Binary options
 
Binary options
Бинарные опционы
Binäre Optionen
Options binaires
Opzioni binarie
 

Binary Options

Welcome to Binary Options World, the ultimate resource about binary options. We have gathered all the information you may need about binary options in a single place in order to make it easier for you to find what you need. This is why we are confident that you will look no further when it comes to binary options.

Table of contents:
         
1.2.1.1 Call Options
1.2.1.2 Put Options
1.2.2.2 No Touch
 
 
 
 
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1. What are binary options?

Binary options are the easiest to use trading instruments. They are a special type of trading options with only two possible outcomes: "in the money" and "out of the money". Due to their binary nature, they are also called "digital options" or "two-way options". Like all options, they are derivative trading instruments. Binary options can be used on any type of market, making financial trading much easier and accessible to anyone. Binary options are sold by brokers, so in order to trade you will need to have an account with a binary options broker. In order to obtain profits by trading binaries you only need to predict the direction where the market is moving, without any additional hassle. Binary options require smaller investments and can generate very high profits in short periods of time.

1.1 Main components of a binary option

In order to better understand how binary options work, you should familiarize yourself with the main components of a binary option:

Investment amount - The price that you pay for the option. When buying a binary option you will set the investment amount according to your trading objectives. The higher the investment amount, the higher the potential payout.

Purchase value - The value of the asset at the time of the purchase.

Expiry value - The value of the asset when the option expires.

 
 
 

Expiry time (deadline) - The moment when the option will expire. Deadlines vary from broker to broker, and they can be as short as 15 minutes. You will usually find options with deadlines at the end of each half-hour, but there are longer term options as well, with deadlines at the end of the day or even the end of the week.

Option payout - The amount of money to be won if the option expires in the money.

Option refund - The amount of money reimbursed by the broker if the option expires out of the money. Some brokers offer refunds of up to 15% on certain options.

1.2 Types of binary options

Binary options are of different types. The most common type of binary options is the so called "up-down option". This type of option is offered by all binary options brokers. Other important types of binary options are the "touch options" and the "boundary options".

1.2.1 Up / Down Options

This is the basic form of binary option. With up-down options you have to predict if the market will move up or down from the moment when you purchase the option until the moment when the option expires. This type of option is very easy to use and can generate significant gains If you have good market reading skills. The option payout for up-down options varies from 65% to 85%, and sometimes you will get refunds of up to 15% if the option expires out of the money.

1.2.1.1 Call Options

"Call Options" generate profit when the market moves up. If you think the value of the asset is going to move up you should buy a Call Option. This type of options is ideal for making profits on bull markets.

1.2.1.2 Put Options

"Put Options" end in the money when the market moves down. They are good for bearish markets, when the investor wants to profit from a decline in the asset value.

1.2.2 Touch Options

Touch options are a special type of binary option that is used to predict if the asset price will "touch" a certain value. If the specified value is touched before the expiry time, the option will end in or out of the money, depending on the option type. If the value is not touched until the expiry time, the option will end at its deadline like a regular option. Touch options usually have very high payouts. They may be as high as 250% or even 350%. However, you should be aware that a higher payout means smaller chances to end in the money.

1.2.2.1 Touch Up / Touch Down

"Touch Up" options will generate profit if the asset price will hit a certain value above the initial price. In order to win with a Touch Up option the market must move up and with a minimum amount of points in order to hit the touch value. Guessing the direction when the market is moving is mandatory but not sufficient.

"Touch Down" options are similar to Touch Up options, just that the touch value is set below the initial price. This means that Touch Down options are used in falling markets (bearish markets) when you intend to profit from a sharp fall.

Both Touch Up and Touch Down options are ideal in volatile markets, when you predict sharp movements in short periods of time. They are successfully used by news traders as you will be able to see in our binary options strategy articles.

1.2.2.2 No Touch

"No Touch" options are used when you predict a very calm market. They generate profit when the asset price doesn't hit the touch values. Only few brokers offer "No Touch" options as they are less popular than other types of binary options.

1.2.3 Boundary Options

Boundary options are a special type of binary options where you predict if the market is going to end up inside or outside some predefined "boundaries" at the expiry time. If you estimate that the market will be very calm and will not see major movements until the expiry time you should buy "Inside" options. They will end up in the money if the price finishes inside the boundaries. In the opposite situation, when you think the market is going to move sharply in one direction and will end up outside the boundaries at the expiry time, you should buy "Outside" options. Boundary options are a little bit more exotic and will not be offered by all binary options brokers.

1.2.4 Pair Options

Pair options are an exotic type of binary options, where two assets compete against each other. You can bet on which asset will perform better until the expiry. Pair options are traded on popular stocks, and the options are chosen from the same category. You will find pair options like Google / Yahoo, Apple / Microsoft or Coca Cola / Pepsi. To trade pair options you need a specialized broker for this type of options. The only broker we know of that offers pair options is Stock Pair.

1.3 Binary options by market

Binary options are versatile trading instruments that can be used on any markets. Because they are more and more popular among all type of traders, brokers are extending their asset portfolio for binary options trading opening more and more markets for their clients.

1.3.1 Forex binary options

The forex market is the most dynamic financial market, and this is why it is probably the most popular of all markets. Currency evolutions can often be predicted, and currency markets are also known to be very volatile. It is no wonder why all binary options brokers have their forex binary options in the top list of their asset indexes. All brokers offer binary options on forex, and many forex traders are now using binary options as their trading method.

Just like in classical forex trading, the most traded currency pair is EUR/USD. This pair is the most popular asset among binary options traders. Binary options are usually offered for the most important currency pairs, which include the combinations of US Dollars, Euros, Japanese Yens, Pound Sterling, Canadian Dollars and Australian Dollars. Some brokers offer binary options on more exotic pairs as well, but you should expect lower payouts in this situations.

1.3.2 Binary options on commodities

Gold and oil trading are becoming increasingly popular in recent years, and you will find binary options on those assets at any broker. Other commodities that can be traded using binary options are silver, sugar, coffee, wheat, corn or copper. If you want to trade more exotic commodities you should check the asset inventory of more brokers in order to find what you are looking for.

1.3.3 Binary options on indices

Major stock indices can now be traded using binary options. This is probably the easiest way to make profits from the financial markets. Stock indices are very sensible to economic and political news, and they can be predicted relatively easy, especially for the short term movements. They are ideal assets to be traded using binary options. Some indices that will be found in any broker's asset index are: NASDAQ, FTSE, DOW JONES, DAX or NIKKEI. Other indices from major European markets are also featured by most of the brokers.

1.3.4 Binary options on stocks

Stock trading has always been more difficult to access than other markets because it usually requires a higher capital. Purchasing a significant amount of stocks can be very costly, and even if you want to trade in margin with a CFD broker you will find that the leverage offered for stocks is always lower than the leverage offered for commodities, forex or indices. The stock market is also less liquid than forex or commodity markets, and this is why the spreads can also be higher. This is why binary options are ideal to trade stocks. You no longer need to worry about margin calls, low leverage or high commissions charged by stock brokers. You can now make profits of 80% in less than 20 minutes by trading stocks.

While not all stocks can be traded using binary options because of their lower liquidity, you will surely find binary options for famous stocks like Apple, Microsoft, Yahoo, Google, Bank of America, Societe Generale, Exxon Mobile and many other multinational corporations.

1.4 Advantages of binary options

Binary options are the biggest trend in online trading, and this is because they have a lot of advantages over traditional trading. Find below some of the advantages that make binary options trading so popular:

High profitability - Binary options trading can generate very high returns in very short periods of time. Most binary options have payouts between 65% and 85% which is very high considering that they can have expiries as short as 15 minutes. Touch options can have payouts of up to 300% which makes them the highest paying derivative instruments. High ROI in short time is what speculators want, and binary options are ideal for this.

Ease of access - Binary options are extremely accessible. There are many reputable binary options brokers on the internet, and opening an account takes less than 5 minutes. The brokers have very good funding options so you can start trading in a matter of minutes.

Small initial investment - You can start trading binary options with minimal investments. Some brokers accept deposits of as low as $100 and sell options starting from $10. In these circumstances everybody can afford to invest and trade.

Easy to use and to understand - Traditional trading can be pretty complicated for those with less experience in the field, but binary options are simple and straight forward. You don't need any sort of financial knowledge to understand how they work. They are easy to learn and to master.

Excellent money management potential - Money management is extremely easy to implement with binary options trading. You always know exactly how much you can win and how much you can lose when buying an option. You can never lose more than you invest in the options you buy, and fixed payouts allow you to create advanced money management strategies that can prove to be very profitable.

2. Binary options strategy

In order to have good performance while trading binary options it is advisable to have a strategy. Relying on luck is not a good option since it will turn your investment into gambling, and eventually you will end up losing. There are two important aspects when talking about binary options trading:

- having some good technique to help you predict the market correctly in most of the situations
- having a good strategy regarding the use of binary options in a way that greatly increases your winning chances

While predicting the market correctly is very good and can make you a profitable trader in almost any circumstances, there are certain strategies that can generate very good profits even for traders who are not very skilled at identifying market trends.

2.1 General tips for improving results

Here are some basic tips that will help you identify the direction where the market is heading:

- Watch the charts for longer periods of time, and identify the current market trend. It is well known among professional traders that trading against the trend is not recommended unless you know very well what you're doing

- Big spikes in the charts mean that the asset was bought or sold in large quantities in a very small period of time. This happens mostly because speculative investors are trying to obtain short term profits. In order for them to be in profit they must close their positions, which mean they must sell what they initially bought, or vice-versa. This phenomenon is called "marking the profit" and has an opposite impact on the market than the initial movement. That means that every time you will see a big spike in the charts, it is very likely to see normalization afterwards. If the market raised excessively it is time to sell.

- Watch an economic calendar in order to know what to expect. At certain announcements the market becomes very volatile, and you must adapt your trading strategies accordingly.

- If you are more experienced in trading you can use technical indicators in order to identify trends and market movements. This is recommended only for advanced traders who know what they are doing. Technical indicators can be very tricky if they are used wrongly, and we advise you to stay away from them unless you understand the phenomenon very well. There are plenty of other ways to make profits trading with binary options, so this is not a big inconvenient. However, if you are skilled with technical analysis you should take advantage of it, because it can be a very potent tool combined with the advantages of binary trading.

Special TIp: You can try any strategy risk free with a special offer from NRG Binary where the first three trades get reimbursed if the result in a loss. This way uoui have full insurance on your first three trades, but if you win you keep your winings. Follow this link to take advantage of this special offer: NRG Binary Risk Free Trades

2.2 Signals and algorithmic trading

Another great way of improving results in binary trading is by using signals from experieneced traders. While finding a good singal providing service can be pretty hard and expensive, sometimes there are also affordable options that may prove to deliver a very good return on investment. For binary options trading we reccomend trying a specialized service like BinaryOptionsSignals

Some people prefer to use automatic systems for trading (also known as algorithmic trading) and let the computer trade by itself. This hands free approach has the advantage of not requiring much effort and time, but those using it must always check the performance and adjust their strategies to maximize the results. When it comes to binary options you can check the algorithmic trading service from Option Bit named Algobit.

2.3 Binary options basic strategy

The basic strategy is a simple but effective strategy for binary traders. This strategy can be used when the trades start in the correct direction. That means that if you bought a call option and the market raised (you are in the money but still need to wait until the expiry) you can use this strategy to aim high with low risks. The strategy is best described with an example, so this is what we'll do. Here is a sample on how this strategy can be used:

Step 1: You buy a call option on EUR/USD at 1.3500 worth $100 with the expiry in one hour, a payout of 80% and a refund of 10%. The market moves in your favor to 1.3520 (20 points in the first 15 minutes). In this given situation, the strategy can be used as described in the next step.

Step 2: You buy a put option on the same asset (EUR/USD in this case) with the same value at 1.3520 (the option must have the same expiry as the initial one, and it will have the same payouts since it is on the same asset).

There are three possibilities at the expiry:
1) The closing price is above 1.3520 -> the first option finishes in the money and the second one out of the money. Total investment $200 and total payout $190 ($180 from the winning option and a $10 refund from the losing one). Outcome: a loss of only $10
2) The closing price is between 1.3500 and 1.3520 -> both options finish in the money. Total investment is still $200 and total payout is $360. Outcome: a profit of $160
3) The closing price is below 1.3500 -> the first option finishes out of the money while the second one finishes in the money. The outcome is the same as in the first situation: a loss of $10

As you can see from the above example, by using this basic strategy you can take advantage of a good start and risk only an insignificant amount with the chance of winning big. In this particular situation you risk to lose $10 in order to win $160, which is a reward to risk ratio of 16 to 1!

2.4 Touch options strategy for news trading

The Touch Options Strategy for News Trading (TOSNT) is our first proprietary binary options strategy, which means that this strategy was developed buy one of the traders in our team. You are free to use it if you consider it good, but as with any other strategy, you use it at your own risk and we are not responsible for any possible loss that you may incur while using it. However, it is strictly prohibited to reproduce this strategy on a different website.

The TOSNT can be use only when trading the news, as the name suggests, and requires a broker that allows Touch Options. For this strategy we recommend brokers like 24 Option or Option Fair. If you are not familiar with news trading, you can't use this strategy. If you know what news trading is and what happens with the markets during the news, this strategy may be your lucky bullet to success. As with all the strategies presented here, we will use an example in order to make it easier for you to follow.

Step 1: You are ready for the release of big news that will shake the markets. The NFP (Non-farm Payrolls) is a good example of such news that affects the US Dollar. 10 minutes before the news is released you take action.

Step 2: You buy a Touch Up Option and a Touch Down Option with the same value, at the same time. Let's say you are trading on EUR/USD and the price is 1.3500. The Touch Up option will pay you 250% profit if the pair will hit the price of 1.3525 in the next 20 minutes. The Touch Down will pay you 250% profit if the pair hits 1.3475 in the next 20 minutes. That means that if the market will move more than 25 points in the next 20 minutes in any direction, one of your touch options will hit.

Since the NFP shakes the market with at least 50 points every time, one of your options will surely hit. If you are lucky enough and the market moves both ways before deciding which direction it goes you can even hit both targets. If you hit only one of the touch options (this will happen in most of the cases) and you invested $100 in each option, you will get a $350 payout for the winning option and zero for the losing one. That means a net profit of $150.

Hitting both options is pretty uncommon, but if you are lucky enough to be in this situation you will make a profit of $500! If you chose the right news that move the markets well enough you are almost certain to win with this strategy. The key to success with this strategy is to choose the right news and have good timing.

2.5 Advanced strategy: binary options combined with classical trading

The Advanced Strategy for Binary Options and Classical Trading (ASBOCT) is another strategy developed by our team's strategist. Just like the TOSNT described above, this strategy cannot be reproduced on other websites, and those who wish to use it are free to do it while taking full responsibility for their actions. We don't guarantee results and cannot be held liable if using our strategies results in loses for you. As a trader you decide if you want to use the strategies found here at your own risk.

The ASBOCT is an advanced strategy because it requires you to use a binary options broker that offers Touch Options and a classical forex broker (or CFD broker if you want to use it for commodities, indices or stocks). We recommend using 24 Option or Option Fair for the touch options and any of the following brokers for the classical trading: Markets.com, Ava Trade or XM. This strategy is very difficult to use for US traders because they will have a hard time finding a good forex broker, but if you are from US and already trade with a forex broker, you can use it as well.

To understand this strategy you must have good knowledge of traditional forex trading. If you don't know the basics of traditional trading then this strategy is not for you.

This strategy is pretty similar to the TOSNT in the way that it is best used when market moves are expected. It can be used before news releases or in very volatile market conditions. If your technical analysis detects a possible burst in one direction of the market, but you don't know in which direction, this is another good moment to use this strategy. Now, that we have described the necessary situation in order to make this strategy effective, we will explain how it works.

The touch options are used to hedge the trade that is executed on the normal trading platform. That means that the option's payout must compensate for the loss incurred if the stop loss is triggered. This will give you a risk free trade before the option's deadline. Since this may sound pretty odd, we will give an example to make it easier to follow:

You trade on EUR/USD and the market is at 1.3500. You expect big movements in the next 30 minutes. The binary options broker offers you a Touch Down option that will pay 250% profit if the price hits 1.3475 in the next 30 minutes. If you trade with a standard lot on EUR/USD, one pip will be valued at exactly $10. This means that a Stop Loss order of 25 pips (set at 1.3475 just like the Touch Down target) will incur a $250 loss. If you buy the Touch Down option with $100 you will hedge your Buy order of one lot perfectly. If during the next 30 minutes the Stop Loss is triggered you end up with no loss and no profit, since the Touch Down option compensates the loss of the trade.

Now let's see some possible outcomes and analyze the results. Here is what can happen in the 30 minutes when the option is live:

Outcome 1: The market moves UP with 50 points and you close the trade with 50 pips of profit. You have a profit of $500 from the trade and a loss of $100 from the option. This means a net profit of $400

Outcome 2: The market moves UP with 30 points. You have $300 profit from your trade and lose the option, so you end up with a net profit of $200

Outcome 3: The market moves UP with only 10 points. In this situation your trade ends up as break even.

Outcome 4: The market doesn't move at all and stays at the same value. In this scenario you lose $100.

Outcome 5: The market moves DOWN only 10 points. In this unhappy event you lose $100 on the trade and $100 on the option resulting in a loss of $200

Outcome 6: The market moves DOWN with 30 points. Since both the Touch value and the Stop Loss are hit (they are the same) you will end up as break even.

Outcome 7: The market moves DOWN with 50 points. You end up with no profit or loss just like in the Outcome 6.

Now let's analyze a little the results. As you can see, if the market moves up more than 10 points you are in profit. The more it moves, the higher the profit. At only 30 pips you have a $200 profit, and this can go much higher in the case of high moves. If the expiry value is between -24 points and +9 you end up losing. The loss can be between $340 (worst case scenario when the market is at minus 24 which is extremely unlikely) and $10 if the market ends at +9. As you can see the potential loss is limited while the potential profit is unlimited. If the market moves down more than 25 pips you don't win or lose anything.

 
 
Binary Options Strategy Profitability Chart
 
ABSCOT profitability chart
 

Now remember that this strategy is recommended to be used at news releases or in very volatile moments. In this type of situations it is very unlikely to have market movements of less than $25. The higher the market moves, the better the strategy is. To see exactly how profitable this strategy can be, you should check the profitability chart.

2.6 The grinding strategy

The grinding strategy is a simple yet effective strategy. This strategy was developed by our team, and we have the copyrights for it. This is why it is strictly prohibited to reproduce it on a different website. As with our other strategies, we ask you to take full responsibility for the results in the case you choose to use it. We don't guarantee that this strategy will be profitable for you, no matter how well it may sound.

Now that you have read our strategy disclaimer, we will describe how this simple strategy works. This is a betting strategy that is based on the fact that the market cannot move in the same direction in too many consecutive periods. As you know, the market goes up and down, and this is why this strategy is very effective on binary options.

Using this strategy, you will start from an initial investment amount and increase it every time your option expires out of the money. You will continue to buy the same option on the same asset one after another, at a higher value. This way, you are certain to win after maximum 3 to 5 options, and because of the value increase you will recover all previous losses and generate profit as well.

Here is an example, of how this strategy works. You buy a Call option on Gold with the payout of 85% and no refund. You invest $100 in this option. If you win you get a profit of $85 and immediately purchase a Put option on the same asset (gold in this case), right after the expiry. If the market goes down and you win again, you buy a Call option. If the market goes up and down all the time you win $85 at every cycle.

If the market moves against you when you bought a Call option and you lose, you immediately buy another Call option worth $250 (2.5 times the initial value, if your initial option has a different value). If you win, you will get $212 profit that will compensate for the initial $100 loss and still give you a $112 total profit. After your win, you start again with the value of $100 in the opposite direction.

In the unlucky event where you have two losses in a row, you continue in the same direction with a value worth 2 times the previous one ($500 if your initial option was $100). If the option is a winner, you will get $425 in profit that will cover for the initial losses of $100 and $250 generating an overall profit of $75. After every win, you start again on the opposite direction with the initial value.

Since markets cannot move in the same direction too many times in a row, you are sure to win with a few tries. This is why this strategy it is called grinding: because every time you win an amount proportional to your initial investment. Whenever you lose, you increase the bet amount by 2.5 or by 2, depending on the sequence.

As you can see this strategy cannot fail. The only thing you should worry about is your total capital, that must be large enough compared to the initial investment in order to be able to cover a few consecutive losses. Other things you should consider when using this strategy is the maximum value allowed by the broker, and the time the market stops. Make sure you have at least 8 sequences before the market takes a break. If you trade using 30 minutes options, you should make sure there are at least 4 hours of trading ahead.

For more information about the capital needed and the maximum drawdown using this strategy, check our tables below:

 
           
1
20
(20)
17
(20)
17
2
50
(50)
43
(70)
23
3
100
(100)
85
(170)
15
4
250
(250)
213
(420)
43
5
500
(500)
425
(920)
5
6
1,250
(1,250)
1,063
(2,170)
143
7
2,500
(2,500)
2,125
(4,670)
(45)
           
Profit table when the first option is bought at the price of $20
           
           
1
100
(100)
85
(100)
85
2
250
(250)
213
(350)
113
3
500
(500)
425
(850)
75
4
1,250
(1,250)
1,063
(2,100)
213
5
2,500
(2,500)
2,125
(4,600)
25
           
Profit table when the first option is bought at the price of $100
           
 

2.7 More binary options strategies

If you want to see more trading strategies that can be applied to binary options you can check the following strategies:

- The Cointegration Strategy

- The Support and Resistance Strategy

The two strategies can be found on StockPair's strategy section: Binary options strategies from Stock Pair

3. Binary options brokers

Binary options brokers are options brokers that are specialized in selling binary options. In order to be able to trade binary options you need to open an account with a broker. There are many brokers on the market and their number is growing every day, so choosing a good broker is an important step in order to be a successful trader. In this section about brokers we will try to help you identify the best binary options broker for your needs. In order to make a good decision when choosing your broker you should first understand what a binary options trading platform is.

3.1 Binary options trading platforms

Binary options trading platforms are used by brokers to sell their options to their clients. A few specialized companies developed those platforms that make buying binary options extremely easy. All binary options platforms are web-based. That means you will not need to download and install any kind of software on your computer in order to trade. Developing a trading platform is a difficult task, and this is why many brokers choose to use the same platforms to sell their options. Just like in traditional forex trading, a few platforms distinguished themselves and became extremely popular, and many brokers use them now. The most popular binary options trading platforms are Spot Option and Optionfair. Some brokers however prefer to use their in-house developed platform in order to offer unique features and distinguish themselves from the others. Some trading platforms have more options types than others, and differences can also be observed when it comes to expiry times, asset index, option payouts, charting and trading statistics.

3.2 List of binary options brokers

 
 
Touch Options Platform
 
Trading with Touch Options at 24 Option
 

While we are unable to list all the binary options brokers that are currently on the internet, you will find a comprehensive list of brokers on this website. We think that a mix of quality and quantity is the best way to present the brokers and this is why you will find a pretty large selection of brokers here. We have chosen to list only premium brokers in order to help you avoid brokers with poor service or even scams. All the brokers that are listed on our site are established brokers that are financially stable and have a good reputation so far. They accept a wide range of deposit methods including credit and debit cards, wire transfers and the very convenient ewallets like Skrill (former Moneybookers), Neteller, PayPal or Webmoney. Not all the brokers accept all the mentioned methods, but we are sure that you will find one that has what you need.

As binary options traders ourselves, we understand how important it is to choose a good broker to work with. We also know that many binary options portals are run by the brokers themselves, and advertise only their own brands. It is easy to guess that a portal showing only 1 to 5 brokers is less documented and informative than a website showing you 10 or more brokers. We are confident that we have gathered the most comprehensive and objective information about binary options brokers on the web, and we are happy to help you in choosing your broker. Read below to find out more about the brokers that we recommend. For a comprehensive table with the best binary options brokers ranked by our staff check our binary options comparison chart.

3.2.1 Brokers using Spot Option platform

The Spot Option platform is probably the most popular binary options trading platform nowadays. Many brokers have chosen to use this platform, but not all of them are the same. Please be aware that allthough this platform is very popular, the best brokers according to our study use other platforms, as you will see in our comparison chart later. We have selected here the most important brokers that use this platform:

Trade Rush - Trade Rush is a very good broker for English speaking traders with toll free numbers in USA and UK.

Trade Hits - Trade Hits is another premium broker using the Spot Option platform. Both Trade Rush and Trade Hits feature Bitcoin trading.

Banc de Binary - Banc de Binary (also known as Bbinary) is a serious broker developed by a team of experienced traders. It has good customer support and a very informative website.

3.2.2 Brokers using Tech Financials platform

Another extremely popular binary options platform is the Tech Financials platform. This is a very performing platform that features the popular "Touch options" and "Boundary options". Here are the best brokers using this platform:

24 Option - This is one of the most popular binary options brokers worldwide. It is the only broker with this platform that accepts US customers, and it is also available in many languages for international clients.

Option Fair - Option Fair is a very good binary options broker that focuses on the European market. It is very popular in France, Italy and Spain, as well as other European countries. Unfortunately it doesn't accept US customers.

3.2.3 Brokers with other trading platforms

Some of the big binary options brokers preferred to develop their own platform, in order to offer customized services to their traders. Other brokers use less popular platforms that are just as good as the ones mentioned above. Among those brokers, the most important are:

U Binary - U Binary uses the state of the art Paragonex Platform and is one of the most enjoyable brokers in terms of design and trading experience.

Market Options - Market Option features an in-house trading platform which received very good reviews from traders and experts alike.

Stock Pair - Stock Pair is the first broker featuring both binary options and pair options in its unique in-house platform. Pair Options are special trading products that allow you to trade one asset against another.

Option Bit - Option Bit is a very good broker with low minimum investments and options starting from only $10. It is the best broker using the Tradologic platform.

3.3 Binary options brokers comparison

To make it easier to choose your broker, we have created a comparison table that shows very clear the differences between the most important binary options brokers. The comparison chart is the easiest way to compare the brokers and to choose the one that suits best your trading needs.

 

 
  Binary Options
Platform: Paragonex
Allows US traders:
Minimum deposit: $250
Minimum trade: $10
Touch:
Boundary:
9.50
  Binary Options
Platform: Spot Option
Allows US traders:
Minimum deposit: $200
Minimum trade: $10
Touch:
Boundary:
9.35
  Binary Options
Platform: Stock Pair
Allows US traders:
Minimum deposit: $200
Minimum trade: $20
Touch:
Boundary:
9.10
  Binary Options
Platform: Spot Option
Allows US traders:
Minimum deposit: $250
Minimum trade: $25
Touch:
Boundary:
8.50
  Binary Options
Platform: Tradologic
Allows US traders:
Minimum deposit: $200
Minimum trade: $10
Touch:
Boundary:
8.10
  Binary Options
Platform:Techfinance
Allows US traders:
Minimum deposit: $300
Minimum trade: $25
Touch:
Boundary:
7.70
  Binary Options
Platform: Techfinance
Allows US traders:
Minimum deposit: $250
Minimum trade: $25
Touch:
Boundary:
7.35
 

3.4 Binary options in USA

As you probably know, the US market for financial trading is more restrictive than the rest. When it comes to forex trading for example, there are only a very small number of brokers that accept US customers, and offshore brokers are not allowed to accept clients from the US.

Fortunately for US traders, binary options brokers are much more open when it comes to US traders, and many of them accept US clients. Below you will find a list with the best binary options brokers that accept traders from USA:

U Binary

3.5 Brokers that have Touch Options

Since not all brokers have touch options, we have listed here the ones who do offer this type of binary options, in order to make it easier for you to find them. Here are some good brokers that we know of who offer touch options:

U Binary
Trade Rush
24 Option
Option Bit
Option Fair

3.6 Brokers with Boundary Options

Boundary options are an exotic type of binary options that can be exploited very well in certain market situations. Not all brokers are selling boundary options, but there are some who do, and we have gathered them here;

Option Fair
24 Option
Option Bit

3.7 Pair Options brokers

The only broker offering pair options at this time is Stock Pair. This is a very exotic type of binary options and it is not offered by regular binary options brokers.

3.8 Binary options scams

As with all industries, there are some binary options brokers that have unethical business practices and have received very bad reviews from their traders. We consider this type of brokers to be scams, and we will add them here whenever we will find them. Right now, our binary options scams list includes the following brokers:

Win Options - Payment issues reported by traders. We don't reccomend this broker.

4. Binary options resources

If you want to check other quality resources about binary options trading or financial trading in general, we recommend the listings below.

4.1 Binary options portals

Binary Options Brokers – A portal with up to date information about binary options brokers.

4.2 More about binary options

Binary Options on Wikipedia – This is the article on Wikipedia about binary options. It is a more scientific approach and it’s a little bit difficult to understand for people with less trading expertise.

Options Trading on Wikipedia – The Wikipedia article about options trading.

4.3 Regulatory institutions for financial trading

CFTC - U.S. Commodity Futures Trading Commission

FSA - U.K. Financial Services Authority

NFA – U.S. National Futures Association

 
 
 
 
Binary options trading involves a high amount of risk. Trading binary options can result in the loss of the entire investment. Do not trade binary options with money you cannot afford to lose.
 
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