Investing > Best Binary Options Brokers

Best Binary Options Brokers

Binary options are favored by many traders. Let's see which brokers offer the best binary options trading services.

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Binary options are accessible and easy to understand compared to other options. They also have the potential to change your life. It’s no wonder so many people are looking to find a top-tier binary options broker so they can start working on their own trades and earning some money.

Yet binary options are also somewhat risky despite their apparent transparency. For instance, many binary options brokers aren’t very well regulated or are outright scams. Fortunately, we’ve already figured out the best binary options brokers for you to consider. 

Top Online Binary Options Brokers

This is our top pick for the best binary options trading brokers:

  1. IQ Option
    Lowest Fees, Big Bonuses
  2. BinaryCent
    Highest Bonuses
  3. 24option
    Best Analytical Tools
  4. Nadex
    The Most Regulated Platform
  5. Finmax
    Best Research Tools
  6. RaceOption
    Biggest Variety of Funding Options
  7. Binary.com
    The Only Broker that Provides Multiple Trading Platforms

Best Brokers for Binary Options Trading

1. IQ Option – Top-Notch Accessibility

IQ Option Logo
IQ Option offers the most intuitive options trading platform.

This Cyprus-based binary options broker is one of the most successful online options you can find. They process over 1 million trades every day and have clients from over 213 countries, including 43 million registered users.

Pros

  • Very accessible
  • Platform interface is easy to use
  • Low deposits and fees
  • Good maximum payouts
  • Lots of option diversity account available
  • Demo

Cons

  • Limited market availability

Visit IQ Option on IQ Option’s website

While they trade binary options, they also have over 250 assets to trade ranging from CFDs to commodities to EFTs. Thus, they’re a great platform if you want to start with binary options but maybe branch out into other choices later down the road.

Minimum deposit:$10
Minimum trade size:$1
Maximum returns:95%
Supported trading platforms:Proprietary Web, Android, iPhone iOS, Windows, and MacOS
Assets and instruments:Forex, Stocks, Crypto, Commodities, ETFs, CFDs, Binary Options, Digital Options
Payment methods:AdvCash, Neteller, Perfect Money, Skrill, Visa / Mastercard, WebMoney WMZ
Regulation:CySEC
US traders?No
Demo account?Yes

They offer a platform through the web, or you can use one of the trading applications for desktop computers or mobile phones.

Furthermore, IQ Option offers demo accounts, including $10,000 in “virtual cash” in order for you to experiment. It’s very user-friendly all in all, especially since the interface is easy to understand. They include several layout systems and financial information panels.

Determining the right technical analysis or alert systems to use is relatively simple, but there’s a layer of complexity hidden beneath that you can use to personalize your experience with a platform. Additionally, they provide new and experienced traders with risk-management functions like stop-loss options, trailing stops, and negative balance protection.

Their market options are quite diverse, with over 10 million different digital options available for trading. They’re also fairly accessible, with low minimum investments of one dollar and maximum returns at about 95% profit on your stake. Our comprehensive IQ Option review goes in more detail on how these traits may benefit you.

Note that their client list is relatively limited: no clients from the US, Canada, Japan, Israel, Puerto Rico, Australia, and the European economic area are allowed. They do see a lot of business in South African markets, however.

General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose. Jurisdiction Warning: Binary options via IQ Option are not promoted or sold to retail EEA traders. If you are not a professional client, please do not proceed with IQ Option.


2. BinaryCent – Low Fees and High Bonuses

BinaryCent Logo Banner
BinaryCent provides the lowest fees for options trading and high bonuses.

This trading platform is primarily based on forex CFDs. You trade binary options with forex as the assets in question, which is a little unique compared to other trading platforms you can find. BinaryCent is seeing a lot of use because they have low minimum investment amounts; you only need about $.10 to make an investment.

Pros

  • Lots of potential profits
  • Very accessible
  • High bonuses allowed
  • Low fees overall
  • Lots of educational materials

Cons

  • No trade signals offered
Visit BinaryCent on BinaryCent’s website
Special:

Use Tokenist code LIMBO20 to get a 200% bonus on your first deposit.

They offer three account types depending on your starting capital, ranging from Bronze to Silver to Gold. Minimum deposits range from $250-$3000, and all accounts get 24/7 live video support, 20% bonus offers, and copy trading tools. The Silver account gets access to additional training tools, a 50% bonus, and three risk-free trades.

Minimum deposit:$250
Minimum trade size:$0.10
Maximum returns:95%
Supported trading platforms:Both desktop and mobile with an app available on iOS and Android
Assets and instruments:Commodities, Crypto, Forex, Options, Indices, Stocks, CFDs, Binary Options
Payment methods:Visa, Bitcoin, Ethereum, Altcoin, Perfect Money
Regulation:Vanuatu Financial Services Commission
US traders?Yes
Demo account?Yes

Finally, the Gold account gets a personal success manager (think of them as a training guru) and a 100% bonus. As you can see, the profits from BinaryCent are potentially quite high.

They also offer a demo account for beginning traders and maximum revenues up to 95% profit; this will help rookie traders develop trading strategies and better their trading skills. The platform is fairly accessible through most mobile phones or Windows or Mac browsers.

The only downside is that they don’t offer trade signals; you’ll need to rely on the analysis of your forex assets in order to successfully make a trade. This leaves you somewhat in the blind compared to other trading platforms. 


3. 24option – Excellent Analysis Tools

24option banner
24option provides its clients with best analysis tools.

This online trading platform is based in Belize, and they’ve been around since 2010, giving them a good history of stable and reliable service and a decent reputation. Their trading is enabled by a third party called TechFinancials, and the brokerage is heavily regulated by CySec. Note that, unfortunately, 24option doesn’t accept any traders from the US, Australia, China, Europe, and more.

Pros

  • Lots of assets to choose from
  • Excellent financial analysis tools
  • Uses a great chart platform
  • Generally still considered to be regulated
  • Interface is intuitive and user-friendly

Cons

  • Limited client availability
  • Potential profit is a bit limited
Visit 24option on 24option’s website

They have both a trading website and apps for Android or Apple phones. Their interface is pretty easy to grasp, and there are multiple filters you can use to control which CFD binary options you want to see or pursue.

Minimum deposit:$100
Minimum trade size:$24
Maximum returns:88%
Supported trading platforms: TechFinancials Web, Android and iPhone
Assets and instruments:CFDs, Forex, Crypto, Stocks, Commodities, Binary Options
Payment methods:Bank Wire Transfer, Visa and MasterCard, Diners Club, PayPal, Sofort, Trustly, GiroPay, MyBank, EPS, iDEAL, Przelewy24
Regulation:CySEC
US traders?No
Demo account?Yes

The available commodities or assets you can trade are fairly diverse, affording you lots of options to experiment and find assets that work well with your trading strategy. The minimum deposit is a bit higher compared to other brokers you can find at $250, but it’s not exorbitant.

Maximum returns are 88% profit on your stake; this is a bit of a downer. Considering that some brokers give up to 95%. But they do allow bonuses up to 100%, which makes up for this minor downside. 

Experienced traders will also really appreciate that 24option uses the MT4 platform, which is arguably the most popular and used trading chart system and financial analysis tool suite available. The real-time information you can gather using these charts and tools shouldn’t be underestimated.


4. Nadex – The Safest Trading Experience

Nadex Banner Logo
Nadex is the most regulated options trading platform out there.

Nadex is an important platform to consider if you plan to trade binary options in the US. From a certain point of view, it’s the only real licensed broker in the USA where you can trade binary options (see our guide on trading binary options in the US for more information). This exchange platform lets you take positions on all kinds of options or contracts, but everything is well-regulated thanks to the guidelines of the CFTC.

Pros

  • Lots of market variety
  • Only licensed broker in the US
  • Software is excellent and user-friendly
  • Has a great demo account option
  • Generally low fees

Cons

  • Entry deposit is a bit high
Visit Nadex on Nadex’s website

Thus, it’s a great choice if you want to ensure that your money is safe when you’re trading.

Minimum deposit:$250
Minimum trade size:$1
Maximum returns:Varies
Supported trading platforms:Web browser platform can be used on PC, Mac and mobile browsers
Assets and instruments:Stocks, Indices, Forex, Commodities, Binary Options
Payment methods:ACH (Bank Transfer), Paper Check, Debit Card, Wire Transfer (Telegraphic Transfer)
Regulation:CFTC
US traders?Yes
Demo account?Yes

This platform allows you to place your orders directly to the exchange using their special software. It’s fairly user-friendly and easy to grasp, and it allows you to filter over 5000 contracts every day by various aspects like price, expiry time, or asset class.

Binary options only result in a $1 trading fee for every contract on each side of the trade, and $.90 for the entry and exit. These low fees make it a great platform in terms of accessibility alone.

Nadex also gives you a demo trading account with $25,000 in virtual money; it’s a perfect arena for you to practice your binary options trading skills. Actual accounts require a $250 deposit, which is a little high but not out of the ordinary for many top binary trading platforms.

Nadex’s other big positive is that it gives you access to a wide number of assets and commodities with which to buy or sell binary options.


5. Finmax – Best Customer Support

Finmax Banner
The Finmax platform comes with the best customer support.

This regulated binary options broker is owned and operated by Max Capital LTD, which is located in Bulgaria. It’s a relatively recent newcomer to the binary options brokerage scene, but they have a decent reputation and are regulated by the Russian regulatory body FMRRC.

Pros

  • Good market spread
  • Platform has a variety of excellent tools
  • Customer support is great
  • Apparently well regulated

Cons

  • Potential returns are a bit limited
  • Somewhat high initial deposit
Visit Finmax on Finmax’s website

They have an asset index across 70 markets and several favorable trading conditions/functions that you can use to execute your decisions in an instant. These range from no spread conditions, instant order execution, or 48-hour withdrawals.

Minimum deposit:$250
Minimum trade size:$5
Maximum returns:90%
Supported trading platforms: Desktop but also iOS, Windows Mobile and Android mobile devices
Assets and instruments:Stocks, Indices, Currencies, Commodities, Crypto, CFDs, Binary Options
Payment methods:Bank Wire Transfer, Credit/debit card: VISA, Maestro, and MasterCard; Online Payment Systems: Skrill, Qiwi, Neteller, Yandex Money, or WebMoney
Regulation:FMRRC
US traders?Yes
Demo account?Yes

Furthermore, Finmax gives you a free demo account that you can use without limits with lots of virtual cash. Once you get a taste for their software, you’ll find that they provide a variety of expiry times that range between 30 seconds all the way up to six months.

Thus, you’ll be able to rely on the news or other long-term predictions well when playing with binary options using this platform.

Their software is built in-house and works on most major platforms and mobile devices. They do also have a great customer support team that provides 24/7 support if necessary. All these positives being said, they have a relatively high minimum investment amount of $5, a minimum deposit of $250, and a max return of only 90%; some traders go up to 95%. 


6. RaceOption – Great Availability for Foreign Customers

Raceoption Logo Banner
RaceOption has the best options trading offers for foreign customers.

This UK-based binary options broker was established in 2014 and currently processes well over 10,000 trades every day. More importantly, they’re one of the few binary options brokers that allow clients from Canada, the US, and Australia combined. They actually don’t have any restrictions based on your country of origin.

Pros

  • Available in many highly regulated countries
  • No restrictions based on customers’ home country
  • Offers lots of funding options in different markets
  • Allows deposit bonuses up to 100%

Cons

  • Minimum deposit is $250
  • Only 90% max payout
Visit RaceOption on RaceOption’s website

Other positive features include deposit bonuses up to 100%, weekend trading markets, and one-hour withdrawals.

Minimum deposit:$250
Minimum trade size:$1
Maximum returns:90%
Supported trading platforms:SpotOption, iOS and Android
Assets and instruments:CFDs, Forex, Indices, Stocks, Commodities, Binary Options
Payment methods:Visa, MasterCard, Bitcoin, Altcoins, Ethereum, Perfect Money
Regulation:Finance Group Corp
US traders?Yes
Demo account?Yes

Their platform is available for the web and mobile devices and they offer excellent CFD trading tools like life charts and instant trade execution.

Their downside is their high minimum deposit of $250 and 90% max payout. Still, given all the advantages, these are relatively small downsides to overlook.


7. Binary.com – Provides Multiple Trading Platforms

Binary.com Logo
Binary.com is one of the rare brokers that provide multiple trading platforms.

This aptly-named online brokerage offers both CFD trading and binary options. It was founded in 1999, so the company is one of the oldest players in this market and has a long reputation. They have over 1 million registered users worldwide and are spread out across the world.

Pros

  • Works well for beginning and advanced traders
  • Lots of platforms to choose from
  • Works with customers from most countries
  • Have several rare options that other brokers don’t allow
  • Multiple payment options

Cons

  • Some offerings may not be seen as legal in most places
Visit Binary.com on Binary.com website

Unlike most other brokers, Binary.com provides you with multiple trading platforms to choose from, ranging between MT5 to Binary Bot to SmartTrader. This allows beginners and experts to take advantage of their network with the trading platform they prefer based on their experience level or ease-of-use.

Minimum deposit:$5 with e-wallet; $10 with debit and credit cards
Minimum trade size:$1
Maximum returns:91%
Supported trading platforms:Proprietary Web, Android and iPhone
Assets and instruments:Commodities, Forex, CFDs, Crypto, Binary Options, Stocks, Indices, and Synthetic Indices
Payment methods:Visa, FastPay, Neteller, Perfect Money, Skrill, WebMoney, QIWI, Paysafecard, Jeton, STICPAY, Airtm Mastercard and Maestro (withdrawals are only available for UK Clients)
Regulation:MFSA, VFSC, BVI Financial Services Commission, and Labuan FSA
US traders?No
Demo account?Yes

They also provide attractive return rates that can go as high as 1000% on certain binary options trades. Binary. com also offers great market options; you can trade with most major indices, commodities, currencies, and more. They also allow you the rare opportunity to sell your contract before the expiry time to lock-in profit or minimize your loss. Be aware that this may not be seen as legal depending on your home country.


A Guide to Binary Options Brokers and Choosing One For You

What is Binary Trading?

To answer this, you first need to understand what a binary option is.

These are actually simple traded options that many low skilled traders can take advantage of. In a nutshell, binary options are financial options that come with either a fixed amount pay off or no pay off whatsoever. This is reflected in the name. On a deeper level, binary options ask the trader to bet on whether an underlying asset will be above a certain price at a particular time or not.

A binary options trader can place trades based on whether they think an asset will be higher or lower than a fixed price. Where things get a little complicated is that binary options are treated differently both inside and outside the US.

For a financial option to be a binary option, the expiration date, time, and strike price all need to be clearly stated so that there’s no wiggle room or confusion on the part of any trader. These options are attractive because of their simplicity, but they also come with relatively capped profits.

As an example, a trader can place a binary option for an asset that becomes worth hundreds of thousands of dollars… But if the binary option was set at $100, that’s all they’ll get. Of course, the reverse is also true, making these options relatively low risk compared to other options on the market. A trader that makes an unlucky trade will also only lose their investment.

It’s the job of binary options brokers (at least outside the US), to disclose the correct payouts, strike prices, and more. These “strike prices” are usually the current price of the underlying financial product (i.e. the actual perceived value of a thing).

One additional thing to note about binary options is that they are designed to be held until their expiration dates. Once you’re in, you’re in until the option expires.

Binary Options Traded Inside the US vs Outside

Binary options that are traded outside the US have fixed payouts and risks but can be offered by individual brokers instead of being offered directly on an exchange. As a result, brokers can profit directly from the difference between what they pay or collect on winning and losing trades.

US binary options can only be traded by a foreign broker that has been registered with the US regulatory body or on an exchange board, which is regulated by the SEC. The majority of US binary options are traded on Nadex, which is used by US residents looking to get into this particular stock market game.

Why People Use Binary Options: The Pros and Cons

Given that the reward you can possibly get from “winning” on a binary options trade is rather limited compared to the explosive profit that you can make with other options, why do people even bother with this type of trading?

There are indeed only two outcomes with a binary options trade: win or lose and always with a fixed amount. But there are also generally no commissions or fees, as binary options brokers make their profits through other methods. These types of trades are also super simple and there’s only a single decision to make: judging whether an asset will go up or down.

Furthermore, binary options are attractive to many because there aren’t any liquidity concerns about the asset itself. No trader in the deal on the underlying asset, as everyone is just betting on expiration dates and times or strike prices. This makes binary options trading rather accessible from almost anywhere in the world.

The obvious negative is that the reward is almost always less than the risk, especially when you play “high-low” options – these are binary options where you place an option with an amount greater than what you could profit on. For instance, if your profit for a trade was $70 but your potential loss was $100… you’d better be sure that you’re making a good trade!

All this means that losing costs you more than winning, if your win/loss rate is 50%.

Finally, one last negative is that OTC (over the counter) binary options markets aren’t regulated outside the US, so if there is a trade discrepancy, you might be out of luck.

How Do Binary Options Brokers Make Money?

There are three main ways in which binary options brokers can make money:

  • Taking price differences based on the trading activities of traders who use their platform
  • cashing in money placed on losing trades
  • working on exchange models

Let’s explain these one by one.

Binary options brokers can earn money via cashing in on money placed on losing trades; they do this when you place a bid and predicted wrongly and lose the money you invest in that trade. The money then goes to your broker who might give you some percentage of the money back based on your agreement or their policy.

They can also gain money by trading activities from their traders. For instance, if you place a bid and make the correct prediction, you can get your original money back plus an additional 80%.

The broker gets the remaining 20%. In this way, binary options brokers get richer regardless of whether their clients win or lose.

The exchange model method of profit works by allowing traders to bet against one another. In essence, a binary options broker can take money lost by one trader and give it to another trader, charging commissions based on contracts purchased by both.

Naturally, most of these profits aren’t very large by themselves, but they can add up to a lot over time.

Minimum Deposits and Demo Accounts

When you’re looking for a binary options trader, one of the biggest things you should keep an eye out for are low minimum deposits. This is particularly true if you are trying to get involved with binary options or start trading for the first time; you presumably don’t have a very large lump sum to trade with, nor the experience to protect it reliably.

Small initial deposits mean that your investment risk can be low and you can still learn the ropes of binary options trading. Some binary options brokers allow you to place minimum deposits at prices as low as $5: this is easily lower than almost any other type of brokerage minimum deposit save for those institutions that don’t charge any minimum deposit. Even brokers that have minimum deposits beneath 50 bucks might be worth your time.

You should also examine what the broker requirements are for minimum trades or trade amounts. For instance, some brokers will charge a minimum trade requirement of around $25. Others may be much lower, around $2. Naturally, traders that plan to make lots of trades will want the broker with the lowest minimum amount.

In addition, plenty of brokerages may offer demo accounts. These are free accounts you can sign up for to try out binary options trading and examine a broker’s software platform without needing to risk extra money. Of course, you do still need to deposit real money to make a trade.

You can even use demo accounts to try out some of the platforms that we’ve recommended above.

Payouts with Binary Options

Binary option payouts can vary depending on your broker, specifically the percentage on offer.

Payouts can differ depending on the underlying asset that you trade in addition to the expiration time for the option in question. Payouts can also change on a trade by trade basis so the broker can maintain acceptable risk levels. What you want to do is look for general payout percentage ranges and make a decision based on that.

Once you choose a broker to investigate, you can look at their payouts for assets and expiration times and decide whether they’ll be worth your time and money in general. The top options trading platforms will feature demo accounts, and this is another aspect for which they are extremely useful.

You should also note that over-the-counter brokers and exchange trading options will have different payouts. Exchange-traded options are usually much better in terms of value for money, like using Nadex in the US.

Why Using Multiple Brokers is Advantageous

It might be smart to use multiple brokers at once or in rapid succession as you figure out which platform is your favorite. There’s no penalty for moving from broker to broker, so we’d very much recommend trying out each of their platforms individually to see which fits your trading style. Doing this early on is also great since you don’t spend too much time getting used to a single platform or building up an account balance that you’ll then need to transfer over.

You may also want a larger investment selection. Some of the best binary options brokers also function as the top CFD trading platforms, which can give you a greater exposure to assets.

However, as you gain experience with binary trading, you might actually decide to purposefully use multiple brokers at once. The payouts you can receive from binary options are rather limited unless you become very good at this type of trading, and some brokers are limited based on their markets and the assets they can provide options for.

Using multiple binary options brokers allows you to browse multiple markets at the same time and potentially increase your payouts. We would certainly not recommend this if you are a newcomer to binary trading (or any trading in particular), but those of you who want to juggle multiple accounts at once and potentially earn bigger money through binary options trading might consider this tactic.

How Is Regulation Handled with Binary Trading? OTC vs Exchange Brokers

Besides the aforementioned potential payout, the big difference between trading binary options on an exchange or over-the-counter brokers is regulation. 

OTC binary options first became fair game for most traders around 2008. These are available for virtually any tradable financial products, and allow individual traders to go long or short. Exchange-traded options can occur on several regulated exchange boards like Nadex or Daweda in the UK. 

Where regulation was concerned, OTC binary options have a bit of a shady history. Many regulatory bodies originally didn’t (or still don’t) know how to deal with these types of options for whether they should regulate them as a type of gambling.

These days, exchange-based binary options are much more regulated because the exchanges themselves are regulated. Keep in mind that exchange-traded binary options also charge a commission because the exchange acts as a middleman. 

FAQS

Which Binary Options Brokers Are Regulated?

Binary options brokers are theoretically regulated by the same bodies as other types of options, like the Commodity Future Trading Commission in the US or the Financial Conduct Authority in the UK. Many binary options brokers are regulated by multiple organizations in Europe, as these options are increasingly under scrutiny.

Technically, all binary options brokers will claim to be regulated. But only some have regulatory standards that are worth your time.

Are Binary Options Gambling?

Not really, although there has been some discussion along regulatory boards about whether or not this is true. The reason for the confusion is that binary options are structured similarly to bets on other “win/lose” scenarios.

At this time, most places and organizations don’t consider trading binary options to be a form of gambling. This may change with additional fees and regulations in the future, however.

How Successful Are Binary Options Traders?

In general and according to the mathematics of the type of trade that binary options represent, most binary options traders will not be very successful. Because you only ever receive less than 100% of what you put down on a binary options trade, you need to mathematically “win” more than 50% of the time.

This is very difficult to maintain over the long-term, so most people who attempt to make money using binary options and up losing money overall.

This being said, studying binary trading strategies and using the right platform can do a lot to hedge the bet in your favor. Most people on the stock market who attempt to actively trade also lose money because they’re inexperienced; the same wisdom applies here.

Is Binary Trading Safe?

Binary trading can be safe depending on how you go about your trades and how much money you put down. Doing your research and practicing before attempting to make serious money with binary trading is key to not dumping out your life savings into the market.

In terms of investments, binary options are pretty safe. Remember, no one actually owns the asset in question, so it’s not as though any investment you purchase is going to decrease in real-world value.

Is Binary Options Easier than Forex?

Many people perceive binary options trading to be easier than forex trading. This is just because there isn’t any changeability or malleability to the trade; binary options are simple yes/no trades were all the prices are agreed upon before any party puts money down. Forex trading requires that the investor doesn’t know the final risk or profit until the trade is finalized or closed.

What is the Best Binary Options Strategy?

We actually have a whole additional guide on binary options strategies that you should check out a few really want to make the most of your efforts. But the most common and easily effective trade strategy is directional or “trend” trading.

In a nutshell, you look at the trend that an asset price looks to be going and make a decision based on that. You look for overall larger swings in the market direction rather than smaller swings. In this way, you take a few positions and make bigger gains. \

For instance, you can take a call binary option that pays off if an asset price is higher than the strike price at the expiry date. Or you can use a put binary option that pays off if the value is lower than the strike price at the expiry date. These simple binary options are easy to apply to general market trends and a relatively easy even for beginners to figure out.

What kind of binary options broker did you decide to go with for your trades? Is there a strategy you like to use? Let us know and join the discussion about binary options brokers below!

All reviews, research, news and assessments of any kind on The Tokenist are compiled using a strict editorial review process by our editorial team. Neither our writers nor our editors receive direct compensation of any kind to publish information on tokenist.com. Our company, Tokenist Media LLC, is community supported and may receive a small commission when you purchase products or services through links on our website. Click here for a full list of our partners and an in-depth explanation on how we get paid.

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