The Best Binary Options Brokers 2023
Binary options might sound like some complicated things to trade, but they aren't. So, let's dive in and get to know what this means and then tell you who the best binary options brokers are. That way, you will get into the market armed with the knowledge of what to trade and how to trade.
As we have stressed many times in previous reviews and informatics, the best forex brokers are a big part of what makes a trader successful. To have a great broker in your corner is to ensure that you get access to the best of everything.
So, what are binary options?
Binary - Options Explained
Binary options are a type of financial exotic option that has a fixed payout in which you get to predict the results from two possible outcomes. If your prediction is correct, you get the payout. If your prediction is not accurate, you lose your stake.
The reason why we call it binary actually comes from this simple concept. There can only be two ways it ends. You win, or you lose. So that's two options, hence the word binary.
Traditional options are different. They have an expiration range that can last two years or a week. Binary options, on the other hand, have an expiration range that lasts from a few days to less than a minute.
Because of the variations in the expiration range, we get the calculations for profits you could potentially earn. When trading binary options, a trader will pay a percentage of the premium at risk, if the terms of the contract are fulfilled.
So, you get the predetermined profit, which is fixed, and no matter how much the market moves, that is the profit you will get. They are an all-or-nothing option.
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The Best Things About Binary Options
You might be wondering; what is so good about the binary options? Well, let’s look at some of the advantages of trading them.
Binary options can be traded with a relatively small amount of capital, making them an ideal way for new investors to get started in the markets. Also, binary options provide an opportunity to earn high returns in a short period of time.
All Markets Are Tradable You can trade on the underlying markets in any major asset classes, including metals, forex, stock indices, commodities, and CFDs.
You can take a short-term or long-term position and make the best for your projected outcome. The duration range is anywhere from 10 seconds to a year, in some cases.
All Market Conditions Are Eligible
When making predictions, you can bet on instruments going up or down, touch or no-touch, in or out, and just about every binary outcome you can think of.
Your initial stake is what you will lose and not more. You will not lose money that you did not put at stake. Your prediction could be for a payout that earns you $5,000 or $50,000, and you will get it if you win. If you lose, you only lose what you staked.
How You Make Money on Binary Options
To make it simple to understand the payouts and how they are made when you are engaged in binary options trading, we need details. So, let’s look at a scenario.
Let's say that you have $100, and you look at the EUR/USD pair and predict that the price will rise. Looking at your trading platform, you see that the payout is 79% on an option contract with a 60-minute duration, with a 1:3000 target.
So, you decide to buy a call/up option and put up the $100 premium for the risk. Two things will happen:
- The expiry price goes above the target price, which means you are in-the-money, and you gain $100 x 79%, which is $79. So, that's $100 + $79, which gives you $179. You have gained $179 on your account.
- The expiry price is equal to the target or below it, which means you are out-of-the-money. The outcome here is that you lose your stake and your account is down $100.
As you can see, the risk is limited only to the premium you paid on this option. There is no need to use stops or fear that you could lose more than you risk.
NOTE: You should know that there are some details about payouts, which makes brokers different. Some calculate it the simple way, and some have extra steps. Always check to ensure that you know what the payout will be like before you start trading.
Now that we have the explanation let's get into the details of which are the best binary options brokers.
IQ Options is one of the world’s leading brokers. They have a great proprietary mobile platform, which they advertise quite often. As with any broker, you will need to be disciplined when trading so that you do not invest money you cannot afford to lose. Let’s dive in and talk about IQ Option in-depth. Minimum Deposit: $10. Payout: 91% (credited to your account when trades go well for you).
For their clients to access markets and do trading, IQ Option made their trading platform. The platform has great features that traders would appreciate and want to have. From the interface to the navigation, it is easy to tell that they modeled it after the more popular platforms used by spot forex traders and brokers.
They have tools like stop-loss and take-profit level settings, among other useful features you will want to have. For their risk management provisions, IQ Option added a feature called ‘Position top-up,’ which allows traders to keep their positions open beyond the stop loss levels set.
Their trading buttons and strike-price features are easy to use. The intuitive design ensures that you do not have to struggle with how you navigate the app. They have price graphs and charts to help you understand where you are and what is happening.
The layout is such that you can make additional configurations and customizations to your liking. You can move the graphs and other tools around so that they are arranged in a way that works for you. The platform is available for PC or Max and on android and iOS devices as well.
At the moment, they do not have a MetaTrader integration. Apart from the modern and sleek interface, the platform allows you to change how you view the charts, using four layouts. They include; line, bar, area, and candlestick. You can choose the timescale for the bar and candlestick charts from over 18 different time intervals. You can use multiple graphs at the same time if that's what you want.
With their later updates, they added many technical analysis features for you to use. These include about 20 different indicators. With such impeccable charting, it is easy to see why IQ Option is one of the best options when trading binary options.
After you download the app, on PC or Mac and Android or iOS, you can just open it up and see what they offer to get the most out of it.
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