The Best Binary Options Broker 2020!
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Binary Options Brokers
Binary Options Brokers in the USA – Trusted Binary Options Brokers
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What are binary options brokers
We review the best binary options brokers worldwide. Hi, this is BinarySignalsPro, and today we will discuss how to choose a binary option broker and what is the best broker for binary options for you, whether you are in the US or Australia, or elsewhere.
Currently, there are more than 450 trading platforms or brokers. This was not the case in 2008, when binary options trading began, as there were about 10 trading platforms that were good, as they created High Competition.
The emergence of many brokers, which is beneficial for investors in terms of more bonuses and higher profits.
Best Brokers and Investment Companies 2020
Trade with the best binary options brokers on the market:
If anyone does not know: a binary option is an “all or nothing” option; This option with a fixed price, which, depending on the pre-agreed condition, either provides a fixed income, or does not bring anything.
Brokers, rating of investment companies – All brokers and investment companies. The broker rating is an intuitive, functional and convenient tool for a trader who chooses an exchange broker.
The main purpose of the rating is to compare brokers and choose the best investment companies. Each visitor to the site, regardless of whether he is a novice or a professional, is invited to vote for the best brokerage company from his point of view. We also recommend that you review our Binary Options Brokers rating.
The rating of brokers is not responsible for errors in the information provided. To get the latest information, visit the website of the broker or investment company.
TeleTrade-DJ Ltd Sharp ECN Forex Account
IQ Option – CFDs on stocks, Forex, Cryptocurrencies
24option Broker Access the financial markets all in one place
WHY AMARKETS? 11 years of successful trading
Broker HighLow Markets Get a $50 cashback sign-up bonus
Online Trading with Binary com Broker
Most Innovative Multi-Asset Broker 2020 “Best Retail Forex Broker“
At Binomo you can invest in transactions starting at $1 with returns of up to 70%.
Get More than a Forex and CFD Trading Account at XM
easyMarkets® technology breaks not only the administrative barriers, but also the minimum monetary entry level. With our system the user can open a position for as little as 25 USD.
EuropeFX Personal Client Area Broker
Prestige Financial Markets. Why Should You Choose to Trade with Us?
Recommended Brokers in the US
For many traders, US brokers are the benchmark for reliable and high-quality trading in binary options. This is due to the fact that regulators closely monitor the investment activities of the United States, and the requirements for investment companies are very strict.
Thus, the choice of a broker in the US market is an additional guarantee of the security of the invested funds. It is from these considerations that large investors prefer US brokers with extensive experience in the market. As far as this is true, everyone must decide for themselves, but the US regulatory bodies, such as the CFTC, which are subject to US brokerage funds in the stock market, are already a guarantee of the company’s reliability.
The following list of binary options brokers in the US contains the most significant brokers that can provide services to traders from the United States. Choosing DC, you should consider all options, and if the broker is trustworthy, but territorially located and registered in the US, this is not an excuse to refuse to cooperate. Many brokers have sites in different languages and are happy to see customers from all countries, so they provide quality technical support in all languages.
The rating of American brokers, presented in the list below, contains the most respected companies with a good reputation.
Binary Options Day Trading in Russia 2020
Binary options trading hinges on a simple question – will the underlying asset be above or below a certain price at a specified time? If so, you can make substantial profits with one of the most straightforward financial instruments to trade. But what exactly are binary options, and what are their benefits and drawbacks? This page will answer those questions, as well as detailing how to start day trading binary options, including strategies, tips, and regional differences to be aware of. Use the broker top list to compare the best binary brokers for day trading in Russia 2020.
The Best Binary Options Broker 2020!
Perfect For Beginners!
Free Demo Account!
Free Trading Education!
Binary Brokers in Russia
What Are Binary Options?
Firstly, let’s have a look at how it all works. Put simply, binary options are a derivative that can be traded on any instrument or market. They appeal because they are straightforward. You know precisely how much you could win, or lose before you make the trade. No complex maths and calculator is required. This is why they are also known as ‘all or nothing’ trades.
If you anticipate news announcements, quarterly reviews, or global trends, then you may be able to make an accurate determination as to whether the price is going to increase or decline at a certain point in the future, turning a profit.
There is a whole host of derivatives to choose between. You can trade binary options on commodity value, such as aluminium and crude oil. You can opt for a stock price, such as Amazon and Facebook. There are foreign exchange rate options, including all the major and minor pairs. Even cryptocurrencies such as Bitcoin, Ethereum, and Litecoin are on the menu.
A Brief History
If you want to start trading binary options full-time, a detailed understanding of their origins will help. Binary or ‘digital’ options have been around for decades. Originally though, it was only large institutions and the fabulously wealthy that had access. However, 2008 saw the US Securities and Exchange Commission open the floodgates by allowing binary options to be traded through an exchange.
The internet and technology have since given the whole world access to these ‘digital’ options. As it stands, with low barriers to entry for savvy day traders and a simple to understand preposition, the demand for these digital trades will only increase.
There are a number of different option types to choose from. The most popular types are listed in the brief glossary below.
- Up/Down (High/Low) – The most simple and prevalent binary option. Will the price be higher or lower than the current price when the expiry time comes?
- In/Out (Range or Boundary) – A ‘high’ and ‘low’ figure will be set. You are then making a determination as to whether the price will finish within or outside of these boundaries.
- Touch/No Touch – Levels will be set that are either higher or lower than the current price. You then enter a position as to whether the price will ‘touch’ these levels between the time of trade and expiry. Payout will come as soon as the touch takes place.
- Ladder – These are similar to up/down trades. However, instead of using the current price, the ladder will have pre-determined levels that are staggered up or down. These normally demand a substantial price move. The flip side of this is returns will frequently exceed 100%. Although it is worth noting, both sides of a trade are not always available.
Another important component of binary options is expiry times. This is when the trade will end and the point that determines whether you have won or lost. These times can range from 30 seconds and 1 minute (turbos) to a full day (end of day), and even up to a whole year.
As an intraday trader though, you will be more concerned with trading 5 and 30-minute binary options. Opt for binaries with 1 minute expiry times though and you have the ability to make a high number of trades in a single day.
Is Trading Binary Options Legal?
Despite the somewhat negative reputation, the reality is binary options are legal. The majority of companies operate fairly. Opinions have been split because there are some out there that operate scams.
Regulation in certain regions has meant binaries have been withdrawn from the retail market. In the EU for example. But professional traders can still use them. In regions such as India and Australia, binary are legal – but traders should make sure they use a reputable broker, and read our section below on avoiding scams.
Scams & Frauds
The binary reputation has suffered from dishonest marketing and cybercrime. Too many unregulated brokers promise quick cash, whilst operating frauds. Regulators are on the case and this concern should soon be alleviated.
Binaries themselves are perfectly legitimate, but steer clear of ‘instant money’ promises, brokers that cold call, and celebrity endorsements, plus any claims that you can ‘start trading binary options for free’.
So it isn’t a question good or bad, it’s simply a question of being alert to the dangers and knowing what to look out for. If you’re unsure about a broker, ask the question in a live trading room to check they’re properly regulated.
Binary Options Vs CFD Trading
Although in some ways similar, there remain some crucial differences between binary options and CFDs. With CFDs, you have potentially unlimited risk. If the price of the asset moves significantly, the value of the trade can grow very large, very quickly – for better or worse.
Whereas binary options work slightly differently. Whilst you are still investing without owning the asset in question, the gain and loss rate is fixed. With a call option, it doesn’t matter if the price rockets, you retain the same percentage as if it rose by just a couple of pips.
Likewise, if the price sinks to zero, you’ll only lose what you put in. So, to define the difference – with binary options you get fixed risk.
Having said that, just as if it was binary options versus forex trading, you are restrained in your profit potential.
Why Trade Binary Options?
If you want to profit trading binary options, you need to first understand both their pros and cons. You need to make sure binary options will suit your trading style, risk tolerance, and capital requirements.
There is a whole host of attractive benefits to trading with binary options. The greatest advantages have been outlined below.
- Simplicity – Because you are making a determination on only one factor, direction, your bet is straightforward. The price can only go up or down. You also don’t need to concern yourself with when the trade will end, the expiry time takes care of that. Whereas in other markets, you may need a system to limit your losses, such as a stop-loss.
- Fixed risk – Trade stocks, gold, and crude oil and you’ve got a vast number of factors to contend with, from slippage and margin to news events and price re-quotes. With binaries, your risk is kept to a minimum with far fewer parameters.
- Trade control – Because you know what you may make or lose before you enter the trade, you have greater control from the start. Trade in stocks, for example, and you have no guarantee that your trade will make the entry price.
- Profit potential – Compared to other trading, the returns in binaries are extremely attractive. Some brokerages promise payouts of up to 90% on a single trade. If you’re looking to make simple trades with large profit potential, binaries could well be worth a look in.
- Choice – Rather than being constrained to a specific market, e.g. cryptocurrency or stocks, binary options gift traders the opportunity to trade instruments across virtually all markets, allowing you start currency, indices, and bonds trading if you so wish.
- Accessibility –In the binary options game, it’s always the best trading hours somewhere on the globe. So, you can login at night, or on the weekends and join the groups of avid traders attempting to turn daily profits. Real-time charts are available for every market so if you’ve got the time you can invest 24 hours a day.
Whilst there are plenty of reasons to delve into trading on binary options, there remain several downsides worth highlighting:
- Reduced trading odds – Whilst you can benefit from trades that offer in excess of 80% payouts, these are often when the expiry date is some time away from the trade date. If the odds of your binary trade succeeding are extremely high you may have to make do with reduced payout odds.
- Limited trading tools – Whilst most brokerages offer advanced charting and analysis capabilities, trading tools for binary traders often fall short of the mark. Fortunately, there are other online sources for these graphs and tools, plus brokers are working swiftly to increase their offerings.
- Price of losing – Your odds are tilted in favour of losing trades. Approximately for every 70% profit, the corresponding loss of the same trade would result in an 85% loss. This means you need a win percentage of at least 55% to break-even.
- Risk management – Unlike other markets, brokers often set a trading floor, with minimum accounts a trader needs to enter the market. This means losing capital can happen with ease. Whilst a stocks broker may permit you to open an account with $250, trading micro-lots, most binary brokers won’t allow $50 trades. So, even with $250 in your account, just five trades that don’t go your way could see you sink into the red.
Binary Trading via Mobile App
How Does Trading Binary Options Work?
Trading binary options for beginners is straightforward. Simply follow the steps outlined below.
Step 1 – Find a broker
This is one of the most important decisions you will make. You need a broker that meets all your requirements and who will enhance your trade performance. But with so many options out there, how do you know what to look for?
If you’re high-frequency binary trading each day, the commission fees and costs will quickly rack up. You want to maximise your profits so look for brokers with a competitive and transparent fee structure, and remember, different asset classes pay out different amounts.
One point worth investigating is rules around minimum deposits. Whilst some brokers will offer binary options trading with no minimum deposit, many will expect a deposit of close to $50, and some $100. A broker offering low minimum deposits is ideal if you’re strapped for cash. Trading binary with JC and GCI are good choices if you’re looking for low deposits.
Some brokers will specialise in certain assets. If you’re set on crude oil, it may be worth finding a broker that’s geared towards those binaries. You may benefit from relevant news feeds and the most prudent option choices available. Trading binary stocks with 212, for example, is ideal for those interested in stocks.
With scams out there it’s important you check your broker is properly regulated by the relevant financial body, e.g. FCA, CySec, CFTC. Trading with 247 Binary Options, IQ option, and Binary.com are all safe bets.
Binary options platforms are your gateway to the market and where you’ll spend many hours a day. There are now many online trading platforms, so, make sure it’s easy to use and offers all the charts, patterns and tools you need to make smart and accurate trade decisions. For example, will you be trading binary options with candlesticks or more obscure charts?
Both Keystone and Nadex offer strong binary options trading platforms, as does MT4. Before you buy, conduct a thorough trading platform comparison and check reviews.
Any problem could cost you time, and as an intraday trader, time can cost you serious cash. So, check the broker offers reliable support. Some brokers will offer 24/7 customer support through calls, live chat, and in a number of languages. Binary options trading with Etrade and 24 Option are smart moves if you want top quality support.
A growing number of people use mobile devices and tablets to enhance their trading experience. However, software for trading binary options varies hugely. So, it’s worth checking whether your broker offers cross-platform capabilities. Also, check the charting tools you need will work on your iOS or Android device. Binary options trading with IQ Option, for example, offers fantastic trading apps.
Many brokers will sweeten the deal with some useful add-ons. Some may offer free trading plans, courses, and lessons. So, find out first if they offer free courses online to enhance your trading performance. Some brokers will also offer free binary trading trials so you can try before you buy.
You could also benefit from trading bonuses, tips, the best strategy and trading signals reviews, plus free, practice demo accounts. Not to mention some brokers allow for binary options trading using Paypal. However, don’t be put off by no binary options trading deposit bonus, these can be a sign of potential scams.
For newbies, getting to grips with a demo account first is a sensible idea. Funded with simulated money, you can try numerous assets and options. It’s the perfect place to make mistakes and learn before you put real capital on the line. In addition, you’ll find most free binary options demo accounts require no deposit, so you can start practicing whilst you save that initial capital.
There is no universal best broker, it truly depends on your individual needs. Some brokers offer minimum trades of just a couple of pounds, whilst others require hundreds or even thousands. The solution – do your homework first.
For more guidance on making the right choice, see our brokers page.
Step 2 – Choose An Instrument/Market
You can trade binaries in pretty much everything, including stocks, forex, indices, and commodities. You can bet on anything from the price of natural gas, to the stock price of Google. Opt for an asset you have a good understanding of, that offers promising returns.
Step 3 – Decide On An Expiry Time
As a short-term trader, you’ll probably be more interested in 30 seconds, 1 minute and end of day expiry times. You need to balance binary options trading volume with price movement. Whilst the more trades you make means greater profit potential, it’s better to make fewer and more accurate trades. Also, find a time that compliments your trading style.
Step 4 – Decide On Size
In the binary options game, size does matter. The greater your investment the greater the possible profit. On the flip side, remember the entirety of your investment is on the line. You need an effective money management system that will enable you to make sufficient trades whilst still protecting you from blowing all your capital.
Step 5 – Choose An Option
You will have any number of the options outlined above to choose from. Think carefully about how confident you are in your determination. Consider factors that will jeopardise your investment, and select an option that gives you the best chance of succeeding. Don’t automatically select a ladder trade because you want huge returns, consider which options are the relatively safe bets.
Once you’ve made that decision, check and confirm your trade. Then you can sit back and wait for the trade payout.
Below is a video explaining how to trade binary options on the platform of a leading provider:
Binary trading strategies will differ from trade to trade. What may work for a ladder option in forex, may prove useless in a range option on gold. Having said that, there are two reasons you must have a strategy.
Firstly, a strategy prevents emotions interfering in trade decisions. Fear, greed, and ambition can all lead to errors. A strategy allows you to focus on the maths and data.
Secondly, a strategy allows you to repeat profitable trade decisions. Once you’ve found out how and why that binary option worked, you can replicate it to create consistent profits.
Building A Strategy
There are two crucial elements to your binary options trading method, creating a signal, and deciding how much to trade. The second is essentially money management. How do you go about determining these two steps then?
Step 1 – Creating A Signal
The signal will tell you in which direction the price is going to go, allowing you to make a prediction ahead of time. The two main ways to create signals are to use technical analysis, and the news.
Charts, Patterns & Indicators
If you can identify patterns in your charts, you may be able to predict future price movements. They rest on the idea that ‘history repeats itself’. You can start trading binary options using Heiken-ashi, other candlesticks, and line charts. Armed with charts and patterns, successful traders will build a strategy around their findings.
You can then build indicators into your strategy, telling you when to make a binary option, and which binary option you should go for. These technical tools can prove invaluable, so make sure your broker offers the features available to conduct thorough market analysis.
One of the great things about trading binary is you can use any number of your normal indicators, patterns, and tools to help predict future binary options movements. So, you can start trading with/using:
- Support and resistance levels
- Price action
- Stochastic oscillators
- MACD indicators
- Options close to expiry
For more detailed guidance, see our charts and patterns pages.
You can trade binary options without technical indicators and rely on the news. The benefit of the news is that it’s relatively straightforward to understand and use. You’ll need to look for company announcements, such as the release of financial reports. Alternatively, look for more global news that could impact an entire market, such as a move away from fossil fuels. Small announcements can send prices rocketing or plummeting.
If you can stay in the know you can trade your binary options before the rest of the market catches on. To do that you’ll need to be tuned into a range of news sources. You can browse online and have the TV or radio on in the background. Some of the most useful news sources in terms of trading information are:
- Yahoo Finance
- Business Insider
- Financial Times
Step 2 – How Much You Should Trade
If you’re just starting off it’s often best to keep things simple. Trading the same amount on each trade until you find your feet is sensible. Below are 3 binary options trading strategies for both beginners and experienced traders.
Binary options using the martingale trading strategy aim to recover losses as quickly as possible. To do this you’d trade larger amounts of money in the trades following a loss. So, you’d set an amount that you trade each time, say $250. However, if you lose on that $250, you’d bet $500 on the next trade. If the trade wins, you’ll already be back in the black, rather than being stuck around the break-even mark.
The problem with this strategy is that if you go on a losing streak you can lose a serious amount of capital in a short space of time. So, only use this strategy if you’ve got a relatively accurate means of making trade decisions. If you’re still in the trial and error stage, consider a different approach.
A percentage based system is popular amongst both binary options traders and other traders. The idea is you specify a percentage you’re willing to risk. Between 1-2% is common. So, if you’ve got $10,000 in your account, and your risk value was 2%, you could trade $200 on a single trade.
If you have a greater risk tolerance and consistent results you may want to increase that risk margin to 5%. The benefit of this system is that you should never lose more than you can afford. This makes it an ideal approach to take if you’re new to trading on binary options.
This example is best employed during periods of high volatility and just before the break of important news announcements. This technique can be utilised by traders of all experience levels. It gives you the capability to avoid the call and put option selection, and instead allows putting both on a specified instrument.
You aim to utilise put when the value of the instrument has risen, yet you think that it’s going to decrease soon. Once the descent has begun, place a call option on it, anticipating it to bounce back swiftly. You can also do it in the reverse direction. Simply place a call on the assets prices low and put on the rising asset value.
This significantly increases the chance of at least one of the trade options producing a profitable result. If you’re in a volatile market, this simple system could you see turn handsome profits. This works well as a binary options trading 60 seconds strategy, and will also cover expiry times of up to one day.
Bots & Algorithmic Trading
Once you have honed a strategy that turns you consistent profits, you may want to consider using an automated system to apply it. These robots usually rely on signals and algorithms that can be pre-programmed.
The bots then do all the leg work, trading options on your behalf. The plus side is they can make far more trades than you can do manually, increasing your potential profit margin. They can also trade across different assets and markets.
It’s worth investigating your brokers offering when it comes to auto trading and checking for robot reviews. Many allow you to build a program with relative ease. You can use your own entry points that rely on Bollinger bands, RSI/MFI patterns, and moving averages.
However, even when you’ve got your system up and running, you can’t go into trading binary options on autopilot, you need to stay tuned in. If any mistakes take place, you need to be there to remedy the problem. Technical crashes and unpredictable market changes can all cause issues, so stay vigilant.
Many binary option strategies pdfs fail to sufficiently consider time variables. Certain strategies will perform better with specific time options. You may want to look specifically for a 5-minute binary options strategy. Alternatively, trading 15-minute binary options may better suit your needs. So, whichever strategy above you opt for, ensure you take time into account.
Summing Up Strategy
Trading binary options with success rests on finding a strategy that compliments your trading style. So, consider the instrument you’re going to be trading. Then, employ an effective money management system and use charts and patterns to create telling indicators. Also, utilise news announcements to your advantage.
If you’re trying a new fence, gap, hedging, or any other binary strategy for the first time, why not try it on a trading practice account first? This will allow you to address any issues before you invest your own money.
For more detailed guidance, see our strategies page.
Binary options trading 101; immerse yourself in educational resources. As Benjamin Franklin asserted, ‘an investment in knowledge pays the best interest’. The top traders never stop learning. The markets change and you need to change along with them.
To do that, utilise some of the resources detailed below.
- Books & eBooks – There is a whole host of books and ebooks out there that can impart invaluable information on day trading binary options. You can benefit from the binary options trading knowledge of experts with decades of experience. The good thing about a book it is allows you to learn at a pace that suits you. One book that has made binary options trading easy is ‘Trading Binary For Dummies’, by Joe Duarte.
- Video tutorials & seminars – Engaging and easy to follow. There are numerous online video tutorials out there that can walk you through making a trade. With seminars, you’ll also be able to have questions answered and the binary options trading basics explained, plus some brokers offer weekly seminars to keep you up to date with market developments.
- PDFs & instruction guides – These will give you a clear breakdown of steps that you can follow and apply. The best part is you can find plenty online that are totally free and easy to download, whether you’re using Android, Windows, or iOS. The trading binary options ‘Abe Cofnas’ pdf is particularly popular.
- Forums & chat rooms – This is the perfect place to brainstorm ideas with binary options gurus. You can benefit from recommendations and learn in real-time whilst investing in your binary options. You can also swap live chart screen grabs to get a feel for other binary methods and tactics.
- Newsletters & blogs – These are brilliant for keeping up to date with upcoming developments that may affect your markets. Plus, you could hear about binary options competitions (yes, they really do exist).
- Copy trading – This is when social trading networks/platforms are combined with binary trading tools. You can follow experienced traders, analyse their strategies, and then replicate their trades. Check out copy trading reviews before you sign up.
All of the above will play a key part in your binary options trading training. Free trading videos and examples will help give you an edge over the rest of the market, so utilise them as much as possible.
There currently exists no binary options university. So, explanations as to why that option didn’t work can be hard to come by. Keeping a journal with all your binary option trading results in could solve that issue. A detailed record of each trade, date, and price will help you hone your strategy and increase future profits.
Whether you keep it an excel document or you use tailor-made software, it could well help you avoid future dangers. As an added bonus, it can make filling in tax returns at the end of the year considerably easier. A journal is one of the best-kept secrets in binary options, so now you know, use one.
Trading binary options successfully isn’t just about having the right strategy. If you can’t control your emotions you will make costly mistakes. As Robert Arnott stated, ‘what is comfortable is rarely profitable’. When the pressure kicks in, fear and greed can distract you from the numbers.
You need to accept that losses are part of trading and stick to your strategy anyway. If it’s based on accurate maths and careful technical analysis then you have to keep your faith. As soon as you start acting inconsistently your profits will suffer.
As the popularity of binary options grows across the world, regulatory bodies are rushing to instill order. That means where you trade and the markets you break into can all be governed by different rules and limitations.
If you’re day trading binary options in the UK, for example, you will require a license from the UK gambling commission. If you opt for a broker regulated by the Financial Conduct Authority (FCA), you’ll be guaranteed an extra level of protection. Beware some brokerages register with the FCA, but this is not the same as regulation.
Brexit has brought with it complications to trading regulations. The MiFID II guidelines were set to be implemented across Europe enforcing rules around binaries, however, the UK may not now implement the guidelines. This means the UK is no longer under pressure from Europe to reclassify binaries as financial instruments.
Binary options trading for US citizens is limited by a choice of just two brokers. Nadex and CBOE are the only two licensed options. Fortunately, they are both huge firms offering competitive prices and a range of different assets to trade binaries on.
Rest Of World
In Australia, the Australian Securities and Investments Commission (ASIC) runs the show. If you’re interested in brokers based in Cyprus and Israel, then check they are regulated by CySec. In Dubai and the rest of the UAE, binary options are regulated by the Dubai International Financial Centre (DIFC).
You can also start day trading binary options in Canada, India, Pakistan, South Africa, Malaysia, Kenya, New Zealand, Nigeria, Vietnam, Indonesia, and the Philippines. Each has their own regulatory bodies and different requirements.
So, if you want protection, ensure you do your research before you sign up for a binary broker on the other side of the world.
Another important regional distinction comes in the form of taxes. Some countries consider binary options as a form of gambling, such as the UK. This comes with notable benefits. The HMRC will not charge you any taxes on profits made through binary options. However, in the future binaries may fall under the umbrella of financial derivatives and incur tax obligations.
Having said that, if day trading binaries are your only form of income and you consider yourself a full-time trader, then you may be liable to pay income tax. Whilst you are probably still exempt, it is worth seeking clarification.
Outside the UK, tax regulation differs hugely. Binary options in Japan and Germany come with vastly different tax obligations, for example. So, before you start trading seek advice to ascertain whether you’ll be exempt from tax. If not, will you pay income tax, capital gains tax, business tax, and/or any other form of tax?
For more detailed information, see our taxes page.
Can Trading Binary Options Make You Rich?
Although exciting and dynamic, to make a living trading binary options you’ll need to use this page and other sources as guides. Can trading binary options make you rich then? Done correctly, yes it can. There is no question of binary options potential profitably, this is evidenced by numerous millionaires. To get there though, you’ll need the right broker, an effective strategy, and you’ll need to invest in your trading education, by utilising the resources outlined above.
Are binary options legal?
Yes, but regional regulation varies.
In India and Australia for example, binary options are legal.
In the US, binaries are available via Nadex, and perfectly legal.
In the EU, binaries have been withdrawn for retail investors, but it is still possible to trade binary options legally, by professional traders. Certain criteria need to be met in order to be classed as ‘professional’.
Can you trade at weekends?
Yes. There are two ways to trade at weekends. Firstly, forex markets are still open in some parts of the world during the “weekend” in other parts. Binaries can be traded on forex during these times.
There are also ‘synthetic’ markets with some brokers (such as binary.com) but traders should note there is no underlying market with these options. They are ‘virtual’ markets created solely to cater for traders looking to trade anything at all. They are not for sophisticated traders.
Are binary options banned in Europe?
Binary options have been withdrawn for retail traders by the European regulator, ESMA. Brokers not regulated in Europe may still offer binaries to EU clients.
It is also possible for EU traders to nominate themselves as professional traders. This waives their rights to regulatory protection, and means binaries are free to be used again.
Some synthetic markets can also be traded by EU traders, and while the product works exactly as a binary options, they are referred to slightly differently.
Do binary options work on MT4 or MT5?
There are no binary options brokers offering Metatrader integration. It is however, possible to perform technical analysis in MT4 and place trades on a separate trading platform.
Can you use binary options on cryptocurrency?
Yes. The leading binary options brokers will all offer binaries on Cryptocurrencies including Bitcoin, Ethereum and Litecoin. As a derivative, traders will not “own” any cryptocurrency, they will purely be speculating on the price. This does mean however, there is no need for a Crypto wallet or crypto account.
Stock trading in binary options
Binary options and stocks are one of the best alternatives of trading of familiar currency pairs. The uniqueness of this tool lies in pricing and the opportunity to earn on a sustainable growing trend without registration on the stock exchange through a broker. It is the high exchange entry threshold, the complexity of the transaction and the high commission are the main obstacle for investors. All these issues are excluded in binary stock options. But there are features that you should be aware not to lose money. About these features and how to build a trading strategy, read on.
What are the stocks in binary options
In the usual understanding the stock trading is performed in the following way:
- the issuing company allocates the shares on the stock exchange, in electronic or documentary form, where any trader can buy them. We will not go deep into the process of primary, secondary placement and underrating;
- he trader arrives in the broker’s office, concludes a contract with him to access the stock exchange, receives instructions and trading platform. Some brokers offer remote conclusion of the contract, for example — Finam;
- at the time of purchase of securities through a broker the trader automatically acquires the right to shares of the company, which immediately is reflected in the electronic register of shareholders.
Binary options brokers have simplified the entire procedure in just a few clicks. Any registration with a broker — all trading conditions are present on the website of the brokerage company. No fees — the transaction happens in just a few clicks, no big starting capital — shares can be purchased, with a minimum deposit of several USD (depending on the requirements of the broker). The only caveat: trade is performed not by stocks but by CFD options — contracts for difference, the ownership of the paper does not occur. As with currency pairs you do not become the owner of yen.
The benefits of trading of binary options for stocks:
- number of shares on the stock exchange – thousands, currency pairs — several tens;
- the movement of stock prices depends more on fundamental factors than on technical analysis;
- stocks of companies are less volatile in comparison with currency pairs.
Trade of binary options on stocks from the point of view of market analysis has no differences from working with stock exchanges.
Tools for stocks trading in binary options
Since fundamental analysis plays crucial role, the success of a trader is to expedite the search and analysis of information about a particular company, as well as control over world events. The following are the examples of tools that should be always at hand:
- the economic calendar. Contains the date and time of the most important news, has a convenient filter by country and the event (statistics, reports, etc.);
- leading news sites preferably of the country in which the company resides. The sites publish both news of companies and news of the economy (of the world), which immediately reflected on the stock;
- shares screeners. Are services that display general information about the stock market of countries that contain general data about the financial condition of the company, reflect investor sentiment. Read more about scenery here and here;
- graphs of stock quotes. They are both in the platform and in the Internet. It is desirable to compare them among themselves, to see the correctness of broker quotations.
The decision should be based on the correct interpretation of the news. Any news need to be checked first, to assess its authenticity and only then open a position in the options. Speculators love to trade on false information, making the so-called “different stuffing”, artificially inflating the market of binary options and earning on its collapse.
What has the greatest impact on quotations of securities:
- External factors:
- news of central banks and politicians in relation to economic policy. Trading, export-import relations, financial support of domestic economy and certain industries. Even small comments can affect the quotes;
- solutions in the field of monetary and credit policy: changes in interest rates, the yield of macroeconomic statistics data on consumer demand;
- global events: elections, referendums, political and military conflicts, sports events, summits, talks, etc.;
- mergers, acquisitions, purchase of technologies or start-UPS.
- Internal factors:
- financial results (quarterly and annual reporting);
- investments in scientific and technological development, successful (unsuccessful) market launch of new product;
- internal corporate conflicts among the senior managers or management;
- litigation, claims, etc.;
- results of audits.
And this is not a complete list of what may impact on companies. Technical analysis with this tool in binary options works weaker than fundamental.
Important: the publication of positive report on the financial activities does not guarantee growth in the share price! If investors assume that quarterly profit will be 10%, but in fact the growth was only 5%, with a high probability the company’s stock on the contrary can give a drawdown. Before trading, together with analytical data study and be sure to check the forecast and market sentiment!
The essence of successful strategy in binary options is to catch the moment of rise or fall of securities and trading. In the case of successful prediction, the probability of success is almost 100%, but I would not recommend to work with short term binary options in a quiet market, not supported by fundamental news.
Strategy of stock trading with binary options can be divided into the following types:
- purchase of different shares at the time the quarterly reports. A successful strategy, if forecast and information about the company are used correctly. The advantage of this strategy of trade is diversification. No matter, which sector you will prefer to trade securities of any companies in the Russian and foreign markets;
- investments in “blue chip” company, the leader in a particular industry. Check the list of “chips” on the websites of the exchanges;
- investments in index — balanced portfolio of securities of industry or leading companies.
We will take a closer look at these strategies in binary options and their advantages.
The fundamental strategies in binary options
- The purchase of the shares at the time of the release of financial statements
On the 1st February 2020 annual reports from Apple was published, which has proved successful: revenue increased by more than 3% compared to the previous year, and the forecast was 77.4 billion, a fact — 78,35 billion USD. 1 day the share price increased from 121,35 to 127,89 USD for 1 PCs Nice bonus. In the platform on a smaller graph, growth will be more noticeable.
Tip: do not pursue short-term profit. Set the expiration for a few days, but with the goal of generating profit open several different binary options. Follow the rule of risk management: the sum of all open positions should be no more than 20% of the deposit, use bonus from options broker, try to trade with different expiration.
- “Blue chips”
This strategy of options works only after the analysis of the industry. Oil refining industry is now in serious condition. Gazprom shares, recouping the growth of the global indexes after the elections in France, again went down. And resistance level not yet reached, it is possible to trade down. Shares in volatile trending sideways for the last 3 months, so you have to be careful with them.
Important: options strategy used to purchase the securities at the time of payment of dividends and bonuses carries big risks. According to statistics, before the payment of dividends, the asset grows, but almost immediately after payment of the share price falls.
A vivid example of the impact on the quotations of “Blue chips”:
On the morning of 16 th of May it became known about blocking of Yandex in Ukraine, to which the quotations immediately reacted to the collapse. The uncertainty lasted exactly an hour until they had established a clear position of Yandex and the Ukrainian government. After evaluating the possible consequences and understanding that the ban can be easily bypassed, the quotations are back to the previous level. Quick buying and selling of shares (at the time of the news release are more volatile — set speculative expiration 10-30 minutes) could bring good profit in options.
- Index strategy
Evaluation of the advantages of investing in a particular index is evaluated in accordance with the macroeconomic situation in the country. Example:
- oil due to misunderstandings between the participants of OPEC is cheaper again, which affects the revenue. The MICEX index, has risen in the past year, has reached the resistance level and is now after the sharp drop is in flat with minimal volatility. This is clearly seen on monthly chart:
The three-month graph clearly shows the attenuation of the flat. This means that just one good push to the MICEX went up or down. While not investing, but take the option with that index in the note;
- the NASDAQ100 index on a yearly chart shows stable and steady growth. Politics of Trump and the rate hike in the USA confirms the economic recovery, and therefore growth in the short term will continue. Recommended expiration from 48 hours and above. Note the surge in the index, after the French elections (round 1 — 23 April) and 4.5% up in 3 weeks:
Despite the fact that the fundamental event index already played, the trade is still possible. And wait for the next news.
Summary. Stock trading companies and binary options is the opportunity to capitalize on fundamental events. If the strategy with the currency pairs uses indicators more, then the shares subject to the news. Option strategies with shares can be called moderate or conservative. Given the spreads and the growth rate of quotations to buy stock options less than a few hours or days makes no sense. Got questions — we are waiting for them in the comments after the article!
Binary Options Regulations
Binary Broker Reviews and News & How to Get Money Back From Scams
IMPORTANT UPDATE AND WARNING:
We have recently received complaints and read many negative reviews on the internet about regulated binary options brokers using indecent practice towards traders. Although some binary brokers may be regulated, we do not recommend opening a trading account with ANY broker, be it a regulated broker or a non regulated broker, as THEY ALL seem to be unethical and non-trustworthy, even the regulated ones! If you have been scammed by such a company you can check out our RECOVER FUNDS FROM BINARY SCAMS section.
Also, instead of trading binaries which are mostly scams, you can trade with a trustworthy and popular FOREX broker such as TradeFred.
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Binary Options Regulations
The most noted binary options regulator is CySEC (Cyprus Securities Exchange Commission) which regulates binary options trading in the European Union. In many countries binary options have been banned do to a high number of fraud in this market.
CySEC is currently the largest regulatory agency in the financial markets and has issued just over 20 licenses to binary options brokers out of more than 250. Those brokers that have been licensed by Cypriot watchdog have an advantage in that traders are more confident that their interests are protected and so they tend to prefer to transact business with regulated brokers.
In Russia binary options are regulated by the Bank of Russia and in Belgium by the FSMA. The Australian watch-dog is called ASIC.
In South Africa the FSB has regulated and licensed AnyOption. When binary options trading just begun to take off, it was not a regulated practice. However, with the development of binary options trading, there has since been the introduction of binary options regulations. These regulations were implemented as a way of protecting traders from scamming and also as a means of stemming the occurrence of unfair trading practices. Once some brokers discovered the tremendous earning potential of binary options, they began to abuse the system and to rob traders by not allowing them to withdraw their trading returns or by making the process extremely difficult. Thanks to the introduction of regulators, brokers and traders now feel more confident when trading in binary options.
Some of the more popular regulated brokers include Stockpair, 24Option, NADEX, AnyOption and TopOption. Other benefits of regulation include the compulsory segregation of broker’s and trader’s funds as well as access to formal dispute regulation for traders who have that need. The regulators also conduct suitability checks to ensure that the products offered by regulated brokers are not misrepresented. The biggest impact that binary options regulation has had on binary options trading is that it has raised the confidence level among investors and traders. Brokers also benefit from increased business.
What Does it Mean to Have Binary Options Regulated?
Up until very recently, it was not the norm to have binary options regulated. In fact, binary options trading had been unregulated for quite a while until about 2008/2009 when regulators began to start taking steps to protect investors. When binary options began to take off in those earlier days, many regarded the practice as gambling and in some jurisdictions such as the UK, the industry was regulated by the Gaming Commission. However, things have changed quite a bit and now regulation is available for binary options traders.
Regulated Binary Options Online Trading
It must be noted that regulation is not mandatory. Unregulated brokers can choose whether they want to be regulated or not. At the same time, the ultimate decision to regulate rests with the regulator who may choose not to regulate a provider for whatever reasons. However, it is usually in the broker’s best interest to agree to regulation. This is because it has been shown that traders tend to have more confidence when trading with regulated providers. This means that regulated brokers are likely to get the bulk share of the market while unregulated brokers get what’s left.
Regulation means that brokers will come under the scrutiny of the regulator and they will have to abide by certain rules and principles in their trading processes. All systems and processes including the trading platform that regulated brokers are using will have to meet certain standards before any licenses will be issued. This reduces the likelihood of scamming and fraud among binary options brokers and also provides greater levels of protection for traders who may file disputes. Normally, regulated brokers are required to have separate account for client funds which creates greater transparency and trust. Currently, the most active regulator is the Cyrus Securities Exchange Commission (CySEC) which is regulating more than 20 brokers.
The Best Binary Options Platforms
There are so many binary options technology platform providers that it is sometimes difficult to decide which one is best from a broker’s viewpoint. Nevertheless, there are some names that keep popping up whenever one mentions binary options. Among the list of top providers are SpotOption, Tradologic, Hello Markets, Markets Pulse, TechFinancials, Panda, O-Systems, AirSoft, BinaryStation and TradeSmarter. While these platforms are similar in several respects, some of them stand out based on the uniqueness of the technology that they utilize and their reputation.
SpotOption is a very popular and well respected platform that is supported by proprietary software. Based on its long time existence, SpotOption has the advantage of experience in the market. Therefore, they have tailored their system to expertly meet the demands of brokers over the years. In fact, SpotOption now claims to control as much as 70% of the binary options market; serving more than 250 brands worldwide. This platform is also among the most versatile in the world today.
TechFinancials also stands out from the other platforms being the very first and only binary options provider to be listed on the London Stock Exchange AIM market. This speaks volumes for how well respected this platform is in the marketplace as well as to its innovative trading technology. TechFinancials public listing makes this platform among the most trusted and reliable in existence.
When shopping around for the right binary options technology platform, reputation should be among the priority features. While some newer platforms have not had ample opportunity to establish themselves in the market yet, the older, more well-known platforms will continue to be at an advantage. However, newer platforms can gain leverage by utilizing unique technologies that better meet the demands of users. Knowing the market well will help where that is concerned.
Getting Started With Binary Options
What are binary options? Binary options are special types of options in which there are only two possible payoffs – a fixed amount or nothing at all. So with binary options trading, you either gain or you lose everything. This makes binary options trading somewhat risky but the rewards may also be very attractive. Like regular options, these types of options derive their value from some underlying asset such as a stock, index, currency or commodity. Gains are made when the underlying asset makes a gain. On the other hand, everything is lost when the underlying asset records a loss. When a trader believes that the value of the underlying asset will rise, that is called a “call” option. When that trader believes that the value of the underlying asset will fall, that is called a “put” option.
Trading of binary options may be done through online platforms or locally through platforms located on a broker’s computer system. Online trading has become a very popular way to trade because of the convenience and ease of trading that it provides. Most online trading platforms allow you to open an account by just providing some basic information such as email address and a password.
Many platforms allow traders to set up demo accounts with which they can learn how to navigate the platform and how to execute trades without actually investing any funds. Once the trader is comfortable with the demo account, he can then open a real account and begin trading. Many platforms require traders to invest a minimum amount. In addition, traders usually have access the charting information as well as to educational resources designed to help them become better traders. Getting started is relatively simple. However, those traders who are new to the practice, should take advantage of demo accounts which will help them to better understand trading.
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