Binary options brokers offer digital contracts that can purchased and used to speculate on the outcome of price movements on a wide range of different financial assets, including Stocks, Indices, Commodities and Forex.
The binary brokers comparison table below contains a list of what we think are some of the best binary options brokers around. Each company included in our list has been traded on a real live account. This has allowed us to test the various features and support they offer.
We only recommended recognized brokers that show a proven track record of performance. You can pick from our list and be confident that you have a good broker for the future.
|Rank||Broker||Info||Min Deposit||Regulated||Rating||Open Account|
|1||Min Trade: $24
Max Trade: $200,000
|2||Min Trade: $10
Max Trade: $5000
|3||Min Trade: $5
Max Trade: $5000
Step By Step Guide to Finding the Best Binary Option Broker
A key task for traders is to find a top binary options broker to trade with.
You need a broker that offers the facilities you need, top payouts and one that is trustworthy.
When choosing a broker there are a number of points that you need to consider. Our step by step guide to choosing the best binary options brokers details the key points that you need to factor into your decision.
Our comparison table lists what we feel are some of the top names in the industry. You will find links to more detailed reviews in the table above.
Registration is entirely free and is a good way to find out more about each company. You will be able to take a look around the trading platform, check out any offers and see how the broker operates. You don’t have to make a deposit until you are ready.
1. Regulated Binary Options Brokers
Firstly let’s make a statement – it is imperative that you only ever trade with a regulated broker!
Regulation provides a level of financial protection to both your trading activities and your capital. It ensures brokers operate according to a set of standards set out by the regulator for dealing with trading clients.
It also ensures that brokers financial activities are properly audited.
Importantly your trading capital is put aside in a segregated account. This means that in the event that the broker suffers financial difficulties, your money can be returned to you. As additional protection traders are also likely covered by the regulators own compensation scheme. The result is that there should be little worry of not seeing your money again.
Validating that a broker is regulated will help you to avoid many binary options broker scams.
Some key regulators to look for include –
United Kingdom – Financial Conduct Authority (FCA)
United States – U.S. Commodity Futures Trading Commission
If you are unsure of the regulatory status of a broker then be sure to check on the financial regulators website.
Binary contacts are essentially a wager with the broker and do not require a direct investment in the underlying market. This allows brokers to offer a range of contracts on wide variety of assets.
From a single account you will have the opportunity to trade key markets from four popular financial asset classes; Indices, Forex, Commodities and Stocks.
Popular assets found across broker platforms include the DOW JONES, S&P 500, Nikkei, FTSE, EUR/USD, USD/JPY and Gold. Global stocks are also well represented. Companies such as Google, Amazon, BMW, Nike, HSBC and Tata are just some of the big names that you can trade.
3. Account Types
Brokers approach things differently when it comes to the account types they offer.
Some prefer the ‘one account’ suits all approach and offer the same facilities and trading conditions to all their clients, regardless of the amount held on deposit.
Alternatively, others offer different levels of account. These are most commonly defined by the minimum deposit requirement that is needed to open and trade on the account.
Accounts often follow the below format:
- Standard – Low minimum deposit , bonus, free trading analysis
- Enhanced – Medium deposit required, bigger bonus, free trading analysis
- VIP – Higher deposit required, top bonus, high returns on contracts, access to personalised trading advice
The actual benefits and features of each account level will vary according to the broker and promotion. The key point to take away is that the higher the level of account you open, the more benefits you will receive.
4. Minimum Deposit Requirements
A low opening deposit is a great attraction when it comes to opening an account.
Opening an account with a binary options broker could not be simpler and you don’t lead large amounts of money to do so.
A typical deposit of $200 (or equivalent) is enough to get you up and running with most brokers. Some binary options brokers with low minimum deposit levels allow you to get started with even lowers amounts. In some cases $100 or even just $25.
There is however a caveat to starting out with such small amounts.
Having sufficient capital to trade will allow you to balance your strategies and properly balance your risk. With this in mind, while low deposit brokers are a good way to get started, you should expect to deposit more funds as you get serious with your trading.
5. Deposit Bonus
Following on from the last point, if you don’t have a large amount of capital to get started with then seeking out a deposit bonus may prove a good choice. While bonuses can be somewhat contentious there is nothing particularly wrong with them provided you know how they work.
Typically first deposit bonuses offered by brokers will give you a percentage bonus based on the sum deposited. So for example if you deposit $200 a 20% bonus will give you another $40 to trade with ($240 total account balance).
The level of bonus that you will be awarded will depend upon both the broker and the promotion being run. Therefore it pays to check current offers if you are thinking of opening an account.
Most bonuses payments stipulate that you will need to trade a certain number of ‘round trip’ of funds in your account before the bonus can be withdrawn. Often these limits are quite high (10 to 30+ times the value of the bonus) so you need to make sure you are happy with any attached conditions.
As with any agreement you should be sure to read and accept the terms and conditions before signing up.
6. Trading Platform
The trading platform is your central tool for buying and selling contracts. It needs to work well and provide the features that you need for efficient and profitable trading.
While there are a huge amount of brokers to choose from, many make use of white labelled trading platforms from popular solutions providers such as SpotOption, Tech Financials and Tradologic.
As a result of this extensive use of white labels you will often find a great deal of commonality among platforms. Even among different providers the range of contracts and assets that you can trade will be broadly similar.
One area where brokers do differ is when it comes to mobile trading. Some offer dedicated trading apps apps designed specifically for iPhone or Android devices. These vary in quality so it is worth checking them out if you want to trade from a StartPhone or Table device.
7. Demo Accounts
Demo accounts offer a great way to try out strategies without risking your funds. They are somewhat difficult to come by from most brokers however.
With a demo account you simulate your trading and try out strategies without risking your trading capital Instead you make use of virtual capital which you can use to wager and monitor your trading performance.
Most binary options brokers will only offer demo accounts to existing traders, rather than provide them to prospective clients. They can still however prove very useful if you are disciplined enough to validate your trading strategies first before trading on your live account.
Due to the fixed outcomes of binary options contracts, the return that you get on each contract is important. This higher the payout, the more you make.
While the market place is competitive, you will find differences in the returns offered between brokers. For this reason it can pay dividends to have more than one account so that you can compare returns on contracts and take the one with the highest return.
High returns also mean that you can profitable with a lower ‘strike rate’. This is important for fixed odds traders due to the fixed return outcome.
9. Customer Service
It is useful to compare binary options brokers to find the best level of support. After all, you never know when you are going to need to contact on your broker to sort something out.
Most brokers offer a wide range of support options, making it easy to get in contact with them if something goes wrong. Dedicated regional telephone numbers, email support and live chat are offered by most brokers so you can get in contact with someone when you need to.
In addition to the support desk it makes sense to look for any materials that are offered to help you trade. Webinars, trading analysis and eBooks are provided by many brokers. All of these can prove to be great resources, particularly for new traders who are looking to take their first steps.
Note and Disclaimer
While we aim to keep the information in this table as up to date as possible, we will not be held responsible for errors or omissions. Both the level of service and trading conditions offered in this industry are constantly changing.
Please ensure you check with you binary options broker for any specific services that you need prior to opening your account.
This table is frequently updated to represent what we feel offers a selection of the best regulated Binary Options Brokers reviews of 2016.