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.

Free Online Trading Sites - 3 Places to Trade Without Fees

Are There Really Ways to Trade
without Commissions or Fees?

Savvy day traders these days have found free online trading sites that offer ways to use small capital investments in a way that does not involve fees or commission. Here we will look at some of these alternative platforms and elaborate on the strengths and weaknesses of each.

Binary Options

The first platform we will look at is the typical binary options site. Normally these fixed high yield / high risk contracts pay out 70%+/- on daily or hourly investments depending on the duration of the investment. The great benefit for users of this type of platform is that it (like the others reviewed here) does not charge any transaction fees or commissions. Whereas one could normally expect to pay anywhere from $3 - $10 typically on a stock trade (plus spread) for each traditional stock or option trade - and invest in increments of $1000+. Contrast that with the binary options broker, who would not charge any fee or commission and would allow investments in increments as small as $10 (to perhaps as large as $3000 per contract). It does not take a lot of analysis to figure that this type of trade is much more efficient for small capital investors.

Barrier Options

Similar to binary options are barrier options. While the binary contract tends to be one sided in nature (up or down), a barrier option site works differently. The contract on these types of free online trading sites involves either a one side, two side, inside, or outside range of values where the contracts fall in the money. A buyer can pick the inside of a range, outside the range, or the top or the bottom of a given range. Algorithms belonging to the barrier options broker will determine the strike prices and yields for each contract. The buyer of the investment pays no fee nor commission nor spread for the privilige of trading. This is very popular as a means of hedging against price swings in long (or short) positions of the underlying securities.

60 Second Options

Yet a third type of high yield, high risk addition to the list of free online trading sites is the 60 second options platforms. These platforms can offer yields similar to the previously mentioned free sites but with a duration lasting just 60 seconds. It is without question the highest turnover rate of capital imaginable short of high frequency trading bots. A 60 second options broker can offer lot sizes as small as $5 to perhaps as large as $2000 depending on the dealer.

Free Course on High Yield Short Term Investing

For more information on trading any of these types of securities, please sign up for a free trading course on binary options. In the course you will learn about each of the above securities in detail and be shown basic strategies and methods for constructing positions, hedges, and using simple statistics and basic probabilities to improve profitability.