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Binary trading has become increasingly more common in the last few years, its popularity grew largely because of the relative simplicity in the way they work. As a result of its increased popularity, you have plenty of options when it comes to choosing a broker to use. The online brokers listed below are among the very best brokers for trading binary options.
They all come highly recommended and we suggest that any trader looking to sign up with a broker should choose one from this list. The trading of binary options, also known as digital, used to be quite limited as these were classed as exotic and only traded over the counter. However, ever since a range of these were created with standardized features, and subsequently listed on a number of exchanges, the volume of them being traded has grown significantly.
This development also led to many more brokers including binary options in their range of products. Although this is largely a good thing, it can make it more difficult to decide where to trade. That is why we have compiled the above list, to make it easier for you. We have also provided some additional advice on deciding where to sign up below.
Every trader has to make a decision about where to trade, and it isn't a decision that should be taken lightly. There is a huge range of online brokers on the web and it can be tough to know which broker is the best one to use. There is not really a single broker that could be classified as the best because, a broker that might be suitable for one trader is not necessarily going to be suitable for you.
This is precisely why it's important to choose the right broker, and why at OptionsTrading. This is something we have put a great deal of effort into doing and we have carried out extensive research into a large number of online brokers.
This particular page is focused on the best online brokers for trading binary options, as per the recommendations we have listed above. In our opinion, there are some specific factors that traders need to take into account when deciding which broker to sign up with because, these options are quite different from thd other types of options.
In particular, we believe that anyone trading binary options should take the following three things into account before selecting an online broker to join:. Binary options are known by a number of different names, one of which is the "all-or-nothing" options. This name is appropriate because, technically, trading a binary contract will basically result in one of two outcomes — if it expires in the money then you get paid a return and if it expires out of the money then you get paid nothing.
As we have already mentioned, the simplicity of this method is one of the reasons why this type of trading has become so popular. However, it is not entirely that straightforward. Some brokers will pay out a specific fixed amount if a contract finishes in the money, while others will pay out a percentage of the original investment.
The percentage paid out actually varies between different brokers, and this means that your potential profits can be greatly affected by which broker you are using. Therefore, you really should look at what the payout percentage, or percentage range, is at a broker before you sign up with them. This issue is further complicated by the fact that some online brokers pay out a lower percentage on winning trades, but also offer a small percentage rebate on losing trades.
As such, it's not necessarily a simple case of choosing the broker with the higher pay out percentage, because you also need to take into account how much value the losing trade rebates could provide you. Another big reason why traders like to trade binary options is the fact that it's possible to make quick returns due to the length of these contracts. Brokers typically offer binary options that expire at the end of the day, so a decision to enter a trade in the morning can generate you a profit that same day if successful.
Many brokers also offer contracts that last for an hour, and some have contracts that run for 15 or 30 minutes. You can even find brokers that last for just one minute. If you are looking to trade binary options of a specific length, looking to make profits in very short time frames for example, then you need to use an online broker that offers the contracts you need.
Another result of the increased popularity of binary options trading is the fact that most traders will go to great lengths to attract new customers and keep them happy once they have signed up. The most common method used to generate interest from new customers is offering sign up bonuses — which are basically extra funds to trade with a broker may give you when you first sign up. Such a bonus can provide you with some welcome extra value when you join a new broker, so it's worth seeing what is available.
Please be aware, though, that you typically have to meet certain conditions to get these bonuses so be sure to check the fine print. A number of these places also offer existing customers additional benefits, usually based on the value and volume of trades being made. These offers can include further bonuses, or perks such as a personal account manager or faster withdrawals. If you are making a lot of trades, or planning to, then it's worth checking to see if a broker has some kind of loyalty scheme or benefits for big customers.
Trading binary options has a number of key differences to trading other kinds, and as such binary traders have slightly different requirements to most traders when it comes to deciding which broker to use. If you are an experienced trader then you are probably already perfectly aware of this, but beginners might not know exactly what to look for.
Whatever your level of experience is, we advise that you stick to the recommendations we have made on this page when choosing an online service to sign up with and also pay close attention to the points that we have mentioned above. Best Brokers for Binary Options Binary trading has become increasingly more common in the last few years, its popularity grew largely because of the relative simplicity in the way they work.
Best Option Brokers By Category. The Importance Of Choosing The Right Broker Every trader has to make a decision about where to trade, and it isn't a decision that should be taken lightly. Where to Trade This particular page is focused on the best online brokers for trading binary options, as per the recommendations we have listed above.
In particular, we believe that anyone trading binary options should take the following three things into account before selecting an online broker to join: Length of Binary Options Another big reason why traders like to trade binary options is the fact that it's possible to make quick returns due to the length of these contracts.
Summary Trading binary options has a number of key differences to trading other kinds, and as such binary traders have slightly different requirements to most traders when it comes to deciding which broker to use.