Binary Options

Binary options is an increasingly popular method of trading in the UK as it easy to set up and the options are simple.

What Are Binary Options?

As their name suggests, binary options is a form of trading that requires individuals to choose between options: will and index or commodity increase or decrease by the end of a given period? If the individual is right, they win and if they are wrong, even if they miss out by a few pennies, they will lose the money that they placed in the investment.

The good thing about binary options is that the risks and the rewards are clearly set out. This fixture means that hopeful investors know exactly where they stand. Another attraction of binary options is that there is only one decision to be made: will the price exceed or fall short of a given price at the end of the period? As this is a relatively simple decision, it makes binary options a popular method of trading for beginners.

Things to Remember

  • While there is certainly potential to make money using binary options, before signing up there are a number of factors that you should take into account:
  • To begin with, following an investigation into binary options, investigators have revealed that traders will have to be correct 55% of the time to break even as odds tend to favour the broker.
  • While binary options are certainly attractive to new traders, it is important that you are well-versed in the stock market. They are not an easy way to make fast cash, there are very real financial risks involved.
  • Once you have placed your wager, you cannot withdraw it until the option reaches its expiry date. This can be very frustrating if the period is long and you can see your option falling short of your expectations.
  • It is important that you pick a reputable trading site. If possible, try and select a trading site that does not totally take away your stake if you should choose your option incorrectly.

Popular Binary Options Brokers

  • Banc de Binary: over the past few years, Banc de Binary has become an increasingly popular platform for the binary options. Despite being a relatively young company they have already won a series of awards and are the first EU-regulated binary options brokerage. They have an excellent range of options to choose from as they have 90 types of assets from more than 30 countries. They also boast high returns for the investor as they claim that those who trade on money make a 71% return.
  • Top Option: this brokerage is an often a popular choice for binary option traders in the UK. Top Option has an online platform which means that it is quick and simple to set up an account with them. They are also a legitimate trading company as they have full EU licensing and regulation. There is a wide range of assets to choose from, ranging from currencies and indices through to commodities and stocks. They also have an excellent range of expiry types available.
  • 24 Option: 24 Option is the world leader in binary options as they were one of the first companies to establish themselves as a binary option brokerage. They have an excellent range of commodities, stocks, indices and currencies for you to choose from. Their currency options tend to sport the highest pay-outs as they report up to 91% profit for the investor. In order to help novices get up to speed with the binary options they have an extensive online Education Centre complete with trading videos. In addition, if you need any help or encounter any problems there is 24-hour live chat on their site.

Comparison of Top Binary Options Brokers

Broker Maximum Pay-out Minimum Trade Maximum Trade Minimum Deposit
Banc de Binary 91% $1 $8,000 $250
Top Option 85% $5 Varies $100
Banc de Binary 91% $1 $8,000 $250
Trade Rush 81% £10 £5,000 $200
EZ Trader 95% £25 £2,000 $200