Binary Options Brokers Overview

There are few differences between the best binary options broker services such as EZTrader and StartOptions. Both have advantages and disadvantages but they essentially do the same thing - allow people to trade binary options using a small amount of cash. Here we will review a few of them and try to give some guidance as to what to look for when selecting one for binary options trading.

** Update** Be sure to also check out Optionbit, a new entrant in the retail binary options broker business.
We've also taken the time to do an in-depth review of other binary options brokers such as AnyOption and TradeRush as well.
See a side by side comparison of binary options securities traded.

 

Binary Option Broker Overview: EZTrader

Before I go any further, I should say right off the bat I am compensated for referrals to EZTrader. Make of that what you will but I will say this: I get referrals because people like what EZTrader offers, not because of any smoke and mirrors. Here is what is to like about using the EZTrader platform:

1. EZTrader frequently offers bonus cash on new deposits (not only on new accounts)
   -
   • allows newbies to trade with EZTrader money before committing their own capital
   • Traders can buy in again and get more EZTrader money to start
   • The bonus cash ultimately becomes yours
2. Trades are "fire and forget" - hit the execute button and go get some coffee
3. Yields vary between 60%-75%
4. Binary option contracts expire either hourly or at the end of the day
5. Binary option contracts are for fixed dollar amounts
6. Some contracts offer some return of capital even when out of the money
7. The EZtrader interface is ridiculously simple to use

Honestly - the biggest difference between EZTrader and TradeSmarter/StartOptions is the bonus cash.What do I mean? Consider that TradeSmarter is doing a holiday offering of $100 bonus cash on a new -account, whereas typically EZTrader bonus cash weekly offers range from $150 to $300 on a new -deposit. Huge difference. Huge.

 

Binary Option Broker Overview: Tradesmarter / StartOptions

Before I go any further, I am compensated for referrals to binary option broker StartOptions (broker TradeSmarter - a reputable binary options broker uses the same platform fwiw). Make of that what you will. Recent changes to their trading platform have made this portion of the comparison obsolete. See our full review of StartOptions.

Here's what is to like about using the StartOptions platform:

1. StartOptions offers a variety of "pre-canned" trading positions
   • allows a wider variety of set positions
   • Double no-touch, Single no-touch, Straight Binary (or Digital Options)
2. Trades are "fire and forget" - hit the execute button and go get some coffee
3. Yields vary around 70%
4. Binary option contracts expire either hourly or at the end of the day
5. Binary option contracts are for fixed dollar amounts
6. Simple interface
7. StartOptions offers a demo account
   • Allows users to learn interface while using "play money"
8. StartOptions parent Tradesmarter is Australian Securities industry regulated (edit: 2013 - no longer the case - although Market Punter is)

Here's What's Not to Like About StartOptions:

1. Limited number of securities traded
   • At last look six cross pairs
   • seven US securities
   • three metals
   • ZERO foreign securities
   • ZERO Indexes (DJIA, Nasdaq, etc.)
2. StartOptions has a Demo Video which is a cartoon that demonstrates NOTHING (since pulled down)
3. Smaller bonus cash

Basically StartOptions (TradeSmarter) appears to be an interesting competitor (very interesting variety of pre-set trade positions) to other brokers but they have much less to offer in terms of raw number of securities traded, less bonus cash offers.

StartOptions and TradeSmarter now offers a nice selection of foreign securities including some Chinese stock options you'll find nowhere else - but be forewarned - they do NOT accept US Residents as clients.

 

Binary Options Broker Reviews

Numerous binary options brokers have sprung up in the last twelve months and it has taken us a little time to catch up with all of them however suffice to say we finally think we have a pretty good grasp on the binary options broker industry. Click on any of the links below to read our in depth reviews of each broker working in the binary options space... and no, they are NOT all the same.

1. TradeRush is rapidly becoming one of the most popular choices amongst binary options traders in the US. Great platform, popular offerings, and even the high paced 60 second options!
2. AnyOption has the best selection of foreign indexes and commodities - and in the gold standard vis a vis reputation in the industry. They restrict trading for US clients though.
3. Optionbit is a highly innovative broker offering range options and one-touch/no-touch options in addition to vanilla binary options.
4. optionFair is an extremely innovative broker offering NON-US Residents a great variety of options contracts including no-touch/one-touch, bounded/range options, and high yielding weekly options (400% yield!).
5. TradeSmarter has grown by leaps and bounds in the last year, including new Asian/Chinese stock offerings... Note: NO US residents... Australian securities industy regulated.
6. GlobalOption has limited offerings at this time but we will continue to monitor their growth over time...
7. EZTrader is one of the oldest online binary options brokers. They offer fire and forget digital binaries on a pretty wide variety of securities, indexes, and foreign securities...

Binary Option Trading, Tips, and Strategies

Here are a couple of resources you may find useful in learning about binary options and how to use them to increase the profitability of your trading efforts.

• Binary Options as Described in Layman's Terms
• Trading Binary Options - Tips, Strategies, and Scenarios Using Binary Options
• Margin Trading Examples - Great examples of learning how margin is used.