Where to trade binary options: list of the best platforms
Best platform to trade binary options - Pocket Option
TOP platforms to trade binary options:
Pocket Option - best for beginners
QUOTEX - best platform at all
IQcent - best mobile APP
Binarium - best for turbo options.
Raceoption - best platform for social trading
VideForex - best web platform
The financial markets offer numerous opportunities for investors to make money. One of the most popular methods is binary options trading, a type of financial instrument that allows traders to buy and sell an asset at a fixed price with a predetermined expiry date and time. Binary options trading can be done on any asset, such as stocks, indices, commodities, or currencies.
For beginner traders, one of the most important steps is deciding where to trade binary options. Currently, there's a multitude of platforms that offer binary trading, both within and outside the United States. In this review, we'll list the top 10 platforms where you can trade binary options safely and securely. Let's delve right in!
What are binary options?
Binary options are a method to make money on the financial markets. The key advantages of these instruments lay in the simplicity of work and in the possibility to get high, and most importantly, known-in-advance profits from your transactions. All you have to do is find the right way to determine how the price of a certain asset (currencies, oils, or stocks) will change during a specific time.
But like many trading methods binary options may have some disadvantages. For example, if you fail to correctly determine the changes in the exchange rate of the assets, then you will lose your bet.
Novice traders can try binary options copy trading. With this tool, you will earn your first profit and be able to follow experienced traders.
Top-10 binary options trading platforms
How to choose a binary options trading platform
A binary options trading platform refers to a software system that enables traders to trade binary options. With binary options, traders place wagers on the direction of an underlying asset’s price movement within a given time frame. So, why do traders need a binary options trading platform?
For starters, a binary options trading platform allows traders to monitor current market conditions. It enables them to analyze financial data and interpret it in order to make decisions and execute successful trades.
In addition, binary options trading platforms enable traders to track their profits, losses, and open positions. This transparency helps traders make informed decisions about when to open and close trades. And once traders decide to place a trade, the platform allows them to do so quickly and accurately.
The vast majority of binary options trading platforms feature unique, web-based browsers. Traders can also opt for Forex broker platforms that feature an integrated binary functionality in their desktop platform. Such brokers offer a simplified version of the popular MetaTrader 4 desktop platform, which includes the ability to trade binary options. Regardless of which type of platform traders opt for, they should look out for the following features:
The trading conditions the platform offers
Choosing a binary options trading platform is a serious commitment that could potentially last for years, so it’s important that you choose a platform whose conditions you're comfortable with. Start by looking at the trading options they offer. A top platform should offer multiple trading options, such as high/low, one-touch, range, and ladder options.
Another essential consideration is the minimum deposit the platform requires. The best platforms ensure that their traders can start trading with as little money as possible, so look for those that offer low deposits.
Read up on the trading assets offered by the platform as well. A reputable broker will provide a wide selection of stocks, commodities, currencies, and indices for traders to choose from. The idea is to give you enough variety so that you can find assets to trade in any market condition.
Finally, the platform should also offer competitive spreads and leverage levels. This way, traders who feel comfortable taking on more risk have the opportunity to earn higher profits but have the flexibility to switch to lower leverage when they prefer more conservative strategies.
The functionality of binary options trading platforms
Another aspect you need to consider when selecting a binary options trading platform is the range of features and functions it offers. For instance, some binary options trading platforms offer automated trading, which means you can program the system to place trades for you based on certain criteria.
These binary trading platforms also provide features such as charts and indicators that you can use to analyze markets and identify trading opportunities. Check whether the platform gives you the ability to use Expert Advisors or customize your own indicators.
The platform you choose should also come with helpful tools, like price alerts and learning resources such as videos, tutorials, and webinars. These features can help traders get up to speed on important topics faster while honing their skills without risking their own money.
The regulation status of the platform
The trading landscape can be a risky place, so it’s essential that you choose a regulated binary options broker. Regulated binary options brokers are more likely to offer a secure trading environment and fair treatment of their traders. Reputable brokers will be regulated by such regulatory agencies as the Financial Conduct Authority (FCA) in the UK or CySEC in Cyprus.
To find out if a platform is regulated, check for the regulator’s logo on their website and contact the broker directly to ask about their regulatory status.
Quality of customer support
It’s also important to make sure that the platform offers quality customer support. Quality customer support should be available 24/7 in multiple languages and should include live chat, email, and telephone support.
One way to gauge the kind of customer support a platform offers is to look at their customer reviews. These reviews can tell you how helpful the customer service agents are and how quickly they respond to inquiries.
Security features
Make sure that the platform has secure authentication and encryption protocols in place. Secure authentication protocols mean that only authorized traders can access their accounts. The platform should also have encryption technology to protect your data from unauthorized third-party access.
Compare binary options trading with other types of trading
| Fees | Risk Level | Potential income | Available tools | Possibility of passive income | |
|---|---|---|---|---|---|
Binary options |
There generally no fees or commissions |
High |
Profits are capped based on your proposition |
Multiple, including trading platforms and binary bots |
Yes |
Forex |
There are commissions and swaps |
High |
Depends on your strategy, but most dedicated traders make between 5% and 15% monthly |
Trading platforms, forex calculators, charts, etc. |
Yes |
Stock exchange trading |
Brokers charge a flat fee, a percentage of the purchase price, or both |
Medium |
High with the right strategy |
Trading platforms, stock screeners, backtesting software, etc. |
Yes |
Cryptocurrency trading |
Most charge 0% to 1.5% per trade |
High |
High, although the market can be quite volatile |
Trading platforms, charting and technical analysis tools, etc. |
Yes |
How to minimize the risks of binary options trading
While binary options trading can be a great opportunity to make money, it is important to be aware that there are risks associated with this type of investment. Understanding these risks helps you to minimize them and increase your chances of success. Some of the top risks include wrong analysis, fundamental factors, and technical risks. Let's take a closer look at each.
Wrong analysis
This error entails failing to accurately assess the current market situation and using incorrect data or making poor decisions based on that data. To minimize this risk, it is important to perform thorough research before trading. Read up on technical indicators such as trend lines, moving averages, and oscillators, and familiarize yourself with the correlation between historical data and current market trends.
Fundamental factors
Actions of market makers, news releases that can change the direction of the market, and force majeure can all lead to losses in binary options trading. To reduce this risk, it is important to stay up-to-date on current news and events that could affect the market. Technical indicators can be used to help forecast upcoming movements and trends in the market so you can make informed decisions.
Technical risks
Errors in the platform, unreliable brokers, and a general lack of understanding of how binary options trading works can lead to losses. That's why it is important that you understand the basics of trading and familiarize yourself with the platform before performing any trades. It is also recommended to choose a reliable broker that offers good customer support.
Are binary options suitable for a beginner trader?
Yes. Binary options offer novice traders an exciting and simpler way to enter the world of trading. Unlike in Forex trading, where traders have to calculate pip values and face spreads, binary options only require traders to make a prediction on the direction of where the asset price will move. The simplicity of binary options makes it attractive to those new to trading as they do not need advanced trading skills to be successful. That said, it is important to note that one can lose money if they make the wrong prediction.
Example of a binary options trade
Supposing you’re trading EUR/USD, and you think the price of the euro is going to go up against the dollar. You can place a ‘call option’, which means that if the price goes above a certain level by the time of expiry, then you will win your trade and receive a fixed payout. On the other hand, if the price goes down, then you will lose your trade and your investment. This is an example of a binary options trade, where there are only two possible outcomes – win or lose. Regardless of how much the price moves up or down, you can never make more than your predetermined fixed payout.
TOP-3 best binary option strategies for beginners
1. Follow trends
No matter your market or asset, the best way to make money with binary options is to follow trends. Asset prices will fluctuate with trends, and prices will grow or shrink with their associated assets. This is because the binary options market is based on trader speculation, all in real-time. Trends will follow a zigzag pattern, and traders following this strategy will trade with current trends or with swings. Examine your chart and look at your trend lines. If a line is flat, then look for a different asset to trade. If the line is rising, there's a good chance that the price will go up.
2. Follow the news
This aligns well with our first strategy. Following different news events that relate to your asset can help you predict how it will trade. Following the news is a lot easier than technical analysis, making it great for beginner traders. Look at the news online, on television, over the radio, and in newspapers once you pick your asset of choice. Follow tech companies and identify when an announcement is about to be made. If a company is about to release a new product, you can opt to purchase options and wait for the profits to come in once the product is released.
3. The straddle strategy
The straddle strategy is used along with the news strategy. For this strategy, straddle trades should be executed before that important announcement we mentioned in the last section. That asset's value could increase for a small amount of time after the announcement is made, but you will need to buy an option that estimates that the price will lower once again. Once that price begins to drop, you'll need to call a different option with the expectation that the price will go up again. Essentially, you are using trend swings to make money regardless of the price changes of the options you choose.
Summary
Binary trading gives traders the potential to earn a passive income and offers a simpler way for beginners to get into the trading world.
Choosing the right binary options broker is essential for successful trading. Look at such factors as the platform’s stability and reliability, customer feedback, trading terms, and bonus policy.
It is important to understand the risks associated with binary options trading, such as wrong analysis, fundamental factors, and technical risks. This helps you minimize the risks and maximize your chances of success.
FAQ
Which broker is best for binary options?
The answer depends on your specific needs. It is advisable to research the different brokers, their features, and the services they offer before picking one. Currently, IQcent is the highest-rated broker, with a rating of 9.6/10. For beginners, Pocket Option is considered the ideal platform.
Where do I start with binary trading?
The first step is to open an account with a reliable broker, such as IQcent or Pocket Option. Once your account is set up, you can fund it and then start trading binary options. Before conducting any trades, be sure to familiarize yourself with the platform and do some research on the different strategies available for successful binary trading.
Is it safe to trade binary options?
Yes, if done right. Understand the potential risks and rewards associated with binary trading before engaging in it. Research different brokers and choose one that's most dependable.
Are binary options good for beginners?
Yes. Of all the trading platforms, binary options are the simplest and most accessible for new traders. It's fast-paced and provides traders with an exciting way to make money without needing a deep understanding of the markets. Just be mindful that, like any other type of trading, the potential to lose money exists.
Methodology for compiling our ratings of binary options brokers
Traders Union applies a rigorous methodology to evaluate brokers using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
Regulation and safety. Brokers are evaluated based on the level/reputation of licenses and regulations they operate under.
User reviews. Client reviews and feedback are analyzed to determine customer satisfaction levels. Reviews are fact-checked and verified.
Trading instruments. Brokers are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
Fees and commissions. All trading fees and commissions are analyzed comprehensively to determine overall costs for clients.
Trading platforms. Brokers are assessed based on the variety, quality, and features of platforms offered to clients.
Other factors like brand popularity, client support, and educational resources are also evaluated.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
The area of responsibility of Mikhail includes covering the news of currency and stock markets, fact checking, updating and editing the content published on the Traders Union website. He successfully analyzes complex financial issues and explains their meaning in simple and understandable language for ordinary people. Mikhail generates content that provides full contact with the readers.
Mikhail’s motto: Learn something new and share your experience – never stop!
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.