Most reliable binary option broker 2017

Hedging to some may be complex and the traditional instruments are difficult to access, if not altogether beyond their reach. That’s why when the US Securities and Exchange Commission approved binary options in 2008, retail traders jumped in for the chance to engage in hedging that is at once simple and accessible to the small player.
In a nutshell, binaries are a financial instrument where traders wage an all-or-nothing return. The internet makes trading even more accessible to the random person, where exchanges are managed by binary options brokers. Unbounded by geography, binary options give the average trader access to global markets. This stew of simplicity, easy access to a large pool of instruments, not the least the lure of quick bucks, makes binary options popular in the US and elsewhere. But you, the trader, should understand the risks, rewards and issues with binary options.
In this article, we’ll walk you through the top binary options brokers. Specifically, we’ll compare the following features of each broker:
Minimum deposit Maximum returns Bonuses, if any Supported trading platform.
Knowing where to hedge your funds is the first step to maximizing returns or, at the least, minimizing losses. It may also pay to know some basics of the trade. For instance, Nadex, a U. S.-based regulated exchange for binary options, identified the top four traded forex pairs as:
The list indicates, more or less, where binary options are most popular. Incidentally, Nadex also pinned down the most popular time and day for binary options trading:
Source: Nadex infographic.
A Word of caution.
As with many internet financial transactions, binary options are prone to fraud, so play it cautiously. Many brokers are not regulated by the government (a good or bad thing, depending on your perspective); you’re left with the good graces of your choice.
A common red flag is a trading platform that overstates the average return or, worse, it manipulates price points to cause customers to lose their wager (every time customers lose, brokers win). A simple online sleuthing by reading user reviews and forums about the broker should steer you clear of fraudsters.
The challenge is to focus on legitimate brokers. For instance, the Chicago Board Options Exchange (CBOE) lists reliable binary options for US traders and runs the CBOE Volatility Index Binaries to track options movement. CBOE is SEC-regulated, which adds layers of investor protection.
Meanwhile, the nonprofit Financial Industry Regulatory Authority (FINRA) is a good resource for fraud alerts. For instance, just last March it released a warning that scammers are using these follow-up schemes targeting binary options customers.
To help you, we provide the lowdown on the top 15 popular binary options brokers of 2017 that you can consider for trading. Hopefully the list will let you find the best broker for your investment needs and expectations and start successfully trading on your own.
1. IQ Option.
IQ Option was established in 2012 and it has favorable reviews on the internet. It uses in-house software for trading. Maximum returns are 91%. However, traders in the USA, Australia, Canada, Russia, Belgium, Japan, Turkey, Israel, Iran, Sudan, and Syria are not accepted. IQOption Europe Ltd. is well-known for reliable broker services, as it is regulated by the CySEC.
IQ Option offers a free demo account to help you get started. Minimum deposit is just $10 for the Real Account. For the premium VIP account, the minimum deposit is $3,000. Customer support is currently offered via , phone, and live chat. Finally, this broker offers multiple convenient deposit and withdrawal methods to help you trade easily. For more details on this service read our binary options brokers review for this particular broker.
Minimum deposit: $10 Maximum returns: 91% Supported trading platform: proprietary web, Android, iPhone.
2. Binary.
UK-based Binary is a licensed broker regulated in the British Isles, Malta, Ireland and the UK. However, US traders are not accepted. It is one of the more transparent companies in the industry that declares its owning company and market operations. Formerly the BetonMarkets, Binary blends gambling and trading but with transparency. It offers CFDs, FX margin and crypto trading via MT5.
You can start the trading time aside from the expiry date and the investment amount is based on the payout you set. The minimum deposit is $10 and for e-wallets it’s even lower, $5.
The bonuses are not standard; rather, consist of two types. The Deposit Bonus and Free Bonus. Likewise, the percentages are not specified, but you are required as much as 25 turnovers to avail yourself of a withdrawal. There’s also a 1.5% payout commission.
The broker supports various trading platforms, such as, Binary Webtrader, Binary Bot and Binary Next-Gen. Furthermore, it can personalize client trading needs all under one roof.
Th e platform is intuitive to the first-time trader and robust for the veteran. It features a lot of visual tools like charts and technical indicators and the tutorials on binary options are comprehensive. Likewise, it supports 12 languages and provides a virtual money account. Mobile apps are available.
Minimum deposit: $5 Maximum returns: 1,000% Bonuses: not specified Supported trading platform: proprietary web, Android and iPhone.
HighLow is based in Australia and is a regulated broker. It uses the MarketsPulse trading platform. Maximum returns are up to 90%. However, this broker does not allow US-based traders. Convenient demo account and mobile app are offered.
The minimum deposit amount and the minimum investment amount are both $10. If you like fast expiration times, HighLow is the ideal broker for you as it offers, 60 second, 90 second and 5 minute expiration times. Customer support is offered via phone and in English and Japanese. The broker’s website is informative with a detailed FAQ section. You can go for HighLow as it has favorable online reviews.
Minimum deposit: $10 Maximum returns: 90% Bonuses: $50 upon sign-up Supported trading platform: MarketsPulse web, Android and iPhone.
4. Marketsworld.
Marketsworld is a regulated broker based in Great Britain licensed by The Isle of Mann GSC, a gambling regulatory agency in GB. It’s one of the few foreign regulated brokers where US traders are accepted. It trades in commodities and indices, but focuses more on forex and trading is fixed on a high/low digital basis.
The minimum deposit is $10 with the minimum trade size of $1. Bonuses are restricted to trading for up to 100% and don’t tie up your deposits. In fact, you can withdraw your money anytime without affecting your bonus as long as you keep to the required trading volume. Returns, meanwhile, range from 80% to 90% and withdrawals take around three days.
The trading platform is proprietary and supports English, Russian, German, Spanish and Italian and four more languages. The trading charts can be difficult for some because of their small size and delays are known to happen. Support via live chat, and phone are available. An iOS app is also available.
Minimum deposit: $10 Maximum returns: 90% Bonuses: up to $1,000 start-up bonus; up to 100% on trade Supported trading platform: proprietary web, iPhone.
Tel Aviv, Israel-based eToro is a social trading network and not a broker. It allows you to copy the leading traders in its community and, hopefully, realize the same margins. Conversely, your trading can be copied, which earns you additional income.
In this platform you invest in people, not currencies. You will have to be intuitive about other traders’ behavior and analyze their patterns or strategies, instead of learning financial charts and indicators.
No worries, eToro provides more than 16 lectures and video courses on how to hone your skills. These include identifying consistent traders, not just one-shot deals. You also get a list of the best traders on currencies, indices and commodities across a wide range of underlying assets.
On the B side, you can share your trading insights and enrol in the Popular Investor Program as a trade authority.
Minimum deposit is $200, while maximum returns varies. The network uses its in-house trading platform with Android and iPhone apps.
Minimum deposit: $200 Maximum returns: varies Bonuses: not specified Supported trading platform: proprietary, web, Android and iPhone.
6. 24Option.
24Option has been online since 2010 and is a stable and reliable broker as it is regulated by the CySEC. It uses the third-party TechFinancials trading platform. Maximum returns are up to 88%. This broker does not accept traders from the US and Australia.
The minimum deposit amount is $250 and the minimum investment amount is $24. Trade types offered are high/low, one touch and no touch, boundary, and 60 seconds. A demo account is offered for new traders. You can enroll in Standard, Gold, or Platinum account depending on the amount you deposit and the features you want. 24Option provides customer support via phone, live chat, and in English and thirteen other languages.
Minimum deposit: $250 Maximum returns: 88% Bonuses: up to 100% Supported trading platform: TechFinancials web, Android and iPhone.
7. ETX Capital.
ETX Capital is headquartered in London, UK and regulated by the British Financial Conduct Authority (FCA). It trades in forex, equities, indices and commodities, but note that binary options are unregulated by the FCA. Likewise, US traders are not accepted as of this writing.
The broker takes pains in educating newbie traders, explaining in details binary options, risk trading and other key topics.
The minimum deposit is $100 with returns between 75% to 85%. Bonuses are not specified but are available. A call to their support should specify a personalized bonus based on your investment. Likewise, withdrawals above $100 are free of charge.
The broker uses MarketPulse for platform. It is clean and intuitive to beginners with the expiry times easy to locate. However, it only supports English.
Minimum deposit: $100 Maximum returns: 85% Bonuses: varies, personalized Supported trading platform: MarketPulse, web, Android and iPhone.
8. 365Trading.
365Trading is registered with the CySEC and based in that country. It was founded in 2012 and has since traded in EU without issues. It primarily trades in binary options. As of this writing, US traders are not accepted.
Minimum deposit is at $100 with profits and bonuses reaching 85% and 100%, respectively. You can open a demo without deposit and try their long - and short-term expiries.
The platform, an in-house system, is robust and ideal for veteran traders. It features charts, lines and candlesticks and provides historical analysis. The platform allows you to set up three assets with quick access shortcuts. Likewise, you can trade four assets simultaneously featuring a main window and three sub-windows.
Support is available via and phone.
Minimum deposit: $100 Maximum returns: 85% Bonuses: up to 100% Supported trading platform: proprietary, web, Android and iPhone.
Ayrex is based in the UK and has a pending application with CySEC. It trades in 70 assets and is focused on binary options. As of today, US traders are not accepted.
Minimum deposit is at $5, one of the lowest, while bonus is up to 30% and returns range between 75% to 90%.
The broker uses a proprietary trading featuring instant withdrawals, which is unique in the niche. The interface is neat and lets you quickly jump to different trades. It’s ideal for short-term trading. High/Low options are also available.
Support include 24/7 live chat and via . Likewise, the system is accessible from Android and iPhone apps.
Minimum deposit: $5 Maximum returns: 90% Bonuses: $30 no-deposit new account, up to 30% on trade Supported trading platform: proprietary, web, Android and iPhone.
10. CMC Markets.
UK-based CMC Markets has been in a forex broker since 1989 but only went into binary options in 2015. Still, that’s a long history of trust and reliable operations compared to most binary options brokers. On top of it, it is regulated in the UK. Today, it trades in indices, commodities, shares, treasuries and forex, but US clients are not yet accepted.
There is no minimum deposit and there are no bonuses, too. Returns also varies depending on the product.
Meantime, the platform is customizable and includes charting tools, pattern recognition functionality, various screen layouts and multiple timeframes. The system is accessible from Android and iOS devices. Support is UK-based and consists of live chat, , phone and fax.
Minimum deposit: no minimum deposit Maximum returns: varies Bonuses: none Supported trading platform: proprietary web, Android and iPhone.
11. OptionFair.
OptionFair is founded in 2010 and based in Cyprus. It is regulated by the CySEC and is also listed on the London Stock Exchange, a first among binary options brokers. US traders are not accepted. The broker trades in forex, CFDs and binary options on 118 underlying assets.
The minimum deposit is $100 with returns up to 100%. However, there are no indicated bonuses, but you can always contact support for possible terms. Expiry time is shorter than average, but makes for quick returns over short-term trading.
The broker uses its own platform that allows you to shift trading from forex to binary and to CFDs from a single interface. It gives you access to myriad assets and instruments and a wide range of expiries. You can, in fact, trade simultaneously forex and binaries. Mobile apps for Android and iPhone are available.
There is phone support in five international numbers including English, Spanish, Italian and French. and live chat support are likewise provided.
Minimum deposit: $100 Maximum returns: 100% Bonuses: none Supported trading platform: proprietary, web, Android and iPhone.
12. BinaryTilt.
BinaryTilt is an unregulated broker with headquarters in London, England but is wholly owned by Cyprus-based Depix Holdings. Although it isn’t overseen, the broker seems to have a clean record with rare warnings from authorities. US traders are not accepted. It trades in stocks, indices, forex and commodities across 150 underlying assets.
Minimum deposit is $250 with profits of up to 85%. Likewise, bonuses can reach 100%. Trading styles include high/low, one touch, range and on demand. The stocks are also mainly US or EU-based companies.
The trading platform is SpotOption, a standard but increasingly old school compared to newer platforms today. The UI is familiar and the elements are organized, good enough for first-timers to kickstart their trading without a hassle. Support is via chat, while Android and iPhone apps are available.
Minimum deposit: $250 Maximum returns: 85% Bonuses: up to 100% Supported trading platform: SpotOption, web, Android and iPhone.
13. EmpireOption.
Founded in 2010, Uruguay-based EmpireOption with a registered address in London, England. As with most brokers, US traders are not accepted. The broker trades in forex and CFDs with a diverse underlying investment portfolio.
Minimum investment is $100 and expect u to 82% maximum returns. Likewise, bonuses can reach 100% but terms apply.
The trading platform is SpotOption but minus the SpotOption payment network. EmpireOption also uses its own branding interface and maintains control of most of the trading aspects.
Phone and support are available.
Minimum deposit: $100 Maximum returns: 82% Bonuses: up to 100% Supported trading platform: SpotOption, web, Android and iPhone.
14. Binarymate.
Binarymate is a UK-registered broker that is reliable as it follows the strict financial regulations of the UK. It accepts US traders. This broker uses a unique in-house platform for trading. You can earn a maximum return of 90%. Trading accounts start with the basic Bronze package for which the minimum deposit is $250 and you get a 20% welcome bonus. For Silver account, the minimum deposit is $1,000 and you get a 50% welcome bonus. Finally, for the premium Gold account the minimum deposit is $3,000 and you can choose between risk-free trades or a bonus of $250.
A unique customer support feature offered by Binarymate is live video chat with agents who are available 24/7. Support is offered in English, French, Spanish, and Russian. Last but not the least, you can use the demo account to learn the ropes or to improve your skills. Before you decide on a broker though it’s always best to do a binary options brokers comparison first to make sure you pick the best service.
Minimum deposit: $250 Maximum returns: 90% Bonuses: up to $250, risk-free trades Supported trading platform: proprietary web, Android and iPhone.
15. BDSwiss.
BDSwiss is a regulated broker in Cyprus with headquarters also in that country. Likewise, it is registered with the U. S. National Futures Association (unregulated), but as of now, US traders are not accepted. The broker trades in forex, indices, shares, commodities and CFD-based cryptocurrencies on over 250 underlying assets.
Minimum deposit is $200 but there’s no bonus, while traders can realize returns from 65% to 85%. Refunds are not available also. Likewise, you are charged $25 per wire transfer and fees apply for withdrawals below $100.
For platform, BDSwiss uses SpotOption that is familiar to many traders. It uses advanced charting tools and indicators to help you determine price movement. There is multilingual support via phone, and live chat. Mobile apps for Android and iOS devices are available.
Minimum deposit: $200 Maximum returns: 85% Bonuses: none Supported trading platform: SpotOption, web, Android and iPhone.
Your product is not on the list?
If you are a binary options provider and you didn’t find your product on our 2017 list above feel free to let us know about your service. We may consider including it on the 2018 list. You can easily let us know about your product here.
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5 Comments »
Thanks for your informative post on the top binary options brokers in the business. It gives the essential details about all the brokers in a nutshell and has helped me to form a shortlist from which I can select suitable ones for my trading needs. For me, binary investing offers many attractions. First, I find it is easier to learn and use compared to stock and forex trading. Second, many brokers offer lucrative payout rates which means I can make good money while having fun at the same time. In addition, there is no need to be a financial expert to be good at binary investing. I simply follow the latest market news and trends about the assets I select and this helps me make informed predictions. Plus, the trading is flexible and allows me to control my losses and retire if I have a bad day. By the way, can you offer a few tips on which features offered by top brokers are the crucial ones?
Hello Don. It is nice to learn that my article has proved useful to you. I agree with you that binary investing is a fun and exciting way to make good money. As for useful features, here is a list you can utilize for reference. Make sure the brokers you select offer these tools:
– First, the broker should make it easy for you to sign up and get started in a few minutes.
– They should offer a range of convenient deposit and withdrawal options that you can use from your country.
– The trading platform should be accessible on mobile devices to enable you to trade on the go.
– A wide range of trading assets and trade types should be available so that you can keep changing your choices to keep the excitement fresh.
– In addition, the payout rate should be high so that you stand a good chance of winning big amounts.
Hope it helps. Good luck!
I have thoroughly evaluated the pros and cons of binary trading and for me the pros outweigh the cons, that is why I am interested in this form of trading.
The pros, in my opinion, are as follows: Top brokers keep introducing new innovations and features which keep the game exciting. Plus, I can access the online trading platforms from anywhere, anytime, and trade whenever I like. In addition, many governments have begun to regulate this industry which gives me peace of mind and confidence that my money will be safe. With social trading, I can share my experiences with like-minded investors and gain knowledge and expertise. In addition, binary investing is superior to gambling as I can make educated predictions with a little research.
As for the cons, there is the risk of shady operators but you can easily tackle this challenge by doing your homework on the broker before you put in your money. In my opinion, binary investing is much better than trading in stocks or forex or gambling.
Do you have any advice on how to trade more safely and how to select a reliable and trustworthy broker?
Hi Mike, thanks for sharing your ideas on the pros and cons of binary investing. As for your question, there are a few key factors to consider to select a suitable broker with a honest reputation. First, check if their trading platform is compatible with your computer and whether all the links work. Then, see what training resources they offer. Ideally, they should provide video tutorials, articles on strategies and techniques, as well as one-on-one counseling. However, you many need to sign up for a premium plan to get personalized assistance. Another important factor is the terms and conditions for withdrawal of winnings and bonuses. If the withdrawal limit is high you might have to keep trading to reach that amount which means you might not be able to control your losses and stop if you wish to. Finally, check out their customer support channels to see if you get fast and friendly service round the clock. Good luck and happy hunting!
Thanks for your useful tips on how to select a good broker to do business with. They are sure to benefit all potential traders out there. You can get reliable information on brokers in the binary options and other industries here. BrokerCheck gives you an overview of a broker’s licensing info, employment history, and regulatory actions as well as complaints against them. The best part is it is a free tool. The website is operated by FINRA which is authorized by the US Congress to protect the interests and money of investors. The site instantly tells you whether a broker is registered to provide trading services to investors. In short, it can help you select honest and transparent brokers, and avoid fraudulent fly-by-night operators whose plan is to swindle traders’ money.
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Binary Options Brokers.
In our best binary options brokers ranking you will only find the most reliable and serious binary brokers online. These brokers will enable you the best binary options trading experience. Each broker that has been included in the table below has been reviewed. Check out the broker comparison list to find your best online binary options broker.
Risk Warning: Your capital is at risk.
What are binary options?
Binary options are a financial product, which allows you to trade on a wide range of financial assets, including currencies, stocks, bitcoin and commodities. All you need to do is correctly predict the direction of the price of the underlying asset within a designated time period.
When traders believe the price of the asset will decline, they purchase a "put" option. In contrast, when they predict prices will increase, traders purchase a "call" option. You have to select when you want the option to expire before you make your trade. The period of expiry can range from 60 seconds to 5 minutes to 1 hour to one week and so forth. As opposed to traditional trading, you do not purchase or own the underlying asset, but instead purchase a contract that, at expiration, pays out a pre-determined, fixed amount or nothing at all.
If your prediction is correct you can make a profit of up to 92% of your investment. This means that if you invest $100 on an option and the payout is 92%, you will make $92 profit if the option is a winning one.
How to trade binary options?
To trade binary options, you must first open an account with a broker that offers binary options trading. You can choose one of the brokers reviewed on this website, then you have to open an account with the selected broker. Once the account fully opened, it is possible to access to the trading platform where all the trading tools are available and all binary options as well.
The different types of options: high low, one touch, range.
There are many forms of binary options:
the High Low binary option is probably the most common and the most popular option. Winning the option requires that the price at maturity is higher than the initial price set when the option is bought, in the case of a Call option. Or, at the opposite, in case of a Put option, winning the option requires that the price is lower than the initial price. the One Touch binary option is also a popular option. To win, the price has to touch at least once a set price before the maturity. There is a reverse variant, called the No Touch option, where, in order to win, the set price has to be never reached before the maturity. the Range binary option : to win the option, it is necessary that the final price is between an upper bound and a lower bound.
Brokers reviews.
There are many brokers that offer binary options trading. In addition to the comparison above, you can have a review, experiences, features, advices and tips for each broker, you just have to click on the "Review" button to be redirected to the page relative to the given broker.
Free demo account no deposit.
Some brokers offer free demo account to try to trade binary options without deposit. That is ideal for traders who learn trading, but also for any trader wishing to test different strategies for free. When we open a virtual account, we have a definite amount of virtual money that we can spend on several trades.
Minimum deposit.
To open a real account, you must deposit money, however, the minimum initial deposit required to open a trading account varies, depending on the broker. The minimum deposit is a data that is provided in the broker’s comparison above. . There are some brokers with a required minimum deposit equal to only $5.
Minimum trade.
The minimum trade is the minimum amount to make a trade, this data is provided in the comparison of brokers. This data can vary from 1 dollar to 25 dollars depending on the broker. However, some brokers may offer a differentiated minimum trade depending on the type of binary options for example the minimum may be 25 dollars except for 60 seconds options, the minimum amount could be for example, only 5 dollars.
Payment methods.
Different payment methods are available to deposit money into an account. The most common payment methods are credit card payments and bank transfer. However, there are many other reliable and safe payment methods that are becoming increasingly popular, the best known are Neteller and Skrill. Then, other local payment methods exist depending on the trader’s country of residence.
Some brokers offer different types of bonuses. First of all, the bonus for opening a real account, it is often expressed as a percentage, it is a portion of the amount of the first deposit. Loyalty bonuses and promotions are also offered regularly by different brokers . Some conditions apply regarding bonuses, for example, withdrawal is possible after a certain number of trades, so it is recommended to read the conditions for each promotional offer with a bonus.
1 minute / 60 seconds binary options.
This is a particular type of binary option because the maturity is only one minute or 60 seconds, contrary to the more traditional maturities of several days or several hours. Some brokers offer even options with shorter maturities of only 30 seconds. In this case, some people think that it looks like gambling.
Forex and binary options.
Forex deals exclusively on the currency market. With binary options, potential investments are much larger, it is possible to trade on the currency market, but also on the stock exchange, shares, indices, commodities like gold or oil. Possible underlying assets are much larger. Furthermore, many traders feel that it is easier to invest in binary options.
Mobile App : iPhone, iPad and Android.
The vast majority of brokers offer mobile applications in order to trade directly from their Android smartphone or iPhone, or from an Android tablet or an Apple iPad. It is possible to download an app from Google Play (Android) or from the Apple AppStore (IOS). On pages dedicated to each broker, a link is available to be redirected to the official page of the broker’s application. In general, it is possible to trade as easily as from his computer, however, on some applications, some options are missing compared to what it is possible to do with the classic web platform or with the software to download offered by the broker.
Risk Warning: Investments involve a high level of risk. It is possible to lose all your capital.
The information on this site is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation and is not directed at residents of: Australia · Belgium · Canada · France · Israel · Japan · Latvia · New Zealand · Turkey · United States ·

Best Binary Options Brokers in 2017.
This section of our website will focus on binary options brokers. Here we will try to explain how binary options brokers work and help you make informed decisions when it comes to binary options trading. As you probably noticed, most websites that speak about binary options brokers will just show you a “ranking” of brokers with good looking design, logos and reviews. But what is this ranking based on? How do the brokers receive their “rating” and are the reviews actually honest? I’ll let you decide that yourself after explaining how the binary options industry works .
In case you reached this page looking for the best binary options brokers, you’d better keep reading as this is probably the first website that will tell you the truth behind binary options brokers .
Sorry for grabbing your attention this way, but this is really worth reading.
How the binary options industry works.
Binary options have become very popular among retail traders because they are very easy to use and require zero knowledge about financial instruments if you just want to trade them. The thing is, since they are easy to use anyone can try binary options, and this is why brokers are desperate to attract new clients. This encourages them to advertise on binary options websites and pay the website owners money in exchange for promotion. The result is website owners promoting the brokers that pay them the most in order to make more money. This is how the broker rankings end up being created, with the brokers paying the most ranking on the top spots and receiving the best reviews and ratings.
You will probably notice that most websites listing binary options brokers also have banners and other advertising material displayed as they try to maximize the money they get from the brokers. They may even promote shady “binary options robots” promising to make you thousands of dollars every day, as if such thing would be possible.
So, does that mean binary options brokers are not to be trusted? No, it doesn’t mean that, but it means you should be very careful what broker to choose. Advertising a business is a legitimate thing, and it is done by legitimate businesses in every industry, but it can also be done by shady brokers who may even be willing to outspend the honest ones. Then how can you distinguish between reliable brokers and scams? You must first understand how binary brokers work.
How do binary options brokers make their money?
When you buy an option, you must buy it from someone, which will be your counterparty. Binary options are just bets on the outcome of the market movement on a predetermined timeframe. This means that when you buy a binary option from your broker, you actually bet against the broker. If your option is a winner, the broker will credit your account with the payout, and when the option ends вЂ˜out of the money’ the broker will win the bet. It works in the same way as betting on sports against a bookmaker, only that in binary options you bet on financial assets, not on sporting events.
So, the broker makes money when you lose. This means that the broker must make sure it wins more than it loses, just like bookmakers do. How does the broker achieve this? Binary trading brokers will always have a lower payout compared to the price of the option, if we’re talking about simple Call and Put options which have a 50% chance of success. Let’s think about an option with an 80% payout and a 5% insurance for out of the money trades. If you buy such option 100 times at the price of $100 and you win 50% of the time, your payout will be the following: 50 x 180 + 50 x 5 = $9,250. However, the price you paid for the options was 100 x 100 = $10,000. This means that in the end you will lose $750 and the broker will make a profit of $750 even if your win rate was 50%.
But aren’t financial markets predictable? Isn’t it easy to have a high win ratio in binary options and beat the broker? Well, my answer would be that financial markets are not as predictable as many people think, especially in the short term. Also, most people trading binary options have no clue about what they are actually doing and they are just randomly betting on the market to see what the outcome is. In this case they end up with an average win rate of around 50%, exactly what the brokers wish.
Binary options brokers use two tricks to make sure they make more money than what they pay back to their clients:
1) They advertise in a way that encourages beginners to signup in order to make sure the majority of their clients are just novices who gamble on the markets. Such clients are trading mostly for the thrill of staking real money and they may trade again and again even if they lose some money, because just as in sports betting, sometimes they will win and will be happy about it.
2) They promote short term options such as вЂ˜60 seconds options’ and other options with deadlines shorter than one hour. It is well known among experienced traders that only sophisticated trading algorithms can predict such short term movements with some success, and even such algorithms cannot have a sufficiently high win rate in order to beat the broker’s advantage caused by the lower payouts. Also, binary brokers have very simplistic platforms that do not allow the use of real trading robots, so any trading done on very short term options will have an average success rate of 50%.
Since most binary traders will just gamble with a 50% success rate, binary options brokers will be profitable against the majority of their clients, just like bookmakers are profitable against the majority of bettors.
Of course, there are also traders that are profitable and make money trading binary options, but they are just as few as the people making money from sports betting, and are a negligible proportion among the total number of traders. Brokers can just accept the loses on those clients because they make much more money on those who lose on a regular basis.
You may conclude that binary options brokers are just scams since they make money when the client loses, but this is a totally wrong assumption. Technically speaking, binary brokers are just market makers providing a pool of options that traders can buy. This is how most derivatives brokers work, and this includes many forex brokers and also CFD (Contract For Difference) providers. They can be regulated by financial institutions and as long as they conduct their business in a honest way they are legitimate businesses.
Are all binary options brokers reliable?
As I have just explained how binary options brokers make their money, the question that comes next is, are all binary options brokers reliable? Since the broker makes money from the client’s losses, wouldn’t some brokers try to cheat and block traders from withdrawing their winnings?
The sad truth is that the binary options industry is plagued by scams who only want to cheat their clients and take their money. Many so called brokers (because they cannot be called brokers) are just shady companies that will accept deposits and let you play on their platform as long as you lose, but will start to cheat if they see that you are winning. They may manipulate the price feed in their favor and they may even delay your withdrawal request in order to play with your nerves until you decide to cancel your withdrawal and gamble your money away until you lose them. Some fake brokers may offer you bogus bonuses with a lot of restrictions attached, that will make it impossible to request withdrawals until the bonus conditions are met. Those conditions are usually absurd as they require you to place tons of trades that will most likely result in the loss of your balance.
While there are many fake brokers that appeal to some of the ugly tricks described above, there are also some reliable brokers that are regulated and conduct their business in a honest manner. The honest brokers are safe to use as they will always pay your winnings and will not cheat against you. Just as there are honest and reliable online bookmakers (such as Bet365) there are also safe and reliable binary options brokers.
The sad thing about the binary options industry is that many shady brokers pay a lot of money in advertising because they keep all the deposits they receive without paying back their customers’ winnings. This has the ugly effect that sometimes you will see shady brokers ranking on the top spots on binary options reviews websites and having banners all over the internet. The final effect is that many people lose faith in binary options after being cheated and tend to think that all brokers are the same, which is not true.
How to avoid binary options scams?
A first step in avoiding binary options scams is to avoid brokers that are not regulated and that don’t have clear information about the company on their website. While there can be honest brokers that are not regulated, the risks are just much higher.
Another thing to avoid are the so called “binary options robots” that will show you a very well made marketing video explaining how they are making thousands of dollars every day, and how they will let you use their robot and make tons of money for yourself because they are generous, or because they “need your help”. There are hundreds of such so-called robots that are nothing else but marketing tricks to attract new clients for shady brokers. The robots will just randomly trade on your behalf until you lose your deposit.
Anyway, as a general rule in investing, what sounds too good to be true is actually a scam. You should also be cautious about recommendations from websites that are filled with banners and that speak about bonuses. They are usually just advertising the brokers that pay the most.
The best binary options brokers in 2017.
So, considering all warnings described above, should you still be trading binary options? You can safely do it if you choose one of the large regulated brokers. Those brokers have a very large client base and have no problem in paying traders who win. They are serious businesses that want to work long term and know that in order to be successful in this business in the long run, a broker must be reliable and have a good reputation.
I would recommend IQ Option as the best binary options broker, since it is the largest binary broker by number of clients and it is the most technologically advanced broker. Another safe broker that is regulated and has a very large client base is Expert Option.
While there are other regulated brokers as well, I would not go as far as to recommend them because I haven’t tested them myself.
Anyway, my advice is to trade only longer term binary options and avoid 60 seconds options unless you just want to have some fun and you don’t care if you lose.
Best binary options brokers for US traders.
It is unfortunate that US citizens cannot register to the regulated brokers. This is because of the FATCA legislation that makes business with US clients very expensive for foreign financial companies. Because compliance with FATCA is extremely expensive most non-US financial institutions have given up on US clients, and this includes banks and brokerages alike.
I know there are very few binary options brokers still accepting US customers, and those who do are not regulated. If you are from the USA and still want to try some binary options, you can check the broker Binary Mate, as this is the most well known binary broker still accepting US clients. However, you should keep in mind that they are not regulated, so it would be wise to deposit only small amounts of money with this broker, if you decide to do it.
More articles about binary options brokers:
Most people familiar with binary options only know about trading with a regular binary options broker. This means the broker offers a wide range of options that traders can buy. It doesn't matter if it is a call or a put option, the process is the same: the trader buys the option from the broker. Read More.
Social Trading is the raising star of the online trading world, with more and more people discovering the opportunities of harnessing the power of crowd intelligence. With new advanced platforms that allow traders to interact with each other and copy the trades of the most successful ones, this new trend may soon transform the financial trading industry forever. Read More.
1. Binary Option (Wikipedia article about binary options)
2. Derivative Instruments (Wikipedia article about derivatives)

Top 10 Binary Options Brokers.
If you are looking for the best binary options brokers in the business, you’ve certainly landed on the right page.
Here you will find the most reliable brokers that make it to the top of the list based on a variety of factors.
The industry has grown significantly in the last 8 years with over 400 trading platforms and brokers to choose from.
This means that traders can take full advantage of the competition and avail of higher returns and better bonuses.
In order to maximize your potential to succeed in the binary options market you need to choose a credible broker. You need a broker who will be in a position to give you sound advice since they are the ones who know which direction options take during particular periods of the day or week.
Binary Options Broker Reviews.
Getting started with brokers and platforms.
There is much more to binary options trading that merely predicting the direction of an underlying asset’s value over a period of time. It is important to make sure to pick a qualified and experienced broker familiar with the ins and outs of this type of investment. His major role is to help determine the best binary option to invest in. So, let’s look at a few ways to choose one who will work in your best interests.
It all begins with a bit of comparison shopping. You need to compare reviews of different brokers and their platforms so that you are aware what each one has to offer. You will find a list of reviews on trading forums although we do all the hard work so that you can start trading right away with one of the binary options broker listed here on our site. Always work with a licensed broker although you ought to be aware that the laws of some countries do not mandate licensing.
It is really easy to get started. Simply choose a broker from our list.
Register for a broker account. (Our experts recommend that to make the most of trading it is important to open accounts with a few different brokers. This helps gain access to a variety of assets.) Once you open an account you can start trading in a just a few steps. Pick an asset such as stocks, currencies, commodities or indices to trade. Decide on the amount to invest on a trade Select Call/Up if you predict the asset price will rise or Put(Down) if you predict the asset price will fall over the specified period Place the trade and collect your winnings if you predict correctly.
How To Compare And Choose The Best Binary Options Broker.
Our experts recommend that you must never make the mistake of signing up with a binary options broker before weighing the pros and cons.
Offers demo account : It would be prudent to register for a demo account to get an ideal of how intuitive and friendly the broker’s site really is. You can do this with several sites and then choose on that suits your style.
Returns : Look for sites that guarantee payouts between 70% and 90% on wins and 10% and 15% on losses. This is standard with most brokers so don’t fall prey to anyone that offers less.
Asset variety : Not all brokers trade in a variety of assets. Therefore, if you wish to widen your investment base look carefully at the list of assets offered. Many reliable brokers offer a variety of assets which includes indices, stocks, commodities, forex, and more. It would be prudent to select one that offers the chance to invest in all of the available market assets so that you can earn the maximum profits. The more the options, the better the opportunity you have to place winning trades.
Customer support : It is always a pleasure to deal with a broker that provides excellent customer service. Pay special attention to this aspect when you compare brokers.
Secure trading platform : All of your transactions will be performed online, which calls for the highest standard of security. Choose a site that offers a secure payment system to prevent any identify theft.
Flexibility : Choose a broker that is flexible in terms of asset offerings and variety of contract expiry dates from 60-seconds to a day, week, a month or more. You may want to explore the possibility of working with a broker who offers early exit options for greater trading flexibility.
Information driven : If you are a novice you may want a broker’s platform with plenty of information on the market.
Deposit bonus : While this should not influence your decision when it comes to choosing a credible binary options broker, look for a broker who offers a decent welcome bonus of around 25% in addition to reload bonuses as well. This is a great way to boost your bankroll.
Deposit and withdrawal options : Most brokers support a variety of banking methods that include credit/debit cards, eWallets, prepaid cards, wire transfers, and more. Make sure to pick a suitable option so that you can deposit funds in your binary options account and withdraw winnings comfortably without any hidden fee.
Trading tools : Whether you are a novice or an experienced trader some trading platforms feature a variety of tools to make trading more simplified and also allow you to make well informed trade decisions. This includes trading signals such as Bollinger Bands, oscillators, and oscillators, to name a few.
Deposit options : If you are new to trading it is always wise to select a binary options broker that allows new members to begin trading with deposits as low as $10 and minimum positions as low as $1.
Language support : If you want to trade in a language other than English you ought to choose a platform that offers multi-language support.
Choose a proactive broker : There are many brokers to provide you with sound advice and assistance in making the most of your investment.
Types of Assets Available in Binary Options Trading.
Most binary options brokers offer an array of trading options. The most common include forex pairs such as the USD/EUR, USD/GBP, and GBP/EUR, to name a few. Other trading options include commodities, stocks, and indices in the international markets including USA, Europe, and Asia. All trades can be conducted from one platform.
Length of Average Trades.
The period of binary options contracts ranges from as little as 60-seconds to 5 minutes, a week, month, or more. Your choice will depend on your trading style and budget. If you aren’t the patient kind then you may even opt for 60-second trade although our experts encourage this type of trading only for more experienced traders. Once you authorize a trade the period of the contract cannot be changed.
Common Types of Binary Options.
Binary options open traders to a whole new world of trading types.
High/Low or Put/Call binary option.
In this type of trading you predict whether the price of the underlying assets will rise or fall lower than the predetermined value. The payout is determined in advance and allows for greater transparency.
One Touch/No Touch binary option.
A target price is set at the start of the trade. If your underlying asset reaches the price at the time of expiry of the contract, the broker will pay you the profit. No Touch is just the reverse of One Touch where you predict that the price of the underlying asset will not reach the determined level.
Boundary Binary Option.
In this type of trade you need to determine if the price of the underlying assets will stay within range or fall outside the range. The broker will issue a variety of prices in this type of trade while you define two levels of the asset price.
Binary Options Broker FAQ.
Now that you are aware of the broker’s role in binary trading it is time to discuss a few common queries that traders have when it comes to binary options brokers.
All the brokers listed on our site are licensed and regulated. It is important to be aware of the regulatory authorities based on the relevant jurisdiction and country you reside in.
Brokers in the USA : Brokers in the country are regulated by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA).
Brokers in the UK : Traders in the United Kingdom can chose from brokers regulated by the Financial Conduct Authority (FCA) and Cyprus Securities and Exchange Commission (CySEC). They are the two most reputed regulatory authorities in the country.
Brokers in Canada : The Investment Industry Regulatory Organisation of Canada (IIROC) regulates the Canadian trading markets although online trading does not fall within its purview.
Brokers in Europe : Like UK licensed brokers, the Cyprus Securities and Exchange Commission (CySEC) is the licensing and regulatory authority in Europe.
While you can trade on almost every asset with binary options, it is important to understand that some brokers focus on specific assets while some may limit the number of options such as currency pairs or trading types.
Forex is the most commonly traded in the binary options market. It is a good start for new investors looking to understand the currency market, which is the most volatile and suits binary options trading where expiry times are as short as 60 seconds. Commonly traded currency pairs include USD/EUR, USD/GBP, GBP/EUR, and USD/JPY, to name a few.
Some brokers offer a wide range of commodities that include oil, gold, and silver. These are among the low risk trades that are most suited to those new to binary options trading. You can add commodities to diversify your portfolio and overall risk as well.
Most brokers offer an extensive range of stocks which you will find at regular stock exchanges. From Apple to Coca Cola, HP, and Tesla, you will find an array of stocks to trade with binary options brokers.
Indices such as the Dow Jones, S&P 500 and Nasdaq, are among the most traded indices in the binary options market. They allow for greater diversification of risk and offer reasonable returns. It is important to choose a broker that offers multiple pairs of currency combinations since the Forex market is most volatile. In addition, choose a broker that offers the option to switch to commodities or indices when currency pairs become too unstable.
The fee on transactions is usually not more than 10% to 15%, and can be a transaction based fee or a percentage on losses. In terms of payouts, make sure to check for brokers that offer returns of at least 65% to 95% and more based on the underlying asset and its risk quotient. In addition, the broker must offer a rebate of at least 10% on losing or ‘out-of - the-money’ trades.
Being well versed with binary options is important and the more the learning tools a broker offers, the better. This goes well beyond how to trade binary options. You will find a wealth of information on binary option strategies, binary signals, Bollinger bands, trading charts, and much more. Don’t forget to check out all the information on binary signals and strategies that work right here on our site.
One of the first features that makes a broker stand out from the rest is their trading platform. The best platforms are those that are easy to navigate, user-friendly, and allow for easy trading. It is important make sure the platform has marginal downtown as well as minimum time between placing and implementing a trade. If you like to trade on the go then choose a broker with a mobile trading platform.