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Binary options brokers offer traders an accessible way to make money in the binary options market. However, with so many binary brokers to choose from, picking the best trading platform for your needs can feel overwhelming.
We’ve reviewed the leading binary options brokers to help you find the right trading platform. We analyzed each binary broker on a variety of factors including minimum deposits, payouts, regulation, asset selection, customer service, and trading platform.
Here are the best binary options brokers of 2021.
Top 6 Best Binary Options Brokers of 2021
- Pocket Option: Best binary broker overall
- BinaryCent: Best trading platform for beginners
- Nadex: Regulated broker for USA traders
- IQCent: Best for copy trading
- RaceOption: Best signup bonuses
- Binary.com: Most advanced trading platform
#1 Pocket Option: Best Binary Option Broker Overall
Pocket Option is our top choice for the best binary options broker of 2021. This innovative trading platform has low minimum deposits, convenient payment methods, excellent payouts, and a variety of technical analysis tools.
Pocket Option has served over 10 million users since its launch in 2017, and its user base spans more than 95 countries.
Pocket Option allows you to trade more than 100 assets, including stocks, Forex, cryptocurrencies, indices, and commodities. To get comfortable with the website’s platform, you can create a demo account using virtual money. This demo allows you to use all of the features of the site without any real risk involved.
Pocket Option also makes it easy to withdraw and deposit funds. The site has a minimum deposit amount of $50 and a withdrawal amount of $10, meaning you don’t have to build up too high of a profit before cashing out. Pocket Option supports convenient, safe payment methods, and you can even use cashback and other trading advantages to simplify the process.
Investors who are new to the world of binary options will appreciate that Pocket Option has a minimum trade amount of $1, allowing you to start small and decrease your risk. The platform is compatible with Windows, iOS, Android, and web browsers so that you can take your binary options on the go.
New traders will also enjoy Pocket Option’s comprehensive education section, featuring tutorials and guides about binary trading strategies. The site helps you feel confident that you know the ins and outs of binary options trading before putting your money on the line.
This platform has received regulation from the International Financial Market Relations Regulation Center (IFMRRC), so you can trust that your trades are legitimate and safe. Pocket Option is available in many countries, including the U.S. and throughout Europe.
All in all, Pocket Option is a safe, convenient binary options broker with a worldwide client base. If you’re looking for the best binary options platform to put your trust in, Pocket Option is your best bet.
- Minimum Deposit: $50
- Minimum Trade: $1
- Demo Account: Yes
- Underlying Assets: 100+
- USA Accepted: Yes
#2 BinaryCent: Best Trading Platform for Beginners
BinaryCent is a binary options broker that allows you to invest and earn up to 95% in just 60 seconds. Their beginner-friendly trading platform allows you to trade forex pairs, CFD, and binary options.
One of the best features of the BinaryCent trading platform is the ability to copy the most successful traders. You can choose which traders you want to follow and then copy their trades with the click of a button. This copy trading feature is especially useful for beginners that are still learning how to trade binary options.
Here’s what we like most about BinaryCent:
10 Cent Minimum Trade Amount – With BinaryCent, you can trade binary options for as little as 10 cents per trade, which is less than most online binary options brokers.
1-Hour Withdrawals – Unlike other binary option brokers that can take up to 72 hours to withdraw your money, BinaryCent has a 1-hour processing time.
Weekend Trading – With BinaryCent, you can trade non-stop, even on the weekends.
Wide Range of Deposit Methods – From credit cards to cryptocurrency, BinaryCent offers a variety of deposit methods to fund your account with.
Generous Bonuses – BinaryCent rewards traders with bonuses on initial trading deposits. The bonus percentage depends on your deposit amount and can reach up to 100%.
Trading Contests – BinaryCent offers trading contests where they offer $20,000 in prize funds to 20 winners every week.
If you’re looking for an easy-to-use trading platform with attractive payouts and generous first-time deposits, BinaryCent is a great binary option broker to consider. With 10 cent minimum trades and copy trading, BinaryCent is the best option for beginner traders.
- Minimum Trade: 10 cents
- Min. Deposit: $500
- Deposit Bonuses: 20-100%
- USA and UK Friendly: Yes
- Leverage: Up to 1:100
#3 Nadex: Regulated Binary Broker for USA Traders
Nadex is a United States based binary options exchange located in Chicago, Illinois. Nadex is the only CFTC (Commodity Futures Trading Commission) regulated exchange offering binary options.
Nadex offers several different trading platforms that allow you to take positions on short-term price movements in a variety of markets. You can choose between binary options, touch bracket, knock-out, and call spread contracts.
Due to regulatory rules set forth by the CFTC, the money you deposit must be held in segregated bank accounts to ensure your funds are safe and secure.
Here are the different markets you can access via Nadex:
Forex – Trade fixed-risk contracts on a variety of currency pairs including EUR/USD, EUR/GBP, and USD/JPY.
Indices – Speculate on the price movement of global indices such as US 500 and the FTSE 100. Includes predefined risk levels and lower fees than most stock and futures brokers.
Commodities – Low cost fixed-risk contracts for commodity markets such as crude oil, natural gas, gold, silver, copper, corn, and soybeans.
Events – With Nadex, you can predict the strength of the US economy by trading binary options based on economic events such as the weekly jobless claims reports.
The Nadex Trader Platform lets you place orders directly to the exchange using their proprietary software. You can filter over 5,000 contracts daily by asset class, expiry time, and price. For binary options, Nadex charges a $1 trading fee per contract on each side of the trade, the entry and the exit.
In addition, Nadex charges a $1 settlement fee per contract for trades that expire “in the money”. However, there is no settlement fee if your binary options trade expires “outside the money”.
For real accounts, there is no minimum deposit requirement.
- Mobile app for on-the-go trading
- Free demo account with $10,000 in practice money
- Predefined risk and reward contracts
- Ability to exit trades early to minimize losses
- Intuitive desktop trading platform with a variety of technical analysis tools
#4 IQCent: Best for Copy Trading
Some binary options traders want to make an easy profit without having to watch the market to figure out the smartest move. If this description sounds like you, you’ll love IQCent’s easy-to-use platform and copy trading tool.
IQCent is a 100% secure trading platform that processes over 10,000 transactions daily. The site offers a range of advantages compared to other venues of its kind: referral perks, bonuses for each monetary amount you deposit, non-stop trading, instant withdrawals. You can choose from more than 100 trading markets, including stocks, Forex, and commodities–and the minimum trade size is just a penny.
Beginners and casual traders love IQCent’s copy trading tool. This feature allows you to copy experienced investors’ trades so that you can earn profits without any prior experience in trading. If you need help using any of its tools, IQCent has a 24/7 live chat that allows you to speak with customer support directly.
IQCent has a minimum deposit of $500, which is a bit steeper than other binary options platforms on our list. However, with so many giveaways, rewards, and educational resources, you’ll be earning profits off your deposit in no time. The platform supports over ten payment methods, including cryptocurrency and cards, making it easy to withdraw and deposit your funds.
IQCent also lets you leverage up to 1:100, allowing you to maximize your potential profit even with smaller investments. Even better, first-time trader accounts can receive up to a 100% bonus on their first deposit.
IQCent operates out of the Marshall Islands and currently does not provide services in the United States. However, the site does allow some international traders to open accounts depending on their country’s regulations.
IQCent is one of the best binary options brokers for beginners and casual traders looking for a low-risk trading platform.
- Minimum Deposit: $500
- Minimum Trade Size: $0.01
- Deposit Bonus: 20-100%
- Demo Account: Yes
- Underlying Assets: 100+
- USA Accepted: Yes
#5 RaceOption: Best Deposit Bonuses
If you enjoy the thrill of bonuses and rewards in your binary options trading, RaceOption is the platform to check out. RaceOption facilitates over 10,000 trades daily with 100+ asset options ranging from stocks to crypto to commodities.
If you want to take your profits up a notch, you’ll appreciate RaceOption’s extensive rewards programs. You can earn extra income for referring friends to the platform—once they sign up, you’ll make 20% back from their deposits. You can also enter the site’s giveaways and sweepstakes to win prizes ranging from iPads to iMac computers to cash.
Traders who are new to binary options trading can take advantage of RaceOption’s copying features. These tools allow you to select a trader from the site’s list of successful investors and copy their trades, helping you make more confident trading decisions.
RaceOption requires a minimum deposit of $250 and a minimum withdrawal amount of $50. Once you make your initial deposit, you can place trades as low as $1 apiece to minimize risk. Even better, you can expect your withdrawal to go through within one hour of your request, so your funds will be on the way to your account in no time.
RaceOption is currently not regulated in the United States and does not have a strong regulatory license outside of the United States. However, many traders consider it a reliable binary trading platform, so you can likely trust its services as much as other websites on our list.
Altogether, RaceOption is an excellent choice for traders looking for fun and exciting bonus options alongside a secure trading platform.
- Minimum Deposit: $250
- Sign Up Bonus: 20-100%
- Demo Account: Yes
- Underlying Assets: 150+
- USA Accepted: Yes
#6 Binary.com: Best for Trading on MT4 Platform
If you’re unfamiliar with the world of binary options, Binary.com is an excellent place to start. This online binary options trading platform has been facilitating trades since 1999, and its straightforward, user-friendly website makes it easy to become knowledgeable about the binary market. However, its services are not currently available to investors in the United States or Canada.
Binary.com allows you to make trades 24/7, even on the weekends, making it one of the more convenient binary options brokers. It offers over 100 tradable markets, including Forex, crypto, CFDs, and metals through its binary options and MetaTrader 5 platforms.
Beginners will appreciate that you can set up a virtual practice account through Binary.com to help you learn more about binary trading. This account provides you with a $10,000 virtual credit that you can replenish for free. Once you feel comfortable, you can create a real account to begin trading funds.
One of the best features of Binary.com’s platform is its speed. You can execute your binary trade in just seconds and analyze your portfolio in real-time, so you always make the most up-to-date trading decisions. The site also allows you to customize your trading options, so you can choose your payout, asset, duration, and strike to fit your needs.
Binary.com has a lower minimum deposit than other sites on our list at just $5, making it more accessible to new and casual traders. The platform supports hundreds of deposit and withdrawal methods, including Visa and Mastercard credit cards, Bitcoin, and more.
Binary.com is licensed in Malta, the United Kingdom, Ireland, and the Isle of Man.
This site has won numerous awards for its integrity, reliability, and ease of use. In 2019, Global Brands Magazine named Binary.com the Best Binary Options Broker, and we agree that it offers some of the most benefits among similar platforms.
Binary.com is one of the best binary options brokers for beginners looking for a simple, easy-to-use platform to begin trading.
- Min. Deposit: $5
- Minimum Trades: $1
- Demo Account: Yes
- USA Accepted: No
What Are Binary Options?
Binary options are forms of options trading that offer two possible outcomes: either you make a predetermined profit, or you lose the money you put into the trade.
When you trade binary options, you’re answering a yes or no question: will the market be above a certain price by the expiry time? If you answer correctly, you will receive a $100 payout on each contract. If you answer incorrectly, you will lose the money you put into the trade.
Binary options predict trends of stock indices, commodities, events, and Forex pairs. Let’s say you’ve been watching the price of silver over the past several weeks. Though its current price is $1,000 an ounce, you predict its cost will increase to over $1,100 by the end of the week.
Rather than actually purchasing silver to make a profit on this price increase, you can buy a binary options contract with your prediction. Trade prices range from $0 to $100 depending on the likelihood that the contract expires below or above the strike price.
In this scenario, you purchase five silver binary options for $60 each, meaning you spend $300. You now have two possible outcomes:
- The price of silver is at or below $1,100 by the expiry time. Because your prediction was incorrect, you lose your $300.
- Your trade finishes “in the money,” meaning the price of silver is above $1,100 by the expiration date. You receive a $100 payout on each of your contracts, so you earn $500, a profit of $200.
Binary options are often more lucrative than traditional forms of buying and trading. They also offer controlled risk, as you know exactly what you stand to lose if your prediction is wrong.
However, attempting to go into a binary options trade blindly could lead you to lose your deposit in no time. The best way to make a profitable binary options trade is to utilize a broker platform to walk you through the process.
Factors To Consider When Choosing A Binary Options Trading Platform
You can find dozens of binary options platforms on the web. While some websites are safe and reliable, you’ll find an equal number of risky sites that may even be operating illegally.
As you search for the best binary options trading platform for you, consider how each of these factors plays into your decision.
In binary options trading, an underlying asset is a financial product on which you place your bet. Most trading platforms offer a range of underlying assets—many of the sites on our list allow you to choose from over 100 financial products. Some of the most prevalent markets are crypto, commodities, Forex, indices, and stocks.
If you have a specific underlying asset in mind, look for sites that specialize in your preferred area. If not, you may benefit most from a platform with a few dozen products available.
Some binary options brokers place a cap on the amount you can withdraw from each payout, such as $1,000 or $10,000. Other brokers take a fee out of payouts on each side of the trade so that your maximum payout is only 85% or 90% of your total profit.
As you search for the best binary options brokers for you, keep in mind how a site’s maximum payouts could affect your profits. Some platforms counter their low payouts with rewards or other advantages, while others end up taking more of your money than they are worth.
Binary options trading brokers usually place a minimum deposit amount on each trading account. This amount can range from a few dollars to several hundred dollars depending on the platform’s specific policies.
If you’re a first-time binary options trader or you don’t feel confident risking more than $100, look for sites with lower minimum deposit amounts like Binary.com and IQ Option. But if you’re looking for a higher payout, you may benefit most from choosing a platform with a higher minimum deposit, such as IQCent.
Either way, it’s best not to let a trading platform pressure you into spending more money than you are comfortable with. If a site’s minimum deposit is too high for your liking, look for another platform.
Demo accounts are beneficial for users still learning the ins and outs of trading binary options. Many brokers allow you to create free demo accounts to test out binary options trades with fake, virtual currency. You can use these accounts to see how your choices affect whether you win or lose money, helping you become more confident before using real funds.
Demo accounts also allow you to try out several binary options brokers before choosing one. You can use your demo account to better understand each platform’s features, user interface, technical indicators, and risk management options before creating a paid trading account.
Binary options trading is a highly regulated form of investing, and some countries place specific regulations on how their citizens can participate. Many brokers do not operate within the United States due to U.S.trading regulations. The U.K. also regulates options trading through the Financial Conduct Authority (FCA).
As you search for the best binary options brokers, make sure the trading platforms you visit are available within your country. You should never attempt to work around a country’s restrictions through a VPN or other means—doing so could get you into legal trouble.
Giving your bank account or credit card information away comes with risks, and you should always make sure a broker uses safe payment options before proceeding. Binary options brokers should specify up front which deposit methods they accept, such as credit or debit cards, cryptocurrencies, e-wallets, or bank wire transfers.
Consider which payment methods you feel comfortable using as you search for the right options broker. And after you begin trading through a platform, keep an eye on your bank account—unsafe websites could start making unauthorized withdrawals from your account.
Speed of Withdrawals
When you earn profits on your binary options contracts, you probably want to receive your money as soon as possible. Some options brokers have speedy withdrawal times, allowing you to receive your funds within 24 hours of the expiry times. Other sites may require you to wait several days before you can collect your profits.
Take note of a platform’s withdrawal times as you search for the best binary options broker. If you would like to receive your funds quickly, you’ll want to look for platforms that advertise instant withdrawals.
Some brokers offer both web browser platforms and apps, allowing you to make trades from several different devices.
If you plan to do most of your trading from a computer, you’ll probably do well with a browser-based platform. But if you’d like to be able to check up on your account from anywhere or make trades from your mobile device, you should search for brokers with iOS and Android compatibility. Pocket Option and IQ Option are two of our favorite mobile-friendly options brokers.
How Do Binary Options Brokers Make Money?
Binary options brokers can make money in two different ways.
First, some brokers act as the counterparty, or the trader against whom you are betting. These platforms are known as “over-the-counter” brokers.
Every binary options trade needs to have two sides: one party who bets yes, and one who bets no. Many brokers make money the same way traders do—by winning some trades and losing others. However, because these platforms often have millions of clients, their profit potentials tend to be higher than that of the average trader.
Other binary options brokers make money through commission. These brokers act as the middleman, matching traders depending on whether they want to buy or sell. Commission-based platforms often hide commission fees within each contract’s spread, or the difference between the buy and sell prices, so clients may not notice that they are paying any additional money.
Brokers who charge commission also tend to offer leverage to encourage larger trade sizes, producing more profit for the broker.
Should You Use Multiple Brokers With Binary Options Trading?
Making accounts with multiple brokers can be beneficial for several reasons.
First, some brokers specialize in specific types of trades. If you plan to make trades across several categories, such as short-term, call option, and binary options trades, you may want to create one account with each type of broker.
Utilizing several platforms also reduces the risk of placing all your eggs in one basket. If one website goes under, turns out to be fraudulent, or doesn’t suit your needs, you won’t hazard losing all of your money at once.
Further, some sites offer sign-up offers for new users that allow you to expand your initial deposit for free. It may be beneficial to create accounts on multiple sites and distribute your funds among each to take advantage of these bonuses.
However, if you decide to make accounts on multiple platforms, be sure not to lose track of your activity on each. Trying to keep several expiry times in mind may cause you to miss deadlines and lose out on profits, canceling out the benefits of using several brokers.
Are Binary Options Brokers Regulated?
Many binary option brokers are regulated by a financial industry regulatory authority. However, there are still many unregulated brokers within the industry.
Regulators worldwide have been slow to catch up with the industry. Some agencies and organizations do have regulations in place.
Regulatory agencies with a significant presence in the U.S. include:
- Securities and Exchange Commission (SEC)
- Commodity Futures Trading Commission (CFTC)
In countries around the world, regulators include:
- Australian Securities and Investments Commission (ASIC)
- Financial Conduct Authority (FCA) in the U.K.
- Isle of Man Gambling Supervision Commission (GSC)
- Cyprus Securities and Exchange Commission (CySEC)
- Malta Gaming Authority (MGA)
Now that binary options have captured organizations’ interest, they’re paying closer attention and, in many cases, looking to tighten regulations on many online trading platforms.
Even with increasing oversight of every binary options broker, the market has some unregulated brokers. Some of these binary brokers may be on the up and up, but regulations help protect your interests, especially if you’re new to binary option trading.
Do Binary Trading Sites Accept Traders From The United States and the United Kingdom?
You may have noticed that several of the trading platforms on our list are not available in the U.S. or the U.K. Currently, the only regulated broker in the U.S. is Nadex.
The U.S. has stricter regulations than other countries, making it more challenging for binary brokers to gain U.S. approval. One reason regulation is more stringent in the U.S. is because the government has strict laws prohibiting online gambling. Some regulators define binary option trading as a form of gambling.
However, a few offshore brokers, such as Pocket Option and RaceOption, accept traders worldwide, including those in the U.S. and U.K.
Should Beginners Trade Binary Options?
Trading binary options is an excellent way for beginners to dive into the trade market. Binary options are easier to understand than other markets because of their binary nature—you only have two options, yes and no, for each bet.
And though trading binary options comes with significant risk, that risk is more defined than trading in other markets. You know exactly what you stand to gain or lose with each bet, and you will never lose more money than what you provide upfront in your contracts.
Finally, a binary options broker can make it easy for beginners to learn more about binary options markets. Many of the sites we reviewed offer tools and resources specifically for educational purposes. Demo accounts also allow beginners to try out the market in real-time without losing any money.
If you’re looking for an easy-to-learn form of options trading, binary options may be your best bet.
Is Binary Options Trading Safe?
On the whole, trading binary options is as safe as any other trade market. The U.S. Securities and Exchange Commission approved binary options in 2008, and traders worldwide consider this form of trading one of the safest on the market.
One reason binary options trading is so safe is that it is straightforward and easy-to-understand. You won’t risk losing money because you don’t understand an investment’s terms. Binary options are simple, and you should have no problem understanding how much money you’ll gain or lose on each contract.
However, not every binary options broker is safe and reliable. The best way to ensure that your trade is secure is to use a trusted binary broker with a safe trading platform. You should only deposit money with a regulated binary options broker if you feel confident that the trading platform is trustworthy and if it has positive reviews from other traders. If you have any doubts about a site’s security, walk away and find another binary options broker.
How to Trade Binary Options
You’ve done some research and you think trading binary options might be right for you. Here’s how to get started:
Choose a Binary Options Broker
Although we covered how to find the best binary trading platform above, here’s a quick recap:
- Cost and commission charges
- Minimum deposit amounts
- Expertise with specific assets
- Regulations and license
- Trading platforms access
- Extras or add-ons
- Demo accounts
You should be able to find plenty of information you need on the broker’s website, but if you’re unsure, don’t be afraid to reach out. The best binary broker for you will be the one you’re most comfortable dealing with.
Select an Underlying Asset to Trade
The toughest part may be narrowing down your choices. Binary trading has a widespread reach covering commodities, stocks, indices, and forex. You can choose to wager on just about everything.
Stocks are a popular underlying asset choice because they have the potential for larger gains in a shorter period. In a way, you can play the stock market without the financial contract of a call option.
Indices, commodities, and currency are common choices, too.
Nadex provides binary trade access based on the:
- Dow Jones industrial average
- S&P 500
- Russell 2000
You can also trade via Nadex based on the price of:
- Natural gas
- Crude oil
Binary options trading can also focus on current events like unemployment or Federal Reserve rates.
You can also try out the foreign currency or forex market as a binary trader. Though forex trading may cost more this way, you have the benefit of a loss cap so you can try it without major risk.
CBOE provides options based on the S&P 500 and the CBOE Volatility Index.
When it comes to trading binary options, your choices are almost limitless. Do some market research and study the data. Pick an asset that intrigues you and has solid potential returns. Build a little knowledge and understanding of the asset and you’re ready to go.
Choose Your Investment Amount
How much capital are you willing to wager in the binary options game? With binary, you are faced with a good news/bad news situation. The good news is that the more you invest, the higher your potential profit. The bad news is that you stand to lose your full trade amount depending on the outcome. You need to decide what amount of money you can stand to lose while making sure you invest enough for sufficient binary trades and worthwhile payout.
Choose Your Expiry Time
Think of the expiry time as the binary option finish line. It’s the moment the trade ends and it determines whether you made a profit or lost your investment.
Expiry times vary from 30 seconds to the end of day, clear up to one year. Investors consider an expiry time of less than five minutes as short-term or “turbo.” Five minutes to the end of day, or the closing time for the underlying asset, is classified as a normal expiry time. Anything longer than the end of day is classified as long-term.
Think about your trading style and goals. Do you want to make a bunch of trades and increase your profit potential? Are you more deliberate with the goal of trading accuracy over quantity?
If you’re a beginning short-term trader, you should consider 30-second and 60-second expiry times, in addition to end-of-day expiration. Be sure to weigh trade volume vs. price movement when making your decision.
Select Call/Put to Predict Market Direction
This is your binary moment of truth. You need to decide whether the value of your chosen asset will increase or decrease. Remember, this is all or nothing, a win/lose proposition. That’s the nature of binary options. It’s time to hit the button on your device and hope your prediction is correct.
Final Thoughts – Is Trading Binary Options Right For You?
Trading binary options is a quick way to make some extra cash without the risk that comes with other trade options. This form of trading is straightforward, easier to understand than other products, and offers quick turn-around times, making it a popular activity for traders worldwide.
Binary options brokers simplify the process of buying and selling your binary options products. These platforms are user-friendly, offer sizable bonuses and rewards for making accounts, and help new traders learn more about the options-trading process before they begin.
If you’re new to the world of options trading, you won’t find a better way to ease into the market than with binary options. And if you’re familiar with several types of trading, you may find that binary options are a breath of fresh air compared to more complicated trade types.
Choosing any of the regulated binary options brokers we reviewed above will put you in an excellent position to begin making profits off your trades. Give binary trading a try today—it could be the perfect way to boost your income.
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