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How to Choose a Binary Options Broker
Correctly choosing an online broker is essential for the success of your trading career. If you go for a broker that does not care about your needs and preferences, then you could just be shooting yourself in the foot. You need to engage the services of a binary options broker that has earned the industry’s reputation in delivering quality service and demonstrated commitment in addressing the needs of clients. And, with the hundreds of brokers littering every corner of the industry, deciding which broker to choose can be a demanding task.
As such, we have identified the key factors that you should consider before settling down on a broker. Here are the factors.
Credibility is one of the most important factors you should consider before choosing a broker. The lucrative binary options industry is full of hoaxers who are out to suck the capital of innocent investors. Nonetheless, there are a several financial regulation authorities located around the world that endeavor to enforce sanity and transparency in the industry.
Therefore, to shield yourself from the haughty eyes of the so-called online fraudsters, you should ensure your chosen binary options broker has received certification from any of the regulatory agencies.
When choosing an online broker and discover that it has not gone through the thorough certification process provided by the regulatory agencies, then do not trust it with your hard-earned money.
Some of the respected regulating authorities include Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySec), Bundesanstalt fur Finanzdienstleistungsaufsicht (BaFin), Financial Conduct Authority (FCA), and U.S. Commodity Futures Trading Commission (CFTC).
You can also confirm the credibility of a binary options broker by doing an online search and checking what other traders are honestly saying about it. If traders are pointing too much on its mistakes and failures, then trying it out could also land you in problems. Go for a broker that is well spoken of and is not engaged in underground, cheeky activities.
Binary options bonuses are considered to be some kind of reward, and usually they are represented as virtual funds, so you can trade with your bonus money but you can not withdraw your funds until an appropriate moment. In most of the cases a broker sets a certain limit based on trading volume. For instance is you have got $100, then you will be able to withdraw your money only when you will have trading volume around $3000.
Practically all the brokers are offering you very tempting bonuses programs that require you to replenish your trading account and after the first replenishing you will receive additional funds. However some brokers are offering you 100% of contributed sum of money and others are offering only 30% that is why it is very important to pay your attention to this aspect while choosing a company.
Choosing a brokerage firm with a user-friendly, convenient, and simple trading platform is key to realizing your dreams as a binary options broker. If you will be spending a significant amount of your trading time just trying to navigate around the trading platform, then that is not a broker worth your time and money.
Complicated trading platforms normally cause troubles and losses to traders. You can sign up for a demo account and check whether the trading platform works according to your expectations.
In the binary options industry, most brokers offer web-based platforms; as such, you will not be required to download any software and install on your computer before trading. Other brokers also offer non web-based platforms. Whichever type of platform you use, ensure it provides efficient conditions for making the most profits from binary options trading.
The Best Binary Options Broker 2020!
Perfect Choice For Beginners!
Free Demo Account!
Free Trading Education!
Get Your Sing-Up Bonus Now!
Only For Experienced Traders!
Furthermore, most brokers are currently offering mobile versions of their platforms. With this innovation, you do not need to glue yourself in front of the computer looking for suitable trading opportunities. If choosing an online broker offering this feature, you will just need to install an application on your mobile device and enjoy trading on the go, anywhere and anytime.
In addition, when deciding which broker to choose, look for other extra features on its trading platform. Some of these additional features include availability of technical tools, social trading (copying the strategies of other successful traders), and news affecting the financial markets.
Amount of minimum deposit
Another valuable argument for private traders is an amount of minimum deposit. It is obvious that if you do not have an impressive capital on you then it will be quite difficult for you to succeed in options trading, but luckily there are brokers who gives us an opportunity to trade with insignificant deposits and rates. Conservative brokerage firms who have been in this business for more then a year they are setting a very considerable sum of money for the first replenishment of the trading account – $1000 and even more. However in this day and age the contemporary companies are breaking this tendency and as a result we can observe well-functioned, prosperous brokers with minimum deposit of $10 , at the same time when the minimum rate with this brokers is just $1.
That is why in case you do not have significant funds for an investment then you should consider cooperating with a broker who will give you an opportunity to create a small trading account.
A high percentage from successful deals is a calling card of every broker. It is actually very simple, the company guarantees you a certain percentage of profitable deals, for instance if a broker promises you 80% consequently 7 out of 10 deals have to be profitable.
By all means not all the companies are completely honest with their potential clients, and that is why for advertising purposes they promise their clients a very high percentage of income. Regarding this fact it will be better to look through several of characteristics while choosing a broker, but it will not hurt to keep this one in mind.
An early-sale options function
An early closure deals is a very useful function, because you will have an opportunity to get rid of assets when it is on a peak of its profitability or when you made wrong prediction. In this way it will be possible to transform losing trades into profitable once. And it is obvious that brokers usually offer this possibility not for free but for an additional fee.
All the trader has to do is to choose a broker who offers the most attractive terms, and some companies are taking 20% of a total sum of a deal for using this function and other are taking 30%. Especially investors need an early-sale options function because they trade assets with a minimum period for expiration.
Demo-account as criteria for choosing a broker
Unfortunately not every broker will offer you an opportunity to try your trading skills using binary options demo-account. However this function is very useful, because you will have an opportunity to get acquainted with trading and you will receive a unique chance to study functional abilities of trading platform. By all means it is not a good idea to run mad after trading that is based on virtual money, because the terms of a real market truly differ from demo-account. But it would be better if your broker will have this function, especially if you have never trade binary options before.
Deposits and Withdrawals
Security, privacy, and convenience of payment are critical when choosing an online broker. You need a broker that will provide a fast deposit option so that you can immediately start trading without any worries of your hard-earned money getting lost.
More so, the ability to withdraw your funds seamlessly is always a priority. You do not need a broker that will place unnecessary restrictions when it comes to reaping the fruits of your sweat. To avoid regrets later, ensure you properly check the withdrawal policy when choosing a brokerage firm.
You should also assess the minimum deposit requirement and the deposit bonuses offered by your preferred broker. If the offerings meet your expectations, they will assist you have the right foundation for succeeding in the binary options market.
Importantly, going for a broker that is not committed to the security of your funds is not a good idea. A secured trading environment, especially of deposits and withdrawals, will give you a peace of mind and ensure you remain focused in your trading activities.
Most brokers secure their transactions and trading environment using the latest encryption technology, such as the 128-bit SSL encryption key. This way, the brokers are able to assure clients that their funds are protected from any unauthorized interference.
When trading binary options, you will need to forecast the direction of the underlying asset before expiry time elapses. If you make the correct prediction, hurray, you will get some profits.
Therefore, if you can access a wide variety of tradable instruments, you can confidently trade the assets that resonate well with your trading style. Furthermore, you can also practice diversification to cushion your investments from economic hardships.
For example, if you are experienced in trading currency pairs, you can stick with that. Or, if stocks get volatile and difficult to predict, you could move to indices or commodities. When deciding which broker to choose, ensure that your preferred broker has a comprehensive and populated list of assets for trading. Here is the rule of thumb: the higher the number of assets available, the more serious the brokerage company.
Brokers offer different types of binary options, such as Up/Down or Put/Call, One-Touch, and Boundary or Range options. When choosing a broker, ensuring that it has the type of binary options you want to trade is a vital factor. With the right binary options that fit your trading style, making profits will be much easier.
You should also consider the expiry times of the binary options. Most brokers offer varied expiry times, ranging from 60 seconds to 24 hours, while some offer long-term expiry times of up to 365 days. Depending on your experience, you should settle for a broker that offers comfortable expiry times to your needs and preferences. For example, if you prefer long-term trading, sticking with an online broker that concentrates on short-term expiry times is not preferable.
If you make correct predictions, you will earn profits. Most brokers offer payouts ranging from 65% to as high as 90%, or even more. Choosing a brokerage firm that offers high returns and payouts could make you achieve your dreams faster.
Nonetheless, selecting a broker with high returns may not be the best decision, because it could be the pit dug by the broker to drive you to failure. So, instead of being lured by the glossy and glittering advertisements of a broker promising huge returns, carefully weigh the broker against other parameters before grabbing the opportunity with both hands.
Customer service is crucial! When choosing an online broker, go for the one with responsive, professional, and experienced customer support representatives.
Check if the broker offers support in your preferred language. How can you get in touch with the customer service department? How fast do they respond to issues?
The quality of customer service usually indicates whether the brokerage company values its clients or not. If you send an email or contact them via live chat, how professionally is your issue handled?
Furthermore, you should assess how the broker is committed to improving the skills and trading conditions of its clients. Does it offer education programs, especially for newbies? Does it offer account managers to assist traders curve a successful career?
(*Hint: The above questions should be answered ‘yes’). As such, when choosing a broker, it is imperative that you go for the one that will not abandon you immediately after making the first deposit into a live trading account, but will be with you throughout the way.
Binary Options Day Trading in Russia 2020
Binary options trading hinges on a simple question – will the underlying asset be above or below a certain price at a specified time? If so, you can make substantial profits with one of the most straightforward financial instruments to trade. But what exactly are binary options, and what are their benefits and drawbacks? This page will answer those questions, as well as detailing how to start day trading binary options, including strategies, tips, and regional differences to be aware of. Use the broker top list to compare the best binary brokers for day trading in Russia 2020.
Binary Brokers in Russia
What Are Binary Options?
Firstly, let’s have a look at how it all works. Put simply, binary options are a derivative that can be traded on any instrument or market. They appeal because they are straightforward. You know precisely how much you could win, or lose before you make the trade. No complex maths and calculator is required. This is why they are also known as ‘all or nothing’ trades.
If you anticipate news announcements, quarterly reviews, or global trends, then you may be able to make an accurate determination as to whether the price is going to increase or decline at a certain point in the future, turning a profit.
There is a whole host of derivatives to choose between. You can trade binary options on commodity value, such as aluminium and crude oil. You can opt for a stock price, such as Amazon and Facebook. There are foreign exchange rate options, including all the major and minor pairs. Even cryptocurrencies such as Bitcoin, Ethereum, and Litecoin are on the menu.
A Brief History
If you want to start trading binary options full-time, a detailed understanding of their origins will help. Binary or ‘digital’ options have been around for decades. Originally though, it was only large institutions and the fabulously wealthy that had access. However, 2008 saw the US Securities and Exchange Commission open the floodgates by allowing binary options to be traded through an exchange.
The internet and technology have since given the whole world access to these ‘digital’ options. As it stands, with low barriers to entry for savvy day traders and a simple to understand preposition, the demand for these digital trades will only increase.
There are a number of different option types to choose from. The most popular types are listed in the brief glossary below.
- Up/Down (High/Low) – The most simple and prevalent binary option. Will the price be higher or lower than the current price when the expiry time comes?
- In/Out (Range or Boundary) – A ‘high’ and ‘low’ figure will be set. You are then making a determination as to whether the price will finish within or outside of these boundaries.
- Touch/No Touch – Levels will be set that are either higher or lower than the current price. You then enter a position as to whether the price will ‘touch’ these levels between the time of trade and expiry. Payout will come as soon as the touch takes place.
- Ladder – These are similar to up/down trades. However, instead of using the current price, the ladder will have pre-determined levels that are staggered up or down. These normally demand a substantial price move. The flip side of this is returns will frequently exceed 100%. Although it is worth noting, both sides of a trade are not always available.
Another important component of binary options is expiry times. This is when the trade will end and the point that determines whether you have won or lost. These times can range from 30 seconds and 1 minute (turbos) to a full day (end of day), and even up to a whole year.
As an intraday trader though, you will be more concerned with trading 5 and 30-minute binary options. Opt for binaries with 1 minute expiry times though and you have the ability to make a high number of trades in a single day.
Is Trading Binary Options Legal?
Despite the somewhat negative reputation, the reality is binary options are legal. The majority of companies operate fairly. Opinions have been split because there are some out there that operate scams.
Regulation in certain regions has meant binaries have been withdrawn from the retail market. In the EU for example. But professional traders can still use them. In regions such as India and Australia, binary are legal – but traders should make sure they use a reputable broker, and read our section below on avoiding scams.
Scams & Frauds
The binary reputation has suffered from dishonest marketing and cybercrime. Too many unregulated brokers promise quick cash, whilst operating frauds. Regulators are on the case and this concern should soon be alleviated.
Binaries themselves are perfectly legitimate, but steer clear of ‘instant money’ promises, brokers that cold call, and celebrity endorsements, plus any claims that you can ‘start trading binary options for free’.
So it isn’t a question good or bad, it’s simply a question of being alert to the dangers and knowing what to look out for. If you’re unsure about a broker, ask the question in a live trading room to check they’re properly regulated.
Binary Options Vs CFD Trading
Although in some ways similar, there remain some crucial differences between binary options and CFDs. With CFDs, you have potentially unlimited risk. If the price of the asset moves significantly, the value of the trade can grow very large, very quickly – for better or worse.
Whereas binary options work slightly differently. Whilst you are still investing without owning the asset in question, the gain and loss rate is fixed. With a call option, it doesn’t matter if the price rockets, you retain the same percentage as if it rose by just a couple of pips.
Likewise, if the price sinks to zero, you’ll only lose what you put in. So, to define the difference – with binary options you get fixed risk.
Having said that, just as if it was binary options versus forex trading, you are restrained in your profit potential.
Why Trade Binary Options?
If you want to profit trading binary options, you need to first understand both their pros and cons. You need to make sure binary options will suit your trading style, risk tolerance, and capital requirements.
There is a whole host of attractive benefits to trading with binary options. The greatest advantages have been outlined below.
- Simplicity – Because you are making a determination on only one factor, direction, your bet is straightforward. The price can only go up or down. You also don’t need to concern yourself with when the trade will end, the expiry time takes care of that. Whereas in other markets, you may need a system to limit your losses, such as a stop-loss.
- Fixed risk – Trade stocks, gold, and crude oil and you’ve got a vast number of factors to contend with, from slippage and margin to news events and price re-quotes. With binaries, your risk is kept to a minimum with far fewer parameters.
- Trade control – Because you know what you may make or lose before you enter the trade, you have greater control from the start. Trade in stocks, for example, and you have no guarantee that your trade will make the entry price.
- Profit potential – Compared to other trading, the returns in binaries are extremely attractive. Some brokerages promise payouts of up to 90% on a single trade. If you’re looking to make simple trades with large profit potential, binaries could well be worth a look in.
- Choice – Rather than being constrained to a specific market, e.g. cryptocurrency or stocks, binary options gift traders the opportunity to trade instruments across virtually all markets, allowing you start currency, indices, and bonds trading if you so wish.
- Accessibility –In the binary options game, it’s always the best trading hours somewhere on the globe. So, you can login at night, or on the weekends and join the groups of avid traders attempting to turn daily profits. Real-time charts are available for every market so if you’ve got the time you can invest 24 hours a day.
Whilst there are plenty of reasons to delve into trading on binary options, there remain several downsides worth highlighting:
- Reduced trading odds – Whilst you can benefit from trades that offer in excess of 80% payouts, these are often when the expiry date is some time away from the trade date. If the odds of your binary trade succeeding are extremely high you may have to make do with reduced payout odds.
- Limited trading tools – Whilst most brokerages offer advanced charting and analysis capabilities, trading tools for binary traders often fall short of the mark. Fortunately, there are other online sources for these graphs and tools, plus brokers are working swiftly to increase their offerings.
- Price of losing – Your odds are tilted in favour of losing trades. Approximately for every 70% profit, the corresponding loss of the same trade would result in an 85% loss. This means you need a win percentage of at least 55% to break-even.
- Risk management – Unlike other markets, brokers often set a trading floor, with minimum accounts a trader needs to enter the market. This means losing capital can happen with ease. Whilst a stocks broker may permit you to open an account with $250, trading micro-lots, most binary brokers won’t allow $50 trades. So, even with $250 in your account, just five trades that don’t go your way could see you sink into the red.
Binary Trading via Mobile App
How Does Trading Binary Options Work?
Trading binary options for beginners is straightforward. Simply follow the steps outlined below.
Step 1 – Find a broker
This is one of the most important decisions you will make. You need a broker that meets all your requirements and who will enhance your trade performance. But with so many options out there, how do you know what to look for?
If you’re high-frequency binary trading each day, the commission fees and costs will quickly rack up. You want to maximise your profits so look for brokers with a competitive and transparent fee structure, and remember, different asset classes pay out different amounts.
One point worth investigating is rules around minimum deposits. Whilst some brokers will offer binary options trading with no minimum deposit, many will expect a deposit of close to $50, and some $100. A broker offering low minimum deposits is ideal if you’re strapped for cash. Trading binary with JC and GCI are good choices if you’re looking for low deposits.
Some brokers will specialise in certain assets. If you’re set on crude oil, it may be worth finding a broker that’s geared towards those binaries. You may benefit from relevant news feeds and the most prudent option choices available. Trading binary stocks with 212, for example, is ideal for those interested in stocks.
With scams out there it’s important you check your broker is properly regulated by the relevant financial body, e.g. FCA, CySec, CFTC. Trading with 247 Binary Options, IQ option, and Binary.com are all safe bets.
Binary options platforms are your gateway to the market and where you’ll spend many hours a day. There are now many online trading platforms, so, make sure it’s easy to use and offers all the charts, patterns and tools you need to make smart and accurate trade decisions. For example, will you be trading binary options with candlesticks or more obscure charts?
Both Keystone and Nadex offer strong binary options trading platforms, as does MT4. Before you buy, conduct a thorough trading platform comparison and check reviews.
Any problem could cost you time, and as an intraday trader, time can cost you serious cash. So, check the broker offers reliable support. Some brokers will offer 24/7 customer support through calls, live chat, and in a number of languages. Binary options trading with Etrade and 24 Option are smart moves if you want top quality support.
A growing number of people use mobile devices and tablets to enhance their trading experience. However, software for trading binary options varies hugely. So, it’s worth checking whether your broker offers cross-platform capabilities. Also, check the charting tools you need will work on your iOS or Android device. Binary options trading with IQ Option, for example, offers fantastic trading apps.
Many brokers will sweeten the deal with some useful add-ons. Some may offer free trading plans, courses, and lessons. So, find out first if they offer free courses online to enhance your trading performance. Some brokers will also offer free binary trading trials so you can try before you buy.
You could also benefit from trading bonuses, tips, the best strategy and trading signals reviews, plus free, practice demo accounts. Not to mention some brokers allow for binary options trading using Paypal. However, don’t be put off by no binary options trading deposit bonus, these can be a sign of potential scams.
For newbies, getting to grips with a demo account first is a sensible idea. Funded with simulated money, you can try numerous assets and options. It’s the perfect place to make mistakes and learn before you put real capital on the line. In addition, you’ll find most free binary options demo accounts require no deposit, so you can start practicing whilst you save that initial capital.
There is no universal best broker, it truly depends on your individual needs. Some brokers offer minimum trades of just a couple of pounds, whilst others require hundreds or even thousands. The solution – do your homework first.
For more guidance on making the right choice, see our brokers page.
Step 2 – Choose An Instrument/Market
You can trade binaries in pretty much everything, including stocks, forex, indices, and commodities. You can bet on anything from the price of natural gas, to the stock price of Google. Opt for an asset you have a good understanding of, that offers promising returns.
Step 3 – Decide On An Expiry Time
As a short-term trader, you’ll probably be more interested in 30 seconds, 1 minute and end of day expiry times. You need to balance binary options trading volume with price movement. Whilst the more trades you make means greater profit potential, it’s better to make fewer and more accurate trades. Also, find a time that compliments your trading style.
Step 4 – Decide On Size
In the binary options game, size does matter. The greater your investment the greater the possible profit. On the flip side, remember the entirety of your investment is on the line. You need an effective money management system that will enable you to make sufficient trades whilst still protecting you from blowing all your capital.
Step 5 – Choose An Option
You will have any number of the options outlined above to choose from. Think carefully about how confident you are in your determination. Consider factors that will jeopardise your investment, and select an option that gives you the best chance of succeeding. Don’t automatically select a ladder trade because you want huge returns, consider which options are the relatively safe bets.
Once you’ve made that decision, check and confirm your trade. Then you can sit back and wait for the trade payout.
Below is a video explaining how to trade binary options on the platform of a leading provider:
Binary trading strategies will differ from trade to trade. What may work for a ladder option in forex, may prove useless in a range option on gold. Having said that, there are two reasons you must have a strategy.
Firstly, a strategy prevents emotions interfering in trade decisions. Fear, greed, and ambition can all lead to errors. A strategy allows you to focus on the maths and data.
Secondly, a strategy allows you to repeat profitable trade decisions. Once you’ve found out how and why that binary option worked, you can replicate it to create consistent profits.
Building A Strategy
There are two crucial elements to your binary options trading method, creating a signal, and deciding how much to trade. The second is essentially money management. How do you go about determining these two steps then?
Step 1 – Creating A Signal
The signal will tell you in which direction the price is going to go, allowing you to make a prediction ahead of time. The two main ways to create signals are to use technical analysis, and the news.
Charts, Patterns & Indicators
If you can identify patterns in your charts, you may be able to predict future price movements. They rest on the idea that ‘history repeats itself’. You can start trading binary options using Heiken-ashi, other candlesticks, and line charts. Armed with charts and patterns, successful traders will build a strategy around their findings.
You can then build indicators into your strategy, telling you when to make a binary option, and which binary option you should go for. These technical tools can prove invaluable, so make sure your broker offers the features available to conduct thorough market analysis.
One of the great things about trading binary is you can use any number of your normal indicators, patterns, and tools to help predict future binary options movements. So, you can start trading with/using:
- Support and resistance levels
- Price action
- Stochastic oscillators
- MACD indicators
- Options close to expiry
For more detailed guidance, see our charts and patterns pages.
You can trade binary options without technical indicators and rely on the news. The benefit of the news is that it’s relatively straightforward to understand and use. You’ll need to look for company announcements, such as the release of financial reports. Alternatively, look for more global news that could impact an entire market, such as a move away from fossil fuels. Small announcements can send prices rocketing or plummeting.
If you can stay in the know you can trade your binary options before the rest of the market catches on. To do that you’ll need to be tuned into a range of news sources. You can browse online and have the TV or radio on in the background. Some of the most useful news sources in terms of trading information are:
- Yahoo Finance
- Business Insider
- Financial Times
Step 2 – How Much You Should Trade
If you’re just starting off it’s often best to keep things simple. Trading the same amount on each trade until you find your feet is sensible. Below are 3 binary options trading strategies for both beginners and experienced traders.
Binary options using the martingale trading strategy aim to recover losses as quickly as possible. To do this you’d trade larger amounts of money in the trades following a loss. So, you’d set an amount that you trade each time, say $250. However, if you lose on that $250, you’d bet $500 on the next trade. If the trade wins, you’ll already be back in the black, rather than being stuck around the break-even mark.
The problem with this strategy is that if you go on a losing streak you can lose a serious amount of capital in a short space of time. So, only use this strategy if you’ve got a relatively accurate means of making trade decisions. If you’re still in the trial and error stage, consider a different approach.
A percentage based system is popular amongst both binary options traders and other traders. The idea is you specify a percentage you’re willing to risk. Between 1-2% is common. So, if you’ve got $10,000 in your account, and your risk value was 2%, you could trade $200 on a single trade.
If you have a greater risk tolerance and consistent results you may want to increase that risk margin to 5%. The benefit of this system is that you should never lose more than you can afford. This makes it an ideal approach to take if you’re new to trading on binary options.
This example is best employed during periods of high volatility and just before the break of important news announcements. This technique can be utilised by traders of all experience levels. It gives you the capability to avoid the call and put option selection, and instead allows putting both on a specified instrument.
You aim to utilise put when the value of the instrument has risen, yet you think that it’s going to decrease soon. Once the descent has begun, place a call option on it, anticipating it to bounce back swiftly. You can also do it in the reverse direction. Simply place a call on the assets prices low and put on the rising asset value.
This significantly increases the chance of at least one of the trade options producing a profitable result. If you’re in a volatile market, this simple system could you see turn handsome profits. This works well as a binary options trading 60 seconds strategy, and will also cover expiry times of up to one day.
Bots & Algorithmic Trading
Once you have honed a strategy that turns you consistent profits, you may want to consider using an automated system to apply it. These robots usually rely on signals and algorithms that can be pre-programmed.
The bots then do all the leg work, trading options on your behalf. The plus side is they can make far more trades than you can do manually, increasing your potential profit margin. They can also trade across different assets and markets.
It’s worth investigating your brokers offering when it comes to auto trading and checking for robot reviews. Many allow you to build a program with relative ease. You can use your own entry points that rely on Bollinger bands, RSI/MFI patterns, and moving averages.
However, even when you’ve got your system up and running, you can’t go into trading binary options on autopilot, you need to stay tuned in. If any mistakes take place, you need to be there to remedy the problem. Technical crashes and unpredictable market changes can all cause issues, so stay vigilant.
Many binary option strategies pdfs fail to sufficiently consider time variables. Certain strategies will perform better with specific time options. You may want to look specifically for a 5-minute binary options strategy. Alternatively, trading 15-minute binary options may better suit your needs. So, whichever strategy above you opt for, ensure you take time into account.
Summing Up Strategy
Trading binary options with success rests on finding a strategy that compliments your trading style. So, consider the instrument you’re going to be trading. Then, employ an effective money management system and use charts and patterns to create telling indicators. Also, utilise news announcements to your advantage.
If you’re trying a new fence, gap, hedging, or any other binary strategy for the first time, why not try it on a trading practice account first? This will allow you to address any issues before you invest your own money.
For more detailed guidance, see our strategies page.
Binary options trading 101; immerse yourself in educational resources. As Benjamin Franklin asserted, ‘an investment in knowledge pays the best interest’. The top traders never stop learning. The markets change and you need to change along with them.
To do that, utilise some of the resources detailed below.
- Books & eBooks – There is a whole host of books and ebooks out there that can impart invaluable information on day trading binary options. You can benefit from the binary options trading knowledge of experts with decades of experience. The good thing about a book it is allows you to learn at a pace that suits you. One book that has made binary options trading easy is ‘Trading Binary For Dummies’, by Joe Duarte.
- Video tutorials & seminars – Engaging and easy to follow. There are numerous online video tutorials out there that can walk you through making a trade. With seminars, you’ll also be able to have questions answered and the binary options trading basics explained, plus some brokers offer weekly seminars to keep you up to date with market developments.
- PDFs & instruction guides – These will give you a clear breakdown of steps that you can follow and apply. The best part is you can find plenty online that are totally free and easy to download, whether you’re using Android, Windows, or iOS. The trading binary options ‘Abe Cofnas’ pdf is particularly popular.
- Forums & chat rooms – This is the perfect place to brainstorm ideas with binary options gurus. You can benefit from recommendations and learn in real-time whilst investing in your binary options. You can also swap live chart screen grabs to get a feel for other binary methods and tactics.
- Newsletters & blogs – These are brilliant for keeping up to date with upcoming developments that may affect your markets. Plus, you could hear about binary options competitions (yes, they really do exist).
- Copy trading – This is when social trading networks/platforms are combined with binary trading tools. You can follow experienced traders, analyse their strategies, and then replicate their trades. Check out copy trading reviews before you sign up.
All of the above will play a key part in your binary options trading training. Free trading videos and examples will help give you an edge over the rest of the market, so utilise them as much as possible.
There currently exists no binary options university. So, explanations as to why that option didn’t work can be hard to come by. Keeping a journal with all your binary option trading results in could solve that issue. A detailed record of each trade, date, and price will help you hone your strategy and increase future profits.
Whether you keep it an excel document or you use tailor-made software, it could well help you avoid future dangers. As an added bonus, it can make filling in tax returns at the end of the year considerably easier. A journal is one of the best-kept secrets in binary options, so now you know, use one.
Trading binary options successfully isn’t just about having the right strategy. If you can’t control your emotions you will make costly mistakes. As Robert Arnott stated, ‘what is comfortable is rarely profitable’. When the pressure kicks in, fear and greed can distract you from the numbers.
You need to accept that losses are part of trading and stick to your strategy anyway. If it’s based on accurate maths and careful technical analysis then you have to keep your faith. As soon as you start acting inconsistently your profits will suffer.
As the popularity of binary options grows across the world, regulatory bodies are rushing to instill order. That means where you trade and the markets you break into can all be governed by different rules and limitations.
If you’re day trading binary options in the UK, for example, you will require a license from the UK gambling commission. If you opt for a broker regulated by the Financial Conduct Authority (FCA), you’ll be guaranteed an extra level of protection. Beware some brokerages register with the FCA, but this is not the same as regulation.
Brexit has brought with it complications to trading regulations. The MiFID II guidelines were set to be implemented across Europe enforcing rules around binaries, however, the UK may not now implement the guidelines. This means the UK is no longer under pressure from Europe to reclassify binaries as financial instruments.
Binary options trading for US citizens is limited by a choice of just two brokers. Nadex and CBOE are the only two licensed options. Fortunately, they are both huge firms offering competitive prices and a range of different assets to trade binaries on.
Rest Of World
In Australia, the Australian Securities and Investments Commission (ASIC) runs the show. If you’re interested in brokers based in Cyprus and Israel, then check they are regulated by CySec. In Dubai and the rest of the UAE, binary options are regulated by the Dubai International Financial Centre (DIFC).
You can also start day trading binary options in Canada, India, Pakistan, South Africa, Malaysia, Kenya, New Zealand, Nigeria, Vietnam, Indonesia, and the Philippines. Each has their own regulatory bodies and different requirements.
So, if you want protection, ensure you do your research before you sign up for a binary broker on the other side of the world.
Another important regional distinction comes in the form of taxes. Some countries consider binary options as a form of gambling, such as the UK. This comes with notable benefits. The HMRC will not charge you any taxes on profits made through binary options. However, in the future binaries may fall under the umbrella of financial derivatives and incur tax obligations.
Having said that, if day trading binaries are your only form of income and you consider yourself a full-time trader, then you may be liable to pay income tax. Whilst you are probably still exempt, it is worth seeking clarification.
Outside the UK, tax regulation differs hugely. Binary options in Japan and Germany come with vastly different tax obligations, for example. So, before you start trading seek advice to ascertain whether you’ll be exempt from tax. If not, will you pay income tax, capital gains tax, business tax, and/or any other form of tax?
For more detailed information, see our taxes page.
Can Trading Binary Options Make You Rich?
Although exciting and dynamic, to make a living trading binary options you’ll need to use this page and other sources as guides. Can trading binary options make you rich then? Done correctly, yes it can. There is no question of binary options potential profitably, this is evidenced by numerous millionaires. To get there though, you’ll need the right broker, an effective strategy, and you’ll need to invest in your trading education, by utilising the resources outlined above.
Are binary options legal?
Yes, but regional regulation varies.
In India and Australia for example, binary options are legal.
In the US, binaries are available via Nadex, and perfectly legal.
In the EU, binaries have been withdrawn for retail investors, but it is still possible to trade binary options legally, by professional traders. Certain criteria need to be met in order to be classed as ‘professional’.
Can you trade at weekends?
Yes. There are two ways to trade at weekends. Firstly, forex markets are still open in some parts of the world during the “weekend” in other parts. Binaries can be traded on forex during these times.
There are also ‘synthetic’ markets with some brokers (such as binary.com) but traders should note there is no underlying market with these options. They are ‘virtual’ markets created solely to cater for traders looking to trade anything at all. They are not for sophisticated traders.
Are binary options banned in Europe?
Binary options have been withdrawn for retail traders by the European regulator, ESMA. Brokers not regulated in Europe may still offer binaries to EU clients.
It is also possible for EU traders to nominate themselves as professional traders. This waives their rights to regulatory protection, and means binaries are free to be used again.
Some synthetic markets can also be traded by EU traders, and while the product works exactly as a binary options, they are referred to slightly differently.
Do binary options work on MT4 or MT5?
There are no binary options brokers offering Metatrader integration. It is however, possible to perform technical analysis in MT4 and place trades on a separate trading platform.
Can you use binary options on cryptocurrency?
Yes. The leading binary options brokers will all offer binaries on Cryptocurrencies including Bitcoin, Ethereum and Litecoin. As a derivative, traders will not “own” any cryptocurrency, they will purely be speculating on the price. This does mean however, there is no need for a Crypto wallet or crypto account.
Best Reliable Binary Options Brokers
Trading binary options has become a popular form of trading all over the world, but before you start risking your own money there are a few important steps you should take. The first, and one of the most important, is finding the best binary options broker. Unfortunately, it is not as simple as picking a name out of the hat – there are a very large number of brokers out there. While the number was very small when binary options trading for the average man first began, we now have in excess of 400 firms offering these services.
Regulation of binary options trading activities is still under development
At present, there is no single regulatory body responsible for overseeing and regulating all the Forex and binary options activity taking place across the globe. However, this has not stopped thousands of people taking advantage of of this form of trading instrument. There are a number of individual regulatory bodies that have been formed, though usually operate within certain geographical areas. The aim of these bodies is to monitor the various Forex and binary brokers, in order to promote best practice and protect traders. Given the more complicated nature of pricing and trading binary options, it is no surprise that choosing to trade straight-forward FX is now becoming more popular, especially as traders become ever more familiarised with risk-reward profiles through time and experience.
In the USA, there are very strict regulations that have been imposed on binary brokers who wish to accept US-based traders, and this meant that some of the top binary options brokers have looked beyond the US to find clients.
What is a binary options broker?
AA binary options broker is naturally a company that operates a website offering a market for binary options. Through the website, a trader can trade quickly and effortlessly by using an online interface or platform, either on a desktop or a mobile device. The broker simply fills a trader’s order on their behalf, and pays out if the trader makes a correct prediction, and through a rebate program, may give an ‘out-of-money’ refund when a trader loses. One could think of a broker as kind of a bank (or credit provider in some cases) in this respect, because they can be seen to be borrowing the money of their clients while it is sitting in their trading account. This is less obvious in Forex trading, as traders are likely to be more active, and proactive and are not confined to the time set by the expiry period.
Thinking of your broker as a bank may give you a reference point in what to look for in a top binary options broker. As with an actual bank, you may be content to stand in line, wait in the queue while your bank ignores you, deal with a teller who is impolite, and be charged unreasonable and unexpected fees. We would expect most would not tolerate this kind of service from a bank and therefore, your choice of binary options broker. It really does pay to find yourself the best binary options broker – one who will take you and your investment seriously, as well as treat you fairly, with respect and transparency.
Top five tips on choosing the top binary options broker for you
It is not possible to pick the best binary options broker without undertaking some research, and we are here to help by giving you some pointers on what to look for. Picking the best binary options trading sites blindfold is not a sensible course of action, and you may well regret your decision. Work your way through the following five tips though, and you will be better placed to achieve success:
Reputation is important. There are hundreds of binary options brokers to choose from, and more are joining the fold every month. Simply picking those that are regulated is not enough. Many of the brokers who are regulated are usually regulated as private banks, gaming businesses, or some other financial entity.
The best way to start determining which binary options sites to use is with the help of your search bar. Nowadays, information and reviews on binary options brokers are available and this will be useful information to guide you in your choice. There will be sites similar to this one where you can read third-party reviews; but you should also look for customer reviews and discussions that take place on forums for further information, discussing the various pros and cons of the best binary options trading sites. Naturally, you will be drawn to binary options brokers with a well-established reputation that is on the whole positive.
Read all the small print carefully, and make sure you understand what it all means. These days, it has become common practice for people to gloss over the terms and conditions and simply tick the box without taking the time to read them. We advise against this, as you should always understand exactly what you are getting yourself into. As keen as you may be to start trading, an unscrupulous broker can take advantage of the situation, and there is no one else to blame but yourself if you didn’t take time to read the terms of service. One such condition to be wary of is the withdrawal limit, as this often catches traders out.
Look for an opportunity to practice before trading for real. Choosing a broker that offers a demo account should feature high on your list of things to look out for. Having the opportunity to demo-test will only help to improve your chances of being a successful trader, whether in vanilla forex or binary options. There is another reason to look for binary options sites with a demo account option, however. Trust. When a broker offers a demo account, they are giving you the opportunity to be more successful, and therefore profitable, which serves the broker also as you are more likely to be a longer term customer. A broker who does not offer a demo account is effectively encouraging traders to jump in head first, without trying out strategies in advance.
Take notice of the added features and trading tools of the various binary options trading sites. Every binary options broker is different. Some do just enough, while others go above and beyond to give their clients the best possible service and ‘value for money’. Look for brokers who offer more than just a few types of trade, along with other tools and educational material. Look out for binary options brokers offering Option Builder as an added extra. Using an Option Builder means you do not have to choose from a range of expiry dates and times, but can set your own. It also allows traders to customise a number of other features of the option they want to trade. With regard to educational material, look for top binary options brokers who offer webinars, one-on-one training sessions, and video tutorials on how to use the website, as well as trading advice and articles relating to various trading strategies.
Top-quality customer service is vital. We think this is one of the most important qualities to look for in a binary options broker – or indeed any broker. A broker, whatever field it may operate in, is only as good as the service it offers its customers. Your choice of binary broker may have all the best features and tools, but if they do not deliver on their promises, this is a strong signal of their trustworthiness. The best way to find out about customer service, is to – naturally – test it for yourself. A good way to do this is to call the company, armed with some basic questions, and see how they perform. Here are a few suggestions:
– Take note of the response times, and whether your questions are answered quickly and intelligently.
– Did you feel comfortable talking to the representative, and did you receive the actual answers rather than just a hard sell?
– Test the live chat option, if there is one. Is the live chat option manned by real people or an automated robot?
– Test the email option and see how quickly you get a response.
If you are not completely happy with of your experience with a particular broker, then try another – there are plenty out there. You should be looking for a broker that fills you with confidence, and one you feel comfortable working with. By doing so, you are increasing your chances of becoming a successful trader, whether you choose to stick with binary options or focus more on traditional vanilla products. Indeed, it may be the case that in your research into binary options, you find that the best ‘option’ for you is to go down the route of straight-forward Forex. Researching the benefits will also give you insight into which asset classes suit you best.
Important features to consider when choosing a binary options broker
There are a number of different attributes to consider when determining the top binary options brokers:
- Varied asset base. There will always be better prospects if there are a number of different assets you can choose from.
- Variety of binary option types. The best brokers offer a wide range of binary option types, including short-term options, one-touch options, and Options Creator.
- Choice of deposit options. A broker that offers a number of deposit options will be much easier to start with, while also being accessible to more clients. It also means there will be better cash-out and payment options.
- Financial stability. A well-established broker will be much more reliable than a smaller firm, or one that has just started.
- Profitability. Look for a broker with high payout rates.
- Cashout options. The best binary options brokers are those who are quick and prompt with payments. Payments within two days or less should be considered the best.
We hope you’ve enjoyed this section on choosing the best binary options broker, and will keep our site as one of your favourites – because we’ve got heaps more information to share.
Find the Best Binary Trading Brokers 2020
Maybe you’re still learning about trading, or perhaps you feel ready to take your first step into the trading market as a beginner. We’ve researched the binary options trading market extensively to help make your task of choosing a platform simpler.
As you may have heard, trading with binary options is one way to get into the markets with minimal trading experience but with the real possibility of ending up with some great returns. Of course, before you can begin trading, you will need to find the best binary option broker for you. There are a LOT of brokers in the giant binary options trading industry. Naturally, a single broker cannot necessarily be said to be outright “the best” one versus another. However, we do our utmost here to review all aspects of the best binary options sites to help you decide. Our site’s role is to act as a guide in this sometimes overwhelming task of yours. By following these helpful tips and recommendations, you’re just a click away from the best binary trading brokers. So, let’s get started.
What is trading with binary options?
Before moving to the particular part of our research for the best binary options brokers, it is a good idea to make a quick revision of your binary options knowledge and to be more specific – of the binary options trading activity. To understand trading with binary options you should know, at first, what binary options are. In general, a binary option is a class of an option where the payoff comes with only two final possible results. The first result is the fixed amount of money of the asset you have chosen, while the other one (the negative or the loss) is nothing at all. As you can see trading with binaries is different from trading on regular Forex markets, like the top forex brokers are different than the binary options ones, where in most cases some continuous range of payoff might appear. Trading with binary options is usually quick and simple, which makes this way of trading extremely interesting and quite suitable for beginners. Moreover – binary options trading results in comparatively speedy payouts, while the risk may be quite low. The fact that you either win, or don’t win anything means that trading with binary options can be considered as child’s play. However, do not underestimate the necessity of proper prediction, constant following of the latest news from the market and the analytical skills, because binary options trading still requires you to think and consider, rather than to gamble.
Best Binary Options Brokers
|Broker||Early Expire||Average Return||Min Deposit||Min Trade||Rating||More|
|✔||90%||$ 10||$ 1||★★★★★|
|✔||95%||$ 10||$ 1||★★★★★|
|×||95%||$ 250||$ 1||★★★★★|
|×||85%||$ 10||$ 1||★★★|