spread, rather than an explicit cost. There is far less risk involved for the broker, and therefore generally better returns per trade for the trader. Brokers can be actively compared using the spread – the tighter the spread (difference between buy and sell prices) the cheaper it is to trade.
Brokers using the spread model often also offer leverage, or trading on ‘margin’ via their software. This increases the trade size for the trader – and profit for the platform.
Should You Use Multiple Brokers?
There are some very good arguments for having more than one binary trading account:
- Brokers suit certain trades. Different brokers will suit different trading styles, or trade types. So one broker might be excellent for shorter term trade types, and have great payouts on forex pairs. But that same brand may be slightly less good when it comes to offering boundary trades or indices payouts. If a rival had a full set of long term expiries with great payouts, and lots of choice of boundary trades – it makes sense to have accounts with both platforms, and place trades with the broker that offered the best deal for each trade.
- Demo accounts. Multiple demo accounts makes perfect sense – you want to try as many brokers and trading platforms as possible before deciding where to trade.
- Reduce risk. Accounts at more than one broker protects you from any issues with a particular firm. From issues as serious as insolvency, to smaller things, like website downtime, software issues or a market being closed – multiple accounts reduces your risk of being affected by any hardship a broker might face.
- Multiple offers. Each sign up can mean a new bonus, so it might be worthwhile taking up more than one account to receive all the offers. As ever, read the terms – and also note that on occasion, larger deposits might mean larger bonuses – so splitting them may not be the best choice.
- Spread winnings. Some brokers may look for winning traders on their books, with a view to restricting their trading, perhaps limiting trade size – or worse. While this threat is thankfully small, multiple accounts means spreading the winnings out. Most brokers will search for “winners” based on total profit rather than strike rate, so hiding the volume across broker accounts can help you stay below their radar.
Exchange versus OTC (Over the Counter) Brokers
A broker that offers an exchange is much closer to a traditional ‘broker’ than OTC brokers. An exchange performs the job of ‘middleman’. They will match a seller of an asset, with a buyer of the same asset, and charge a commission for putting the deal together. The market itself will decide the prices – if there are more sellers than buyers, the price will drift down until demand rises. If there are more buyers than those willing to sell, the option price will rise.
A broker operating an exchange does not mind who wins and who loses. They take no risk on the trade themselves (unless the traders are trading on credit). The broker will make their commission on the trade regardless of the outcome.
Due to this reduced risk for the broker, the returns for a winning trader are generally larger. Commissions are usually small relative to the size of the trade, meaning they do not impact the payout too much. Other benefits include the fact that stop losses can be applied, and also that trades can be closed at any time (to take a profit or reduce losses).
The complications with exchanges, comes from the structure. An exchange traded binary option will “trade” somewhere between 0 and 100. Where 0 is the figure used where an event did not occur, and 100 where it did. If the current price is currently 30, a ‘buyer’ would risk 30 times his trade size, to potentially win 70. A ‘seller’ therefore, would risk 70 to win 30. While not a complicated equation, it is slightly more complex than the straight forward over the counter option.
OTC (Over The Counter) Brokers
The most common type is the Over the counter (OTC) broker, but this type of firm is not really a ‘broker’ at all strictly speaking. They are the counter-party to one side of the trade. So where a trader opens a position, the broker will win or lose money, based on whether the trade wins or loses. Only where the broker has another trader who has made the exact opposite trade, will they have assured profits.
Due to this increased risk, the brokers will offer a lower payout which mitigates some of the risk they are taking. It is therefore likely to be lower than an exchange traded broker. Some firms will also have built in ‘hedging’ mechanisms to reduce risk further. In some cases, one side of trade might be made unavailable if liabilities get too large.
The simplicity of binary options is retained with OTC brokers. They have also made great strides in competing with exchanges by offering ‘cash out’ values for options, allowing traders to close positions early, and set up stop losses. Once those features become common the gap between OTC and exchanges will get smaller. For now, traders are better off trading on an exchange – but might be advised to learn the differences via demo account.
Have you had a problem with your broker? Submit a complaint
Deposit and withdrawal options do vary at each brokerage. Each of our reviews will explain which each firm offer, but below is a list of the most common options.
If you are looking for brokers that support a specific payment method:
- Wire Transfer
- Credit cards / Debit cards
All of the factors covered above will ultimately affect the way a trader plays the market, and therefore, their profitability. The ideal situation is to get a binary broker that offers:
- Several financial assets spread across several markets
- Offers a reasonable bonus with a good payout approaching 90%
- Offers flexible expiration dates without boxing traders into very long expirations.
Trading using a broker’s platform will only be enjoyable, and profitable, if you are using a reputable operator. You also need to choose one that suits your trading style best – only you will know what that is. Read the above binary broker reviews carefully before making that crucial trading decision, but remember you are not tied in to any single broker, and can pick and choose.
Best Binary Options Broker 2020!
Free Trading Education!
Free Demo Account!
Perfect for Beginners!
2 place in the ranking!