Let Us Explore the Reality of Binary Options Brokers

Traders in present day trading of binary options must know the details about the binary options brokers. There is a huge number of binary traders who have no idea about the working of the trading markets and services of binary options brokers. Currently, there are more than 100 binary brokers present in the market for the investors to help. These great numbers of brokers have made it clear that traders must conduct a detailed research in order to know the reality of the brokers. This study can be easily done by checking the positive and negative aspects of the offerings and services of every broker.

Binary Options Broker’s Features

If a trader wants to execute binary trading in the best possible way, then it is must to have a broker who provides maximum features. However, the reality of the brokers is that not all of them are providing the same number of features that are essential for the success. Moreover, if they are provided by some, the quality is very low. For the features to be useful and beneficial, they have to be of high quality. The binary features reduce the level of rigidity in trading and help the traders to a great extent.

Profit Percentage

The bitter aspect of binary options brokers is that not all of them provide the same or equal percentage of profit to the traders. Some brokers give less share of profit to the investors even though they deserve much more than that. This low return rate on the investment is provided when the prediction of the binary options trade comes out to be correct. The main objective of the traders in binary options trading is to earn maximum return in each trade. Under the services of such brokers, traders cannot achieve such goal. Thus, it is essential to conduct proper research on the profit percentage, not only for the successful trade but also in case of loss.

Language Support

In order to know the authenticity of a particular binary broker, it is vital to check the availability for the language options that must be of good quality. If a broker is delivering his services through multiple languages, it shows the level of responsibility and proper support. Although, it is not true that the brokers who deal in limited number of languages are not at all compatible for trading, but it surely reflects that such brokers are not highly ambitious in approach.

Comparing Binary Options Brokers Review: OptionFair Vs Banc De Binary

Once a trader has decided to participate in the binary options market, the next big decision will be which broker they will want to use for making trades. The available features can vary greatly from broker to broker so it is very important for a trader to do at least a small amount of research to determine which broker will be the best fit for their particular needs. OptionFair and Banc de Binary are two reputable brokers which are excellent choices for novice and experienced trader alike. But even these two brokers have some key differences. The most important thing to remember is to choose a broker which has the most desirable features for your particular trading style.

OptionFair is one of the newest binary options brokers providing a trading platform. They were established earlier this year and their headquarters is located in the British Virgin Islands. One of the reasons people choose to invest in binary options is the quick profits which are available to savvy traders. OptionFair sits on the highend of payout percentages with a range of 70 to 81 percent.

This broker offers three different platforms for traders to work from: high/low, boundary and one touch options. The broker has only two asset classes of binary options available for traders and these are stocks or currencies. However, between just these two asset classes they have 64 underlying assets to trade. This is a good number of assets as there are many brokers who do not offer this many to choose from even though they may carry underlying assets in more categories.

The OptionFair platform is one of the easiest to navigate and make trades and transactions from. The ease of use and number of assets makes it one of the better binary options brokers for the novice trader to learn how trading works. They have two unique features that are not found on every broker’s site. For one thing they offer 12 separate languages for traders to use to make their trades. This is one indication that they are ahead of the global demand and market and headed for great success. The other unique feature is their trading simulator. This is similar to a demo account which is set up solely to help new traders learn how to trade. Payouts are always made every 30 days and they have an outstanding customer service department.

Banc de Binary is a well established binary options broker which has its headquarters in New York. This particular broker has a large global network as they operate in Asia, Europe and the Middle East. The broker offers all four of the trading instrument types: stocks, currencies, indices and commodities. Across these instruments they offer nearly 40 underlying assets on the global market. This broker offers an average payout of 81% and the minimum deposit is set at $100.

This experienced broker offers three binary options types: One Touch, High/Low and Option Builder. They offer high returns and a full package loaded with various options and assets to be traded. The unique feature of the broker is their new META trading platform. This newly designed platform allows specialized analytics to traders as well as advanced charting capabilities.

While the options trading platform can be used by both novice and experienced traders, it is likely the design is more favorable for the expert trader. It has a few features that the novice trader could possibly find confusing. However, after gaining some valuable experience on a binary options market like OptionFair the novice trader will most likely not have any difficulties.

These are two of the more reputable binary options brokers that can be used by traders. Each of these have some unique features that sets them above the rest. Each of these will offer the novice and advanced trader a very pleasant trading experience.

Best US Binary Option Brokers in 2017

With that in mind, our list of binary option destinations recommended for US traders must begin with regulated exchanges. Some might say it has to end with them too, but there are in fact a few brokerages out there, getting by in a legally grey area, which also peddle binary option trading services to the US public. Let’s not cut ahead of the chase though and take a closer look at NADEX, CX (Cantor Exchange) and the CBOE (Chicago Board Options Exchange) first.

As you may have noticed, all these “institutions” are called exchanges, rather than brokerages and there’s a good reason for that. Unlike CySEC-regulated binary option brokers, these US-based and focused exchanges do not trade against their own clients. According to what can essentially be called the “CySEC business model”, brokerages currently operating within the EU and in other non-US jurisdictions, act as their own, sole price-makers. What this means is that the broker establishes the pricing on the underlying commodities, after which it essentially goes up against its own customers. If you think trading against someone on a playing field the rules of which you yourself establish isn’t particularly fair, you are right. The European way of trading binary options has long been frowned upon, even by local financial authorities. US authorities have been very categorical in their refusal to allow the proliferation of this binary option business model within their own jurisdiction.

The US model, used by NADEX, CX as well as the CBOE, is the exchange-based one, where traders act as price-makers, and where all the back and forth happens among traders. Whenever a trader closes a position in the money, another trader ends up out of the money, on the other end of that same proposition. This way, the NADEX-type binary option game could be called a zero-sum one, were it not for the commission the exchange cuts on every binary option trade.

While it is focused on the US market, NADEX is actually accessible to European traders too. It isn’t really surprising though that those used to the single market-maker model will find NADEX’s exchange-based approach a little confusing at first. What one needs to understand about NADEX is that its pricing is shaped by the proven mechanics of supply and demand. The profits on a single trade are always capped, since upon expiry, a binary option is worth either exactly $100, or $0. There is no middle ground. Before expiry, options can obviously be sold for different sums between $0 and $100, depending on the likelihood of success. To increase profit potential at NADEX, one can purchase several options in one go. The minimum required deposit at NADEX is $100.

With the exchange-based business model, liquidity is always an issue. Since they are responsible for the pricing, traders represent a valuable resource for binary option exchanges in more ways than one. If there’s lack of trader interest in a specific type of underlying asset, pricing will simply be unavailable, which means that even those specifically looking to trade that asset will be denied.

While NADEX is focused on retail traders, CX brings a different sort of approach to the table. By offering an exchange-based platform to technology providers, they are looking to bring CySEC-based binary option actors into the US fold, by granting them access to the market, as well as to the technology needed to implement the US business model. The tradable asset-wise retail offerings of CX are currently not overly impressive.

The CBOE is aimed at US traders first and utmost. It is a physical exchange, so trading binary options with the CBOE is only possible through a US -based broker. In theory, international brokers approved for US option-trading can be used for this purpose as well.

Finpari is a non-US brokerage that offers binary options to US-based customers. The Finpari model is not the above-described exchange-based one, and as such, it cannot offer 100% returns on winning trades. The Finpari returns are in the 80-87% range. The minimum deposit at Finpari is $250. This broker is not regulated.

Another non-exchange binary option solution for US traders is MarketsWorld.

MarketsWorld is regulated by the financial authorities of the Isle of Man. The minimum required deposit with this broker is only $10, and the minimum trade amount has been set to $1.