Welcome to BinaryTradingSites.com. As our domain name suggests, we recommend binary options brokers based on your needs as a trader. We combine our years of expertise with the binary options industry to make our content straight forward and to the point. If you are ready to take the plunge into the wild world of binary options trading then our biggest piece of advice is to pick from one of the few brokers below. Why? Because so many scams exist in this industry that without getting this 1st step correct, If you do not trade with a legit broker it does not matter how good of a trader you are. If you trade at a shady broker you are unlikely to ever see your money from many of the bucket shops and deposit houses out there offering binaries. That’s why it is important to choose a legit broker below and get paid when you earn.
Best All Around Broker – April 2014
Our short list of quality and reputable binary trading sites will start your journey on the right foot. Using one of the trading websites above is the best way to avoid scams. Bad brokers are rampant in this industry so it is imperative you understand what you are getting into before you begin.
About Us – BinaryTradingSites.com
We have been in this industry for years and have spent hundreds if not thousands of hours of researching the dozens of binary options brokers on the market today. We spend dozens of hours every week keeping up with the industry. In a nutshell, we keep our finger on the pulse of the booming binary options industry. Our knowledge, insight and understanding of the market allow us to keep our short list of the top binary options trading sites to a narrow, focused group. Filled with the information you can use and not the same re-hashed marketing spin you find elsewhere. You will notice the simple basic design, we are not here to sell you.
We have helped thousands of traders find the right broker. We help dozens of traders every day avoid the scam trading sites.
We can help you start off on the right foot on your journey of trading binary options. Get started with one of the select brokers above.
Making Money – Losing Money
If you are not aware, binary options trading is risky. Plenty of traders lose money. Even though the returns are big and the choices are a one or the other decision the risk of losing money is always there. If you catch a run of bad luck it is possible to trade and lose your entire investment. Know this up front before creating an account and investing money.
You can make money by correctly predicting price movement of an underlying asset.
Place a buy or call. If you buy you believe the price will rise. If you call you believe the price will fall. These are the most simple types of binary options and the rise/fall or up/down options are by far the most popular type of option trade made today.
Is it Really So Simple To Trade Binaries?
Yes it is quite simple to trade a binary option. The mechanics of placing a trade are literally push of the button easy. You choose the asset to trade. You choose the length of the binary option contract. 1-30 minutes is very common. You choose how much to risk. You evaluate the returns offered. If you accept the returns offered, you click the ‘buy trade button’ and you are in the game. At the conclusion of the contract you are paid the pre-determined payout regardless of how much the underlying asset moves in or against your favor.
It is much simpler than forex trading.
No stop losses.
No margin calls.
*some bonus offers utilize a leverage style bonus offer
Easy To Win? Think Again
Not to say that there are not consistent profitable traders. There are. However it is not easy or simple. You have to be consistently good at what you do to overcome the house edge. It is not quite so simple to predict a winner a large enough percentage of time to overcome the binary websites house edge. This edge is built in the similar way a casino slot machine is designed to pay out a certain percentage. You put 100 dollars in and get 95 dollars out at a slot machine paying 95% returns.
The binary option sites do it a little bit differently by offering you a return of between 70-90% if you win and a return of only 0-15% if you lose. This means if you risk $100 and win, with an 80% return you will get a total return of $180. This is your $100 risked plus the $80 you earned on the trade.
However if you were to lose the trade with a 15% rebate, you would only get a return of $15. The house has built in a 5% edge when you look at the return percentages. They do not add up to 100% so that is where the binary brokers make their money.
Market Makers – Dealing With The Market Maker at Most Binary Brokers Websites
You are dealing with the market maker directly in many instances. The binary trading broker is taking the other side of your trade. This means that they profit the most when you lose your trades. That’s a bit scary to say right out in the open but it is the exact same thing as going into a casino and losing money playing roulette. However what the brokers with substantial volumes really care about is that their overall trading volume is balanced and as massive as it can be. They want thier risk balanced out so they squeeze the juice out of the middle. If you are familiar with a large bookmaker or someone who runs the numbers, you know that they do not really care whether one bet wins or loses as long as they have equal action on both sides they are guarantee to make money regardless of the outcome of the trade.
Binary Companies – Regulation – Licenses – Legality
Binary options brokers operate in the wild west of the financial trading world. Mostly with headquarters in European countries, with an even more slant to tax friendly jurisdictions with regulatory bodies in place. The leaders of the industry are all in the process of developing and undergoing regulation by their governing body. You will find that the majority of sites listed here will be in the process of regulation via CYSEC or by the Isle of Man GSC. This island off of the coast of the UK serves as a safe haven for the highest quality, legit and reputable quasi-gambling operators to operate in an environment that is safe, secure, regulated and managed by a reputable commission. The other concern is the different rules and regulations placed by individual countries. For example, some sites that serve the EU and UK markets will not accept USA traders (these sites do).
Binary options are also officially a financial instrument, according to MIFD. This is leading to more and more regulation as the popularity of this style of trading continues to take hold.
Our common sense tip of the day is that the most important thing about choosing the binary option broker is to make sure that they have a reputation you are comfortable with. This means doing some research and finding a broker that others are happy with. You can start by looking at the ones listed on reputable sites like ours and others in the industry. We advise starting out small, making a binary options demo account first and using it until you are ready to risk your real money trading for real.
Where Do I Start?
If you are still new to the whole idea of binary options trading then you should start with this guide on the basics of how to trade. From that page you will find the information you need to understand what is going on and how to get started. If you have already made your mind up to trade then you need to find the broker that suits your needs the best. Read through our reviews and comparisons of the brokers of your choice and pick one.