Guide on the Best Binary Options Brokers in 2020

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!
    Sign-up Bonus!

  • Binomo
    Binomo

    Trustful Broker!

Contents

Binary Options Strategy – How to make money

Binary options trading is new and attractive way of making money on the Internet. It is defined as fast and simple trades with market assets such as gold, silver or Google stocks.

Simple binary options platform

In order to be profitable with binary trading you just need to predict if the price of selected asset will rise or decline in the next few minutes or even seconds. The accuracy of prediction can be increased using our strategies.

Our trading strategies

  • >60 seconds
  • >5 minutes
  • >15 minutes
  • >30 minutes
  • >60 minutes
  • >All strategies

Traders can make thousands of dollars crowns with very low risk in just a few hours. You will find the latest and best binary options strategies trade on our website.

Are you ready to make your computer your only employer and make a living by trading from the comfort of your home?

Our binary options trading systems are categorized by the expiration date.

To pull off our strategies, you will need the services of a forex rates program, and we suggest that you use the well known MT4 platform. You should try out a number of indicators so you can find the one that can offer you the best strength parameters. Once you have tested MT4 and found a broker, you need to follow some basic rules and strategies. Watch out for the strength and performance of your chosen currencies during middle of the US and UK market sessions. Once you have identified the currency pair, cryptocurrency or an asset you wish to trade, you need to can now start a trade. If your pair is GBP and Euro with GBP as the strongest, then you can call for a ‘PUT’ trade for EUR/GBP, and choose long expiry time. One of the most accurate binary options strategy is this one: Binary Options Strategy that Works.

Recent binary options strategy published

Trading ZAR currency, is it worth it?

„Three Ducks“ Trading Strategy

EUR/USD Price Action Strategy for Binary Options

The 1-2-3 Strategy

Pinocchio Binary Options Trading Strategy

Binary Option Trading using the ADX and EMA Cross System

Urban Towers Strategy – Awesome %

Binary Options Strategy – The Zig-Zag Indicator

There’s this common thinking that binary options trading is only best for the experienced traders around. Keep in mind that it’s one activity that’s open for everyone, at any skill level. In fact, you can even find specific trading strategies that can work for beginners. The idea here is to predict the movement of the prices, and take advantage of the movements. To take advantage of the best binary options strategy for beginners, we recommend to have a look at this one: A trading strategy for beginners.

Strategy for trading binary options

Binary option trade strategies are usually based on use of indicators. People often do not know how these work, therefore you can find the indicators description on our website.

Trading based on indicators may not be always a good idea. It is recommended to employ also technical analysis. This Binary options website contains lots of useful resources for technical analysis.

Easy binary options strategy

Thank you for visiting our website about binary options strategies that can work for beginners. For a start, you should know that binary options is never a ‘get rich quick scheme’. On the contrary, investing and participating in binary options trading requires patience and time, and can be a test of one’s commitment and skills. But the good news is that it can be a source of decent income on a regular basis and if done right, you can even quit your day job and concentrate on trading. But without the right set of strategies, any investing decisions will end up badly. If you want to be successful in this field, we suggest that you read our guide below and with every single strategy itself. There are surely some easy binary options strategy. One of the easiest ones is the Moving Average Strategy.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!
    Sign-up Bonus!

  • Binomo
    Binomo

    Trustful Broker!

Binary options brokers

Not all strategies work with every broker on the market. There’s many, many types of binary options, such as high/low options, touch/no touch trading, boundary and so on. Every broker offers different types of trading, just as it is with expiration times.

Some brokers offer expiration times as short as 30 seconds. Other start with 5 minutes. That’s a reason why not every strategy can be traded with certain brokers. Underneath every strategy on this website, you will find a recommended broker the strategy works with. Good luck!

Binary option trade risk

Binary option trade is not a simple matter! Even if you have the best available strategy some things may go wrong. Therefore do not risk more money than you can afford to lose! However we will always recommend only the best and proven strategies.

Every strategy needs to be tested on a demo account first. It is very wise to use a binary demo account to try, whether the strategy works or not. If it doesn’t work for you, try a different one. There’s many options of getting a demo account, but not all demo accounts are the same. Check our option brokers comparsion table to find a broker who offers free demo practice account.

List of the 11 Best Binary Options Brokers – Review 2020

The choice of a good Broker is undeniably one of the hardest steps to successfully trade as a beginner. My Binary Options Broker list and comparison can be very helpful here because the selection of brokers on the internet is quite large and therefore the chance to find a good broker. Find your suitable broker in a few moments in this honest review.

Best Platform
Highest Yield 100%+
Best Support

Broker: Review: Regulation: Min. Deposit: Yield: Advantages: Open Account:
1. IQ Option (5 / 5)
Read Review
CySEC (EU) 10$ up to 100%+
2. Olymp Trade (4.8 / 5)
Read Review IFC 10$ 92%+

Huge range of assets
High Yield 92%
Bonus Program 3. Expert Option (4.8 / 5)
Read Review VFSC, FMRRC 50$ 90%+

Good Platform
Account Types
Good Education 4. Binary.com (4.8 / 5)
Read Review MGA, FSC, VFSC 5$ up to 100%+

Highest yield
Clear platforms
Automatic trading 5. Binomo (4.7 / 5)
Read Review IFC 10$ 87%+

Clear Platform
High Yield 87%
VIP Program 6. Finmax (4.6 / 5)
Read Review FMRRC 250$ 70 – 90%

Account Types
Bonus Program
Webinars, Coachings 7. BinaryCent (4.3 / 5)
Read Review ✘ 250$ 80 – 95%+

Support 24/7
High Yield 95%
Trade with cents 8. Binarium (4.1 / 5)
Read Review ✘ 10$ 70 – 85%+

Clear Platform
Fast execution
Huge range of assets 9. Pocket Option (4 / 5)
Read Review FMRRC 50$ 80 – 90%+

Innovative Platform
Awards
Bonus Program 10. RaceOption (4 / 5)
Read Review ✘ 250$ 70 – 90%

Support 24/7
FX/CFD/Binary
Bonus Program 11. Ayrex (4 / 5)
Read Review ✘ 5$ 70 – 85%

Good Platform
Contests
Bonus Program

Binary Options is a financial instrument to trade worldwide assets with the possibility of a high return on investment. It is like betting on rising or falling markets. There are only 2 options, that is why it is called “binary”. You can win a high return of 75 – 95% in a selected time horizon or you lose the amount of your investment. It is so popular because it is a way to trade the markets very fast (5 minutes or less) and easy. I have to mention here you can trade it longterm too.

For more information about the financial product and how it works read the article: “How are Binary Options are working?”

The criteria of the Binary Option Broker Review 2020

If you looking for a good broker, you should following the next steps when you check the company. Sometimes traders get scammed by a bad and criminal broker. With this review and comparison, we try to prevent it. Furthermore, Binary Options are very risky. You only should invest money, which you can afford to lose. You can check the following criteria for finding the best company.

Criteria for a good and reliable Binary Options Broker:

  • The official physical address of the broker
  • Regulation or license
  • Free Demo Account
  • Experience in the markets
  • Good support and service
  • High asset profit and fast execution
  • User-friendly trading platform
  • A platform for mobile trading

Reliability of a broker and safety for traders

It is important to look at how long the broker has been on the market. I easy checked it on the homepage from the financial companies. A good broker provides you with all the information which you want to know. Some companies got an international regulation or license. Also, this is good for reliability. In addition to that, I checked the address of the brokers in this review. As a trader, you want to see clearly an official address of the company. At latest a trader should trust a broker. If you are not sure, just invest a less amount of money first and check the platform by yourself.

Official regulation and license are very important

High payout and asset return of investment for Binary Options

One of the most important point to consider is the asset profit. The average of the payout in this review is 75-95% for each Binary Options trade. There are differences between the brokers. Every trader wants to make a high profit in trading. If one broker got less asset profit like – 5%, this can be a huge restriction to you possible profits.

Moreover, every time the payout depends on the traded asset. Normally the broker provides the highest payout on the most traded asset. In addition, the payout can dependent on the expiration time too.

Which broker provides the highest profit?

Free and unlimited Demo Accounts are necessary for every trader

The broker should provide you with a free demo account. This is an account with virtual money. It is made to practice the financial product and to test the trading platform. You can trade Binary Options without any risk with this virtual money. It is completely free to use. Also, traders can develop new strategies or improve their trading skills. Advanced traders or beginners try to trade new assets for the best success with this account.

Open your free demo account now.

On the other hand, sometimes the broker gives its traders trading tips for analysis or strategies. The demo account is perfect for practicing that new knowledge. Trading is very complex and often it is not easy to find the right way. This is the main reason for using a demo account. Most traders gain experience first before they invest real money. With own experience, it is possible to get a high profit with trading in the right direction.

How to open your real account

The opening of a real account should be as easy as the opening of a demo account. In most cases, it is very easy and fast. The broker requires some additional documents and data of the trader to proof their personality. Upload a picture/copy of your passport. Sometimes they require a utility bill. The broker will check the documents and verify your account in less than 24 hours. Important information: The broker only withdraws full verified accounts. (Not every broker requires this documents)

What do you need:

  • Data: Full name, address, birthday, phone number
  • Picture/copy of your passport
  • Sometimes picture/copy of a utility bill

Review of the Binary Options Brokers support and Service for traders

As a trader, you need good support and service. Most brokers are showing experience and knowledge in Binary Options. The Binary Options Brokers in this review give you the best and fastest support. According to that, they give traders sometimes a good education with webinars, videos or strategies. For beginners, it is important to learn theoretically about Binary Options. It is a risky financial product.

You can learn the basics and advanced trading knowledge in webinars with experts. The most brokers first show you the basics like functions of candlesticks and the use of technical indicators. Usually, a trading platform offers more than 30 different indicators. Sometimes it is hard to find a good working strategy with them. In addition, they give you some advanced knowledge and information to rule the markets. Most brokers offer you a better education if your deposit is higher (see account types).

Another option of service is account types. For big traders with high deposits and high trading volume, some brokers offer different account types. As a trader, you can get great advantages. They offer you higher yields, better support, bonus or a cashback program. This is a way to get more profit in trading. For example, the broker offers you a higher asset profit of 5%. That can be very helpful.

The companies in this review offer you:

  • Chat support
  • Telephone support
  • Email support
  • Education centers
  • Webinars, videos, strategies
  • Account types
  • Account managers

Diversity of assets and test of the Binary Options trading platform

I tested the trading platforms of the Binary Options Broker Review. In conclusion, they are very good and innovative. They give you a very good reaction rate which is important for short-term trading. You can use them for your computer or as an app for your mobile phone. In addition to that, they are very flexible and customizable. Use different indicators for the best strategies. As you see in the picture below I am using Bollinger Bands and the RSI. They are very popular.

First of all the trading dashboard is the most important point of the trading platform. You should be able to switch very fast between different expiry times and create new trades. Some strategies are designed to have multiple trades open at the same time. The brokers in my review provide you the fastest execution time. Secondly social trading very popular. In some trading platforms, you can copy the best traders of the broker and make an automatic profit. They show you transparently what they are trading and you can start copying them.

Another important point is the flexibility of the platform. An app should be available for mobile trading. On most platforms, you can customize the chart very easy. Thanks to the digitization, platforms are getting better and the brokers always try to improve them. Use free indicators and technical tools for your analysis. Moreover, you can use the newsfeed to trade exactly high volatility. Market news occurs every day – Why not use them to make money?

Facts of the Broker Review:

  • Fast execution for your trades
  • Customizable
  • Use indicators and more
  • Apps for mobile phone
  • More than 50 different assets

On the most trading platforms, you can trade Binary Options with forex, stocks, cryptos, and commodities. There is a big diversity of assets for you. The yields depend on the category of the asset. More often than not the most traded asset gives you the highest yield. You can easily see that on the platform.

Weekend Trading (OTC) and Cryptocurrencies (Bitcoin and more)

Each broker in this list provides the service to trade on the weekend. The platforms are open 24/7. Weekend trading is allowed and advocated. On the weekend you can trade Cryptocurrencies like Bitcoin, Ethereum, Ripple and Forex OTC charts. Cryptocurrencies are traded decentralized and the stock market is open 24/7 for them.

Especially attention should be paid to the OTC Forex charts. Normally the stock exchanges are closed on the weekend but the international internal bank market is working. The volatility is much less than in the normal working days Monday – Friday.

The first steps for your Binary Options success:

  1. Learn the Binary Options basics. Information for trading Binary is available at the broker platform or the internet. For questions, there are certain forums available.
  2. Develop a successful strategy. Most brokers will help you to find a way to trade successfully.
  3. Use the Demo account. It is an account with virtual money. So you trade without risk the markets.

You should ask yourself these questions:

  • What do I want to achieve with the trading of Binary Options?
  • How much I want to invest?
  • Where, on which market I want to trade?
  • How do I react to losses?
  • What are the chances of winning?

Deposit and withdrawal by a Binary Options Broker

Nowadays the deposit is easy like the withdrawal. Most brokers only need a small amount of money to open your real account and give you access to the market. Capitalize your account in few seconds with a credit card, bank wire, cryptocurrencies or other e-wallets. Today it is very simple. The withdrawal systems are working very good too. Sometimes it is fully automatic. Most companies payout in less than 24 hours. In addition in a lot of cases, there are not any fees for you. Another important fact is brokers only withdrawal verified accounts. So get your account full verified with the right documents as mentioned before.

Bonus Programs and conditions for traders

Bonuses are very popular in the section of Binary Options Brokers. Most companies offer a deposit or a no-deposit bonus. There are a huge diversity of promotions for traders. Mostly the bonus depends on the deposit amount or you can choose it manually. For example, some brokers offer a bonus of more than 200%.

It is a good way to top up your trading account balance and earn more money. You can trade with more risk and grow faster your account, but you should not forget the bonus conditions. Every time there are requirements for the bonus. For example, you do a deposit of 5000$ to your broker and trade with sensible money management of 1% of the account balance per trade. That means you invest 50$. Now you activate a bonus of 100% and additionally you get extra 5000$ and your account balance is 10.000$ now. At the moment you can trade with sensible money management with an amount of 100$ per trade. That sounds good and you grow your account faster as without bonus.

The deposit bonus is a good way to increase your account balance and to trader with more risk.

As mentioned before there are conditions of the bonus. Simply there is the requirement of turnover of the bonus amount. Sometimes you have to do a turnover of x20 and sometimes you have to do a turnover x50. It is important to read the bonus requirements. If you got any questions, you can ask the support. In most cases, you will see the requirements transparent on the platform.

  • Deposit bonus: Get additional money to your account balance.
  • No deposit bonus: You will get a small amount of money for free, but you have to do a huge turnover before you can payout the profit.

Welcome Bonus for beginners

The no deposit bonus is named welcome bonus. There are different ways to get a welcome bonus. One way is to win a free demo contest (read more below) without any risk. You compete to other traders on the platform. The rules are easy to understand: Just try to get the highest account balance versus your competitors. If you win, the broker pays a high prize. It is like a welcome bonus because you do not invest real money.

On the other hand, as mentioned before the no deposit bonus is like a welcome bonus. There are a few brokers who offer this bonus. Just create your real account and activate the welcome bonus. The company gifts you any amount of money to your account balance but you can not withdraw the money. You have to do a high turnover of the welcome bonus like 30x or 40x. Recommend broker for a welcome bonus is Pocket Option.

Binary Options Tournaments

In addition, most brokers offer tournaments or demo contests for beginners and advanced traders. You must pay a fee to participate in a contest with a huge prize fund. The rules are very simple: You get a separated demo account where you have to get the biggest balance as possible. You will compete against other traders of the broker. Sometimes there is a prize fund of 100.000$ or more. Furthermore, it is not easy to win the contest because there are a lot of competitors.

The demo contest is a tournament without participation fee. That meant that the prize fund is much smaller than the paid tournaments. But it is a good way to earn money with a small amount of money (participation fee). If you are a successful trader, you can easily win these contests.

Countries for traders

Binary Options are not allowed in every country of the world. In addition, some countries forbid trades to use foreign brokers. Most brokers accept international traders, but there are restrictions for forbidden countries. You can not generalize it because the broker decides which customer he accepts.

Nowadays Binary Options become more and more popular for traders. It is a simple and efficient financial product. It is possible to generate a high payout in a short time horizon. Asian and Africa are growing very fast and people like the function of trading. The brokers in this review try to improve their service in this region of the world because the demand is very high. They improve their customer support with different languages and other services.

The fastest growing countries:

Are Binary Options legal?

Sometimes there are some restrictions to this financial product that depends on a particular country. Personally, I only know one area where Binary Options are forbidden. It is the European Union but some offshore and international brokers accept EU traders. It is like gambling on rising or falling markets and easy to understand. The EU tries to protect its citizens because there are a lot of scam brokers. To prevent a scam, use the best brokers of this review.

Find the best Binary Options Broker 2020 – Conclusion of my review

On this site, I showed you the idea of finding a reliable Binary Options Broker. In the list, you see the best companies in 2020. For successful trading a good broker is necessary. The company should allow you your own strategy of trading and give you good support and service. On most platforms, you can learn via education videos how Binary Options are working.

Also important is the execution of your trades. It should be very fast and with no delay. Usually, every broker does that. Nowadays as a trader, you can start with a small amount of money to trade Binary Options (10$ or less). It is possible to turn it in a high amount with the right strategy. In conclusion on this site, you can find the best and proofed Binay Options Brokers 2020.

Read more about them in my reviews:

I recommend this article if you can not choose between the most known brokers: “IQ Option vs. Olymp Trade vs. Binomo”

Binary Options

Best binary options Brokers for beginners: Binary trading Requires a good and regulated binary option broker and as well a good trading strategies.

However the more your trading career grow, the more you will need a good trading robot. Above all, bnary options trading is at this moment very popular.

The majority of brokers operating at this moment on the financial market accept clients registration based on regulatory compliance. However, many traders are still not sure if financial betting actually pays or not.

Unfortunately it’s not very easy to find the best binary options brokers easily. This is because after it’s introduced publicly as a tradable asset. Which was on the Chicago Board of Exchange (CBOE), in 2008. There’s uncountable binary options brokers out there. However, the number of brokers available has affected traders choice. As they are confused on which is the best binary options brokers.

Above all, we have carefully done the research for you. And we have listed the best binary options brokers for beginners. They are regulated by security and exchange commission (SEC).

What to consider before trading

Supported trading platform

Above all, It’s very much important to know some basics of the trade. Therefore let us consider this guide from Nadex important. Nadex, a U.S.-based regulated exchange for binary options, identified the top four traded forex pairs you must know before starting trading:

USD and CHF (Swiss franc)

Best binary Option brokers for beginners.

1: IQ option: overall for beginners.

IQ option was founded in 2020 and operated via IQ option Ltd and primarily based in Cyprus. IQ alternative is one of the fastest growing online trading platform. With actual time marketplace whatch. Iq option have increased their brand to encompass CFDs on stocks and ETFs, foreign exchange trading, and the exceptional IQOption product known as digital options.

2: BDswiss: To platform,

BD Swiss founded in 2020, as one of Europe’s leading financial institutions. They specializes in FOREX and CFDs, and BINARY OPTION.
Above all, BD Swiss has it’s holding in Zug, Switzerland. However, the broker is also good for beginners. More-so, prides itself in providing best trading conditions and arm plartform.
As a matter of fact, it has over one million registered accounts with a trading volume of over €10 billion per month. BD Swiss is regulated by CySEC. Therefore the security of your fund is assured.
BDswiss trading platforms are web-based and MT4.
The minimum deposit is just $10 and the minimum trade amount is $5.

3: Binary.com: Top 10 binary options brokers for MT5 and best online stock brokers

Binary.com is a UK based binary option broker that was founded in 1999. The broker is regulated in British Isles, Malta, UK and Ireland. They have over 300 staffs and contractors with its offices in Malaysia, Malta, Paraguay and the UAE.

4: eToro : best brokers with copy trading

eToro is one the best UK binary options brokers with the best social online trading plartform founded in 2006. However, managed by two brothers Ronen and Yoni Assia and partner David Ring. More-so they are based is Tel Aviv in Israel.
Above all, the Minimum deposit: Although this depends on your contary; It ranges from $200- $1000.

eToro fees

Fees: etoro has low straight forward trading fees.
But their non- trading fee is high. For instance, etoro charges $25 for each withdrawal. Minimum Withdrawal Amount $50 25$

Best binary options brokers with low minimum deposit of $1, 5 -10

1: binary.com

Minimum Deposit: $5
Maximum Deposit: $100000
Minimum Trade Size: 0.01 lots
Trading Platform: MetaTrader 5, SmartTrader, WebTrader

2: IQ Option

Minimum deposit: $10
For VIP account, the minimum deposit is $3,000

3: 24option

Minimum deposit: $10. Minimum withdrawal amount is $50 (or equivalents in other currencies, see 24option website) and it is a bit high in our opinion.

Fees for 24option withdrawal after the first one are
credit cards: 3.5%
Skrill: 2%
Neteller: 3.5%
Bank Wire: $30, €25, 20GBP or 3000Yen

4: BDswiss

Minimum deposit: $10 and the minimum trade amount is $5. You can open your account in USD, GBP, or EUR.

5: eToro

Minimum first-time deposit varies from $200 to $10,000. To view your required minimum click here

6: Binarycent

Minimum deposit: $250 for the bronze trading account. For the Silver trading account, the minimum deposit requirement is $1000.

Share your thoughts in our top10, binary options brokers forum And see other peoples response.

What should I do as a trader to win

Finally we believe that we have carefully done your homework on best online stock brokers to choose. Therefore we will equally give you tips on how to trade profitably.

However as a trader there are some things to do and some to avoid.

First of all before you start trading consider this steps important.

However, To be a successful binary options trader; you need to use more than one broker. Above all, choose one or more from the above mentioned.

Consider your trading styles on any of our recommended brokers. And know if the broker will suit you.

Register with your chosen trading platform and verify your account. Check our best binary options brokers for beginners. However, you will have to deposit money to start trading.

Select the asset to trade. Trading platforms have assets such as currencies, indices, commodities, and stocks. You can choose to trade in currencies, the popular one being EUR/USD.

More-so, decide on the amount to invest. However then investing in an asset, you will see the payout or the returns for the asset, which can go up to 91%. Make your prediction on the movement of the price of the asset. If you predict the price of the asset to rise, select Call (up). If your prediction is that the price will fall, select Put (Down).

When the trading closes after the given time, for example after 60 seconds, if it is a 60 seconds investment and you have made the correct prediction, then you win. An investment of $ 100 with a 90% payout means that you will have made 90 dollars in a few minutes.

Caution

finally, you should Note that binary options and online stock trading involve high-risk. Please consider if you can afford to take such risk before trading. Binaryoptionslord.com doesn’t determine your income nor your lose. However, we give information based on our knowledge.

Finally if you wish to know More about best online stock brokers, please don’t hesitate to contact us.

Best Binary Options Trading Brokers for 2020

Below you will find a list of Binary Options Brokers that offer various binary contracts for trading. Although the term may appear to be very confusing, it’s not that complicated. A binary option is a sort of a contract with a value, expiration date and determined conditions of winning. By purchasing it, you technically make a bet. Most common wager is to predict whether the asset’s price will go up or down from a certain level and stay there until the option expires. Most tradable assets are currencies, indices and some commodities. There used to be much more brokers offering binary options, but many regulatory authorities placed restrictions and prohibited that kind of trading.

Binary options for the retail market were instituted in 2008 when the first description of this product was approved by the US Securities and Exchange Commission. The initial description of what is now known as US-style binary options was based on assets that were listed on exchanges, with traders pitting their bets against each other.

A short while later, a different model of binary options was developed and introduced to the world by brokers based in Europe and Israel. This model (European-style binary options) was essentially based on off-exchange trading of CFDs. However, what followed was years of unwholesome practices and remarkable scandals, which led to the shutdown of the industry in Israel by regulators there, and in the UK and EU region by the European Securities and Markets Authority (ESMA).

The industry is presently undergoing a self-cleansing, and we now have offshore brokers who are showing better commitment at playing by the rules and ensuring their clients get a good deal for their money.

What led to the near collapse of the binary options market?

The answer lies in only one direction: shady brokers and their agents all over the globe. But perhaps some portion of the blame can go to regulators, who were generally very slow in rising up to the occasion to protect the clients, whose money constituted the entire financial backbone of the market.

Brokers are meant to create markets for their clients to trade and are supposed to ensure transparency and safety of trading venues, while maintaining some level of neutrality. However, what occurred between 2020 and 2020 was a situation where a lacuna in regulation led to the emergence of fraudulent entities. These fly-by-night operators set up “brokerages” that were essentially criminal enterprises, specifically designed to rob traders of their hard earned cash. These scam brokers devised several means of ripping off their unsuspecting customers.

A) A common method was the use of call center agents, who unscrupulously obtained contacts of prospective traders and literally harassed them into making ever-increasing deposits, with promises of helping them reap bountiful returns on their investments.

B) There was also the use of volume requirements for incentive bonuses, which were tied to the ability to make withdrawals. Traders soon found out that achieving these volume requirements was practically impossible, thus ending any opportunity at retrieving capital or profits made.

C) In some brazen instances, agents in the brokerage house would access trader accounts from the back end, and execute trades that had been deliberately configured to lose on those accounts. There is at least one case known to the writer where $5,000 was stolen in this manner. Prosecutors and law enforcement agents presently have warrants on the identified personalities behind that brokerage.

Perhaps the case that brought binary options into very negative light, prompting calls for an EU-wide ban, was the unfortunate case of a Canadian investor who lost his life savings after patronizing a shady brokerage entity. The eventual suicide of this investor was the breaking point; EU and UK regulators took action and shut down binary options in Europe and the UK.

Lessons learnt

It is not only traders that suffered from the criminal activities of the scam brokers. Legitimate brokers such as Binary.com paid a very heavy price, as they lost a significant amount of the market share in an industry where they could be said to be the pioneers. Binary.com (which is listed below as one of the best binary options brokers of repute today) and several other legitimate companies around the world were forced to make major changes to their operational models, in an attempt to improve transparency and to bring back badly eroded investor confidence into the market.

Some of the changes which have been introduced include:

A) Restriction on issuance of bonuses, a lot of which is now provided as cashback for volume trading.

B) Robust trader education, in order to ensure that only informed traders use the binary options platforms.

C) Provision of demo accounts, which many of the defunct brokers never provided for their clients. No longer will traders be deprived of the opportunity to test their strategies and learn the process using virtual accounts.

D) Enhancement of the analytical tools on the platforms, to replace the archaic methods of the old order which provided traders with only line charts and zero tools for analysis!

E) Elimination of confusing binary options bet types and sticking to the classical binary options.

F) Getting their entities regulated in the countries of operation, to enhance user protection and boost broker accountability to enforcing regulatory institutions.

G) Incorporating new asset classes (e.g. cryptocurrencies) to the mix.

Criteria used in broker selection

In selecting the binary options brokers displayed in our list below, the following parameters were used in the process of consideration and selection to ensure that only the most genuine brokers are available for you. We have thus made the process simple, knowing that it is quite a challenge for traders to be able to select these brokers on their own.

The issue of regulation cannot be emphasized enough. The only way traders are going to be protected is by regulating the binary options providers they operate with. Anything short of this will be inviting the old demons back. Regulation also provides for greater accountability and ensures that investor confidence is never lacking in the market.

2) Corporate Governance Structure

A look was taken at the structure with which the listed brokerages operate. Many of them have been around for more than 9 years, and have invested in improving their platforms and trade offerings. These brokerages also have properly defined corporate hierarchy and a face to which the company can be tied to. For instance, the CEO of Binary.com is well known. Olymptrade has a very active presence in an online forum in Africa. Brokerages like Go Markets have officials who are also well known. There are no faceless companies in our list.

3) Openness and Reachability

The brokers listed here all have verifiable contact addresses and can be reached by phone, email and social media channels. Compare this with the old order where some brokerage operations were essentially husband/wife run establishments, operating out of a kitchen (yes, a “binary options broker” was found to be just that several years ago).

4) Trade Conditions

The trade conditions for each broker were also reviewed. For instance, we looked at factors such as stability of the platform, uptimes and downtimes, accessibility of customer support, latency of price and data feeds as well as how the brokers handled counterparty risks. Brokers that were found wanting were eliminated from the list.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
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  • Binomo
    Binomo

    Trustful Broker!

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