Best Binary Options Brokers.
Ever since binary options got official recognition in 2008, they have been a popular choice for retail investors.
While good brokers are a necessity in any trading, they are especially important for a derivative asset like binary options. Read on to learn more about the best binary options brokers.
Best Binary Options Brokers.
Broker availability in this industry will vary based on your location. U.S residents have a good choice of regulated domestic brokers but also limited options when trading offshore.
Best Overall: Pocket Option.
Pocket Option is one of the simplest investment platforms anywhere. When you register for Pocket Option, the process includes:
Registering and funding your account A 50% deposit bonus (available at publication) Choose your asset Decide how much you want to spend Decide if the asset will go up or down You earn if your prediction is correct.
There are both desktop and mobile applications that help you access and manage your account.
When you use Pocket Option, you also gain access to a 24/7 live support email and online message line. You can call for service, chat in the community forum and avail yourself of over 100 available assets. Think of Pocket Option as the simplest way to access the market or simply an easy way to invest when you have very little time to spend navigating a complex website or app.
Best for Long-Term Binary Options Traders: Dukascopy Bank.
A bank that offers binary trading is a rarity but Dukascopy does that. A Swiss financial institution since 2004, it is regulated by the Financial Market Supervisory Authority (FINMA).
Dukascopy offers a wide selection of financial products: currencies, cryptocurrencies, commodities, indices, stocks, bonds and binary options.
Binary options are available for 18 forex pairs. Trading is available through the proprietary JForex platform. It works as a web-based platform, desktop platform or mobile app (for both Android and iOs).
Payouts for binary options vary from 70% up to 90%. Trading sizing starts as low as $1 and there are no commissions. Besides traditional up/down binary options, gain capital review forex robot Dukascopy also offers touch binaries — options on FX currency pairs with 2 remote strike prices set around the open price. Here you are betting which level will be reached first until the settlement time (end of the day). If the price reaches neither, the contract is canceled and your trade is refunded.
Yet, forex robot 2019 nfl a downside for short-term traders is that Dukascopy doesn’t use a traditional binary options price entry model — (bid-ask) / 2 — so this platform is the best for long-term binary options traders.
Best for Asian Markets: Spectre.ai.
Spectre.ai is the first platform to transform binary options into digital contracts. Powered by the Ethereum smart contracts, the company has been operating since 2017.
A major advantage that Spectre holds over any other binary options broker is that you don’t need to make deposits. Using smart contracts you are able to trade directly from your digital wallet.
The liquidity pool is crowdsourced and traders trade either against each other or against the liquidity pool, depending on the volume.
Trading is available 24/7 on a vast number of robot forex sejuta umatilla pairs, commodities and cryptocurrencies. In addition to advanced risk management options, Spectre has Trader’s Bay where you can buy platform upgrades — from higher payouts, larger investment size to a lucrative 400% payout for scoring 3 wins in a row.
For those who want to trade directly from the platform, minimum deposits start at $10 and the minimum trade size is set at $1. For trading directly from a wallet, there are no deposits and the minimum trade size is $50.
You can trade either from the proprietary web platform or a mobile app.
Important note: Spectre.ai focuses on the Asian market and is not available for U.S. residents.
What is a Binary Option?
A binary option is one of the simplest financial instruments. Technically, it is a derivative — when you buy it you are not buying (or selling) an underlying asset but speculating on its movement.
There are 3 variables that define a binary option:
Asset: What are you speculating on? This can be anything from a currency, commodity, individual stock or forex no loss robot scam even one of the stock indices. Duration: How long is the expiry time? Depending on the options available it can be anything from one minute to one week or longer. Direction: What direction are you betting on? Is the asset going to rise or fall?
While the value of traditional options fluctuates based on the distance to the strike price, this is not the case with binary options. Here the outcome is binary, either a win or a loss — hence the name.
Binary options have variable payouts. They are based on volatility, liquidity and other factors. Although they are sometimes as low as 50%, they are usually between 80% and 100%. Breakeven results on binary options usually need a 56% win rate with excellent results around 65% or higher.
Benefits of Binary Options.
When it comes to trading binary options, some benefits put them in front of other derivative products.
First of all, binary options are rather simple. With 3 variables (asset choice, duration, direction) they are easy to understand, top ten forex robot 2020 corvette even for complete beginners.
Furthermore, they have limited total risk — you can only lose the amount invested. This is helpful compared to other trading (like forex), where under certain conditions your stop-loss might get bypassed resulting in unacceptable losses.
Although some brokers now offer early closure of positions, originally this wasn’t the case. Yet this is an advantage, as not being able to get out of the position early results in better trading. It also helps prevent overtrading, best robot forex 2010 which is a bad habit.
Finally, you can start trading binary options with a small amount of capital. Combined with their simplicity this is what makes them so attractive to beginner traders.
A Great Way to Learn.
Binary options are one of the simplest financial instruments out there. Although once considered risky, this was because of a large number of scams. Yet, as the industry matured this is less of a problem. If you stick with reputable brokers your risk is not larger than in any other financial market.
Binary options offer a great way to dip your toes into the financial markets — learn how and why they behave the way they do and even make some money. The fact that the maximum risk is known and limited will always be the most important thing for beginners.