A Guide To Choosing Binary Options Trading Platforms
Binary Options trading is a high-risk alternative to Forex trading that allows a trader to make quick and significant gains within a short amount of time. Binary Options are highly suited to those traders who do not wish to spend countless hours in front of a trading terminal to manage their trades.
Binary Option trading allows investors to earn a fixed return on all winning trades and also incur a fixed loss on all losing trades. The fixed high-yield potential of Binary Options is highly advantageous for traders who can take advantage of the market volatility during news events and high volume trading sessions.
Although Binary Options is a relatively new concept in investments and financial trading, several leading software providers have designed and developed excellent Binary Options trading platforms that are used by brokers under various licenses. Several new players are also entering the market by developing innovative new platforms that aim to satisfy the requirements of the modern-day investors.
Some of the more established Binary Options brokers also develop their own proprietary binary trading platforms which involve designing a new interface from the ground up. Although developing a new Binary Options trading platform is an expensive affair than licensing an existing one in the market, a proprietary trading platform will have its set of unique advantages. However, proprietary Binary Options platforms are very rare, as most companies choose to use a white label platform or license an existing binary trading platform for their brokerage services.
What Are The Core Binary Trading Platforms Available In The Market?
There are three highly popular core binary trading platforms in the market licensed by a majority of Binary Options brokers in the industry, which includes SpotOption, TechFinancials, and Tradologic. Of all the three widely adopted trading engines, SpotOption is the most used and highly preferred trading platform. Industry leading binary brokers such as Banc De Binary and Finpari uses the SpotOption platform, which makes it one of the most aspired trading platforms in the market.
Top 3 Binary Trading Offers
Other trading platforms such as TradeSmarter and MarketsPulse are also popular among smaller brokers, but SpotOption excels in the field by providing the maximum number of financial instruments, mobile platform compatibility, and a broad range of trading functionalities. Most of the regulated brokers tend to use the SpotOption platform, which lends it more credibility than other trading platforms.
Traders are bound to notice a few minor differences between the different broker versions of the same platform, which is nothing but simple tweaks done by the broker to make their services and platform more unique than their competitors. Brokers usually modify their licensed platform to suit their company’s overall theme, and some brokers also invest in heavily customized versions of the standard platform for advanced features and benefits.
A Brief Comparison Between Binary Option Trading & Forex Trading Platforms
There are numerous differences between Binary Options trading platform and a Forex trading platform. Forex trading involves investing in the currency markets where the resultant outcome is determined by the number of pips of movement in any direction. The gains and losses in FX markets are defined by the size of the position and the magnitude of change, while in Binary Options trading, the gains and losses are determined by the direction of the movement. Therefore, Binary Options trading platforms are considered to be far lighter and less resource intensive than Forex trading platforms.
Forex trading platforms have several tools and indicators that enable a trader to perform extensive technical and fundamental analysis. Most FX platforms are desktop based and are required to be installed on a computer. Desktop platforms are a prerequisite for traders to enjoy the full range of features on offer. There are several mobile trading apps and web browser based interfaces designed for FX trading, but most traders prefer to use standalone dedicated trading terminals to trade in the Forex markets.
Binary Options trading, on the other hand, is mostly web based, and a substantial number of binary traders also use the different mobile trading apps offered by their brokers. Binary traders receive an tremendous amount of information through trade signals and other market updates, which reduces the need for traders to perform research and analysis on their own. Therefore, it is not mandatory for investors to install any software on their desktop terminal to trade binary options.
Binary Options platforms are also graphically more advanced than most of the Forex trading platforms. Binary platforms are very easy to use and are self-explanatory. Binary options brokers mostly concentrate on providing a browser-based platform or a mobile app, especially since the most popular binary platforms are designed around the web browser based interface. Therefore, as far as the visual appeal and ease of use are concerned, Binary Options trading platforms are more advantageous than FX trading platforms, but when it comes to sheer utility and performance, Forex trading platforms have the edge.
The Most Suitable Platform For Trading Binary Options
Trading Binary Options should be considered as a serious investment, especially considering the risk factor associated with the market volatility. Binary Options trades are usually over within seconds, minutes, or even hours at the most, and the potential loss or return is close to 100% of the invested capital. All winning trades can earn up to 90% profits, but losses can wipe out the entire investment capital. Therefore, traders should choose a safe and reliable platform before deciding to trade binary options.
Every trader in the market has a different trading personality, and no two traders can be considered alike. Therefore, it is impossible to create a trading platform that is custom tailored to individual requirements. However, some of the best Binary Options brokers are committed to understanding their clients’ needs and designing a platform that satisfies most of their needs.
To find a suitable platform for trading Binary Option, you should browse through different platforms available through multiple binary brokers and carefully select a platform that suits your comfort levels. Unlike FX trading, most Binary Options brokers don’t offer a demo account that will help you to test the platform before opening a live account. Consequently, you should always find a broker that provides a demo trading platform or at least enable you to put on a few risk-free trades before entering the market with real money.
Getting Binary Options Signals As A Part Of Your Binary Options Platforms
It is natural for amateur traders to choose brokers that offer free signals upon opening a live account. Of course, free trading signals are ideal for traders who can’t predict the markets accurately, but as a trader, you must realize that binary options brokers are at the opposite end of the spectrum, and wouldn’t want you to make money. Unlike Forex trading or traditional stock trading, Binary Options trading involves pitting the trader against the broker. Therefore, if a trader wins, the broker loses, and vice versa. Therefore, binary signals are mostly designed to give the broker an edge over a trader, and all binary options signals will ultimately result in a complete account wipe-out.
It would be a great strategy to subscribe to multiple Binary Options signals service providers to ensure that there is as little redundancy between the different signals, which further enables you to make the right calls most of the time. Free binary signals should not be the only criteria while choosing Binary Options platforms, and traders must be aware of all the different aspects of trading before finalising the choice of a platform.
How To Trade Binary Options Using A Demo Account Before Trading With Live Money
Demo trading is still a precious commodity in Binary Options trading, which makes it tough to find a broker that offers a free demo account. If you do find a broker that satisfies most of your requirements, get in touch with their customer service department to learn about other alternatives such as receiving risk-free trades or bonuses. Bonuses and risk-free trades will help you to get a hang of how their trading platform performs under live market conditions without using up your investment capital. Demo trading and risk-free trading are two similar concepts, but the latter might usually require a trader to invest real money into a live account before they can enjoy the benefits of risk-free trades.
Demo trading is highly essential if you are switching over to a new broker, irrespective of your experience in the market. A trader should try out different things with a demo account, as trading simulations can help a trader to understand the various aspects of a trading platform. Getting familiar with a platform reduces the risk of errors and help traders to counteract any technical troubles that platforms can develop from time to time.
In spite of the lack of a demo account, Binary Options brokers offer several attractive bonus structures that allow a trader to get up to 100% in deposit bonuses. Some companies go even further by providing a handsome deposit bonus, which is certainly an added advantage in Binary Options trading. The bonus amount can act as a buffer for the trader to acclimatise with the platform before putting their initial capital on the line. Bonuses do, however, have a negative impact on trader’s capital, as bonuses are associated with several trading conditions. Most brokers freeze the investment capital until all bonus conditions are satisfied, which prevents a trader from withdrawing money until he trades the required number of lots.
A Look At The Best Binary Options Brokers
The Binary Options market currently has more than 500 Binary Options brokers situated in different parts of the world. Regulatory agencies such as the FCA and CySEC are highly proactive in regulating most of these brokers, which is indeed great news for traders looking for established and reliable companies for investing their money. However, the US market is still alien to the modern concept of Binary Options, even though the country has a longstanding history with the exotic option in its traditional form.
Although the industry has several Binary Options to choose from, some of the best Binary Options brokers in the industry include 24Option, Opteck, HY Option, and Banc De Binary. These brokers have established themselves as some of the world’s leading companies that are committed to the best in customer service, the safety of funds, efficiency of the platform, and an overall excellent trading environment.
What Are Binary Options Platform Advantages & Disadvantages?
Profitability of Binary Options is ultimately dependent on the trading characteristics and risk appetite of the investor, as Binary Options is entirely different from conventional forms of investing. Binary Options have more in common with betting and gambling than the FX markets in general, but unlike pure gambling, Binary traders can make informed predictions about the markets by performing a series of technical and fundamental analysis.
Binary trading platforms are highly advantageous for traders who can predict the direction of the markets over a period, rather than having an in-depth knowledge about the scale of the movement over a particular duration. The potential profits and losses in Binary trading are limited to the initial investment amount, which helps the trader to exercise more control over his trading.
On the other hand, Binary Options does not allow the freedom and flexibility to manage trades according to the market conditions. Once entered, most trading platforms don’t allow a trader to cut his losses if the position is going against him. Similarly, accomplished investors might find it difficult to customize their strategies according to the requirements of the Binary Options market, which requires an entirely different approach to investing.
Binary Options trading platforms are highly risky, and might not be suitable for all traders. Therefore, you must carefully analyse your options before investing your hard-earned money in the Binary Options market, however, for the right trader, Binary Options can provide a stable and healthy income.