Top binary options
Not many binary brokers operate, but we were able to review the top 3 brokers in 2019. There is one licensed broker, HighLow, and the rest of the companies operate unregulated with questionable reputations.
You can trade binary options at a regulated broker with potential payouts up to 100% and a $50 cash back offer.
In 2019, binary options brokers are mostly struggling but still enjoy some popularity in Asia and Africa. People in Australia, Indonesia, Singapore and South Africa are still able to trade binary options and profit on a fixed return on investment. Binary options are also popular in Japan, Malaysia, India, Brazil and Nigeria.
HighLow is the only regulated binary broker. The company is licensed in Australia by the Australian Securities and Investments Commission (ASIC). Traders’ funds are held in segregated accounts with the National Australia Bank. You can make instant deposits via a number of e-wallets and withdrawal your profits in less than one hour.
Traders can enjoy a cool platform layout that works with all kind of expiries from 30 seconds to 24 hours. The one-click trading gives you better positioning and instant execution on every contract. The best payout of 100% is paid on spread options. HighLow also runs 30 seconds, 60 seconds and 5 minute options.
You can enjoy binary options trading in a safe environment with professional support and the best payouts in the industry. For all new clients, the company offers $50 cash back: if you lose $50 trading, the broker will refund your first loss.
Currently, HighLow does not accept clients from the USA, Canada, and the EEA countries.
Ayrex is one of the few binary brokers left operating unregulated. The company is based in St. Kitts and Nevis and accepts clients from most European countries. The broker is also popular in Asia and South America, as it runs a free trading contest with over $1,000 in monthly cash prizes.
The trading platform is easy to navigate and offers short term options from 30 seconds to one hour expiries. Traders can switch between area and candlestick charts and add the Bollinger Bands indicator. To test the platform, you can easily turn on the demo mode, which doesn’t require registration.
If you want to open a real account, the minimum required deposit is $25. Clients based in the EU will have to use FasaPay e-wallet for deposits and withdrawals.
Currently, Ayrex does not accept clients from the USA, Canada, and the UK.
ExpertOption is regulated by the Vanuatu Financial Services Commission (VFSC) and runs binary trading in Asia, Africa and South America. The company has provided binary options since 2014 and runs a crypto wallet with more than 40 available currencies. Traders can start a real account with only $50 and make deposits via a number of e-wallets and crypto wallets.
You can apply your trading strategy right on the platform by adding multiple indicators, including Bollinger Bands, RSI and MACD. The layout is clean, and contract execution is completed in split second.
Traders can use expiry times from 30 seconds to 5 minutes and trade over 21 currency pairs and crypto pairs. You can receive up to 91% payout on a successful trade, and the minimum trade amount is only $1.
Currently, ExpertOption does not accept clients from the USA, Canada, Australia, Japan, and the EEA countries.
Binary options ban
The European financial regulator (ESMA) extended the ban on binary options in 2019. This means brokers are not allowed to provide binary trading to retail traders who are residents of the European Economic Area (EEA). In addition, binary options or digital options, in the form of spreads betting, are not allowed in the US and Canada.
Retail traders who are residents of the EEA will have to apply for a professional license if they wish to continue trading binary options.
After being under scrutiny, the binary brokers had no choice but to shut down or search for unregulated markets in Asia and Africa. The few brokers that still operate in 2019 accept clients mostly from countries in Asia and have difficulties working with VISA and MasterCard if they accept EU clients.
Best Trading Platforms
In terms of software, you can enjoy very professional trading platforms with IQ Option and Ayrex. Both platforms offer stunning graphics and flexible designs, which can fit any trader’s style. You can set up your strategy right on the platform using a number of technical indicators and graphic tools.
Most binary brokers develop custom trading platforms and do not use MetaTrader software. The web platforms work smoothly and offer binary trading 24/7 on forex pairs and cryptocurrencies. Traders can purchase multiple options with one click and the execution occurs in split second.
You can access the platforms through a web browser only; mobile apps in the App Store and Google Play are not allowed.
If you trade short term options, the most important is the payout percentage for a successful trade. The ASIC-regulated broker HighLow is the winner when it comes to payouts. The Australian broker offers 90% payout on average, the 60 second options are paid at 95% and the spread options are paid at 100%.
Usually, the best payoffs are found on the most volatile pairs, such as EUR/USD and USD/JPY, with the shortest expiries, such as 30 seconds and 60 seconds. The higher the risk, the bigger the payout.
Not many brokers offer instant withdrawals. Even when dealing with a regulated forex broker, it might take some time for a withdraw to be approved. Timing depends on the broker, but it usually takes up to 24 hours for your withdrawal to be processed. The fastest way to cash out is via an e-wallet, such as Skrill or Neteller.
To be safe, you better deal with regulated brokers only, but finding a regulated binary broker might be tricky. The only licensed broker is HighLow. The company is regulated by the Australian Securities and Investments Commission (ASIC).
Binary Options Robots
You might see ads about binary robots, which will trade on your behalf and will make you rich quick. You should definitely avoid these robots or any auto-trading software that promises you huge profits. These “money machines” are programmed to make you lose in the long run and are not regulated.
Instead of using binary robots, you can develop a strategy on MetaTrader 4 with some custom indicators. Once your strategy gives you a Call or Put signal, you can place a trade at your broker.
How to profit
It is difficult to keep your balance positive when dealing with binary brokers, mainly because the risk reward is 1:1 or less. For example, in forex trading, you can risk $100 to make $200 profit, but with binary trading, you risk $100 to make $90 profit. Thus, the broker is always in a better position.
Your advantage in binary options is that even 1 pip matters. For example, you buy a Call option on EUR/USD at 1.1320 and the price at expiry is 1.1321, which makes your trade successful. You will be able to make $90 profit every 60 seconds, while at a forex broker you might need to wait much longer for such a reward.
Profiting in a long run with binary options is difficult but not impossible. It is important to establish a strong trading strategy and manage your risk properly. In our experience, the best payoff is trading trend pullbacks.
Once swimming in the Pacific Ocean with the big sharks, in 2019, the binary brokers are more like marmosets hidden deep into the jungles of Brazil and India. It is still possible to find them and it might be fun to play with them, but it is not allowed.