While the binary option trading industry is indeed dominated by a handful of major technology providers (like Spot Option and Tradologic) it seems like the most successful, popular and attractive brokers all have their own, proprietary trading platforms. Learn more in our guide to the best binary option brokers and trading platforms.
What are the best binary option brokers?
There’s no point in beating about the bush: the most popular broker out there is IQoption, and when it comes to scrutiny, they do indeed pass with flying colors, in just about every way. These guys have put together an offer no red-blooded binary option trader can resists and no other broker can match. The minimums on first deposits in the binary option industry are mostly in the $100-$250 range. IQoption feature a minimum requirement of $10 on their first deposits.
That is indeed quite unheard-of. Some will be quick to point out that such a small deposit will not give traders a reliable starting point, but they’d be wrong. This $10 minimum only means traders have the freedom to size their deposits just about any way they want to. They can go with $50, $200 or $5,000 too. It’s entirely up to them. Kudos to IQoption for giving their traders such a wide range of choices in this respect.
In regards to the minimum trade amount, IQoption only require their traders to risk $1. Again, this may not be the most optimal way to approach trading, but it leaves plenty of room for traders to maneuver capital management-wise.
As far as option types are concerned, IQoption aren’t really in line with the rest of the industry: they only offer two types of options. Their Turbo options expire in 5 minutes. The other option type consists of options which expire in more than 5 minutes. This is perhaps the only area where they leave room to improvement. Their proprietary platform didn’t allow any auto-trading for a while there, and this was the other factor cited as a disadvantage at the site. They have recently come up with something much better though: they now have a platform that allows traders to create, to back-test and to share trading robots right there, on the spot. This feature is a first in the binary option industry and it may indeed turn out to be a revolutionary one. Those who cannot create their own trading robots, are free to simply take one of the robots created by someone else and to put it to use. Robot creation isn’t the rocket-science one would think it is at first glance, either. The IQoption platform features a number of superb tools in this respect, which make the creation of a working auto-trader a cinch for everyone with a basic understanding of technical analysis.
Another superbly popular trading destination is NADEX. The great thing about NADEX is that it’s licensed in the US and as such, it legally accepts US-based traders. The operation is regulated by US authorities and it is therefore subject to much stricter laws than its EU counterparts. The business model adopted by NADEX is different as well: it’s more of an exchange-based one, which means that there is no market-making monopoly. This fact alone makes the whole proposition much fairer from the perspective of the trader. While the great regulation and the exchange-based model are both extremely attractive to traders outside the US as well, it has to be said that trading itself works differently at NADEX, and thus, people who make the move there from a CySEC broker, may have to actually learn to trade over again.
Its peculiar business model makes NADEX a great fit for some of the trading signal services out there, especially those that provide complex signals.
Another popular broker is Banc de Binary. Banc de Binary use the ubiquitous Spot Option platform, therefore it’s safe to say there’s nothing special in the way they actually go about the main part of their business. When it comes to regulation though, Banc de Binary are true trail-blazers. They’re currently licensed by CySEC and a number of other national authorities world-over. They even worked in the US for a while, but they were forced to concede that market. To this day, they’re always with an eye on the latest requirements of national regulatory bodies, and they seem committed to following the rules to the last letter. Their latest move in this sense included the termination of all bonus-based promotions, which encouraged traders to invest more. The banishment of such bonus-based promotions has recently been requested by ESMA, who have deemed the MO of these deals unfair and abusive towards traders. Indeed, there are scores of such promotional deals out there, which never actually give traders any sort of a chance to see any money off them.
To make a long story short, the best and most popular brokers/trading platforms all work a number of variables of the binary option equation well. They offer good regulation, a fair trading environment, flexible requirements on deposits and trades and top-notch trading tools. That there is indeed the best recipe to long-term success in the binary option industry.