(Pocket-lint) - Binary options trading platforms offer you the chance to make money by trading different assets. For this, you will need a broker that offers all of the essential features.
With so many platforms in the market, choosing the best binary options trading broker is a hard task. But, this guide helps you choose the right broker platform to start your trading journey.
So, take a look at the different platforms and choose the one you find the most suitable.
Top Binary Options Trading
- Pocket Option – Best Overall Binary Trading Platform
- Binarycent – Well-Known Amongst Best Binary Options Brokers
- Nadex – Best Binary Option for Beginners
- IQcent – Leading Binary Option Trading Platform
- Raceoption – Top Binary Option Trading Strategies
- Binary.com – Advanced Platform to Buy or Sell Binary Options
How did we make this list?
You will find several binary options trading platforms in the market. However, it is hard to differentiate between scammers and legitimate ones. So, we have made a list of the best binary options trading platforms to make the decision easier.
To make this list, we considered the following factors.
A platform that is functioning for a good number of years is bound to be legitimate. This means the customers associated with the platform do not have any major complaints.
New platforms may be legitimate, but there is no sure way to know that. So, we ensured the platforms we chose had a minimum of four to five years of experience.
Checking the reviews of the customers is important since this helps you understand the performance of the platform. So, we checked different third-party platforms to ensure the customer reviews were authentic.
Deposits and Withdrawals
Traders look for easy deposits and withdrawals, which we also focused on during our search. We selected platforms that provided low minimum deposits and convenient withdrawal options.
Trading tools make your trading experience more analyzed and informed. As a result, we looked for platforms that provided different trading tools to help you out. You can use various strategies and make good use of the trading tools to gain profit.
#1. Binary.com: Advanced Platform to Buy or Sell Binary Options
Binary.com was first established as Binary Group in 1999. It is an American-based company with branches in Malaysia, Japan, and Malta. Up until 2013, the company was named BetonMarkets.com, after which it was rebranded as Binary.com.
Binary.com is a very reputed name in the trading industry. The company has multiple licenses that comply with the regulations in different countries, which include FSC (British Virgin Islands), IBFC (Malaysia), and VFSC (Vanuatu).
Binary.com has multiple market instruments, which is perfect for most traders. Along with this, the platform also offers several trading accounts.
- Trading Platforms
There are two categories of trading platforms on Binary.com. These are basic platforms and advanced platforms. In basic platforms, there are two types – Binary Tick Trade App and Binary.com platform. You can use both these platforms for binary trading.
- Mobile Trading
The Binary Tick Trade App is the mobile application of Binary.com. You can download the Binary Tick Trade App from the Google Play Store and Apple App Store. The mobile trading application makes it easy for you to trade even when you are on the go.
- Trading Accounts
Binary.com offers its trader three different types of trading accounts — virtual account, standard account, and MT5 account. The MT5 account offers you CFDs on cryptocurrency, Forex, and other financial markets and is a fairly new addition to the platform, as it went live in only 2019.
- Virtual Account
The virtual account is the demo account provided by the platform, where you can use $10,000 virtual cash to practice trading. The demo account is perfect for beginners to test their strategies and know more about the trading platform. Seasoned traders can also use this account for trying out advanced theories and strategies.
- Very well-regulated
- Several trading platforms
- Perfect for beginner traders
- Low minimum deposit
- Account options are limited
- Variable spreads
#2. Pocket Option: Great Binary Trading Platform
If you are looking for a binary options trading platform that has it all, Pocket Option is the one. It was established in 2017 and is headquartered in the Republic Marshall Islands. Gembell Limited currently manages and owns this Forex trading broker.
The trading platform provides you with convenient payment options, several analysis tools, amazing payouts, and low minimum deposits.
Since its establishment, Pocket Option has catered to more than 10 million users across 95 countries. You can trade over 100 assets, such as Forex, commodities, stocks, cryptocurrencies, and indices in this trading platform.
The excellent features provided by Pocket Option make it one of the top-most binary options trading platforms.
- Demo Account
Pocket Option gives you access to a demo account for which you do not have to register. In this demo account, you can start trading using virtual funds. This helps you understand the platform and its operations.
Once you open your account with the Pocket Option, you will get an instant bonus. You will need to make a minimum deposit of $50, for which you get a 50 percent deposit bonus. However, this is a limited-time bonus offer, so make sure you grab it before the offer ends.
- Mobile Trading
The Pocket Option website is optimized for all devices, so you will not have any issues using it on your mobile. This makes it easy for you to trade no matter where you are. In addition, you can change the mobile view to both portrait and landscape for using the website.
- Social Trading
Pocket Option provides a unique feature — social trading. Using this system, you can track the successful trades of other traders. You can follow their patterns and use it for making your own trades.
- International Financial Market Relations Regulation Center (IFMRRC) regulated
- 24/7 customer service
- No withdrawal or deposit fee
- Social trading
- Only one trading account
- Limited financial instruments
#3. Binarycent: Well-Known Amongst Best Binary Options Brokers
Established in 2016, Binarycent is another binary options trading platform with its office in the Marshall Islands. Apart from binary options, it also offers CFD trading and Forex.
The platform was launched by a team of investors who have years of expertise in the field.
Binarycent does not have any complicated algorithm for trading. This is a very simple platform where you can start trading as soon as you sign in. Due to this, beginners find it easy to use the platform.
- Variable Accounts
Binarycent provides you with three types of accounts that you can use for trading. They are the Bronze account, the Silver account, and the Gold account. The minimum deposit for the Bronze account is $250, the Silver account is $1,000, and the Gold account is $3,000.
You get a bonus on three of the account deposits you make, which makes the platform more attractive to traders. For a Bronze account, you get a 20 percent discount, which makes the trading amount $300.
You get a 50 percent bonus for the Silver account, which means you start with $1,500. Finally, you get a 100 percent bonus for the Gold account, and you can start trading with $3,000.
- Deposits and Withdrawals
Withdrawals and deposits in Binarycent are easy since they accept most forms of payment. You can use credit cards for payment, like MasterCard and Visa. Binarycent also accepts cryptocurrencies like Bitcoin, Litecoin, Ethereum, Dash, and any other altcoins. There are eWallets as well, like Neteller, Skrill, and WebMoney.
- Mobile Trading
You can trade on Binarycent even when you are on the move. They have their own mobile trading app you can download free of charge from the Google Playstore or the App Store.
- More than 150 assets to trade
- Minimum deposit of $0.10 for every trade
- Multiple language support
- Compatible with mobile and PC
- Not a suitable platform for professional traders
- Does not offer a demo account
#4. Nadex: Best Binary Option for Beginners
Nadex is the go-to binary options trading platform for U.S. traders. They call themselves the “premier U.S. exchange for binary options”. The Commodities Futures Trading Commission (CFTC) regulates the platform, which makes them extremely legitimate.
The desktop platform is very user-friendly, and it offers derivatives and no actual stocks. Therefore, this is the perfect platform for binary options trading and experienced traders.
The best feature of the platform is its educational tools, as there is a learning centre where you can get education materials. These will help you in knowing more about trading derivatives.
- Trading Instruments
Nadex provides its traders with three forms of trading instruments — binary options, call spreads, and knockouts. Professional traders mainly use these three options, which is why the platform mostly sees experienced U.S. traders who have been in the field for a long time.
- Customer Support
Existing customers can connect with the Nadex customer support team very easily. Their account will have the customer support number for phone communication. Prospective traders can reach customer support using email or chatbot.
- Mobile Trading
Nadex has a mobile trading option, but it is not a traditional application. The mobile app is progressive, and you will need to access it through your browser. You will have to plug in the URL for NadexGo to access the application, and the interface is similar to its desktop view.
- Educational Material
If you want to know more about trading derivatives, Nadex has an educational centre. Here, you will find several articles and informative content, which will help you expand your knowledge about trading and make it easy for you to trade successfully. You can access this educational centre from your desktop and mobile device.
- Follows strict regulations
- Mobile trading
- Several educational materials
- Competitive commissions
- Limited options for funding
- Lack of cryptocurrencies
#5. IQcent: Leading Binary Option Trading Platform
Located in the Marshall Islands, IQcent is the brainchild of financial experts with several years of experience. They are fairly new to the market. However, sources cannot find an exact establishment date.
IQcent has all of the necessary contact information on its website, which makes the company transparent. It claims to provide 24/7 customer support.
IQcent has more than 100 financial instruments spread across different classes of assets. Some of these are binary options, CFDs, Forex, commodities, cryptocurrencies, and indices.
Furthermore, the platform is very user-friendly, and you will need a very low minimum deposit of $10.
You will also find several learning tools provided on the platform, which makes the IQCent platform not only fit for trading but also for increasing your trading knowledge.
IQcent offers three accounts to its traders — Bronze, Silver, and Gold. These accounts have 24/7 live video chat support, attractive bonuses, withdrawals within an hour, and other interesting features.
- Demo Account
The presence of a demo account in the platform makes it perfect for both beginners and professionals. So, you can test your trading skills on this demo account before you go for the actual trading. Traders can access the demo account once they sign up for their trading account.
- Customer Support
IQcent offers seamless customer support through different mediums. You can reach their team any time you want, since they offer 24/7 customer support. You can contact the IQcent team through phone, email, live chat, and even social media.
- Payment Methods
IQcent offers variable payment methods, making it highly convenient for traders. You can use your MasterCard or Visa debit and credit card for withdrawals and deposits. There is also provision for bank wire transfer and electronic payment. Cryptocurrencies like Litecoin, Bitcoin, and Ethereum are accepted as well.
- Copy-trading tools
- Several payment methods
- More than 100 tradable assets
- Low minimum deposit
- Not regulated or licensed under Securities and Exchange Commission
- Does not have U.S. traders
#6. Raceoption: Top Binary Option Trading Strategies
Raceoption has been in the market since 2014 and is a London-based company. This trading platform provides a very user-friendly experience to its traders. There are attractive bonuses and several payment options that enhance the user experience.
Raceoption provides a guided trading facility and is good for both beginners and professionals.
The platform uses advanced technology, which is easy to use and does not confuse the traders. Everything you need is shown on a single screen, making it easy.
Raceoption has made its name in the market by providing excellent perks to its traders.
Like other binary options trading platforms, Raceoption also has three account types — Bronze, Silver, and Gold. What sets it apart from the other platforms is the features provided with each account, which includes access to certain educational content. You can use this information for your trading activities.
- Trade Types
Raceoption has several types of trading options you can use, including high/low, ladder/pair, one-touch, 60-second, and long-term. Depending on the type of trading you wish to engage in, you can choose any trade type.
Raceoption has more than 150 assets that are of great appeal to investors. You can choose from commodities, indices, stocks, CFDs, and Forex. Although it does not have cryptocurrencies, the platform’s popularity has in no way been affected.
You will get lucrative bonuses on your minimum deposit account. If you opt for the Bronze account, you get a 20 percent bonus on the $250 deposit, making it $300. You get a 50 percent bonus on the $1,000 deposit for the Silver account, making it $1,500. Finally, you get a total deposit of $6,000 for the Gold account, since you get a 100 percent bonus on the $3,000 deposit.
- Demo account offered
- User-friendly platform
- Quick deposits and withdrawals
- Open to traders all over the world
- Cannot access demo account without making an initial deposit
- Not regulated by CySEC or FCA
If you want to become a successful binary options trader, the broker you choose is very important. With the increase in popularity, there has been an increase in binary options trading brokers as well.
So, you will find many legitimate brokers. However, there are some shady ones as well. So, how do you differentiate between the two?
Below are a few questions you should ask before you choose the broker. Make sure you do not fall into the traps of scammers and make the right choice. So, conduct thorough research and get proper answers to these questions before you make your choice.
Is the Broker Regulated?
Most traders check if the broker is licensed or not. However, that is not enough to know about the legitimacy of the broker, as many scam brokers can get licenses.
Getting a license is a start, but it is not the only thing that proves its authenticity. To ensure you are not dealing with a scam broker, you need to see if they are regulated.
Regulated brokers will need to follow certain regulations and codes of ethics. When you see a regulated broker, you can be 100 percent sure they are trustworthy and authentic.
What Do the Terms and Conditions Say?
Each broker must have certain terms and conditions displayed on their platform. While most traders do not go through the terms and conditions, you must.
Terms and conditions may not be an interesting read, but they can save you from several problems. A scam broker will know that many people do not read the terms and conditions thoroughly.
So, they may include certain terms that are not suitable for traders, which can become problematic during withdrawals or other trading practices. Therefore, you must read the terms and conditions carefully before you start trading.
How Experienced Is the Broker?
The experience of the brokers contributes a lot to their authenticity. A platform that is successfully functioning for several years must have a huge trader base, and the traders associated with the platform must be very satisfied and happy with the services of the platform.
A new broker may function well, but there is no guarantee about its authenticity. When you choose a very new broker, there is always the risk of it being a scam.
So, choose brokers who have been in the market for at least five years. If you choose any broker with less than five years of experience, make sure they are authentic.
Does the Broker Offer Trading Tools?
The primary aim of a broker is to look after the welfare of the associated traders. They would be inclined towards making profits but not at the cost of their traders. Therefore, brokers offer you different trading tools.
These trading tools assist you in your trading decisions. You may use your instincts, but it might backfire at times.
Having trading tools at your disposal will make the decision more informed, which increases your chances of gaining profits. You can analyze the market and ensure you are making the right decision while making a trade.
Overall, always give priority to brokers who provide you trading tools.
Does the Platform Have Any Demo or Virtual Accounts?
Whether you are a beginner binary options trader or an experienced one, demo accounts can prove to be an advantage.
If you are a novice trader, you will need the demo account to practice your trading skills. Since your money is not on the line, you will not have to worry about losses. This helps you understand if trading is right for you or if you are not made for it.
On the other hand, experienced traders can sharpen their strategies and know about the particular broker. Even if the process is the same, the functionality of each platform would be different.
So, it is highly recommended you choose a broker that has a demo account.
Is There Any Limit on Withdrawals and Deposits?
Most of the binary options trading platforms have limits on their withdrawals and deposits. However, these limits must be manageable.
When you choose a broker, check if there are any limits, as these ensure you do not deposit or withdraw any amount below this limit.
Setting a limit is not a bad concept, but it must be convenient to the trader.
So, look for brokers that have simple solutions related to deposits and withdrawals. Even if there are limits, it must not pose a problem for you.
What Underlying Assets Does the Broker Provide?
Underlying assets are financial products you place a bet on. Binary options trading platforms provide you with several underlying assets, and most of these sites have more than 100 of them.
Ideally, it is recommended to go for platforms that have more assets. This way, you get several choices. However, you also need to see if the site offers the asset you want.
Some of the common assets you will find are stocks, crypto, indices, and Forex.
Sites that offer a large number of assets will most likely have the ones you want. Therefore, ensure the platform you choose does not have a limited number of assets.
Does the Platform Offer Customer Support?
Choosing a platform that offers customer support is paramount. If your broker does not offer customer support, they are not the right platform to choose. Customer support shows the firm is professional and cares about its traders.
Many platforms offer 24/7 customer support, which is the best for traders. Moreover, a platform that caters to clients from all over the world requires 24/7 customer support.
You should also check the mediums by which you can connect to customer support. Some platforms might have a chatbot or email, but they should be responsive. You should always prioritize platforms with a phone, email, and live chat.
How Is the Platform’s User Interface?
A binary options trading platform should be easy to use. Whether it is the desktop interface or application interface, both should enhance the user experience. If the platform is confusing, it might not be the best option for you.
You will need to spend a lot of time learning how the platform works. An easy-to-use platform saves you time, and you can instead use that time to practice your strategies.
If the binary options trading site has a mobile application, ensure it is equally user-friendly. Some brokers have a progressive mobile application, which is not a bad thing. However, they should be completely optimized for mobile phones.
How Are the Returns and Payouts of the Platform?
Binary options traders aim to gain profit from their investments. You want to earn more money in return for the investment you make. Therefore, it is better to choose brokers that provide higher returns and payouts.
The standard returns and payouts for most binary options trading sites are 60 to 80 percent, which is fairly good.
You may not get more than this standard range. However, do not choose a site that offers anything less than this.
Although this is not the deciding factor for choosing a good binary options trading platform, a higher payout never hurts.
How Do You Trade Binary Options?
If you are sure binary options trading is right for you, here is the process you can follow to begin.
- Choose a Legitimate Broker
The first step to begin trading is to choose a legitimate binary options broker. You already know the right questions to ask before you choose your broker. So conduct your research based on the questions, and you will end up choosing the right broker for you.
Once you choose your broker, you can check out the website for further information. Ensure the broker website has proper information about the broker itself and the trading process.
If you have any queries, you can always reach out to the broker. This will also help you check how responsive and prompt the broker is with their customer support.
- Choose the Underlying Asset You Want to Trade
One of the most confusing decisions is to choose the right underlying assets to trade. If you are an expert with experience in trading, this would not be too tough for you, as you usually already know which asset you are going to choose.
For beginners, this might be a tough decision to make, as binary options trading provides you with multiple underlying assets like Forex, stocks, commodities, and indices.
You can bet on more than one asset if you want, and stocks are the most common underlying assets traders bet on. This is mainly because stocks give larger returns in a short span.
You can conduct market research and then decide which choice would be the best for you. However, the asset you choose should have strong potential for returns.
- Choose the Investment Amount
Once you have chosen the underlying asset, you will not have to choose the investment amount. There are two scenarios you need to keep in mind while deciding your investment amount.
The good news is you get higher returns when you make higher investments. However, if the outcome is not nice, you can lose the complete investment amount.
Therefore, you will need to come up with a strategy and understand the market situation when making your investment.
- Select Your Binary Options Expiry Time
The expiry time decides when the trading session ends, which is when you can determine whether you have made a profit or a loss. The expiry time for the asset can be as short as 30 seconds or as long as one day.
Expiry time that is five minutes or less is termed turbo. The standard expiry time is about five minutes to the end of the day, and if your expiry time goes more than one day, it is called long-term.
If you are a beginner binary options trader, it is best to go for a short-term expiry time. This helps you understand the trading scenario and increases your chances of making small but quick profits.
- Predict the Market Direction
Predicting the market direction is the final stage of your binary options trading. This is the win or lose period where you will predict whether the asset value will increase or decrease.
If your prediction is correct at the end of the expiry time, you gain profit. If not, you lose your investment.
Frequently Asked Questions
Q1. What are binary options?
Binary options are a kind of fixed return trading instrument restricted to two feasible results. These two options are Out of the Money (Lost option) or In the Money (Won option).
Q2. When can you trade binary options?
The answer to this question is according to the asset you want to trade. These assets you will be able to trade as binary options include commodities, indices, stocks, and currency pairs. Generally, you will be able to trade when the markets are open, but it also depends on the type of asset you want to trade.
Q3. Is it legal to trade binary options?
The legality of trading binary options depends primarily on your broker. In many countries, it is legal, but numerous brokers do not take trades from every country. For example, if you reside in the United States, it will become difficult to search for a broker that gets clients from your country.
Q4. Do you need any software to trade binary options?
No, you usually do not need any software to trade binary options. However, we advise you to install chart software (real-time). According to your broker, you may need to download a trading application on your mobile phone or desktop.
Q5. Where to trade binary options?
Deciding where you trade binary options depends upon the country you reside in and what you want to trade. Other important factors you might need to consider are the amount you want to invest and the assets you want to trade.
Q6. How much do you need to invest to trade with binary options?
The answer to this question is according to your money management and your broker. It would be best if you did not trade with more than about 5 percent of your total account balance during one trade.
Therefore, let us say you are planning to invest $200 USD into binary options. Then, you will require a broker with a trade amount of no more than $10 USD ($200 multiplied by 5 percent is equal to $10).
Q7. Can you make money by trading binary options?
Yes, you can make money by trading binary options. However, you will not earn any money without meeting all of the requirements needed to utilize binary options. It would be best to control your emotions while properly managing your money, and knowledge about trading patterns/strategies and technical analysis would help.
Q8. How to predict market movements to trade binary options?
There are about a thousand methods used to analyze and predict market movements, which are called trading patterns. The primary problem is not finding the best but knowing when to utilize which pattern to get good results. You will never learn trading without losing, so do not worry about this aspect.
Q9. How to pick the correct expiry date for your trading pattern?
Deciding on the expiry date of your trading pattern depends on various factors like the assets, time frame, and trading pattern. Make sure you test new patterns first when you create a demo account for a few days. After a while, you will automatically realize the correct expiry date.
Q10. What should beginners keep in mind before trading binary options?
If you are a beginner to trading, you must always be ready to learn something new. So, examine trading patterns, watch videos by successful traders, and go to trading workshops. You can also look online for other basic tips.
Q11. Can you open a free account for demo trading if you just want to try binary options?
Yes, you can open a free demo account to try binary options if you do not want to invest right now. It would be best not to trade with actual money until you get your trading patterns approved in test conditions during a trial.
Q12. What is a MetaTrader?
MetaTrader is a program that allows you to see graphs of stock price movements, currency pairs, and commodities. This program will show you customizable and clear charts better than what your broker might. Therefore, you can perceive and estimate further development or fluctuations in prices. Overall, MetaTrader will make you a better trader.
Q13. Where do traders get all of their money?
This is a common question posed by anyone who is just starting with trading. You get money from the people who do not earn profits. However, it is not as easy as it sounds.
For instance, a broker has 100 traders, 50 of whom pick the same option, CALL, and the remaining 50 pick PUT. All of them invest $10, and, thus, the broker has $1,000 in total from all of the traders.
Only 50 out of all of them will be successful. Then, the broker will have to give them a $10 profit. For example, 80 percent is equal to $900, but they still have another $100.
Q14. Can you start with binary options even though you do not know much about Forex or the stock market?
Yes, you can definitely start with binary options even if you do not have much knowledge about Forex or the stock market. You can begin by reading some tips online for beginners and some e-books or articles as well.
Q15. Do you have to be 18 years of age to trade binary options?
Yes, if you want to trade binary options, you need to be 18 years old. Without you confirming your age (with an ID, for instance), you would not be able to withdraw any earnings. If you are not of age to trade binary options but still want to, you will have to trade on someone else’s account.
Q16. How much can you earn with binary options?
There is not a definitive answer to this commonly asked question, as how much you will earn depends completely on you. Your profit depends on how much time you spend and how much you understand different binary options.
By now, you know which binary options trading platform would be the most suitable for you. The guide reviews five of the best platforms in the market. However, you can also search for other platforms using the buying guide.
No matter which platform you choose, ensure you do your background checks in order to have the best trading experience.