I was recently at a cocktail party having the regular run of the mill small talk that inevitably leads to the disclosure of investment portfolios. While everyone was discussing his or her latest investment success story I figured I would utilize this time to answer a question I had been pondering for the previous month. As the waiter circled around with our fourth round of champagne I asked, what I thought was a simple question, “So what are the best binary options brokers your firms use?” My question was quickly followed by the sound of crickets. I knew that all of their firms offered binary options, but what had never occurred to me was that they were only allowed to use one broker and therefore had never considered which broker was the best.
Let me back up and first introduce the readers who are not familiar with binary options. While the finance world is known for its cutthroat all-or-nothing approach, binary options take this philosophy to a new level. Literally known as “the all-or-nothing option”, binary options refer to a stock that offers only two possible outcomes. Usually dealing in a specified amount of an asset, binary stock options only offer all of the payout or nothing at all, depending on the stock’s value at an expiration date. Confused yet? I’ll break it down, as all financial transactions can be simplified (regardless of what your local investment banker tells you), with an example. Binary options are essentially bets, or guesses, to a stock’s value at a future date. Say you decide to buy a binary call-option on ABC Corporation’s stock struck at $200, with a $5,000 binary payoff. If, on the date of maturity, ABC Corporation’s stock is worth at least $200, you receive $5,000. On the other hand, if on the date of maturity the stock is worth less than $200, you receive nothing. Get it?
Okay, now that you understand how you can quickly make guaranteed money using binary options, it’s important to know who are the best brokers for betting successfully. There are three major firms that are best known for their ability to research trends and potential risk to provide the highest probability for success with binary options. TickTackTrade (My favorite) is known to give out a maximum 50% bonus, as opposed to its competition, which has a monetary maximum. In addition to its bonus Boss Capitol only requires a $200 deposit and pays you 85% of your payout. Cherry Trade is another firm dedicated to binary options; however, they only pay you 81% of your payout and max your bonus at $20,000. Redwood Options is the third most popular binary stockbroker that, like the other two options, only requires a $200 deposit, however they max out your bonus at $15,000 and pay you 81% of your payout. These are the categories you need to focus on when researching which binary stock option brokers are best for you. How much of your payout will you actually receive? These are the types of questions you want to ask firms before investing your money with them. Of course every case is different so you should do more research specific to your desired investment and outcome, but when people ask me what are the best binary options brokers, these are the three I recommend.