| Updated: October 30, 2024You will learn about the following concepts
- Attention to the payouts
- Customer support
- Binary options platforms providers
In the previous articles of this tutorial we have outlined the main advantages of binary options compared to the alternative means of trading, and also why you should consider to start practicing now. In this section we will turn our attention toward selecting a suitable trading platform.
The whole process of trading binary options is performed online, thus, you will need a reliable and bug-free software platform. Nowadays, the trading software has been developed to a point where only minor glitches can occur, and even for these to be solved you have a 24/7-support at your disposal.
Due to binary options continuously growing popularity, these technologies and software are bound to become more sophisticated and flawless at some point in the very near future.
However, many people are experiencing problems while trying to find the proper binary options trading platform. To address this, within the next few paragraphs we will give you some advice how to choose the best broker.
Choose the returns
The first, and probably one of the most important aspects you need to take into consideration is to make sure that the broker you have selected offers at least 70% returns. As you already know, one of the biggest advantages of binary options trading is the fact that the payout is determined in advance and investors are aware of what they should earn or lose before the expiration. Having this in mind, you should know that the bigger the payout is, the better. After all, if you are able to get more money from your stakes, then why not capitalize on it?
Another considerable advantage is that some platforms offer additional features, such as returns even if the option has expired out-of-the-money. For example, some of the brokers might refund up to 15% of your losses, which can considerably diminish your losses and boost morale, especially after a long losing streak.
Binary options trading platforms differ in the variety of underlying assets they offer. Thus, if a certain trader wants to have more “freedom”, then he/she should select the platform with biggest lineup. Another important feature you should be looking for is a news feed tool, which will keep you updated with the latest economic developments that might influence the price movement of an asset you have wagered on.
Quality of support
Providing quality support is one of the most important factors to take into consideration when choosing a binary options broker. Although most of the reputable brokers trading platforms are stable and secure, they are not 100% foolproof. With this in mind, you will want to have support available around the clock which can quickly resolve the issue.
Security is another vital aspect when choosing a trading platform. You want to be sure that the personal data you are providing will remain private. Brokers are obliged to ensure the privacy of their clients information, but no one is completely immune to cyber attacks, thus you should stay away from brokers with history of poor data management. Also, when registering with a broker you should not provide fake information because the account will not be approved and you may even get banned. Moreover, if some of the false data passes and you are approved anyway, you may later be unable to recover your account in case it has been breached or you have become a victim of account theft.
Binary options platforms
Generally speaking, just like in Forex, there are two types of binary options trading platforms – white-label and proprietary platforms. White-label platforms are created by specific software companies and are then sold to different binary options brokers, while proprietary platforms are designed by the respective brokers themselves and used exclusively.
White-label platforms
Having adopted the model of MetaQuotes Software Corps white-labeled MetaTrader platform, there are several software companies which design and sell trading platforms to binary options brokers. Many brokers will lack the personnel or resources to create their own, proprietary platforms and will instead turn to those software providers. These brokers will prefer to receive and customize an already developed software solution, which will save time and allow them to focus entirely on the service they provide.
However, white-labeled products have their drawbacks as well. Binary brokers have a certain limitation to the level of customization they can employ. Most importantly – they can offer only these types of binary options which the platform allows them to, while proprietary platforms can be specifically designed to suit their developers unique trading preferences.
Currently, there are several software companies which offer white-labeled products and the three most popular ones are SpotOption, Tradologic and Tech Financials. Lets say a few words about each one of them.
– SpotOption is currently the most widely used white-label platform. It has an entirely web-based trading interface, eliminating the need for any downloads. The platform is also supported by mobile devices running the iOS and Android operating systems. It can be integrated into MetaTrader 4 via a plug-in, which allows traders using Expert Advisors and indicators to use them for binary options trading as well.
The SpotOption platform allows you to trade more than 200 assets with five binary options types:
- Standard Call and Put options
- OptionBuilder – a conventional Call/Put option whose expiry time, however, may be determined by the trader
- Variable options feature – a standard Call/Put option, whose expiry time may be extended or shortened
- High yield touch options
- Paired Options – a feature which allows users to trade one asset against the other and bet which one will outperform the other.
– Tradologics BINARIX trading platform also has an entirely web-based trading interface and has versions for mobile devices operating under Apple and Googles mobile operating systems. Tradologics platform can also be integrated in MetaTrader 4 and its ChartPlus feature allows traders to trade from charts. Here are the types of trades this platform offers:
- Standard Call and Put options
- Range options – basically the boundary trade
- 60-second Call and Put options
- Touch and No-Touch trade options
- One-Touch Option – a high yield touch option which offers a payout ratio of up to 200%
Unlike SpotOptions OptionBuilder trade type, Tradologics platform does not offer any options, whose expiry time can be customized by the trader – all contracts expiry time is determined by the broker.
– Tech Financials trading platform is based on the Orca+ trading technology, has a web-based front end (trading interface) and comes in versions for iOS and Android powered mobile devices as well. It can also be integrated in MT4. There are four types of trading options:
- High and Low options (conventional Call and Put options) which come in two varieties – a standard version which uses the market price as a strike price, and the Above/Below option which allows traders to select a custom strike price
- 60-second High/Low options
- Boundary trade which also comes in two varieties – the In/Out trade and the unique for the binary options market High Yield Boundary Trade
- Touch trade which comes in two versions as well – Touch/No-Touch option and the High Yield Touch option.
Same as Tradologic, all of Tech Financials options do not allow traders to customize their expiry periods.
Other white-label platforms are the MarketsPulse, OSystems, KeyStone, ParagonEX and PandaTS platforms, as well as the TradeSmarter Platform, which is the first regulated Australian platform. Operating under the regulation of the Australian Securities and Investment Commission, it offers exclusive binary options trading platforms mostly to Australian clients, but for global traders as well.
Proprietary platforms
As we said earlier, proprietary platforms are trading platforms which are designed by the respective brokers themselves. Developing their own trading software allows these brokers to add unique features, such as options types which are not available on the white-label platforms. Proprietary platforms also offer a wider range of expiry settings compared to white-labels.
One of the most popular proprietary trading platform is the one developed by Regent Markets Ltd and used by Binary.com. It offers payouts ranging between $1 and $100 000 and also the possibility to choose your own strike. In addition, it you have an even larger variety of option maturities, ranging from 10 seconds to 365 days. Binary.com also offers white-labeling its platform to other brokers.
One of the leaders in the proprietary segment Anyoptions trading platform. It was launched in 2009 and hasnt been sold to any other broker, saving the unique experience only for clients of Anyopion.
Another well-known proprietary trading platform is the one of StockPair. It is famous for introducing the so-called Pair Options Trading. This feature lets you choose two assets and guess which one will perform better through the expiry time. This way, you should not worry about the overall performance of the market, rather focus entirely on the two companies and how their shares behave. You can have fixed Pair Options, which take into account the stock pairs performance from the time of purchase through the expiry, or Floating Pair Options, where a predefined period of time is selected (a day, week or a month). Pair Options Trading allows traders to close a position before its expiry.