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Ranking â€“ Binary Option Brokers
|Ranking||Broker||Regulator||Max. Return||Min. trade||Min. Deposit||Bonus||Assets||Mobile||Loss protection||Demo||Language||Review|
|CySec||89%||1€||100€||VIP Account||ca. 170|
What are binary options?
Binary options, also known as digital options, are a modern financial instrument that enjoys a great popularity. They belong to the category of forwarding transactions. In direct comparison to the classical options, there is little capital use for trading with binary options. This makes the new financial instruments particularly interesting for beginners. Depending on which Broker is traded, the minimum bets are between 1 Euro and 25 Euro.
Simple trading with high returns
As the word binary suggests, the digital options can only have two different scenarios. Either the prices of the options fall or they rise. Traders need only to decide whether an option will increase or decrease at the end of its term (expiry date). If a trader places on rising prices, this is called “call”. With a “put” the trader sets on a falling course. In order for the trade to be profitable for the trader, the price of the option must be higher for call options and for put options lower than at the time of the investment. The traders must therefore make only one directional decision. Because of this simplicity, the binary options are among the most popular financial instruments. If the trader speculates correctly, he receives a predefined yield from the respective broker. Depending on the broker, this is between 65% and 85% of the bet. There are even brokers, where profits of well over 100 percent are possible. The higher the yield, the higher the risk of course. If the trader has misjudged the price development, he loses his bet. Some brokers offer a loss guarantee for such a case. This is an average of 15 percent of the stake. With the right tradeskill, traders with the binary options can earn money very quickly. The yields are significantly higher than in other investment transactions. For this reason more and more people choose to trade with binary options. Although these have some similarities with the classic options, there is a couple of serious differences between the these options.
Binary and classic options compared
In the case of traditional options trading, the underlyings or the assets can be acquired at the end of their option term. This is not possible with the binary options. Unlike the traditional options the value is not an asset, but only to the respective price development of the underlying. The assets are thus purely intended as reference values. On the basis of their price development, traders can determine whether the options are at the time of their decay in money or money. The usual underlying values of the binary options trading are equities, indices, commodities and currencies. In general, the binary options differ between 2 variants. There are both binary purchase and sale options in a European and American variant. In the case of the cash-or-nothing option, traders receive a fixed amount at the maturity end of the option. In the case of asset-or-nothing options, the price of the respective underlying is always paid out. Classic options are traded on official markets, such as the EUREX forward exchange. In contrast, the trading of binary options is generally carried out in OTC trading. Only two subjects, the issuer (broker) and the dealer (trader), are involved in over-the-counter trading. There are also digital options that are traded on the exchanges. However, these are exceptions. In 2007, the American “Options Clearing Corporation” proposed to allow trading with the Binary Options. One year later, the Securities and Exchange Commission approved digital options in the cash-or-nothing variant. Since May 2008, European bureaus can be traded on the AMEX (American Stock Exchange). Since June 2008, they have also traded on the CBOE (Chicago Board Options Exchange).
Binary options have many advantages
Binary options can be conveniently traded over the internet and have some advantages compared to the classic options. The traders need neither much time nor a large investment volume. The binary options are also suitable for ordinary or low-income earners, thanks to the low minimum usage. Binary options require little prior knowledge. If the trader already knows about the classic option trading, this is of course an advantage. Even for beginners who are not familiar with the financial instruments, trade in digital options is easy to understand. From the very beginning, the traders know the potential profit and risk. Trade is therefore very transparent. Profitable trading is possible with both rising and falling prices. Traders have the choice between many different base values. The runtime of the binary options can usually be selected individually and is extremely short as required. There is also no need for additional options for the modern options trading. Traders who know the market very well can earn a lot of money in a short time.
How to tradeÂ binary options?
Binary options are among the most popular trading instruments. More and more newcomers and inexperienced traders are beginning to trade. This is mainly due to the easy handling and easy-to-understand operation of the trading instruments. Traders need only a few prerequisites to start trading. You need a computer with internet access and some capital. A fortune need not be available for trading with binary options. In addition, traders must register with a provider, a so-called broker. Registration is free and only takes a few minutes. The broker provides traders with a trading platform. This can, for example, be called directly in the browser or be installed as software on the computer. Now traders can start trading.
The trading platform can be operated with just a few mouse clicks. Most platforms are very clearly designed and can be adapted to the individual preferences of the traders. In the trading platform, traders see all available underlyings and receive information on course development. Now you can choose a basic value and make a directional decision with regard to the future price development of the value. In traditional trading with binary options, traders need only make a decision. Most brokers refer to this trade as up / down or call / put trading. If the traders assume that the price of the underlying will go up in the future, then buy a call option. In contrast, the traders speculate that the price of the value drops, so buy a put option. For binary options, both directions can be traded. This is not the case, for example, in classic trading in equities. A simple mouse click is enough to make a directional decision. If the trader has opted for a call or put option, he or she must select a call and choose a term.
Minimum trading volume, maturity and yield
The minimum trading volume of the new financial derivatives depends on the respective broker. In general, the amounts are much lower than for the classic financial instruments. As a result, beginners can also begin to trade with binary options. Depending on the broker the minimum sum is 1 Euro to 25 Euro. The advantage of trading is that the trader’s risk is always limited to his stake and not to his entire credit balance on his broker account. If, for example, the stake is only 5 euros, he can only lose that amount. In addition, some brokers offer loss hedges. If they are activated, the trader does not lose his entire bet. Of course, the brokers have nothing to give away. If such hedging is used, the yield falls in profit.
Trading also plays an important role in the trading of digital options. Depending on the broker, traders have different run times. Common run times include 60 seconds, one minute, 15 minutes, 30 minutes, and until the end of the trading day. Over the entire term, traders can view the price performance of their chosen underlying in real time. The price development before the end of the term is irrelevant in terms of profit or loss. It is only the price at the exact point in time of decay. When trading with digital options, the trader always has in mind how much money he can win or lose. In contrast to classic trading, the trader does not have to expect surprises. This makes the binary options trading very clear.
The possible yield of a binary option depends on several factors. Payouts are on average between 65 and 85 percent of the investment. The trader sees the returns immediately in the trading platform. These are fixed and can not change within the scope of the term. This way, the trader sees before his decision how much money he can earn exactly. For example, if the trader uses 100 euros with a possible return of 85% and is correct with his market assessment, he receives 185 euros on his broker account. The money can then be paid out, among other things, by bank transfer, credit card or e-wallet.
Binarization trade in simple steps
In general, trading with binary options is very simple and takes only a little time. The traders register with a broker and upload the amount to their account. Next, they decide in the trading platform for a suitable underlying. You must then select a runtime (expiration time). In the next step, the traders make a directional decision. Either click on the call button or the put button. In the last step, the traders have to choose an investment contract. Now they can sit back and watch the price performance of the underlying via the trading platform. Once the expiration date is reached, the traders either get the displayed yield on their bet or if they were wrong with their guess they lose the bet.
What is tradable with binary options?
Many interested traders wonder, of course, which markets or underlyings can be traded as binary options at all. The underlying assets, also called economic goods or assets, are the important basis for trading. The performance of an Underlying determines whether the Binary Option will generate a profit or loss at the end of its term. The number of underlying assets also depends on the chosen broker. Depending on the broker, this may vary. In general, the underlyings can be divided into the following categories: Forex currency pairs, equities, indices and commodities.
Forex currency pairs with binary options
Forex currency pairs are without a doubt one of the most popular trading instruments and are offered on almost every platform. This is partly due to the fact that many of the Forex traders are also more and more interested in the binary options. Furthermore, most currency pairs are characterized by high fluctuations throughout the day. The currency pairs thus offer the ideal conditions for special trading strategies. Almost every broker offers traders analogous to the classic Forex providers a large selection of binary options on Forex currency pairs. Among these are the most important pairs of currencies from the world market. Particularly popular are the various combinations with US dollars or euros. These include, in particular: GBP / USD, EUR / USD, CAD / USD and EUR / GBP. In addition, the brokers also offer more exotic currency pairs. On average, traders have binary options available for 10 and a maximum of 15 different currency pairs. For this reason, the classic Forex traders also get their money’s worth. On average, most brokers offer traders between 5 and 12 pairs of currencies to act.
Binary options on stocks and indices
Shares are also one of the more popular trading instruments and can be traded with almost all brokers. The selection of stocks varies greatly from provider to supplier. Traders, who primarily want to trade binary options on equities, should in any case look for a suitable broker. The most important indices in the world are the Dow Jones (DJIA), the DAX (Deutsche Aktienindex) and the Standard & Poor. Depending on the broker, other well-known indices such as CAC 40 (France), IBEX 35 (Spain) and ISE 30 (Turkey) are also offered. With some brokers the traders have only the choice between few blue chips. These are companies with a high importance and a high stock market value. Traders offer a wide range of smaller stocks from all over the world. For most brokers, the most popular stocks, such as Microsoft (MSFT), Google (GOOG) and Coca Cola (KO), are tradable to binary options. Also the well-known and relatively young share of Facebook (FB) belongs to the selection of many brokers. The selection of stocks is certainly a decisive criterion for a certain broker for some traders who are already familiar with traditional stock trading. Many inexperienced traders begin with the shares. This is mainly because the big names are already known to many people. Most traders have between 20 and 60 shares at their disposal.
This is how the One Touch trade works
Almost every broker for binary options offers traders the trade type “One Touch or “one hit trade”. In contrast to the classical trading style in the binary options, the One Touch trade is different. In the case of a binary option, a certain touch level (target price) must be reached for this type of trading. This objective must be achieved within the term of the option at least in the short term. Only if such a case occurs, trading can be concluded with a positive result and the trader receives his return. Depending on the broker chosen by the trader, the return is in a range of 65 to a maximum of 85 percent.
Raw materials with binary options?
Binary options on commodities can also be traded at most providers. However, the selection of different raw materials is rather small compared to the other underlying instruments. Binary options on gold, silver and crude are the standard choice. Some brokers also offer other commodities such as platinum and copper. On average, traders have between 5 and 7 different raw materials at their disposal. Many beginners avoid these types of trading and are more likely to rely on currency pairs or shares. Binary options with a commodity as a basic value are also referred to as a king’s discipline by many experienced traders. It is usually a very big challenge to properly assess how the commodity price will develop within the next minutes, hours or even days. In commodity trading, speculation, which is mostly based on no fundamental data, plays an important role in price development. For these reasons, only experienced traders with binary options should be dealing with commodities.
With the high-yield options, extra high returns are possible
Some of the brokers offer their traders in the One Touch mode also significantly higher returns. Depending on the provider, these vary between 250 and 400 percent. As in the case of classic trading, the principle also applies here: if the return is higher, then the risk increases as well. The so-called high-yield options are the target rates of certain options far from the current price. The probability is thus relatively low that these options, which are generally still very short, are at the end of their maturity. Only if this occurs, the trader receives a very high return. Nevertheless, there are specific situations in which the market fluctuates so strongly that the far-reaching target rates can actually be reached at the end of the term. In the volatile market phases, If, for example, strong market-influencing news are announced, the high-yield options are a very lucrative investment opportunity. Traders who take the high risk profit from a very high return in profit. Especially for high-yield options, there are some suitable trading approaches, such as the volatility strategy.
This is how the range trade works
In some trading platforms traders can also participate in the range trade. Depending on the broker, this particular trading type is also referred to as a boundary or boundary trading. In this type of trading, the range, the so-called range, plays an immensely important role. These margins determine exactly where the lower and upper limits lie. Traders must therefore assess whether the price of an underlying is at or near the end of its maturity. If the trader makes a proper trade decision, then he profits from a high return. This depends on the provider between 65 and 85 percent. If the trader has made a wrong trade decision, he loses his bet. The range trading is also offered by some brokers in combination with the high-yield options. Given sufficiently strong price fluctuations within a short time, the traders can then achieve very high returns of several hundred percent. The traders thus benefit from a very high return, but also have to live with a higher risk
What additional functions are there for risk management?
In general, the risk of trading with binary options is always limited to the chosen trader. This is another reason for the high popularity of the new financial instruments. In addition, many brokers also offer a loss protection. If the trader makes a wrong decision, he will not lose his entire bet in such a case, but will receive a reimbursement of up to a maximum of 15 percent. In general, some important additional functions are available to the traders with regard to risk management in the trading platforms. This makes it possible to reduce or better estimate the risk when trading binary options. One of the most popular features is the “Options Builder”. With this option, traders can regulate the amount of their return on the profit in terms of the amount of the redemption in a loss. Risk-averse traders can use the Options Builder feature in advance to lower a lower profit yield, but then receive a higher compensation than repayment in a loss.
Early Closure is one of the most important additional functions
Most brokers offer the traders the option “Early Closure” as well as the option Builder. With this highly useful feature, traders can already close their options before the expiration date. Without this useful function, the traders must wait until the expiration date is reached. This naturally also increases the risk of loss. The additional function Early Closure can be used to secure existing profits if the option at the time of the function is in the money. Early closure is thus another important function to minimize the risk of loss. Traders who make use of this feature must, of course, live with a disadvantage: they will not get quite as high a profit as they earn.
Roll-over and other additional functions
The roll-over feature allows traders to extend the runtime of a binary option. As a result, traders will benefit from greater leeway. Roll-Over allows traders to increase their chances of winning, but also have to live with a lower return. Beside these well-known additional functions, of course, there are still other types of trade and special special functions. In most well-known brokers the traders have different types of trade and the 3 additional functions mentioned. Due to the great popularity and the almost daily growing number of brokers, more trade types and functions will be introduced in the future. For this reason traders should always deal with the latest developments and trends. Successful traders know not only the market,
How to Find the Right Binary Options Provider?
If you are interested in trading with binary options, you should first get comprehensive information. In addition to a computer with Internet access, each trader needs a broker. This gives the trader access to a trading platform. Thus, the first and most important step is broker choice. In the beginning, there were few brokers and most traders have decided relatively quickly for one of the big providers. Due to the great popularity of the new financial instruments, there are now many providers and this makes the decision for beginners not easy. There are some important criteria for broker selection, and these should be taken into account.
Minimum payment and minimum trading
The minimum payment is one of the most important decision-making criteria. There are significant differences between brokers. The same applies to the minimum trading volume required for a single trade. Without the minimum deposit the trader can not use the trading platform. For many brokers, as for example with the well-known supplier BDSwiss, a minimum deposit of 100 Euro is possible. For some providers, the minimum trading sum is only a few euros. On average, the minimum trading volume per trade is between 10 and 25 euros. Traders should take their own trading performance into account when making decisions. The relationship between the size of the trade account and the minimum trading volume must also be considered. Effective risk management is characterized by the following: The higher the financial input per trading, the larger the trade account should be chosen. This principle is the necessary foundation for solid trading with binary options.
Number of goods and trading
The brokers use different trading platforms (web-based solutions or installable software). The nature of the platform determines the choice of trading types and assets, the usability and the functionality. The main currency pairs, commodities, stocks and indices, find traders at almost every of the brokerage. If traders are binary options for special shares or currency pairs, they should visit the broker’s website in advance. Within a few minutes the traders will be able to see whether the desired retail goods are offered.
Customer service and trading resources
When choosing a broker, trader should also consider customer service. On the website of the offerer you will find information about the contact possibilities. In general, traders can contact customer service via e-mail, phone, and live chat in real-time. Customer support should be fast, reliable, and easily accessible. It is, of course, very beneficial for the traders to be able to communicate with the support in their country language. On the Internet traders can find out more about the binary options and the financial markets. In addition, many brokers still offer important tools. Common trading resources include webinars, e-books, instructions for beginners and market analysis. These tools are especially interesting for beginners.
VIP programs and bonus offers
Due to the large selection of different brokers, many providers are increasingly advertising to their potential customers. Traders benefit from attractive bonus programs and receive bonuses on deposits, for example. Some brokers offer existing customers even VIP programs. Traders with correspondingly high trade sales receive exclusive bonuses or benefit from improved trading conditions. In addition to the most important quality criteria of the brokers, these bonus offers should also be included in the decision-making process. These are particularly interesting for traders with higher trading sales.
Find a suitable provider with the broker comparison
We have thoroughly tested many of the brokers and scrutinized them. On the basis of our collected information, we have compiled an extensive broker comparison. With this, beginners, advanced and also professional traders find a suitable broker in a short time. Our broker comparison is very user-friendly and takes into account the most important decision-making criteria. The traders can easily sort the comparison with regard to certain criteria. Users get all the important information about the various providers and can get a comprehensive picture of each broker.