Binary Options Broker Comparison – The right trading options
Use our broker comparison and the present strategies. Then you can trade binary options with a great chance of success from the start!
Trade with binary options now: Broker comparison and strategies
A relatively new trend in the field of speculative investments is ‘binary options’. We have made it our task to fully inform you of this new type of speculation. We explain what binary options are, how trading in binary options works and what binary option brokers there are.
With us you can also compare binary options brokers in order to find the best broker for you. All information and help are free of charge so that you can only benefit from the service. But first let’s start with answering the question: what are binary options?
What are binary options about?
Maybe you already know the classic options, for example, the Call- or Put- options on the development of stock or commodity prices. If you have experience with these options you may not have possibly dared to use the other tools because the classic options are comparatively opaque. Various indicators/ratios play a key role here and the value of the option also has an impact on their price. The ‘weakness’ of the traditional options is that there aren’t binary options in the field. The binary options are distinguishable namely by their simplicity, in comparison. Also known as ‘digital options’, binary options are mainly popular because of their transparency for many traders. As a speculator you just have to decide whether you think that the price of a base asset has fallen or risen at time XY. However, possible indicators or time values are not considered to be binary options. Whoever wants to trade binary options must ‘merely’ decide whether the market trend is positive or negative. As well as the base values, the assets to choose from are equities, indices, currencies and commodities. Whoever starts from rising prices/rates, then speculates with a Call option.
Whoever sets on falling prices, buys a Put option. Should the “predicted” assessment of price developments occur the trader receives a previously known return, which could have a profit 70-91 percent with simple options, depending on the broker. However, if the opposite price trend happens the invested money is lost, up to a possible loss protection of 20%. In addition to the simple Call- and Put- options binary options brokers offer additional trading types with possible profits of up to 500 percent, according to comparison.
Essential features in comparing binary options brokers:
Simple and transparent products
Possible trade from only a few euros
Profits of up to 500%
Speculating on rising and falling prices
Loss protection possible
No indicators or time values to observe
Choosing the “right” brokers is important in order to be as successful as possible when trading in binary options.
Distinctive characteristics that make up a good binary options broker
Various binary options have different services and conditions, sometimes quite significant differences, so it is always advisable to perform a binary options broker comparison.
There are distinctive characteristics which can distinguish a very good broker from another.
What are they exactly? We’re here to count them for you:
Minimum deposit is important. A low initial minimum deposit, where only a little capital needs to be paid, is especially important for beginners. A very good broker will offer a low minimum deposit, as low as 100 euros for example.
Another positive feature is a low minimum trading amount. After all, first time binary option trader do not want to use a lot of money yet, but cautiously approach trading. The best brokers allow trading from just a few euros.
Professional traders often want to be able to trade from anywhere. Therefore they want a broker that offers so-called mobile trading. In this there will be significant differences between brokers.
The use of a demo account is a distinguishing feature of good binary options brokers. So far, however, not many brokers offer a demo account. This account is very important for beginners because then trading in binary options can be tried without risk.
Finally, a binary options broker can excel in comparison to others when it comes to the highest possible bonus. There are already several brokers who pay a first-time deposit bonus of up to 100%.
Tips for successful trading with binary options
As with nearly speculative financial trading, such as forex or CFD trading, there are some tips on how to successfully trade with binary options.
A very important tip is to first “choose” a strategy, based on the trade. You can choose classic trend-following strategies or focus on a strong price fluctuations volatility strategy.
Emotional trade rarely leads to success. Therefore it is important to stick to the chosen strategy and to not immediately switch strategy even when faced with interim losses.
In the beginning trade should only occur with smaller amounts. The amounts, and hopefully the profits, may then continue to rise gradually.
An important tip is also, never to act with all the available capital. Depending on willingness to take risks, it is advisable to only use 1-10% of the available capital per trade.
Speculating on different asset classes
With the help of binary options traders have the possibility to speculate on rising and falling prices. This speculation is not just limited to shares. Many brokers offer more asset classes.
Traders can therefore operate in various asset classes and be active in different markets. This increases the chances of profits and opens up numerous opportunities. Therefore it is important, to choose a broker with an appropriate listing and to open an account here. Traders should also take to choose a broker who has opened several trading options. These should not only offer the classic Call- and Put- options but also offer other trading types.
Popular trading types include:
One Touch trading
Whilst Call/Put trading is especially interesting when values greatly fluctuate, the One Touch trade can guarantee profits even in sideways markets. In this trading type, the selected value during a specified time period only needs to touch an upper or lower price line. The option is when this happens. In Range trading the value must be within a price window and not move outside of it, up or down. During Early Close, existing positions can be closed ahead of schedule, although the rollover option allows an extension of existing positions. The offered options can be found on the brokers’ website.
Trade successfully with investment strategies
Basically, binary options are financial bets placed on developing values. Although luck plays a large role in the game, a part of the success of professional traders is their investment strategies. Binary option strategies can be even help beginners to succeed and have a quick start.
Common binary options trading strategies include:
The most commonly used strategy is trend following. As the name suggest, a trader finds a trend and tries to take advantage of it. It could be either an upward or a downward trend. However it is essential to localise the trend depending on the value and to invest in good time. Some brokers offer a trend analysis that individual traders can use. For very intensive fluctuating markets, the volatility strategy can pay off. In this strategy, not only a call or a put option is purchased but the trader invests in both. It is assumed that movement in one direction will so great that it will offset the cost of the other option. Traders
should have some trading experience and been successful at it in order to use such strategies. This also applies when using the hedging strategy, which is primarily used for existing depots.
Selecting a suitable trading platform
When trading binary options it is important to react quickly and utilise the opportunities. As such traders require a professional trading platform is not only clearly designed but also operated intuitively. In the area of trading platforms, each broker has a very special offer, which should be checked in advance. Whilst some brokers rely on the established Meta Trader 4 and offer a free download, other brokers develop their own platform which can be very beneficial for traders. As well as the adjusting of trades, it is important that these platforms have various additional functions, such as real-time prices, news from the financial world and news on current charts. This is so that traders can refine their trade and become successful. In order to operate flexibly, it is important to choose a broker whose trading platform can be used on mobile devices. Traders are increasingly choosing to trade at home and on the go. For this purpose either a web-based platform or an app, which can be installed on your smartphone or tablet is required. The different rates of the broker can easily be accessed and checked online.
Demo account for beginners
Trading with binary options may, at first glance, appear to be a “closed book” for beginners. Betting on the right price movement seems more like luck than strategy which may well lead to uncertainty. To prevent this uncertainty and to convince more traders to trade binary options, many brokers now offer free demo accounts.
With these, virtual trade in real time, invested without ‘real’ money, is possible. Brokers provide newcomers with ‘play money’, which can then be invested in the market. Newcomers can learn how to operate in the markets, what strategies can be easily implemented and how possible it is to gain quick profits without risk. Failed investments are the risk of binary options, namely total loss. Whoever still wants to trade with these speculative financial products, can then open a real account online and make their first deposit.