financecheck.net is one of the most popular portals about Binary Options brokers in Europe. With our extensive test reports and broker comparisons, you can easily find the most ideal broker. Our broker table provides an overview of the relevant brokers on the market and shows which broker best meets your personal need.
We offer the following to assist you in choosing the right broker:
- Objective Test Reviews – What are the advantages and disadvantages of each broker?
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ETX Capital Binary: All advantages at a glance
- Great support with 24h-Hotline
- Max Yield up to 100%
- Many traning events and webinars
- High amount of tradeable underlyings
- Very userfriendly tradingplatform
- Safety regulation at the FCA
Binary Options Broker
- Great support with 24h-Hotline
- Max Yield up to 100%
- Many traning events and webinars
- High amount of tradeable underlyings
Min. Trade :
Min. Deposit :
Min. Trade :
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What are Binary Options?
Binary Options (aka Digital Options) are a modern financial instrument within the Option, which has become immensely popular among traders. As opposed to stock trading, Binary Options require a relatively small amount of capital, which makes it accessible particularly for novice traders. Depending on brokers, the minimum transaction value varies from 1 to 25 US-Dollar.
Binary Options (or Digital Options) are a new type of online financial instrument and has become immensely popular among traders. As you might have guessed from the word “binary,” the term suggests two possible investment options of a trading: call and put option. As a trader, you predict whether the price of assets (i.e., stock, currency, or commodity) will rise (call) or fall (put) within a certain time frame. If you predict successfully, you receive profit, and if not, you lose your investment. Each broker has profit rate, but generally it ranges from 65% to 85%. There are brokers who allow returns of more than 100% of the original value. A number of brokers offer a loss coverage, which minimizes the impact of unsuccessful prediction. This can be as high as 15% of the transaction value. Traders with proper skills and knowledge can quickly earn a lot of money on Binary Options since the returns are noticeably higher than on other trading alternatives. For this reason, Binary Option trading is becoming more and more popular.
Comparing Binary Options and Traditional Options
On stock trading, you can receive assets at the end of option period. This is not possible with Binary Options however. In contrast to stock trading, traders do not decide an individual asset, but instead they predict its corresponding development. The assets are used rather as a reference point. Based on the development of asset value, traders predict whether the price of asset rise or fall in value. Some of the common assets are shares, indices, raw materials and currencies. Normally traders predict development between two different variations. There are also binary buy and selling options in European and American variations. ‘Cash or Nothing’ options allow traders to earn a predetermined amount after the period. ‘Asset or Nothing’ options, on the other hand, pay out the price of the corresponding asset. ‘Traditional’ options are traded on official market place like the stock exchange EUREX. In contrast, Binary Options are normally traded on Over the Counter (OTC) trading. OTC trading takes place between two parties: broker and trader. There are also digital options which are traded using stock exchanges. However, there are exception. In 2007, the American ‘Options Clearing Corporation suggested to allow trading with Binary Options. Later the Securities and Exchange Commission permitted Cash or Nothing trading. European Binary Options have been traded on the American Stock Exchange since May 2008 and on the Chicago Board Options Exchange since June 2008.
Binary Options can be traded comfortably and easily over the internet and come with a lot of benefits as compared to stock trading. Neither a lot of time nor investment capital is necessary to start trading. Due to the minimal transaction fees, binary options are suitable for both low and average earners. Although trading on Binary Options does not require expert knowledge, those who are familiar with stock trading will be at an advantage. For beginners, getting a hang of this financial instrument is a quick and painless process. The potential profits and risks are easy to recognize from the very beginning, which makes trading with Binary Options very transparent. Traders have the choice between many different assets. Trading period is generally short and can be individually customized. Binary Options trading also do not require obligatory subsequent payment, and thus you can earn a lot of money in a relatively short time if you know the market quite well.
How Do You Trade in Binary Options?
Binary Options are amongst the most popular trading instruments. More and more new and inexperienced traders trade on Binary Options. This is mainly because of the relatively simple controls and easy-to-understand trading functions. There are relatively few stipulations to consider before starting a trade: computer/internet access and some capital. You do not need to have a fortune to start trading. Registration is free and is completed within just a few minutes. Brokers provide traders with access to a trading platform, which can be accessed from your browser or by installing software on your computer.
The trading platforms are generally well-designed so that it is easy to navigate around with just a few clicks. Layout is very clear and well organized, and individual features are tailored to traders. You can see all available assets and information regarding their development on the trading platform. You can then search for an asset you want to trade with and predict its future development based on the information given to you. Trading on Binary Options are called call/put or up/down trading. If traders predict the price of the asset will rise, then they buy call option. If they predict that the price will fall, then they buy put option. As such it is possible to bet on both rising or falling value of asset and make profit on Binary Options, which is not typical in stock trading. It only takes a mouse click to register your prediction. After selecting a call or put option, you select investment amount and the duration.
Minimum Transaction Fee, Durations and Returns
The minimum transaction fee on Binary Options varies depending on broker with whom you choose to trade. Generally speaking, the transaction amounts on Binary Options are noticeably lower than that on stock trading, which allows newcomers to slowly learn the ropes without having to invest a whole lot from the beginning. The minimum transaction fees varies from one to 25 US-Dollar, which allows traders to concentrate on their transaction amount instead of their entire account capital. If you invested five pounds, for example, then you would lose only five US-Dollar. Additionally, some brokers offer loss coverage, which prevents traders from losing the entire amount. Obviously not all brokers offer this feature. If traders use this feature, then the rate of return is accordingly lowered.
Trading period plays an important role in Binary Options. With each broker, you can set up various trading periods, which can be as short as 60 seconds on a given day. Traders can review the development of individual assets in real time during the trading period. Trading period does not influence profit nor loss before it ends. Only the value at the end of the period will count. Trading is very transparent as you are able to see how much money you win or lose at all time, which means traders would not have to worry about getting hit by a nasty surprise at the end of trading.
The potential return rate of Binary Options depends on factors such as brokers, assets, or trading period. Payments are between 65 and 85% on average. Traders can see the return rate immediately on the trading platform. These are fixed and cannot be changed during a trading period. You can also see how much you can earn before confirming your prediction on a particularly trade. If you invested 100 US-Dollar with a potential return of 85% and made a successful prediction, you would receive 185 US-Dollar into his broker account. The amount can be paid via bank transfer, credit card, or e-Wallet.
Binary Options Summarized into Simple Steps
Normally, trading with Binary Options is very simple and not very time consuming. First, you need to choose a broker and create an account. Then you select an asset and trading period using the trading platform. After selecting call (i.e., rising value) or put (i.e., falling value) option, you select transaction amount. All that is left is watching the development of the assets on their trading platform in real time. As soon as the period ends, you either receive the shown return rate or notice that you lose your transaction amount. Through the simple and easy-to-understand controls, Binary Options are ideal for those who have not yet traded with financial instruments.
What Can Be Traded Using Binary Options?
Interested traders often ask which markets or assets can be traded using Binary Options. The assets are the foundation of all tradings. The price development of assets influences whether the Binary Options makes a profit or a loss. The number of assets depends on the chosen broker and can vastly differ. Generally, assets can be divided into the following categories: Forex, currency pairs, shares, indices, and raw materials.
Trading with Forex Currency Pairs
The Forex currency pairs are amongst the most popular trading instruments and are available on nearly all platforms. This is mainly because many Forex traders are also interested in Binary Options. In addition, currency pairs are also reputable for their fluctuating values within short period of time. Currency pairs also offer ideal stipulations for special trading strategies. Nearly every broker offers a wide variety of Forex currency pairs including the most important pairs on the global market. The USD or Euro combination is particularly popular. Some other important pairs are GBP/USD, EUR/USD, CAD/USD, and EUR/GDP pairs. Brokers offer more exotic currency pairs as well. On average there are 10 to 15 different currency pairs to choose from. For this reason, Forex traders can expect to receive good return on their investments. Most brokers offer 5 to 12 currency pairs on average to trade in.
Trading with Shares and indices
hares are another popular trading instrument and can be traded with almos all brokers. The selection of shares greatly differ from one broker to another. Traders, who want to trade in shares, should search for a broker that meets their own specific needs. The most important indices include the Dow Jones (DJIA), Deutsche Aktien Index (DAX), and the Standard & Poor. Depending on the broker, you could also get access to the CAC 40 (France), the IBEX 35 (Spain) and the ISE 30 (Turkey). Some brokers only give you the options from a few Blue Chips relating to highly influential companies with high stock values. Some brokers, however, also offer a wide selection of small shares from around the world. Most brokers allow you to trade shares from Microsoft (MSF), Google (GOOG), and Coca Cola (KO). Facebook’s (FB) well-known and relatively young shares are also available via some brokers. When choosing a particular broker, the selection of shares certainly weigh hugely for those traders who are familiar with share trading. Many novice traders start with shares because of familiarity. Most providers offer shares that range from 20 to 60. The range of indices is noticeably smaller and is from 10 to 20 on average.
Trading with Raw Materials
Most brokers allow trading with raw materials. The amount available for raw materials, however, is relatively minimal as compared to for the other forms of assets. Three of the most well-known raw materials, gold, silver, and oil, are almost always available with any broker. Some brokers also offer other raw materials, such as platinum or copper. On average, brokers will provide 5 to 7 different raw materials that can be traded. However, many newcomers avoid trading with raw materials; instead, they start with currency pairs or shares. Binary Options with raw materials are regarded as a supreme discipline by many experienced traders. Generally it is extremely difficult to estimate the price development of raw materials within minutes or in a day. Speculation without any fundamental data has an enormous influence; therefore, it is most ideal for traders with previous experiences in trading with Binary Options and raw materials.
Assets Suitable for Each Individual Preference
Assets are the foundation of trading with Binary Options, and are crucial factor when choosing a broker. Because of the huge selections of different markets, you can always find a selection of assets that meet your needs and preferences. The Forex currency pairs are particularly ideal for traders who want to trade quickly with a large amount of risk. The most well-known raw materials, such as gold, silver, and oil are reputable for their fluctuating prices, but the fluctuations are not as extreme as for currency pairs. However, raw materials are not ideal for novice traders because of the aforementioned reasons. Usually, those who are new to the industry trade in shares or indices. As for experienced traders, they might find trading in shares or indices boring because prices might remain stable even when trading over long period.
What to Watch Out for with Binary Options?
Trading with Binary Options is relatively simple and only requires a few requirements before starting a trade. However, there are a few things to taken in consideration. The most traditional trading types are call and put options, where you predict the price development of an asset. In addition, there are a few other trading types, and each broker offers the different number of trading types. With additional trading types you can earn higher returns and use it in particular market situations.
How Does One Touch Trading Work?
Almost every broker offers One Touch as a trading type. This trading type works a little bit differently than the other types. With Binary Options an asset needs to reach a particular mark or touch level, which needs to be reached within a predetermined trading period. Only when this happens can trades end with a positive outcome. Depending on brokers, returns can be between 65% and 85%.
Some brokers offer higher returns with One Touch trading. These returns can be as high as 250% to 400%. Just like with the other trading types, the higher the rate of return is, the higher the risk gets. With High Yield options the estimated price is normally far removed from the actual development so that the probability of earning money with this type of trading is relatively low. However, if you predict the price development successfully, you can expect to receive a very high rate of return. There are special occasions where the market fluctuates so wildly that extreme estimations could match with the price development by the end of the period. In times of volatile market phases, like when market sensitive information is published, high yield options are a very lucrative investment option. Traders who content to take a high risk could end up earning a very high return on their investments. In addition, there are adaptation trading strategies to deal with the volatility of high yield options.
How Does Range Trading Work?
With some trading platforms, trading with range trading is also an option. Depending on brokers, this type of trading is called Border or Boundary trading. This trading type focuses on the developmental range of a particular asset. Traders predict where the boundaries will be lower or upper by the end of the period. Then they predict whether the base value will be within or outside this range. Traders who predict successfully would receive a very high rate of return. This can be anywhere between 65% and 85% depending on brokers. On the other hand, those who predict unsuccessfully would lose the complete investment amount. Some broker offer range trading in combination with high yield options. Traders could receiving very high returns, which could be more than 100% if the price development of certain assets fluctuates wildly within a short period of time. Certainly this increases the level of risk involved as well.
Generally the risk involved in trading with Binary Options is limited only to the investment. This is one of the many reasons why Binary Options have become so popular recently. In addition, many brokers also offer loss coverage, which means that traders who predict unsuccessfully could receive up to 15% of their investment back. Normally there are a few additional risk management functions available to traders on the trading platforms. One of the most well-known risks is the ‘Options Builder’ function. This function allows you to adjust the amount of money returned to you in case of unsuccessful investment. The higher the loss coverage is, the lower the rate of return gets and vice versa. This is particularly suitable for those traders who averse to a high risk.
The Early Closure Function
Most brokers offer ‘Early Closure’ function. This useful function allows traders to end trades prematurely instead of having to wait until the end of trading period. By ending trades early, traders can avoid any last minute fluctuations which may influence a return on their investment negatively. Therefore, it is a very useful function to minimize potential risks. However, those who take advantage of this function would have a lower return rate as a result.
Roll Over and Other Additional Functions
With the ‘Roll Over’ function, it is possible to extend the duration of their trades. This functions can increase traders’ chances of making a profit while lowering the rate of return as a consequence. The aforementioned functions (i.e., Options Builder, Early Closure, and Roll Over) along with their corresponding trading types are just a few examples of the features that many brokers offer. More and more trading types and functions are added on a regular basis as the growing number of brokers enter to the market. Successful traders are not the ones who only know about the market situation, but also the best trading types and functions available on the market.
How Can I Find the Best Binary Options Broker?
In order to start trading with Binary Options, you need a working computer and Internet connection. After you have these two, you can choose a broker. Brokers provide access to the trading platform, on which traders invest their money. That is to say, the foremost important step into the world of Binary Options is to decide a broker. There used to be only a few brokers on the market, and choosing a broker relatively simple and straightforward for new traders. Recently, however, the number of brokers are constantly growing, which makes it more difficult to choose a broker. There are a few criteria to consider for choosing a broker effectively.
Minimum Deposit and Investment
The minimum amount of initial deposit is definitely one of the most important factors to consider. The differences in the amount among brokers are quite incredible. The minimum transaction fee is another important factor to consider. Only after depositing the minimum transaction fees, it is possible to use the platform. Most brokers require at least 100 US-Dollar deposit, while some brokers simply require a few pound investment per each trade. The average amount of investment is 10 to 25 US-Dollar. What is important to consider here is their own trading needs and preferences. The relationship between the trading account class and the minimum transaction value should also be taken into account. According to effective risk management system, the higher the financial investment per trade is, the higher the class of trading account should be. This principle is the basic foundation for solid trading in Binary Options.
Number of Assets and Trading Types
Every broker select the type of trading platform to offer for traders (browser or software based). Features like the number of trading types/assets, the user-friendliness, and the functionality vary according to the types of platform. Generally, almost all brokers provide the most important currency pairs, raw materials, shares, and indices. If you want to trade in special shares or currency pairs, you can visit the broker’s website so that you can see if they provide the desired assets or trading types within a few minutes.
Customer service is another important factor to consider. Generally there are various contact options, which can be found on broker’s website, and customer service can be reached via e-mail, telephone or live-chat function in real-time. Customer support should be fast, reliable and easily accessible. You can also find out important and useful information relating to Binary Options on the website. In addition, many brokers provide helpful materials such as webinars, e-books, and instructions for newcomers. These resources are particularly useful for novice traders to get a foot in the door.
VIP Programme and Bonus Offers
Because there are enormous number of brokers on the market, attracting newcomers is a quite competition among brokers. For new traders, this means that they have great advantages to benefit from bonuses, such as additional credit on deposits. Some brokers extend a VIP programme for existing customers as well. Traders who have a high turnover receive exclusive bonuses or benefit from improved trading conditions. These bonus features are also another aspect to take into consideration when choosing a broker. This is especially true if you expect to invest relatively high amount in trading.
We have evaluated various brokers on the market and constructed an in-depth broker comparison site. This website is designed to assist both novice and experienced traders in choosing the most ideal broker, and presents the most important criteria to consider. You can sort out the brokers on the website quickly and easily according to your preferences and learn about each broker so that you can make an informed decision.