The Best Binary Options Broker 2020!
Perfect For Beginners!
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Binary Options Bonus
Usually, anyone who came into the world of binary trading, surely would want to see himself as a successful professional trader, but the fear of investing his own money and natural uncertainty, often stops him. It is important for brokers, not to lose those potential future customers. To do so, the brokerage companies have developed various types of bonus programs, for example, such as deposit bonuses. The deposit-free bonus programs provide an opportunity to carry out trades with real money, but without the risk, in case of a successful outcome, there is even a possibility of a partial withdrawal of earned money.
No deposit bonuses
This is one of the most popular types of bonuses, which are usually in high demand by new traders. It is easy to explain – this is a totally free method to trade, with the absence of risk. What is the essence of this proposal?
In reality, the amount of the bonus is not large, usually 10-20 dollars and it will be interesting only to inexperienced customers, or people looking for any possible profit. Let’s review this type of bonus in details, and find out what it can be dangerous.
Offers to receive a deposit-free bonus, very often come from rogue companies.
It’s the easiest way to attract new customers. What is hidden, under this, seemingly good way, to quickly plunge into the exciting world of options trading? The reality is that the so-called, no deposit bonus, is being offered to the unsuspecting user with a special electronic account, where profits are already programmed into the system by a broker. A slight manipulation with quotes, and your deals bring you profits right away.
Excitement takes over the client so much that people have embraced emotions, starts to deposit their personal cash. After this, the magic ends. It is a very simple formula.
Whatsoever, there are also, not based on deception, deposit-free bonuses, but they are not large, and they need to be turned up to 50 to 100 times. So, it is obvious that the free cheese is never easy to get.
Basically, a deposit-free bonus in binary options, is a bonus for registration – it is a gift to you from your broker, which can be used toward actual trade deals, and then can be withdrawn, but only if the bonus rules and conditions were met. Often, this type of bonus is given at the time of various promos, so freebee hunters should follow the news of brokerage firms and market in whole.
Bonus for signing up with a broker – it is the first kind of bonuses offered. This type of bonus is added by a broker as an additional amount to your account balance. On average, the bonus amount is about 100% of the actual deposit . The bonus amount varies from the size of the deposit. A welcome bonus is defined at a certain amount by the broker.
For example – the broker adds 50% to your $500, if over $500, it is respectively – 100%, and so on, limiting the amount of up to $2,500. Some binary options brokers even offer bonuses to more than 200%. This can often be a scam, as it is not easy to work out the conditions of bonus, and its withdrawal.
In reality, this type of bonus programs is equally attractive to both beginners and experienced traders, but they both face the harsh conditions of their provision, and in consequence – problems. Brokers, attracting customers with bonuses to their trading platform, usually omit an important fact about that cash received as free bonuses, will be available only when the user transfers to his account a certain amount of own money. To state that the options market supposedly has any real no deposit bonuses, is not true. If someone gets this kind of gift from not so well-known brokerage firm, it can easily cause losing of everything, where the withdrawal is not possible at all.
In this situation, we would recommend one thing – before you respond to the bonus offer from your broker, examine carefully all the terms and conditions of its provision. Large brokers, working in a customer-oriented system, also have bonus programs, but in this case, such a thing as a no deposit bonus will be expressed in a slightly different form:
- A bonus reward in tournaments and competitions with a demo account
- A set of options as a gift
No deposit bonus from Binomo «Free options for $150»
You can use the no deposit bonus with the withdrawal of funds from the Binomo broker. The essence of the bonus is as follows: The Binomo company offers free options in the amount of $150 to new customers. If the trader makes a profit, as a result of successful transactions, he can withdraw it to his bank account or electronic wallet, under certain conditions. If a trader loses – it does not have to do anything. You have a real chance to earn a deposit-free bonus!
The Best Binary Options Broker 2020!
Perfect For Beginners!
Free Demo Account!
Free Trading Education!
Second bonus type: Trading on a demo account, earn real money
The FiNMAX broker offers to get real money, competing in the binary options tournament with virtual money. At the beginning of the contest, each trader will have a special demo account, with an equal balance for all participants. Traders need to increase their deposit as much as possible to get into the top five for fighting for the top places. The prize for the first place is $500! Try it without risk now!
Bonuses from Olymp Trade
There are two easy ways to get money for a real account:
- Finish the registration online at OlympTrade and you will have a great opportunity to get your deposit bonus of 200 Rubles. The Trading Platform randomly selects a lucky person and proposes to perform simple tasks on a demo account. Upon completing of tasks, you will get 200 rubles to start trading without any risk.
- Take a free training course on options trading at Olymp Trade Academy and get $5 into your deposit.
Bonus from Olymp Trade Academy
If you continue on in-depth studies and pass a trading test at the end, the Olymp Trade broker will add to your account another 500 rubles! As a result, you can get 750 rubles of real money without risking anything by studying the basics of trading and trading strategies.
Instaforex no deposit bonus
The Instaforex – is forex and binary options broker with a no deposit bonus of $ 100
The oldest Instaforex broker offers trading services in Forex and in binary options, just recently. The Instaforex is a global broker with 250 branches in all parts of the world, recognized as the best broker of Asia over the past three years.
The company offers to its new traders a no deposit bonus up to $100 in 2020! Those who first opened the account with Instaforex, the company gives a no deposit account on binary options or in Forex market.
How to get a free no deposit bonus 2020 by Instaforex?
Under the terms of the bonus program, to take advantage of the withdrawal of bonus, only new customers can use this type of bonuses (30% deposit + 45% deposit, etc.)
- Register a new real account with a broker
- Go through simple verification procedure. It requires to upload a scanned copy of your passport into the Trader’s Cabinet in the “Verification” section. Await for an answer by e-mail with the result of the verification.
- After successful verification, you will be granted the right to fill out an application for a no deposit bonus. The bonus amount is determined individually by the company employees.
Bonus for registration
Imagine that you deposited your money at any brokerage firm, then you have added a bonus to it, you spent some time in trading …and you do not like it.
What happens in this case? It will be not possible to withdraw your funds. A broker will politely indicate – “Look, we have rules to pass the turnover 30 times.” Therefore, always carefully read the terms for these bonuses.
Wagering the bonus for registration
Always remember that all deposit bonuses stringent conditions and the restrictions apply. The brokers is not a silly category of people, and don’t simply give the money out of their pocket just to anyone. You will have to make some effort to prove the authenticity of your identity, and then do 40-50 times the turnover to be able to withdraw your earnings. There is no guarantee that after such a grueling trade anything will be left.
Bonuses for registration, is nothing but the illusion of getting a free lunch, which is designed to attract customers. Even if you follow all the conditions for the wagering of these funds, the brokerage firm may find some reason for not paying you anything. In order not to complicate your life, find a broker with the lowest amount of the deposit and place something around $10-20.
Invitation bonuses or bonus on your first deposit
This types of bonuses are offered by most of brokerage firms. Fund your account, then the broker adds the bonus amount which sometimes reaches 100%. Usually it is no more than 30-50%.
The conditions for bonuses use are identical to those previously described. To withdraw the bonus, it will be necessary to make a turnover of these funds 20-50 times.
All this is not surprising. Imagine that you deposit $500 into your account. The broker gives you $ 250 as a bonus. What are your actions on the following day? Exactly!
Rushing to withdraw all the money and spend it at a nearby restaurant or supermarket. Then you play this scheme again, and, here you are a bonus millionaire!
Perfect! It is not difficult to guess, turning of bonus money is used precisely in order to keep you away from this amount and not considering yourself smarter than others. Bonus money can not settle in your pocket if you do not turn it a certain number of times, as the broker wants from you. But the main problem with the bonus is that you can not even use the rest of your money deposit until you completed the turnout.
Tournaments: how to work out the bonus?
To withdraw money from the account, after receiving the bonus, you must make a turnover equal to the amount of the bonus.
Turnover – is a total number of positive and negative transactions.
To say simpler, your bonus will need to play itself out. The turnover usually ranges from 30 to 50 times.
If you get $30 bonus, for the turnover, it should be 30 X 30 = $ 900. Only after achieving this amount of turnover, you will be allowed to withdraw the money.
Not just the bonus, all of your money.
You must remember one important thing when you want to get a bonus for your account. Once you get a bonus, all the money in your account is temporarily locked. As long as you do meet the conditions specified in the conditions, you can not withdraw any money from your account. Terms of brokerage firms are very clearly stating about it. Many newcomers face the troubles with this, by jumping on the free money without thinking, not expecting of what really awaits them, after receiving this bonus.
What is a turnover ?
This means – as far as possible to avoid going in red, for the time of dealing trades. Is there a chance for the novice trader to conduct a profitable trade, without having significant losses? No chance.
For this reason, taking bonuses for beginners is not the wisest decision.
If the trader is confident in his abilities, has a good experience in trading and actual withdrawals of money from the binary platform, then the opportunity to comply with the turnover, and increase the overall deposit, could have become a reality. If you are just a novice in binary options, – bonuses are not for you!
This type of bonus is known as a promotional or a bonus gift. It is proposed in the framework of an action, event, or just as it is. You are given the opportunity to win various prizes, or an increased amount on the deposit bonus.
Usually this bonus is imposed by managers, in continuous phone calls, and reminders that you immediately need to top up your account, and then you will receive this bonus, and this offer is only actual till tomorrow morning.
No need to believe in this, the gift bonuses are being given regularly.
It is kind of the same gift bonuses. Imagine, a broker offers you to “double” your income for the action. For example – a trader makes 10 bets of the same amount, then the broker will double the total amount income if bets play successfully.
Bonuses, that are offered for this type, have special conditions, you will be required to learn about them at the beginning. Of course, if you do not want to be bestowed upon bonuses with the necessity of their 500 times turnover (yes, these situations do occur)
Risk-free bonuses or transaction
The risk free transaction are as following – “Dear Customer, trade to your pleasure, and if you lose your money in these transactions, we will refund the money. Great, no risk here!
Yes of course. If you do not take into account the fact that the money that you “get back” is automatically converted into bonus and the same conditions apply for the turnover, if you care for possible withdrawal. So look for such gifts as another way to get into bonus scam.
The same risk-free bonus. You will be refunded if the bid was unsuccessful. But all the money in your account will immediately become as bonus. And, of course, you have to make the turnover.
As a gift, you will be given a free book (often a completely useless one) or free access to any webinar. Just one condition – make a deposit.
Actually, those webinars can be quite useful, where you can get a basic understanding of technical analysis rules, but often – it is garbage, and a trick to compel the client to make a money deposit into the account.
Another popular bonus – a bonus for re-deposit. In order to keep the trader at broker’s platform, it is proposed to take an additional deposit. Often, the broker’s re-deposit bonus – is the percentage of earlier re-invested money. The sum is smaller than welcome bonus, but if the customer id familiar with all the features of the broker, it is better than to change it.
Bonus for a friend
Here everything is pretty clear, you get a bonus if you bring your friend to us. As a rule, your friend has to make at least a couple of transactions on the platform, otherwise the bonus will not be evaluated.
Trading contests and competitions
It’s not exactly a bonus, because, in order to obtain it, you need to take a part in the competition. A very common scheme.
In this competition you do not do trades with your money, you will open a special account with virtual funds. Further, when winning, it turns out that these winnings is your bonus, and you have to make a turnover.
However, large firms prefer not to play too much with the customer and give very realistic conditions. For example, they give $ 30 and only ask to do a turnover of only 3-5 times, and it is not a problem at all.
One example of favorable bonuses, which can be taken: client does trades with virtual money, but the prizes are real. But, to receive the money after this is not an easy task.
Entertaining bonuses for the rich. The point is simple. Add funds of 50 thousand dollars, you get a big bonus or a few options such as personal manager, or the ability to withdraw funds within only 10 minutes and so on.
Needless to mention that the investment of such big money in binary options is senseless. Such sums are rather invested in Forex or better in the stock exchanges.
Bonuses: Good or bad
- The way to lose the money for the beginner;
- The way for experienced traders to increase their trading volumes.
The experienced traders often take bonuses, because they believe that they are able to “recapture”. The newcomers jump on them because of their naivety and as a result – the losses.
The purpose of the bonus for brokers is to bind a new customer to its platform, not to let the cash out, adding conditions in the form of a turnover, and so on. Fortunately for the broker, the newbies usually do not read the bonus terms and blindly believe that the money they are given is free of any possible effort.
Please think twice and read the conditions before you take on any bonus offers. Do not say that you were not warned.
To get your money, you are invited to make the “turnover”, so to make the number of deals way more than the sum of the received bonus. In most cases, for this type of bonus, it is necessary to reach a number of up to 40 times more than the bonus amount is.
Some brokers require to make a minimum number of transactions.
Bonus on re-deposit
The second in popularity is a bonus on a second deposit. For the trader not to leave the broker, the broker offers him an additional deposit. Usually, the broker gives a re-deposit bonus as a percentage of re-investment. It is less than a welcome bonus, but if you already know all the nuances of the trader, it is better than to change your broker.
The re-deposit bonus is usually less than a sign-up bonus. Although, it is possible to open another account, and get the same bonus again. Brokers usually do monitoring those who opens another account, but the goal of the broker is to get you deposit real money and the volume of transactions on it. Therefore, you can simply ask the broker to provide you with a bonus. It is always important to remember that the bonus is not any free money, and it is important to have this approach in mind.
Is a binary options bonus really needed? Risk-free transactions (binary options without the risk)
The most popular bonus on the binary market will be a risk-free deal. The idea of this bonus is that it will be equal to the funds lost during post trades. If you are in the red after a certain number of transactions, the broker alone will give you a bonus amount covering the loss. If you have made a profit, then the entire amount is yours. Brokers usually pay within couple of days.
Some brokers compensate for losses in cash. But mostly, they cover losses through bonuses. In conditions for receiving the bonus the brokers typically ask for a 40-times turnover of the bonus amount.
Refunds (Cash Back Bonus) and risk free trades from the binary options brokers
Broker undertakes to repay 100% of the money lost. The conditions are the same as a for the bonus. But they are favorable since you are not tied to the beginning.
In fact, it is the most simplest form of a binary bonus. The trader receives a refund of his losses. The approximate percentage is around 10% -25%. In this case, you can use the bonus only if you lost. If the trader is in green, the completion of the bonus is not required.
The Cash Back, is opposed to risk-free transactions that will be added at the end of trading. The Risk free transaction can be presented as Cash Back.
Bonus for invited friend
The trader will receive an amount determined by the conditions at his own expense, if he brought new customers to the broker. The amount can be up to $100.
Having understood that what the bonuses are out there, let’s find out who and why needs bonuses in options trading. Options offered by the broker additionally can help both novices and professionals.
- To study the trading platform better
- To minimize the risk of increased deposit
- Achieve profitability by increasing the deposit. If you already have experience in trade and productivity, the trader can increase the volume of transactions.
- Meet with a new broker. Starting with a minimum deposit and get the bonus may get a comprehensive overview and review of the broker. Check the Support and explore all the details of the work. If you do not have enough money to work with binary strategy.
- To cover negative balance.
How to correctly use bonuses
Now, we would like to discuss, if you are attracted to an idea to get 20-100% in the form of a free bonus to your account.
- Learn the rules of the bonus;
- You took into account a turnover to the amount of the bonus is required;
- Ready for serious work;
- Do not rush for big bonuses.
The greater the amount of the bonus account, the harder it is to you to deal with it, as in the case involving multiple psychological factors, such as limits on deposit, and so on.
Try a bonus, rather in smaller amount, not more than 20%. Make sure that the amount on the deposit was small, up to $ 100. With this amount of money, try to make a turnover look at how the process would go.
Money management for the bonus turnover
Money management – is a set of simple rules that can minimize your risks.
The most simple rule is that the size of the transaction should not exceed 5% of the amount of your deposit. Examples:
If you deposit $ 200, the amount of a single transaction should not exceed more than 10 dollars or better of 5-7 dollars.
Thus, you put a limit on your trading risks. It is also important to follow psychological sides of money management. It’s pretty simple:
- Stop trading if you make 2-3 consecutive unsuccessful transactions.
- You probably still do not understand the market where it is not necessary to double, triple, or attempt to win.
- The market says right here – your actions are not correct. Your predictions are not correct.
- Aborting this process here and now;
- You go back to the paper or on a demo account;
- You come back to the real account when you make the same 2-3 successful predictions on the live chart.
- The self-confidence will return with real money trading. As you can see, all these rules are very simple and well understood.
Overall of this article
Do not rush to get a bonus. Do not run for the lucrative offers and try to make a fast turnover on the bonus. You must not think that the binary market only works for you, and lives to your desires?
Start working on your system and it will be right and optimal way for you. You know this already if you have decided on the bonus. Do not forget – bonuses are designed for experienced traders, but certainly not for the newcomers who came just yesterday to look at binary options.
Binary Options No Deposit Bonus
When potential traders are looking for the best binary options broker to meet their needs, one of the factors that are often taken into account is the quality of bonuses and promotions that they may be offered. The investments market is becoming ever more crowded, and every year increasing numbers of brokers are emerging into the binary options field. This means that they need to offer more impressive deals to encourage more investors to register for their services. There are a number of different bonuses on offer from the best binary options brokers today, however one of the most popular with both new and existing traders is the no deposit binary options bonus. Here we look at what this bonus entails and what are its advantages. Remember, however, that no matter how good a no options binary options bonus may look, it should never be the over-riding reason for choosing a broker, as there are many more important factors to consider such as the overall trading experience, the user-friendliness of the trading interface and the quality of customer service on offer.
What is the Binary Options No Deposit Bonus?
A binary options bonus is basically a reward or promotion aimed at attracting new sign ups to their website and rewarding loyal existing clients. A bonus is always given away free to eligible investors, however will almost always be conditions attached, so it is vital to read the small print to ensure the relevance of the bonus to your individual circumstances. Different bonuses are applied and used in different ways, and there are a great many of them to take advantage of, although the no deposit binary options bonus is one of the most common and, indeed, one of the most popular with traders. Unlike many other types of promotion, in which the trader is expected to place funds into their account before taking advantage of the offer, the no deposit binary options bonus requires no the investor to take no risk at all, with no need to deposit any money into their trading account before making a start on trading. Any profits that are gained through the use of this bonus are the investor’s to keep and withdraw from their account.
|Broker||Early Expire||Average Return||Min Deposit||Min Trade||Rating||More|
|✔||90%||$ 10||$ 1||★★★★★|
|✔||95%||$ 10||$ 1||★★★★★|
|×||95%||$ 250||$ 1||★★★★★|
|×||85%||$ 10||$ 1||★★★|
|$50||YES||+ FOREX TRADING||TRADE NOW|
|$100||YES||+ GET 1 FREE STOCK||TRADE NOW|
Binary Options Brokers That Still Accept US Traders
The brokers in the detailed list below are some of the oldest and best names in the industry. All the brokers listed on this page welcome traders from the USA.
Only the best are viable, and the safety as well as the security of your data on their servers is very high. There are many scams out there, and only a few truly trustworthy brokers.
We have tested all of these brokers. Look at the short reviews below for more information:
Nadex is the only regulated (CFTC regulated) binary options broker that accepts US traders. The broker offers charting and technical analyisis tools, as well as, advanced order types.
The minimum deposit is only $250.
BinaryCent is currently the best US welcome binary options broker. They offer a fantastic deposit bonus, and the trading platform is top-notch.
Binary Mate has a maximum payout of up to 95%. The minimum deposit is $250 and they offer a 100% deposit bonus to all new traders.
WARNING! WE DO NOT RECOMMEND THIS BROKER ANYMORE VISIT BINARYCENT
CentoBot is a binary options robot that accepts US traders. The minimum investment is only $0.10 and the max return is 90%.
This auto trading robot is 100% free if you sign up and deposit on their recommended broker (the minimum deposit there is $250).
WARNING! WE DO NOT RECOMMEND THIS BROKER ANYMORE VISIT CENTOBOT
How To Pick A US Binary Options Broker
Overall, you need to be careful when choosing the right US binary options broker for you. There are a lot of scams out there, so you probably should take the advice in this list seriously if you want your investments to be safe. We will update this list as frequently as possible because more and more brokers are closing their doors to US traders.
Please note that Nadex is not a broker, but an exchange.
What customer like about Nadex is, that it has no broker commissions. The US Government requires Nadex to keep the clients’ funds in segregated accounts.
|Rank||Broker||Min. Deposit||Max Returns*||Features||Review|
|$250||100%||+ Regulated US Brand||TRADE NOW|
Never deposit on a binary options broker that we (or any other trader) do not recommend. You can also check our scams page to find out which brokers are scams.
Unfortunately US welcome brokers are not regulated by CYSEC or ASIC. Therefore you have to be extra cautious where you deposit your money.
Non-USA Binary Options Brokers
In order to help our American traders find the best brokers and keep them updated, we’ve decided to also list the brokers that used to accept Americans, but stopped later on.
Take at the list below, with all binary options brokers that accepted US traders in the past:
|BinaryMate||100%||$250||95%||US NOT ACCEPTED|
|ctoption||100%||$250||85%||US NOT ACCEPTED|
|OptionRobot||100%||$200||90%||US NOT ACCEPTED|
|Boss Capital||100%||$200||85%||US NOT ACCEPTED|
|CherryTrade||100%||$200||81%||US NOT ACCEPTED|
|Optionleague||100%||$200||99%||US NOT ACCEPTED|
Brokers That Stopped Accepting USA Traders or Closed
FinRally is the newest binary options broker to accept US traders. They have a great payout of up to 95% and the minimum deposit is $250.
Update: This broker closed.
Founded in the year 2020, this broker is owned by Norske Inter LP and Lerona Impex SA. It used to welcome traders from the US, but currently they only accept Europe and most parts of Asia. The broker is based on the SpotOption 2.0 platform, one of the most popular with traders everywhere.
It features over 100 assets to trade in and has some of the highest security measures out there. There is secure trading, as well as speedy 1 hour withdrawals possible. With a return of up to 90% for traders, and signals from over 10,000 traders globally using the ZuluTrade feature integrated into the platform, this broker is one of the best out there for people in the USA.
Update: This broker closed. There were also some scam reports.
This is one of the older brokers out there, having been around since the year 2020. It is owned by Infinicore, a company that is to be found in St. Vincent (offshore). While they aren’t licensed by CySec, this is so that they can support traders from the USA without any hassle.
This broker is not regulated in the US.
The broker has over 100 assets to trade as well as a demo account possible to sample the features before using it. It is popular among traders all over the world, mainly because of the 90% payout to traders.
There is a free social trading feature on the platform as well as unique OTC trades that allow up to 40% more trading time every day.
Update: Tradethunder closed. Opened in 2020, Trade Thunder is still a young company, owned by LGK Industries Ltd., based in the UK.
They offer traders from the US a nice welcome, and have a very unique platform to trade on called the Leverate BX8 platform. It is a platform that is used a lot in Forex trading. The payouts from this broker are up to 90% of the initial deposit, which can be done in many currencies.
With multilingual support and easy trading, this is one of the best US brokers out there.
Update: This broker closed.
This broker opened up in the year 2020, and was one of the best to accept traders from the US (they stopped accepting USA Traders in 2020). They have a great bonus for the first deposit for customers, with up to 10 risk free trades offered to new traders. It is owned by a company based in the UK called Running Forest Partners Ltd., and have 5 different types of US binary options accounts, each of which has its own set of material for learning as well different deposit requirements. Expiry on options expire in any time from 30 seconds to 6 months, and there are multiple currency options available.
Update: This broker closed.
This binary options broker was created in 2020, making it one of the newer options out there. It is owned by FLY Ltd., located in St. Vincent & Grenadines, and has a registered office in the UK as well. It was open to traders from the US without any restrictions but they decided to stop accepting them in 2020.
Returns to traders is about 85%, but some of the trading methods it offers can give bonuses up to 1500% of the deposit. Their platform is browser-based, has a small learning curve, and is very easy. A mobile app is also incoming. The broker offers over 150 assets for trade, with real time updates on the state of the market. It is one of the more feature-filled out there.
Binary Options USA: What To Consider
Please note that most US brokers are unregulated. Therefore please do your own research before signing up and before becoming a binary options customer there. All unregulated brokers are “ok” at best. There is a higher risk of getting scammed by an unregulated broker. Also read their terms and conditions before depositing (check their withdrawal conditions). It is the best to stay away from unregulated brokers.
Binary Options USA Brokers on Binary Options No Deposit Bonus Website!
At US Binary Options our financial analysts have selected the top trusted US regulated binary platforms in 2020 and the best stock options brokers.
From 2020, we compare and provide professional reviews on all binary trading platforms in order to help you choose the broker that suits you best.
Check out our top Binary options brokers comparison table to find a trusted platform, and also our platform blacklist with scam brokers to avoid.
Read our guide about binary options trading for beginners as well as few basic binary strategies that you should take into consideration.
What are Binary Options?
These are a new kind of investment. What you will do is speculate on which way you think the asset will go in, or the direction it will go in. What you used to do was you have to purchase the asset now that no longer has to happen. When the platform is used to purchase a binary option the contract that is made enables the buyer to buy an asset which is underlying and at a price that is fixed and with a time frame that is fixed and specified with the seller.
Are there other Names for Binaries?
All or nothing options are also another name for binaries and are digital options + Fixed Return Options or FRO’s. Each of their names stresses the nature of the binary option. When it comes to outcomes there is always two possible results and this is something that the investor will be aware of before they purchase the option. The following is an example:
- Binary option for Microsoft is purchased at $100
- At the end of the day their shares will be much higher than they were when purchased
- So 71% is the return offered on this investment
This is a particular category of option where a person would be able to get either all or nothing when there comes to talk about the payout. This thing makes binary options easier a lot to know as well as makes the trading process with them trouble free than the previous traditional options.
These options are like this;
- They can only be traded until they expire
- Once these are expired, they would surely be settled for the customer in already specified amount (in dollars)
- If the trade expires and it is out of the money then this means that the buyer gets nothing
So now you can see why binary options can either enable you to gain which is the upside or you end up with a loss which is the downside, there is always a risk when it comes to binary option trading. If you were trading in the traditional way then things would be different.
All or Nothing
When it comes down to the platform you are using for trading.
- Nothing can mean something
- Even it happens; at the time of expiration, the proprietor of the particular option could be given a payout yet when there is no money in their hands.
Binary options can also be found under other names including:
- Exchange Market
- Digital Options
Other things to Learn
Before you decide to start trading there are a few things that you should research first including:
- Learn the outcome options
- Decide your position
- Learn how the price is determined
- Learn the advantages of binary and traditional options
- Learn where binary options are traded
- Check the implicit transaction costs of binary options
Are Binary Brokers legal in the US?
Regarding regulation for the offshore binary options brokers, we can affirm that some binary options brokers are already regulated in the European Union ( CySEC ), but not yet in United States.
Since 2006 US binary options have been in America but they have only just started to become popular since the middle of 2008. This has happened; traders and brokers have started popping up from many different states all over the US, what has happened is that people are now wanting to start a career in binary options trading and the one thing that is on every ones lip is:
Now when it comes to binary options are divided into two levels and these are:
- US regulated exchange platforms by CFTC, where americans can trade binary options legally: NADEX and CANTOR EXCHANGE.
- Offshore brokers not regulated.
The OCC or the Options Clearing Corporation in 2007 ruled that binary platforms would become legal then in 2008 the SEC or the Securities and Exchange Commission approved binary options and listed them as cash or nothing security. Then the American Stock Exchange or Amex and the Chicago Board Operations or the CBOE also listed binary options with exactly the same name. Then NADEX or the North American Derivatives Exchange added to its trading platforms binary options. But one thing has been done and that is a restriction has been imposed:
- Americans are free to trade with binary options as long as the broker they are using is legitimate
- The broker has to have a legal business in the county it is in and has to have followed and processed the procedures for it to operate
- Also, they must not have been banned by the federal government for transacting with US citizens in this business
Regulation In The United States
Now just because something is legal it does not mean that it is regulated.
- Legal means that it is protected
- Regulated means that it is not protected
Well US binary options brokers are regulated and over the years binary regulations are becoming more and more stringent. It is the OCC that has made a point of making these regulations harder and also making sure that binary option sold by brokers have the right securities. Rules regarding trading have now been put in place and traders and brokers are expected to abide by them, if they don’t and they violate the rules then either or both trader or broker can end up being banned for long periods of time.
These have also been set for things such as indices and how many can be listed, this gives better control to the trading that is going on in the market. Scams have also started to rear their ugly heads when it comes to USA binary option trading too. Some of these scams have been very malicious and ended up causing some traders to lose thousands of dollars. But because of the SEC and the US Department of Justice have taken legal action very quickly against the crooks by doing things such as:
- Freezing their bank accounts
- Putting them behind bars
the traders that were scammed were able to get some of their deposits even though it is not the entire amount back, the federal government has been able to enforce justice when it is needed and making broker who was involved in the scams accountable for what they did wrong. This is now why there has been a hard-core regulation within the United States and they will keep on doing so until the binary options market is strong and reliable in America.
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