Best Online Brokers for Binary Options Trading in 2019
Below is Our List of The Top 6 Brokers for Binary Options trading in 2019:
- IQ Option (read the review here)
- Interactive Brokers (read the review here)
- TD Ameritrade (thinkorswim)
- E*TRADE (Power E*TRADE)
- Charles Schwab (StreetsSmart platforms)
Many beginning options traders are surprised to find out that options trade have higher and more complex fees than standard stock or bond trades. It’s relatively common for options trades to have a base fee and a commission for each contract traded. Beyond this, options trading can have multiple “legs” with each leg having additional charges or fees.
More Information About The Winner
Whenever you start a specific kind of options investment, you’ll often need a broker or an application to help you. In the binary world, there’s a popular option called IQ Option. This award-winning platform for binary trading is designed to help you explore the ins and outs of binary trading with ease. It’s a simple and intuitive platform that’s easy to use, and very accessible. You should be able to open an account and begin your trades within minutes. Based on the many scams which were happening on the options market lately this is also the only platform we can recommend. Other benefits of this platform include:
- Privacy and security – trade with confidence, knowing your personal data, funds, and transactions are secure.
- Patented technology – trade with a pioneer in the industry, and a holder of patented technology.
- 24/7 availability – trade whenever you want – even if it’s on weekends.
- All conditions and markets – you can trade commodities, indices, currencies, and more in a range of different conditions.
- Long or short-term durations – choose a timeframe that suits your risk strategy.
- Competitive pricing- Get the prices that are benchmarked against your specific needs.
- Transparent risk and reward – When you trade in any kind of binary marketplace, you can rest assured that you’ll know how much you can stand to lose or win before you use your money.
- Protect your cash – You can sell your contracts on Binary.com before they expire. This reduces your risk of losses.
- Two-way pricing – get your quotes for countertrades and trades at the same time, so you never have to worry about bias clouding your judgment.
Whether you’re brand-new binary, or you’ve been in the market for a while, the IQ option website can be an excellent way to expand your wealth. With a deposit of as little as $10, you can start trading whenever you like, and choose your trades based on your own insights. There’s plenty of flexibility with this platform, with millions of trade various to choose from. You can also customize your trades according to your risk-reward campaign. You can read the full review of IQ Option here or just check the special requirements for IQ Option UAE users here.
Risks and Tools For Binary Options Trading
There are many different variables to consider before you open an options trading account. Two of them are risk and tools. Trading options is risky as traders can lose a lot of money very quickly. However, there are ways to minimize this risk while maximizing your return. This is done primarily through education and tools. All of the brokers above provide superb educational materials and top quality trading tools.
Other brokers provide options trading accounts, but there are often unexpected limitations. For example, both Robinhood and Vanguard support options trading, but only one position per order. This means it’s not possible to create multi-leg trades with those brokers. This makes each trade cheaper and slightly less risky, but it also limits potential gains as well as automation. It also prohibits some of the potentially more lucrative trading strategies that require multi-leg functionality. If you are planning on becoming a frequent trader, be aware that commissions and fees can change. Be sure to carefully evaluate and understand all fees and charges associated with your account.
If you’re a beginning options trader, be sure to check out the brokers above who all offer competitive fees, sophisticated trading tools, and a wealth of educational materials.
How Does an Binary Option Trade Gets Executed?
There are a few specialties you need to know about before investing any money, which makes this kind of investments different from others. You can get more information and a background on the term binary options here
If you’re new to trading binary options, you might be wondering how to get started.
The good news is that it’s easier than you might think. To begin with, all you need to do is choose the market that you want to trade in, the type of trade you’re interested in, the duration of the trade, and the payout you hope to get. Once you’ve entered your position into your trading platform, you’ll get prices based on your situation. From there, you can just redefine your position or buy your contract.
Defining your Trade Position
Trading in binary begins with identifying the basic outlines of your trade. You’ll need to adjust a few basic parameters to get a price for your contract. For instance:
- Choose your market from a range of Forex, Indices, commodities, and volatility indices. There are plenty of sub-options within each of those four available markets so that you can further customize your trade.
- Choose your trade type: Do you want to predict if the market will fall or rise from its current level, or hit a price target? Maybe you can determine whether the market will stay within or go outside of a specific price target.
- Select your duration: Next, you need to choose the length of your trade. On Binary.com, this can be anything from 10 seconds to a year.
- Pick your barriers: Finally, determine the boundaries of your position so you can figure out the kind of payment you’re going to receive.
From here, you can choose the payout that you want to try and get if you correctly predict a contract.
Getting your Price and Making your Trade
Once you’ve outlined your position on your trading platform, your contract price would be automatically calculated by the patented pricing tech on the system. The price is based around the parameters that you outlined previously. The prices are also benchmarked against the interbank options market. You should be able to rest assured that you’re getting the most competitive prices.
When you’re happy with the price that you’ve been given, you can simply carry out your trade. The platform you get will make it easier to complete your trade without any risk of slippage.
What Kind of Markets Should Your Options Broker Cover?
As mentioned above, binary options allow traders to trade on a range of different markets. One advantage of trading binary options is that you don’t buy or sell an actual asset. You only buy a contract that suggests how that market will perform over time. This reduces your risk. The markets available on our list of top brokers are:
- Indices – Stock indices from the OTC market
- Forex- Major and minor pairs (and smart FX)
- Volatility indices – synthetic indices
- Commodities – all precious metals and energy
Indices allow you to trade stocks with real-time pricing and charts.
Volatility indices might be a bit more obscure for some traders. These are synthetic indices that mimic the behavior of real world stocks in the market. They’re based on a cryptographic number generator, that’s audited by a third party. You can trade these indices on all three main trade types, and there are two classes available – continuous indices, and daily reset indices.
For those interested in sticking to the markets that they already feel familiar with, Forex is often a good option. With Forex, you can trade on contracts about minor and major currency pairs, as well as smart forex indices.
Finally, the other option you can consider are commodities. Most of our recommended platforms offer the option to trade contracts an all four of the most common precious metals, including palladium, silver, gold, and platinum. There is also a list of energy options available too.
The mission of Business24-7.ae is to provide comprehensive, unbiased ratings and reviews of online brokers. User experience, the mobile experience, customer service, costs and fees, security, the quality of trade executions, the products available on their platforms are all part of our six-month evaluation of a broker’s platform. The rating scale was based on thousands of data points that have been weighted into the scoring system.
Brokerages were also required to fill out a multi-point survey regarding every aspect of their platform. In-person demonstrations and evaluations were provided by the majority of the online brokers we reviewed.
Stefan Grasic, along with our team of industry experts, conducted our reviews and developed this methodology for ranking what form is used in online investing.
Business24-7 maintains high editorial standards and provides the best advice and recommendations. The products and companies that we review may compensate us when you click on the links on this website. Click below to find out more about our review process and methodology.