Since binary trading options became available to small traders in 2008, traders have found them to be an incredible investment option. Up until that point they were only available to large institutional banks.
They’re a great option for beginners and the binary options market has grown over the last decade. With that growth and a lot of beginner investors, the binary options market has become rife with scams and fraud.
That causes a lot of trading losses and rip-offs, giving the market a bad name. The truth is that you can make money in binary options, you just have to find the right brokerage firm.
Here are the top 10 binary options brokers to invest with.
An Intro to Binary Options Trading
If you’ve ever bet on an over/under in American football or played High-Low on The Price is Right, you’ve done something similar to binary options trading. It’s also similar to betting on football.
Believe it or not, binary options trading is just as simple. You’re answering a simple yes or no question. Will something (stock, asset, Forex, etc.) be trading higher than a certain price at a certain date?
You can answer the question, will gold be above $1000 at 3:35 pm. If you think it will be above, you buy and sell if you think it will be below.
Seems easy, right? There’s a bit more to it than that, but you have an overall basic idea as to how it works.
How to Find a Binary Broker
Finding a binary options broker isn’t a cut and dried case. It’s a lot like finding a trustworthy online gaming or betting site. They’re full of fraud, but there are a lot of good binary options brokers out there. Use these tips to find a brokerage firm.
How Long Have They Been Around?
The longer a binary options brokerage has been around, the more likely it is to be legitimate. They probably have a solid customer base that likes working with them.
Where Are They Located?
Binary options brokers can be located all over the world. That’s one thing that you need to look out for before you sign up. The location of the broker will determine what kind of rules and regulations they’re held to.
Brokers in the U.K. and the U.S. are going to be held accountable by their respective regulatory agencies.
Licenses, Fees, Payouts
The most legitimate brokerages will have some license to operate in their location. Again, some places offer these licenses like Panini cards, so you want to make sure that there are actual standards in place to get licensed.
Brokerages for binary options will require a minimum deposit, which could be anywhere from $50 to $250 and above.
Of course, these brokers don’t work for free. They will take a percentage of your payout and require that your trade meets a minimum amount.
Where Do They Trade?
You’ll want to know in advance what you want to trade and ensure that the platform can execute those trades. If you want to work solely in American trading markets, then you want to make sure that the platform that you sign up with can do that.
Do Your Research
You’ll want to spend a bit of time and research the top binary options brokers. You’ll come across articles and reviews of different brokers that will help you weed out the legitimate ones from the scams.
You’ll want to protect yourself in advance of signing up with a binary options trading site. The SEC has a rundown of common scams that exist throughout the industry.
Top 10 Binary Options Brokers
Now that you know what to look for in binary options brokerage firms, which ones are even worth looking at? These are the ones you should consider.
They were established in Cyprus in 2014. They offer a demo account and you can trade through apps on Android and iOS.
2. IQ Option
IQ Option has gained a massive following in South Africa, and they give you the option to trade stocks, ETF, and stock trading. You can more about IQ Option.
Ayrex is based in St. Kitts and Nevis. They’ve been around since 2014 and are well known for their user-friendly platform. It’s simple and very easy to navigate, even for first time traders.
365Trading is kinda like driving a high-performance sports car. There’s a lot to learn and the platform is really meant for experienced traders. There are a lot of bells and whistles that make this a robust platform.
What’s great about FinMax is that this Bulgaria based outfit has figured out timing your trades. You can set up a trade to last as long as 6 months or as little as 30 seconds.
If you want to automate your binary options trades, you can set up OptionRobot to do that for you. Once you know how trading works, you can use this to set up your trades and go.
This is the most interesting platform in that it functions as a social and educational network rather than a brokerage firm. You can follow the top traders in the community and hopefully, get the same results.
HighLow was established in Australia and offers traders a demo account and $50 sign up bonus. They have a minimum deposit of only $10, which makes them a great bet for beginners.
OptionFair has been around since 2010 and is regulated in Cyprus. You can trade forex, binary options, and make that switch very easily within the platform.
They have the best domain name for what they do. This UK-based operation offers an education platform on top of a robust trading platform.
Find the Best Binary Options Brokers
Investors love binary options trading because it’s simple, and it doesn’t require a ton of stock market knowledge. You don’t need to spend hours researching a stock, and decide if it will be above a certain price by a certain date.
While binary options are great for beginner traders, they also attract fraudulent binary options brokers. You may not like to do research, but it’s required to find the best, and legitimate, broker. Hopefully, the information presented here will help you with your research.
Would you like more great investment tips? Check out this article on using Bitcoin as an investment vehicle.