If you are considering binary options, you might be familiar with the risks associated with them. However, if you are new to this trade, you must have confused its procedure and functioning. You can, of course, do many hit and trial methods, but it will consume a lot of time. However, if you choose a broker to show directions, your work would be a lot easier.
But, how to choose a broker, especially when you have plenty of options? In this article, we will guide you to choose an efficient broker for binary options.
What Is A Regulated Broker?
In a market full of options, knowing what is trustworthy and what is not is essential. When you choose a broker, you will give them a load of responsibility to regulate your binary option. So, you cannot just pick the one you saw first. And here comes the importance of choosing a regulated broker. But what is a regulated broker? And why a regulated broker?
Regulated brokers are individuals who have a license to act as trade brokers from a competent financial body. Of course, you can only trust the regulated brokers, but a stamp by experts an experienced tribe is always better than taking risks by yourself. It is essential to know that all the brokers may primarily have a business license, but it differs from a regulating license from a relevant financial authority.
You must acknowledge yourself about the authorities, which are considered as the regulators. The most common financial authorities are Cyprus Securities and Exchange Commission (CySEC), Isle of Man Gambling Supervision Commission (GSC), Malta Gaming Authority (MGA), US Securities and Exchange Commission (SEC), and US Commodity Futures Trading Commission (CFTC).
Why Are Regulated Brokers Important?
It is not easy to trust one, keeping in mind the huge number of fraudulent licenses and regulations in every field when it comes to brokers. Regulation alone cannot necessarily help the broker gain your trust, but it can surely be counted as a significant factor. It is undoubtedly difficult to find out regulated brokers in the long list of licensed ones. Since they are responsible for regulating your binary options, you must choose the correct one.
Best 5 Regulated Binary Options Brokers
It is essential to choose the correct broker, especially because the trade involves an investment of money. The broker provides all data regarding the binary options. So, if your broker is not trustworthy enough, you might lose your invested money.
To prevent this mishap, countries like the European Union, Belgium, Israel, and the USA have banned any such trading of binary options. Yet this is widely practiced and has a high demand in quite a few countries. But the risk of losses remains.
To steer clear of these losses, you can go through the following list of the five best regulated binary options brokers.
Quotex bears the trademark of Awesomo Ltd. It was granted a license recently in November 2020. The company is based in Seychelles and is regulated by the International Financial Markets Regulatory Center (IFMRRC).
Quotex is working hard day and night to create a safe zone for its users by combining simple binary options with more complex and powerful tools. Quotex provides its account holders with more than 410 varieties of binary trading options.
Quotex is regulated and has been granted a license by the International Financial Market Relations Regulation Centre (IFMRRC). The regulation from the IFMRRC protects the account holders of Quotex by providing compensations, thereby ensuring complete reimbursements for the customers if, by any chance, the company fails to make payments.
To ensure that all sorts of traders, i.e., both beginners and experienced ones, can find their space here, Quotex features three different types of accounts:
- Standard: This account is meant for beginners who are scared to invest much in the trade. Beginners can open the standard accounts with a deposit of as little as USD 5.
- Pro: This account is meant for more experienced traders with a higher profit percentage and more money to invest in the trade. Customers can open their Pro accounts with a deposit of USD 1000.
- VIP. The VIP account offers veteran traders enhanced profit percentages and a series of ongoing bonuses and deals. The minimum deposit for the VIP solution is $5,000.
- Charges and Fundings
Quotex customers can open accounts with a deposit of as little as USD 5. In addition, all users can have complete access to products of binary options and customer support.
Accounts can be funded with US dollars, Rubles, Euros, Brazilian Reals, Ukrainian Hryvnia, etc. The registration process is simple, and even beginners create an account and start trading within an instant.
#2 IQ Option
IQ Option was launched way back in the year 2013. It now holds a position among the top 5 most renowned forex and binary options brokers globally. IQ Option has more than 50 million users you have registered from as many as 213 different countries. Every single day it processes more than 1.5 million traders worldwide.
IQ Option has its headquarters situated in St. Vincent and the Grenadines. This regulated broker provides you with 350 financial instruments in 6 different asset classes, including binary options, cryptocurrencies, Forex, ETFs, and others.
IQ options is a trustworthy regulated binary options broker. Accordingly, it has been granted a license by the Cyprus Securities and Exchange Commission (CySEC), thereby ensuring the protection of finances from the European Union.
It has an array of tools and setups to help create a safe trading environment for one and all while meeting all regulatory criteria and audit rules established by CySEC.
IQ Option provides a unique feature whereby it provides educational materials making it a perfect option for beginners and experienced traders. IQ Option offers its users videos, calendars, and articles for this purpose.
IQ Option provides a safe trading zone for both beginner traders and experienced ones. To ensure this, they provide two separate account options. They are:
- Standard account: This feature allows a low minimum deposit which makes it suitable for all budget types.
- VIP account: This feature has a high minimum deposit, but it offers the account holders quite a few exclusive tournaments for trading.
IQ Option also offers a demo account option. The demo account features a virtual balance that can be refilled automatically. So, you can use this account to hone your skills for trading both Forex and binary options.
The minimum deposits for the two different accounts are:
- Standard – USD 10 (minimum deposit)
- 1:500 leverage
- 0.6 pips for EUR/USD.
- VIP – USD 1,900 (minimum deposit)
- 1:500 leverage
– 0.6 pips for EUR/USD.
There are no processing fees charged by IQ Option.
#3 Pocket Option
Pocket Option was established in 2017 and had been carving a niche in the market ever since. It bears the trademark of Gembell Limited and is based in the Marshall Islands.
Pocket option is regulated by the International Financial Market Relations Regulation Center (IFMRRC). It provides its customers with more than 100 asset options. Pocket Option is renowned for its high payouts in the binary options market for having high payouts.
It is regulated by the International Financial Market Relations Regulation Centre (IFMRRC). The regulation from the IFMRRC protects the account holders of Pocket Option by providing compensations, thereby ensuring complete reimbursements for the customers if, by any chance, the company fails to make payments.
The pocket option offers only one type of account for its users. However, they have a quick and impressive payout—the offer, for their users, high and low options for trading. The users’ work is simply to set up a period and predict whether or not the asset price will move up or down the graph.
These high and low options ensure that the customers receive quicker payouts and sure success for the traders. If you happen to be a beginner, you can use the lower options to hone your skills before opting for the higher ones. The time limit can be set as low as 60 seconds up to 4 hours if you have enough time at hand.
- Demo Account
Like a very few other regulated binary options brokers, Pocket Option allows beginners to create demo accounts. With the help of these accounts, you can practice the techniques of the trade and at the same time does not incur any such losses.
With your demo account, you will receive virtual funds that can be automatically refilled. With the help of a nearly live account, you can master your skills and then step out onto the field.
#4 Expert Option
Expert Option was established in the year 2014. It is based in Cypriot. From 2014 to 2017, Expert Option emerged as one of the most profiting forces among the binary options brokers. Expert Option provides its users with five separate options, including cryptocurrencies.
Expert Option won the Best Trading Platform award title in May 2017 at the China Forex Expo.
Expert Option has been granted a license by the Vanuatu Financial Services Commission (VFSC). It is regulated by the International Financial Market Relations Regulation Centre (IFMRRC).
The regulation from the IFMRRC protects the account holders of Expert Option by providing compensations, thereby ensuring complete reimbursements for the customers if, by any chance, the company fails to make payments.
All account holders are offered bonuses. However, the bonus depends on the type of account. In other words, the higher the accounts level, the higher the bonus. Expert Option provides its users with three different account types. They are:
- Mini Account: This account rewards a bonus of 50%.
- Silver account: This account rewards an 80% bonus award.
- Gold account: This account rewards users with a 100% bonus.
Holders of VIP accounts, however, receive a bonus of 125% on the first deposit. The VIP account holders are granted quite a few more privileges like quicker money
Funding your account on Expert Option can be done through credit as well as debit cards. VISA and MasterCard are both accepted. Transactions are processed in a few minutes. Bank wires are also made available for the users. Accountholders can withdraw money as little as USD 10.
Binomo was granted a trading license in the year 2014. The company bears a trademark of Tiburon Corporation and is based in Seychelles. The payment services for the company are processed and carried out by Stagord Resources.
Binomo was established initially as a binary options broker in Eastern Europe. Following this, the company developed a larger market in the western part of Europe and Asia. It now has a Russian owner.
Binomo offers its customers a wide range of options, including equities, commodities, indices, and currencies.
Binomo has a valid license from a voluntary organization, the CROFR. Any governmental financial authority does not regulate all the companies; Binomo claims on its website that its regulation registration with the CySEC is still ‘pending’.
Binomo has a user-friendly approach towards all its customers. This is exactly what has earned it awards like the clients’ Best Broker for Southeastern Europe’ in 2016 at the IAIR Awards and the ‘Best Broker for Beginners’ in 2015 at the Forex Expo Awards.
● Account Bonus
Binomo offers all its new account creators a deposit match when they make their first deposit. After that, the offer might vary from 20% to 100 % of the original deposit value.
A deposit of more than USD 1000 will grant the account a VIP status. This status ensures that the user receives almost a 10% cashback even while incurring a loss in the binary options trade.
Indeed, even regulations cannot ensure the trust of the customers. Moreover, all these regulations have their pros and cons. For instance, if you are trading with a regulated binary options broker, you cannot trade within the USA. This is well ensured by the stringent rules of the CySEC, CFTC, SEC, and other such regulators.
To trade within the USA, you will have to opt for binary options brokers not regulated by any financial authority. For example, you can consider Boss Capital, Redwood Options, and CherryTrade.
In a nutshell, whichever option you go for, the risks of the trade will always remain. Even if you opt for the most renowned and regulated binary options broker, you cannot be guaranteed complete success each time. So, it is always much easier if you choose a binary options broker. Nevertheless, it is always essential to learn the trade tricks and hone your skills before stepping out into the field.
Frequently Asked Questions
Which Binary Options Brokers Are Regulated?
Regulated brokers are those which are certified by common financial authorities like Cyprus Securities and Exchange Commission (CySEC), Isle of Man Gambling Supervision Commission (GSC), Malta Gaming Authority (MGA), US Securities and Exchange Commission (SEC), etc.
How Do You Withdraw Money From Binary?
To withdraw your money, you must log in first and then go to the withdraw option. Then your money will be transferred to your bank account within a stipulated amount of time.
Why Are Binary Options Banned?
Binary options are prone to fraud in their uses and are hence prohibited as a form of gambling by regulators in many places. However, a few nations with several laws are still using them due to their high demand.