For years, we have been analysing and reviewing binary options brokers, and our team is showing no
signs of slowing their pace down. Quite the contrary, they are more eager than ever to test every new
broker out and provide their readers with valuable information which can help the readers decide which
company to go with. This resulted in our list of best brokers for 2020, but the year is still young and some
changes certainly can be made in the future.
The way we do things is always the same. We go in without telling anyone that we’re conducing a test,
create a trading account and then proceed to check all aspects of the broker’s website incognito. We take a
look at the trading platform, minimum deposits, withdrawals, support, regulation, and even bonuses, if
they are available. All features that can be a basis for your decision will be thoroughly analysed in our
How to choose the right binary options broker
But what is the most important thing to look for in a binary options broker? How to choose the best one?
Well, it all depends on what you intend to accomplish – you may be a casual trader looking for a new
hobby and a small profit along the way, or you may be looking to make a career out of this. However,
regardless of that, there usually are several questions that need to be looked at before you commit to any
broker, especially if you’re considering more than one company.
- What is the minimum deposit I have to make to activate my account?
- Is the broker I’m considering regulated?
- Do they offer a demo account?
- Can I get a bonus from them?
- Is the withdrawal process quick and reliable?
- What kind of trading platform do they use and do they have an app?
- Which assets can I trade there?
- How big is the minimum trade requirement?
- How many trading modes does the platform offer?
- Does the platform have enough analytical tools for me to make the right decision?
- How bit is their highest payout?
- Is their support good and are there any education materials?
|IQ Option||CySEC||BO, CFD, Crypto, Forex|
|Deriv.com||Malta GA||BO, CFD|
|24Option||CySEC||BO, CFD, Crypto, Forex|
You will find answers to all of these questions and more in each of our binary options broker reviews.
Therefore, by going through our texts, you will save yourself a lot of time, and potentially some money,
because you won’t have to test things out for yourself. You’ll get a clear picture of what to expect with
People often ask us is binary options trading safe. The answer is yes because there are many different agencies and regulatory bodies all over the world that issue licences to reliable brokers. The key for safe trading is finding a regulated broker with a valid license from a respected regulatory body. Some of these bodies are quite well known in the online trading industry, so if you come across any of the following licences, you can be sure the broker you’re considering is legit:
- CySEC: probably the most famous regulatory agency in the world. This Cypriot body is key when brokers want a license that allows them to operate in the European Union. No broker that operates in Europe is complete without it.
- FCA: the regulatory agency of the United Kingdom. Their license is also a very strong guarantee of a broker’s reliability.
- ASIC: the commission in charge of Australian financial markets. If you’re trading down under, you will want to see your broker approved by them.
- VFSC: Vanuatu Financial Services Commission, a regulatory body with a surprisingly high number of brokers under its control, usually for brokers focusing on making their presence known internationally.
- FMRC: a very common license among brokers based in Russia.
These, of course, are not the only regulatory agencies you will encounter, but their licences certainly are among the widespread ones. Also, it is not uncommon to see a broker holding several different licences at the same time, a feat that certainly should be commended and that says a whole lot about that company’s reliability.
Bonuses are a very interesting topic in the world of online trading, especially when it comes to binary options, because they will almost always be offered along with your deposit. This can increase the amount of trading funds you have in your balance and allow you to trade more, but keep in mind that there is almost always a special condition for withdrawing these additional funds. You will most probably need to meet some sort of a turnover requirement in a certain time frame before the bonus is released to you.
Apart from deposit and welcome bonuses that are given to you when you inject your trading account with fresh funds, some companies may offer non-deposit bonuses as a token of appreciation. These are usually not big, but they can nevertheless come in great – you can place several small trades with them and start gradually growing. Risk-free trades are also common in the business, as the broker reimburses you if your prediction turns out to be incorrect, often with some sort of a bonus.
Do keep in mind that providing bonuses like these is not allowed in the European Union.
Demo accounts are a great way to see what a broker can offer you and how their platform works. They are usually completely free, and you can trade with virtual funds when using them, thus honing your skills and testing a platform out, but some demo accounts are different than others.
First and foremost, for some demo accounts you don’t have to make a deposit. Other brokers will allow you to use them, but only after you’ve funded your account in some way. Although rare, some companies have been known to impose a limit to how much a demo account can be used, although this practice is pretty much on its last legs. Demo accounts are pretty much indispensable parts of a company’s offer, and if you can open one without ever having to make a deposit, you should definitely go for it.
General Risk Warning: The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.
You will need to make a minimum deposit before you can start trading with your live account (as mentioned in the previous section, demo accounts are different). However, brokers differ in how big their minimum deposit is.
The most common minimum deposit in the industry is 250$. You will see many brokers having that requirement, and it really shouldn’t come as a surprise. However, some brokers have quite low minimum deposit requirements in comparison because with them you can deposit 10$ or even less to get started. And while this is certainly great for a more casual trader who is just looking to test things out, consider this: the more you invest, the more you can win. This is because the winnings for every trade are based on a pre-determined percentage (more on that in a second), so if you stand to win, for example, 90%, it’s not the same if you have invested 10$ or 100$ in a trade.
So, how are these deposits made? Well, you usually have a variety of payment methods to choose from. Bank transfers and Visa and MasterCard cards are almost universally present, and you can rely on most brokers to have them. After that, though, things get a bit more diverse. Companies will often have some sort of e-wallet in their arsenal, but whether that’s Skrill, Neteller or something like Perfect Money is up to them. It should be noted that seeing PayPal among available payment methods on a broker’s website is quite rare, so if you see it, you can be quite sure that the company in question is VERY reliable because PayPal doesn’t do business with anyone.
Hopefully, there will come a time when you will be making a withdrawal from your trading account, and if you check your broker’s withdrawal page, you will see that they usually offer quite a lot of payment methods here, too. However, the policy is often that the funds have to be withdrawn via the same method you used for deposit or that the initial deposit hast be withdrawn that way first and the rest can then come via bank transfer or some other method. So, think about your preferred payment method before you even make a deposit if you want a smooth transfer.
Unlike deposits, which are pretty much free all of the time, withdrawals can sometimes carry a fee with them. This is not necessarily charged by the broker but by the bank you’re withdrawing to, so you’d do well to inform yourself how much of a fee you can expect. Naturally, all of this is always covered in each of our binary options broker reviews.
Finally, we need to say that there are some brokers that are completely focused on cryptocurrencies as their payment method of choice. They function exactly the same, but you will need a crypto wallet to do business with them.
Trading platforms and payouts
Trading platforms are the places where all the action happens. There you can choose an asset, see how its price is behaving, and open a trade. Therefore, it is very important that a trading platform provides all relevant data. Good platforms have loads of trading indicators and other tools you can use on their charts to analyze market movements, and some will even integrate the latest news into it. There may also be one or several trading modes, meaning that you can choose, for example, Ladder or One Touch, apart from the standard binary options mode (High/Low).
Different trading platforms also have different maximum payouts, i.e. the profit you get in case of a correct prediction differs. Some don’t reach 90%, while some go up to 95% and beyond. Therefore, this is something you will want to check before you sign up and something we regularly cover in our binary options broker reviews.
Trading platforms also have their mobile versions, and you can download these apps for free to your mobile device. MetaTrader 4 is the most famous trading platform in the trading world, and it has been at the top for quite a while. MetaTrader 5 is also available, but some brokers decide that they want to develop their own platforms, which is a perfectly legitimate way of doing things. IQ Option is a great example of that.
Two main types of online brokers
On top of all the aforementioned categories, brokers can also be divided according to their business model, i.e. the way they earn money from traders. There are two main groups in this respect, and your choice may influence the size of the potential payout you can get as well as some of the options at your disposal. So, let’s take a closer look.
Exchange brokers act as you would expect most brokers to do – they broker a deal and take a commission. Because of that, the company is involved in very little risk and can thus offer higher payouts, their clients can close their trades whenever they want, and even stop losses are a part of the platform.
Exchange brokers will also offer things like leverage and margins to entice the trader to execute a bigger trade, but it all boils down to the spreads for them because this is how they make a profit. The spread is the difference between the prices when you buy and when you sell, and it is within this spread that the broker’s commission is paid. The spread is charged automatically when a trade is opened, so the broker has no interest in how the trade goes. They will simply do their best to facilitate as big a number of trades as possible.
OTC stands for “over the counter”, and these brokers are much more common in binary options trading and online trading in general. In this case, there is no deal to be made, the company is not connecting you to anyone. Instead, they will always predict the outcome of your trade opposite to what you’ve chosen. If you win, you win your investment back plus the payout percentage. If you lose, the broker keeps the funds. That’s why the payout is most often in the area of 90% – the difference between that and 100% is essentially a fee, it’s how this kind of broker earns money.
Because of the inherent risk for these brokers have to face, the payouts are usually slightly smaller. On the other hand, binary options are exactly what they are looking to promote, so they will probably focus heavily on that kind of trading. Some even offer things like stop losses and early closing of a trade, which brings them closer to their exchange counterparts.
Should I sign up with multiple brokers?
There are absolutely no rules stopping you from opening an account with multiple brokers. The only condition is, of course, that you have the funds to make the minimum deposit needed for trading. Other than that, you are free to do as you please, and trading with more than one broker can actually bring you some interesting advantages:
- multiple welcome bonuses: if you like your bonuses, opening accounts with several brokers and then funding them can give you much more funds to trade with. Just be mindful of the conditions each bonus brings with it.
- access to more trading choices: one broker may not have cryptocurrencies in its offer, the other may not offer ladder trading, the third may have tournaments and competitions you’d like to participate in and so on. No broker is perfect, but with multiple brokers you can have access to more trading modes and more features.
- Reduced risk: maybe a broker’s website malfunctions, maybe it closes for insolvency, maybe your payment method becomes temporarily unavailable… whenever any problem occurs, you will be able to continue trading with another company
We’ll leave you with a few frequently asked questions we get from our readers on the topic of binary options trading. They are as follows:
Is binary options trading safe?
Yes, yes it is. Look for a regulated broker with a valid license and you’ll be just fine.
Can you make money with binary options?
Again, yes. Your profit will depend on your broker’s payout percentage, but it’s very much possible to earn (and consistently) from this kind of online trading. A good strategy and a bit of luck is all you need. Just remember that due to the fact your winnings are percentage-based, the more you invest, the more you could win.
How do binary options brokers make money?
It depends on what kind of broker they are. They will either charge you a fee through spreads for setting you up with the right buyer/seller or they will bet against you in a trade you open.
What’s the best trading strategy for binary options?
Well, that depends on what you’re looking for. You may be looking for a quick profit from a volatile market or you may be in it for the long run and make long-term investments. There’s pretty much a strategy for every approach, and you can learn more about that on our Strategy page. Learn to use the right indicators for the best results.
How much money do I need to start trading?
Depending on the broker you sign up with, the minimum deposit requirement can be anywhere from just a few dollars (10$ is a pretty common threshold) to 250$. So, you don’t have to worry about needing thousands of dollars to become a real trader.
I have no trading experience. Can I still trade?
Absolutely! There are plenty of ways newcomers can gain experience in the binary options business. First of all, you have the demo accounts where you can trade with virtual money and zero risk. You can get a great feeling for the whole trading process there. Second, there are plenty of education materials you can find all over the internet. Even brokers usually have something to help you out, and you can always research various indicators and strategies in greater detail.
It’s been days and my withdrawal hasn’t come yet. Why?
First of all, you need to distinguish between withdrawal processing and the actual withdrawal. It can take a few days for the broker to process your claim and then send you money, which can then take a few days to reach your account, depending on your bank and the method of transfer. Usually this is done quickly, but sometimes you just have to be patient.
Can I trade binary options in my country?
Many binary options brokers are usually very open to accepting traders from every country, but that may not always be possible due to your country’s regulation. The most notable example of this is the US, which is for now a country that binary options brokers almost universally avoid.
Do I need special software to trade binary options?
Usually, your web browser is enough to log into your trading profile on your broker’s website and start trading. There are, however, types of software like MetaTrader 4 and various mobile apps you can download and enjoy. Very rarely is this the only way to trader with a broker, though.
How much should I invest?
Invest only what you can afford to lose! That is not to say that you can’t win, but it’s impossible to be right 100% of the time. Everybody eventually makes a wrong call, so investing too much can be quite costly in that situation. Take it slow, think about your strategy, and you will eventually see profit.