Over the past decade, many binary options brokers have been shut down their operations due to regulators and legal requirements, leaving only trustworthy and regulated binary options in the market. But still, finding the right binary options broker might be a daunting task to deal with. To help you in the process, in this guide we are going to suggest the best binary options brokers and help you find out everything you need to know about options trading brokers. Best Binary Options Brokers 2021 Below, you will find a list of the best options brokers currently available in the market. In case you’d like to get information on each platform, you can read our reviews in the next section. AvaTrade – Overall best binary options broker Robinhood – Best mobile trading app for options trading FinecoBank – Multi-asset binary options broker Interactive Brokers – Online trading platform for professional options traders IG Markets – Options trading on a variety of markets and products Best Binary Options Brokers Reviewed 1. AvaTrade – Overall Best Binary Options Broker AvaTrade is our number one pick for forex options trading as it offers a solid range of call and put options on FX currency pairs, a professional trading platform, and lots of trading tools and features. Plus, AvaTrade is one of the few regulated binary options forex brokers out there that provides access to professional trading platforms on a desktop as well as on a mobile device. AvaTrade offers FX vanilla options, which are contracts that give a trader the right, but not the obligation, to buy or sell a specified amount of an instrument at a specified price and expiration date. You will, therefore, be able to professionally trade options using advanced trading tools to place orders and manage risk. For example, the broker offers an options data screen with Greek letters that are commonly used in options trading. Another benefit of using AvaTrade is its mobile app that is dedicated to options trading. The app is available on Google Play (Android) and Apple Store (iOS) and has excellent reviews from people who used it. Further, the AvaOptions trading app features 13 options strategies, including the most common options trading strategies like a straddle, butterfly, etc. Finally, AvaTrade is heavily regulated and ensures clients’ funds are safe. This broker holds licenses from top-tier regulators including CySEC, the Financial Conduct Authority (FCA), ASIC, etc. Based on our analysis, AvaTrade is also one of the best FCA-regulated brokers. So, all things considered, AvaTrade is clearly one of the best binary options brokers in the industry. To get started, AvaTrade maintains a low minimum deposit requirement of just $100, or you can sign up and start trading on a demonstration account. Pros: Heavily regulated broker Offers a wide range of assets across various markets, including options Professional trading platform for options trading – available on desktop and as a mobile app Supports the MT4, MT5, AvaSocial, AvaTradeGo, etc Social trading is available Great broker for new traders and for professional traders Excellent tools and features for options traders Cons: Only FX currency pairs are available as options Visit AvaTrade Now 71% of retail investor accounts lose money when trading CFDs with this provider Options Assets Available Pricing Structure Price for EUR/USD Trading Platforms Over 40 FX currency pairs Fixed trading commissions Depends on the strike and expiration date AvaOption – desktop and mobile app MetaTrader4 and MetaTrader5 2. Robinhood – Best Mobile Trading for Options Trading Founded in 2013, Robinhood has grown to become one of the largest online trading platforms in the US and worldwide with nearly 18 million active users. At Robinhood, traders get access to more than 7000 financial assets, including options. The great thing about Robinhood is that it offers commission-free options trading so you don’t have to pay any fees when you get into a position. Besides offering a commission-free trading platform, trading options at Robinhood are very simple and straightforward and do not require any special skills. With that being said, Robinhood is more suited for newbies rather than expert traders. Also, Robinhood offers options trading on US stocks only and you’ll have to prove you have enough trading experience in order to be eligible to trade options (level 2). Nonetheless, Robinhood is a great option for new investors who want to trade options on an easy-to-use mobile app. You do not have to pay extra fees to execute options trades, the app is user-friendly, and you get access to a huge range of options and other assets like stocks, ETFs, and cryptocurrencies. At last, in terms of the safety of funds – Robinhood is regulated by the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) and is a member of the Financial Industry Regulatory Authority (FINRA) Pros Regulated by the SEC and by the CFTC 0% commission on stocks, options, and crypto In addition to options, Robinhood a range of US shares and popular cryptos like bitcoin A user friendly and easy to use options trading platforms Excellent mobile app Cons ACH and bank wire deposits only US-based traders only Visit Robinhood Now Your capital is at risk when trading with this provider. Options Assets Available Pricing Structure Price for EUR/USD Trading Platforms Stocks Free N/A Robinhood proprietary trading platform 3. FinecoBank – Multi-Asset Binary Options Broker Another reputable and trusted brokerage firm that offers users trade options is FinecoBank, an Italian bank that also offers online trading services. This broker offers binary daily options on popular indices such as the Dow Jones, FTSE 100, EuroStoxx50, and many more. Best of all, FinecoBank offers a professional options trading experience with plenty of tools and features, and another trading platform called PowerDesk for expert traders. In some opinions, the PowerDesk is the best binary trading platform, especially for traders who have previous trading experience. That said, binary options trading at FinecoBank is straightforward and simple and you’ll get an order form where you can choose the direction of the market (up and down), the strike price, and the potential P&L All these options contracts at FinecoBank are daily and allow users to trade the daily direction of stock indices, currencies, and commodities. So, overall, from our research, FinecoBank is certainly among the best binary options brokers in the market. Pros Offers to trade daily options on global indices, forex, and commodities Features the PowerDesk and a web-based trading platform Enables users to use a plethora of risk management tools Also supports CFDs and other products Heavily regulated Easy to use mobile trading app Great customer support Cons Charges a fixed trading fee for options Visit Fineco Now Your capital is at risk when trading with this provider. Options Assets Available Pricing Structure Price for EUR/USD Trading Platforms Global stock indices, forex, commodities Fixed trading commission – $3.95 N/A Fineco web-based platform, and PowerDesk What are Binary Options? A binary option is a financial derivative contract with different types of expiry times in which the buyer of the option may get a fixed payout or nothing at all. As derived from the name of binary options, a binary option contract is a simple yes or no question, meaning the contract has a price target and the investor is able to choose whether the price of the underlying asset will be above or below the price at a certain time. For example, let’s say a binary option for the EUR/USD has a strike price of 1.1820 and it expires tomorrow at 15 p.m. The current price of the EUR/USD stands at 1.1800, meaning the trader needs an increase in the price of just 20 pips. The cost of buying the binary option is $60 and if the strike price will be above 1.1820, you’ll get $100. Otherwise, you’ll lose the $60 you invested in buying the option. Notably, while binary options were banned by some regulators in various jurisdictions due to fraudulent activity by some binary options brokers, it is still legal in the USA and other regions in the world. What Assets Can You Trade as Binary Options? Essentially, it is possible to trade on any asset or market as long as the broker supports this asset. Binary options are derivative contracts, which means a brokerage firm has the option to add any financial instrument the clients may be interested in. With that in mind, most regulated binary options brokers give traders access to the most popular and traded instruments in the market such as FX currency pairs, commodities, indices, leading cryptos, stocks, etc. Benefits of Trading Options Clearly, there are many benefits to trading options in comparison to other forms of trading. Some of these benefits include: Requires a Smaller Initial Amount to Open a Position Simply put, an option contract gives an investor the ability to purchase an asset with less upfront cost than buying the asset outright. This is because you basically buy the option, but not the obligation, to buy or sell the asset at a certain time and price rather than actually buying the asset. A Trader Can Develop Different Types of Strategies Unlike the conventional trading of assets (outright and CFDs), options trading enables users to develop much more sophisticated and effective trading strategies. There are essentially lots of options strategies out there with every option strategy has its own pros and cons. Some of the most popular options trading strategies include call and put contracts, covered call, straddle, butterfly, etc. Higher Returns Another huge advantage of options trading is that you can get higher returns, largely because options are leveraged products and the initial cost is significantly lower than buying the instrument outright. As such, options have the potential to provide higher returns, if used properly. The Simplicity of Binary Options In the case of binary options, simplicity is one of the key reasons why some investors prefer trading with this form of contract. Unlike complicated trading platforms where the broker does not display all the necessary information about the trade and you might have to calculate the value of pip or tick, binary options trading is simple and easy – all you need to do is to analyze the contract’s details including the strike price, the expiration date, the cost, and the return, and then, based on your market research, click Up or Down. Strategies for Binary Options Trading As previously mentioned, there’s a huge selection of binary options trading strategies to choose from, so you’ll have to learn more about the most common and uncommon trading strategies before you start trading. With that in mind, here are some of the most popular strategies for binary options trading. Martingale or Percentage-Based Because binary options are basically sort of a number game, the amount of the trades in relation to the trader’s account balance is one of the most important factors to take into consideration. In that aspect, there are two trading management approaches you need to take to get started – Martingale or percentage-based. The first is the most common and most recommended risk management approach when you trade binary options. It basically means you need to invest in a trade a specified percentage of what you currently have in your trading account. For example, if you have $1000 in your account, you can invest 10% or $100 on each trade. The Martingale approach, which also can be used in casino roulette, is a trading method in which you always double the amount of a position after a losing position. With this strategy, you can essentially recover from the previous loss, however, there’s a high risk of losing all the capital you have and it is not the most recommended trading strategy, especially for beginners. Binary Options 60 Seconds Strategy Another popular trading strategy is the 60 seconds or 1 minute, which by many options traders is the best binary options expiration time to get the higher chances of profitable account. With this trading strategy, you simply get into a position with the idea that the trade will be closing after 60 seconds. As the payout is around 70% in this case, and your target price is the current price – this means that you need the market to not make any price movement or stay around the same levels. Therefore, with this trading strategy, there’s a high chance of making consistent profits if using the right risk management tool and a statistical method. Trading the News and Economic Events This is another trading strategy that is often used by binary options traders. As we already know, the markets are influenced by news events and economic data, meaning that after such events, there’s high volatility and occasionally, a direction of the market. In this case, you’ll have to be more attentive to news about the specific asset you are trading and the market in general. Also, you need to find a real-time live economic calendar to get the latest economic data from various central banks and governments around the world. Binary Options Technical Analysis While the previous method is based on fundamental analysis, many binary options use technical analysis only due to the short-term nature of this market. Simply put, technical analysis relies on technical indicators on charts. That said, in the case of trading binary options, some of the most popular and commonly used technical indicators include moving average, RSI, Bollinger bands, support and resistance levels, etc. Conclusion To sum up, trading binary options is quite a simple and exciting way to get into the trading world via the binary options market. Although it is considered somewhat risky, traders who succeed in developing a good methodology and a trading style can generate high profits from trading binary options. To start trading binary options, it’s recommended that you choose one of the best binary options brokers, open a free demo account or start trading with real money by depositing the minimum amount required, and develop a trading strategy. Then, once you have established a successful stream of income, you can add more funds to your and increase the size of your positions. Visit AvaTrade Now 67% of retail investor accounts lose money when trading CFDs with this provider. FAQs What are binary options? Binary options, also known as digital options, are trading contracts where the outcome of the trade is binary, meaning yes or no. In other words, it is a financial instrument contract that gives the investor the possibility to receive a fixed payout or nothing at all. How does options trading work? When trading options, an investor can buy or sell calls or puts options contract. Each options contract has a certain strike price and an expiration date and the investor essentially has the ability to buy the right, but not the obligation, to buy the asset at the price set on the contract. How do binary options brokers make money? Basically, binary options brokers work on a simple statistical model where the investor will get a certain percentage (usually 50%-80%) of the money if the trade was predicted correctly but lose 100% in case it is a losing trade. Are options good for beginners? Yes, options are a great way for beginners to enter the trading world, and in some cases, it’s much more dynamic than trading a certain asset outright. Which binary options brokers are regulated? Generally, it is not advisable to start trading binary options with unregulated brokers. Luckily, all the brokers on our list are heavily regulated and hold licenses from several financial entities. As such, we suggest you use one of the top three brokers on our list – AvaTrade, Robinhood, and FinecoBank. What are the best binary options brokers? From our research, AvaTrade, is certainly one of the best binary options trading platforms in the market and is a regulated broker. Other brokers include Robinhood, FinecoBank, InteractiveBrokers, and IG Markets. Unlock FREE Daily Forex Signals! 2-3 Forex Signals Daily 76% Success Rate 25k+ Telegram Members Join our FREE Telegram Group Now! Tom Chen Tom Chen Tom is a highly experienced financial analyst and is a former grains derivatives day trader, whilst there he specialised in futures, commodities, forex and cryptocurrency. He has over 10 years of experience in the Financial industry spanning across his day trading career and serving as a web content editor and writer at FXEmpire. Tom's expertise focuses on day trading and technical analysis as it applies to futures, cryptocurrencies, forex, and stocks. Tom’s special interests include economics, trading and social-economic systems. He holds a B.A. in Economics and Management, as well as a Journalism Feature Writing certificate from the London School of Journalism. Tom has written for many high profile websites, such as FX Empire, The Motley Fool, InsideBitcoins, Yahoo Finance, and Learnbonds. 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