Choosing a broker is an important step for beginner traders. As there are many factors to keep in mind, it would be wise to consider them before you start trading. We have compared 3 binary options brokers based on a number of important parameters. You may use it to decide on a binary options broker that will fit your needs.
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What Are Binary Options
Before we proceed to the comparison, you might want to learn a bit more about binary options as a trading instrument.
Binary options are popular among traders, especially beginners, as they are quite easy to operate. There is no need to buy any assets, all you need to do is predict the direction of price changes: up or down. Depending on the result of the deal, a trader gets a profit or loses the initial deposit. The return amount may vary depending on a particular broker’s trading conditions.
When you trade binary options, it is important to pay attention to certain factors. For instance, expiration (the time when the deal closes) and strike price (a set amount at which a contract can be executed). Different brokers offer binary trading with various assets, such as exchange pairs or stocks. In addition, you may use some technical analysis tools for more precise results – they are usually available in the traderoom.
You can learn more about binary options trading by reading articles on this blog, such as How to Trade Binary Options.
Binary Options Brokers Compared
There are brokers that include binary options trading among their instruments. They offer different trading conditions, so it may be useful to analyze them before signing up. Here is an overview of 3 binary options brokers.
IQ Option Review
This is a brokerage company with its own trading platform introduced in 2013. It offers a variety of trading instruments in over 30 countries. IQ Option LLC is registered in Saint Vincent and the Grenadines. Millions of traders from around the world consider it a reliable international broker with a good reputation.
The platform has over 250 assets for trading, including binary options, digital options and CFDs on Forex, Crypto, Stocks, Commodities and ETFs. Some (like cryptocurrencies) are even available over the weekend, when markets are closed.
IQ Option trading platform is available in the web version, desktop application (Windows, masOS) and mobile apps (iOS and Android devices).
Demo Account
The practice account is provided to all traders, even before their first deposit. This allows beginners to get some practice before they start trading with real money. The initial amount on the demo account is $10000. Traders can top it up for free at any time.
Traderoom
There are 4 chart types with graphical tools (lines) and 100 different indicators for technical analysis in the traderoom. It can also be customized to fit traders’ needs and preferences. Expiration times for binary options trading vary from 1 minute to several days.
Account types
Standard and VIP accounts are assigned to traders. The VIP status includes ongoing support from a personal account manager, special offers and potential higher returns on options trading. To receive this status, traders usually have to make a deposit in a certain amount and maintain a large trading volume.
Beginner-friendly
IQ Option also provides many learning opportunities to beginner traders. They include:
- Blog with hundreds of articles in 9 languages covering everything from IQ Option download to various trading methods and common trading mistakes.
- Tutorials on how to choose trading instruments, apply technical tools for analysis and much more, including answers to frequently asked questions.
- YouTube channel with guides on using the platform and its instruments, as well as market overviews.
- Free webinars with step-by-step instructions helping traders master technical tools to achieve positive results.
- Economic calendar with news from the markets and financial institutions that may help come up with trading ideas.
It also offers a free practice account that can be refilled an unlimited number of times. So this allows beginners to get trading experience without losing any money. Apart from 24/7 support service, all platform users have access to chats with other traders on different topics, such as Forex, Crypto, etc. Getting some peer support and being able to share ideas may be quite useful at the beginning of your trading journey.
In addition, traders on IQ Option can participate in tournaments that are held regularly. Based on our IQ Option review, for an entry fee of a few dollars (some are even free) traders get to compete with others and have a chance to make a big win.
Expert Option Review
Expert Option started providing services to traders in 2014 and is currently available in 48 countries. It is regulated by St. Vincent & the Grenadines Financial Services Authority(SVGFSA), which allows it to provide financial and trading services.
The company created its own platform that can be customized to fit the traders’ needs. It is available on the website, with a desktop version for Windows and macOS, as well as a mobile app for iOS and Android devices.
Expert Option offers binary options trading with 50 different assets, among them are currency pairs, crypto, stocks and commodities.
Demo Account
A $10 000 practice account is offered to all traders. If they run out of practice money, it will reset to the initial amount automatically.
Traderoom
There are 4 chart types and 8 indicators available for analysis. Traders may choose the expiration time for their deals and check the strike price and potential profit amount on the main screen. Expiration time for binary options is generally between 1 and 5 minutes.
It also provides social trading – a feature that allows to monitor and copy other traders’ deals.
Account Types
There are 7 types of trader accounts depending on the deposit amount. They offer different trading conditions, such as maximum deal amount and increased profit opportunities.
Basic & Straight-Forward
This broker focuses on binary options trading. Therefore, if you aren’t looking for other financial instruments, it may be a suitable choice. The available tools for technical analysis are also limited. They could be enough for beginners, but probably lacking for more advanced traders.
According to our Expert Option review, it offers video tutorials on how to use the platform and its instruments, make deposits and withdrawals, etc. There is also a brief glossary of trading terms. However, this may not be enough information for beginners, as they usually require more detailed explanations to learn the necessary trading basics.
BinaryCent Review
BinaryCent is a brokerage company established in 2017 and regulated by the Vanuatu Financial Services Commission.
The trading platform adopted by BinaryCent is a proprietary trading platform. It is web-based, so there is no desktop application. As to mobile apps, they are not available presently, but may later be offered to traders.
Over 100 assets for trading include binary options (Forex, crypto, commodities, stocks) and CFDs (Forex, commodities, crypto, indices, stocks). There are turbo options (1-30 minutes), intraday (12-24 hours) and long-term options.
Demo Account
Practice account is only available for traders that have registered on the platform and made their first deposit.
Traderoom
There are 6 chart types with a variety of indicators (70 total) for analysis of assets (technical toolkit powered by TradingView).
It also offers copy trading, so traders may choose to follow other people’s deals.
Account types
There are 3 types of trader accounts: bronze, silver and gold. They offer different features and trading conditions, as well as the bonus size. The account status is assigned depending on the deposit amount.
Crypto-Friendly
On BinaryCent traders can make deposits and withdrawals with a variety of cryptocurrencies, which makes it attractive for some clients. However, its minimal deposit amount of $250 some may considerer high, especially compared to other brokers ($10 for both IQ Option and Expert Option). If this requirement does not discourage new traders, they may receive welcome bonuses depending on the deposit amount and their account type.
BinaryCent trading instruments do not end at binary options: they also include CFDs. But the platform currently only has a web version. This may be inconvenient for traders who enjoy mobility and prefer making deals on the go. Based on our BinaryCent review, this broker does not offer any learning opportunities for beginners, which may be a downside for new traders not very familiar with this activity. And as the demo account is only available after making a first deposit. So it is harder to get trading practice for free.
Comparison Tables
Minimal Values
| Expert Option | BinaryCent | IQ Option | |
| Minimal deposit | $10 | $250 | $10 |
| Minimal trade | $1 | $0.10 | $1 |
| Minimal withdrawal | $10 | $50 | $2 |
General
| Expert Option | BinaryCent | IQ Option | |
| Account currency | USD | USD | USD, GBP, EUR, THB, IDR, VND, Peso, MYR, CNY, BRL, ZAR, RUB, LYR, INR |
| Deposit methods | Debit/Credit card (VISA, MasterCard, Maestro, UnionPay), e-Wallets (Neteller, Skrill, Perfect Money, FasaPay and others) | Bitcoin, altcoins, stablecoins, tether. Bank card (Visa, MasterCard) currently unavailable | Credit card, Perfect Money, Skrill, Neteller, WebMoney, Wire Transfer, local banks, bitcoin |
| Fees | Deposit / withdrawal fees: no Inactivity fee: 50 USD/month after 3 months of inactivity | Deposit / withdrawal fees: transfer fee 5% (bank cards) Inactivity fee: no | Deposit / withdrawal fees:1 free withdrawal per month; 2% fee (but no more than $30) on each subsequent withdrawal. 1% currency conversion fee. Inactivity fee: $10/month after 90 days |
| Languages | English, Chinese (Simplified), Chinese (Traditional), Thai, Korean, Vietnamese, Arabic, Turkish, Hindi, Indonesian, Spanish, Portuguese, Malaysian, Tagalog | English, French, Spanish, Russian, Arabic, German, Thai, Chinese (Simplified) | English, Spanish, Portuguese, Italian, German, Indonesian, Russian, French, Swedish, Hindi, Vietnamese, Chinese, Korean, Thai, Turkish, Bengali |
| Client support | 24/7 Live chat in 14 languages, phone, email | 24/7 Live chat with auto-translation into over 50 languages. Phone (6 languages) | 24/7 Live chat in 13 languages, phone, email |
| Special offers | Welcome bonus | Giveaways, welcome bonus, reference program | Tournaments, free webinars |
| Education | Tutorials, Blog | No | Tutorials, Blog, webinars |
| Tournaments | No | Yes (free, all traders participate automatically) | Yes (some free, some with a small participation fee) |
| Market Analysis | Market overviews | News, economic calendar | News, economic and earnings calendar, market overviews |
Summary
Each binary options broker offers different trading conditions. Therefore, carefully examining this information is the key to making the right choice.
If you are just starting out and want to get some trading experience without large investments, IQ Option and Expert Option might be a proper fit. They both offer a free practice account to all traders and considerably low minimal deposits. However, BinaryCent may be attractive for those who prefer using cryptocurrencies, such as altcoins and stablecoins, to make deposits and withdrawals.
All three brokers have their own trading platforms that traders can customize to fit their needs. But the number of assets varies greatly: IQ Option is the leader in this regard, with over 250 assets to choose from. On Expert Option, however, the selection is limited to binary options. BinaryCent has over 100 assets.
IQ Option also offers the most instruments for technical analysis, such as indicators and graphical tools. So it may be considered a good choice for traders who enjoy having a diversity of instruments and assets for trading. However, it doesn’t have social and copy trading, so beginner traders have to come up with their own binary options strategy.
Therefore, think about what is important for you and choose your binary options broker based on your personal preferences and priorities. Good luck on your trading journey!
