Quickly compare binary option brokers with our comparison guide

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Top Broker!
    Best Choice For Beginners!
    Free Trading Education!
    Free Demo Account!
    Big Sign-up Bonus!

  • BINOMO
    BINOMO

    Perfect For Experienced Traders!

Binary Options Brokers – How To Choose The Right Broker

Choosing the right broker is vital to your success as a trader.

However, in binary options this task can become very difficult, since you are essentially trading against the broker.

Unfortunately for the binary options market, it has been infected with scams and dishonest brokers that have used their unregulated position to steal money from customers.

There are many things a trader can do to improve, but unfortunately one of the things he can not influence and control, is his broker.

Brokers play a number of roles.

  • They provide operational trading platforms.
  • They store traders’ funds until they are withdrawn.
  • They control the available liquidity pool.
  • They process and sync all trading activity in the market.
  • They provide support to their clients (traders).

The role of brokers in the binary options market is too important to be taken lightly. This is why traders have to be very careful where they choose to deposit their money.

Brokers can also function as market makers, providing liquidity which enables traders with very small amounts of money to still have the chance at participating in the market.

Is the broker regulated?

Regulation in the binary options market is still an issue in many countries. At the moment, the US, UK, Japan, Australia, Cyprus and Malta can claim to have solid regulatory frameworks for the binary options brokers. In many countries, binary options is seen as a gaming activity or put under regulatory oversight of gaming commissions which have no rules on segregation of client funds.

If you want to trade binary options, you may start to look at the issue of regulation of brokers a lot more seriously than before.

You can no longer afford to keep your money in brokerages which are not regulated or which have no obligations as required by laws to segregate your money. Putting your funds in such brokerages is a very risky business.

So when choosing a broker on the basis of regulation, you must get answers to these questions:

  • Does the broker have a license number issued from the country’s regulators. You must confirm this information from the regulators.
  • Does the broker actually segregate the funds of its traders, and do the regulators that oversee their operations enforce this function?
  • Can you be sure that the broker is actually based in the country where it claims to be domiciled?

Some brokers have been blacklisted recently for infractions bordering on these points. Do your due diligence and ensure you have accurate information in this regard.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Top Broker!
    Best Choice For Beginners!
    Free Trading Education!
    Free Demo Account!
    Big Sign-up Bonus!

  • BINOMO
    BINOMO

    Perfect For Experienced Traders!

Trading conditions

When it comes to trading binary options, the trading conditions matter immensely.

This has to do with the structure of the market and how brokers in this market actually make money.

Apart from the US where binary options are exchange-traded, in many other countries this is not the case.

Binary brokers do not make their money from commissions, but from losses of traders on the wrong side of the market.

Most binary options brokers are trade counter parties. Some of them skew their online platforms to increase profits. However, it is a lot harder for them to do this on medium and long term contract expiry times than on the short term trades.

Furthermore, there is talk about brokers having risk management teams that bookmark accounts of traders who make too much money at the broker’s expense. Some are more honest about this than others.

Customer service

Customer service departments came into existence to enable clients ask questions or get solutions to some issues bothering them about the service of the company.

In binary options, there will be lots of issues to talk to the customer service about.

You will therefore need a responsive customer support service from your broker, which can be reached at all times (at least on trading days) and also via Live Chat.

In addition to a quick response time the customer service should also be able to answer most of your questions about the broker’s conditions as well as the trading platform. Some brokers offer outstanding customer support and it is actually one of their biggest pull factors.

Certain issues need to be dealt with quickly and the best way to do that is by direct communication. Choose a broker with a responsive live chat.

Prompt withdrawal settlement

It is only good that when a trader makes money from the market, he is allowed to enjoy the proceeds of such an investment via prompt fulfilment of withdrawals from the broker. Many brokers for reasons best known to them have come up with all manner of obstacles to prevent this from happening. This is usually a fine line and many scam brokers do this because profits for traders mean losses for them.

How do scam brokers operate in this regard?

  • By putting unreasonable withdrawal caps,
  • by applying hefty charges on withdrawals,
  • by tying withdrawal ability to high trade volumes meant to cover a bonus.

You need to be very careful of brokers that change their withdrawal policies randomly, as this is one of the early signals that a broker is starting to have cash flow problems.

Policy on bonuses

Because online binary options brokers are often in direct competition, they will often offer promotions, perks, and bonuses to get more people interested in their service. Generally speaking, the perks they offer increase with the amount that you deposit, and you can find a number of promotions specifically for first-time traders. These special offers can greatly benefit you, particularly when you’re just starting out.

However, beware of brokers who place very heavy trade volumes as a prerequisite for making withdrawals on accounts which have been awarded bonuses.

Bonuses are a good thing, but they have been widely abused. It is simply not right for a broker to expect to make from a trader more than 100 times what has been awarded as a bonus.

Choose a broker with a responsible bonus policy.

Bonuses are supposed to work in a symbiosis, but where one party starts to profit heavily at the expense of the other, the arrangement loses its core values.

This is partly why Japanese regulators have issued laws regarding how bonuses are to be managed, and also why Australian regulator ASIC is planning to introduce regulation to have them stopped altogether.

Choice of contract types and assets

Use brokers who give a generous offer of the kinds of trade contracts which can be traded on their platform.

Some traders will find they are much better at trading certain options and markets than others. For such traders, choosing a broker with a lot of flexibility in how to trade assets, will be a major benefit.

All binary options brokers will offer different assets within the categories of stocks, commodities, currency pairs, and indices and some will also offer cruptocurrencies.

Expiry times offered

Because there are different trading strategies and risks associated with the various expiry times, it is important that you find a broker that has the right expiry times that will work for you. Even though who offer high speed training have different ideas of what high speed is.

Some have high speed expiry times of 60 seconds while others offer just 15 second expiry times for these trades. Some binary options brokers offer much longer expiry times of a month or more while others consider the end of the day to be a longer expiry time.

If you are new to binary options and don’t yet know which you prefer, it may be best to go with a broker that has a wider variety of expiry time options to choose from so you can find one that fits you best.

Ease of transactions

Many payment options have evolved over the years which give traders plenty of flexibility in how they can deposit and withdraw funds.

So unless your country is under a financial blacklist just as the US recently blacklisted Crimea, you should choose a binary options broker which offers you a variety of transaction methods such as credit/debit cards and various e-wallet options such as Skrill, CashU, Ukash, Sofort, etc.

Conclusion

In the EU today, binary option brokers can only open trading accounts to licensed and professional traders. In many countries binary options are classed as gambling, which is not necessarily a bad thing in itself. In some countries it is illegal to trade or operate binary option platforms.

Today, the best option for new or existing binary option traders is to trade with a regulated CFD and Forex broker.

Although it is important to take your time while choosing your broker, it is also vital to understand that brokers are not the only determining factor when it comes to making money in trading online.

The most important thing is to learn how to trade and manage your risk.

Many readers ask which brokers are the best. It is difficult to point to one specific broker because it’s often a matter of preference.

Due to new regulations many of the biggest and most known binary brokers have closed or modified their operation to fill a different market demand.

To trade safely and with a peace of mind, look for regulated brokers with the best user reviews and various international awards.

EasyMarkets is a good example of a fully regulated, time-tested, reliable broker. Over the years, it has won 37 international awards and gained a lot of loyal customers.

Options Brokers Comparison

If you wondered how to pick the best options brokers that you may trade with or just want to get a closer look on what options trading brokers have to offer, then Brokers Comparison between them and figuring out precisely which one to choose is a task we may help you with through our comparison table down below.

Compare Options trading brokers

Just choose the options Brokers you want to compare and you will see a comprehensive comparison with all the major information about these options trading brokers, such as broker’s regulatory status, deposit and withdrawal options, types of options, languages supported and many other essentials in Regulated Brokers Comparison.

Find the best Options broker

If you need further help to choose and compare options brokers, then read though our Recommended options trading brokers Section to find professional overview and advice. You can also sign up to any of the options trading brokers using our web-site and receive exclusive offers and bonuses for your first deposit. Don’t miss such a unique chance!

Side By Side Binary Potions Broker Comparison

On this page you can conduct a side-by-side Binary Options Broker Comparison. Simply select up to 3 Brokers from the drop down menu’s to compare features for each Broker simultaneously. To view more detailed information, visit each brokers detail page.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Top Broker!
    Best Choice For Beginners!
    Free Trading Education!
    Free Demo Account!
    Big Sign-up Bonus!

  • BINOMO
    BINOMO

    Perfect For Experienced Traders!

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How To Choose Binary Options Broker 2020
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