Shady Binary Option Brokers

Best Binary Options Brokers 2020:
  • Binarium

    Best Binary Options Broker 2020!
    Good Choice for Beginners!
    Free Trading Education, Free Demo Account!
    Get a Sign-Up Bonus Now!

  • Binomo

    2nd in our ranking!

Shady Brokers

The adage ‘all that glitters is not gold’ fits binary options brokers as well. There would be culprits in any business which involves huge money and binary option is not an exception. There are numerous tales of price manipulation, breach of contract terms, and payout refusals. However, the majority of these problems can be resolved by taking simple measures to identify shady brokers.


Registration process

The registration process should be simple and straight forward. The webpage should clearly define the terms and conditions under which a binary broker operates. More importantly, the web page should clearly list the identity documents required by the binary broker to complete a hassle free registration. Furthermore, a trader should be convinced that the binary broker will not call for any other document at a later stage. If there is any doubt in this regard, a trader should contact the binary broker and get a clear confirmation in this regard.

Bonus with unattainable targets

It is not uncommon to see a binary broker offer an attractive bonus. However, what does matter is the terms and conditions behind the bonus offering. A 100% bonus with a maximum of 40x wagering is usually the norm. However, when a broker offers a deposit bonus with a 50x or more wager term, then a trader should think twice before accepting the offer as the condition is hard to achieve. The trader should also compare the success rate of his strategy with the wagering condition. If the success rate is low and the wagering requirement is high, then ultimately the trader may lose his investment as frustration will build up as time passes.

Customer service

After going through the website, a wannabe trader should get in touch with the customer service to get the doubts clarified. If there is too much of a delay or if there is no clarity in response, it is better to avoid proceeding further. If the website does not give a clear idea about the jurisdiction or the place from where the company operates, then it is better to check it out as well. Even though honesty of a binary broker is no way connected with a binary broker’s jurisdiction, still, it is better to have a clear idea about that.

Clear deposit and withdrawal conditions

Finally, the terms of deposit and withdrawal matters the most as everything will go in vain if there is no way to withdraw the profit. In this regard, it is better to check out the list of shady brokers provided here. It will clear most of the doubts you have about a binary broker.

Best Binary Options Brokers 2020:
  • Binarium

    Best Binary Options Broker 2020!
    Good Choice for Beginners!
    Free Trading Education, Free Demo Account!
    Get a Sign-Up Bonus Now!

  • Binomo

    2nd in our ranking!

Past track record

It is also better to visit some good forums where binary traders share their trading ideas and best money management practices. The experienced traders would be of great help in avoiding shady brokers, if any, left out in the list provided here.

Best Binary Options Brokers in 2020

This section of our website will focus on binary options brokers. Here we will try to explain how binary options brokers work and help you make informed decisions when it comes to binary options trading. As you probably noticed, most websites that speak about binary options brokers will just show you a “ranking” of brokers with good looking design, logos and reviews. But what is this ranking based on? How do the brokers receive their “rating” and are the reviews actually honest? I’ll let you decide that yourself after explaining how the binary options industry works.

In case you reached this page looking for the best binary options brokers, you’d better keep reading as this is probably the first website that will tell you the truth behind binary options brokers.

Sorry for grabbing your attention this way, but this is really worth reading

How the binary options industry works

Binary options have become very popular among retail traders because they are very easy to use and require zero knowledge about financial instruments if you just want to trade them. The thing is, since they are easy to use anyone can try binary options, and this is why brokers are desperate to attract new clients. This encourages them to advertise on binary options websites and pay the website owners money in exchange for promotion. The result is website owners promoting the brokers that pay them the most in order to make more money. This is how the broker rankings end up being created, with the brokers paying the most ranking on the top spots and receiving the best reviews and ratings.

You will probably notice that most websites listing binary options brokers also have banners and other advertising material displayed as they try to maximize the money they get from the brokers. They may even promote shady “binary options robots” promising to make you thousands of dollars every day, as if such thing would be possible.

So, does that mean binary options brokers are not to be trusted? No, it doesn’t mean that, but it means you should be very careful what broker to choose. Advertising a business is a legitimate thing, and it is done by legitimate businesses in every industry, but it can also be done by shady brokers who may even be willing to outspend the honest ones. Then how can you distinguish between reliable brokers and scams? You must first understand how binary brokers work.

How do binary options brokers make their money?

When you buy an option, you must buy it from someone, which will be your counterparty. Binary options are just bets on the outcome of the market movement on a predetermined timeframe. This means that when you buy a binary option from your broker, you actually bet against the broker. If your option is a winner, the broker will credit your account with the payout, and when the option ends ‘out of the money’ the broker will win the bet. It works in the same way as betting on sports against a bookmaker, only that in binary options you bet on financial assets, not on sporting events.

So, the broker makes money when you lose. This means that the broker must make sure it wins more than it loses, just like bookmakers do. How does the broker achieve this? Binary trading brokers will always have a lower payout compared to the price of the option, if we’re talking about simple Call and Put options which have a 50% chance of success. Let’s think about an option with an 80% payout and a 5% insurance for out of the money trades. If you buy such option 100 times at the price of $100 and you win 50% of the time, your payout will be the following: 50 x 180 + 50 x 5 = $9,250. However, the price you paid for the options was 100 x 100 = $10,000. This means that in the end you will lose $750 and the broker will make a profit of $750 even if your win rate was 50%.

But aren’t financial markets predictable? Isn’t it easy to have a high win ratio in binary options and beat the broker? Well, my answer would be that financial markets are not as predictable as many people think, especially in the short term. Also, most people trading binary options have no clue about what they are actually doing and they are just randomly betting on the market to see what the outcome is. In this case they end up with an average win rate of around 50%, exactly what the brokers wish.

Binary options brokers use two tricks to make sure they make more money than what they pay back to their clients:

1) They advertise in a way that encourages beginners to signup in order to make sure the majority of their clients are just novices who gamble on the markets. Such clients are trading mostly for the thrill of staking real money and they may trade again and again even if they lose some money, because just as in sports betting, sometimes they will win and will be happy about it.

2) They promote short term options such as ‘60 seconds options’ and other options with deadlines shorter than one hour. It is well known among experienced traders that only sophisticated trading algorithms can predict such short term movements with some success, and even such algorithms cannot have a sufficiently high win rate in order to beat the broker’s advantage caused by the lower payouts. Also, binary brokers have very simplistic platforms that do not allow the use of real trading robots, so any trading done on very short term options will have an average success rate of 50%.

Since most binary traders will just gamble with a 50% success rate, binary options brokers will be profitable against the majority of their clients, just like bookmakers are profitable against the majority of bettors.

Of course, there are also traders that are profitable and make money trading binary options, but they are just as few as the people making money from sports betting, and are a negligible proportion among the total number of traders. Brokers can just accept the loses on those clients because they make much more money on those who lose on a regular basis.

You may conclude that binary options brokers are just scams since they make money when the client loses, but this is a totally wrong assumption. Technically speaking, binary brokers are just market makers providing a pool of options that traders can buy. This is how most derivatives brokers work, and this includes many forex brokers and also CFD (Contract For Difference) providers. They can be regulated by financial institutions and as long as they conduct their business in a honest way they are legitimate businesses.

Are all binary options brokers reliable?

As I have just explained how binary options brokers make their money, the question that comes next is, are all binary options brokers reliable? Since the broker makes money from the client’s losses, wouldn’t some brokers try to cheat and block traders from withdrawing their winnings?

The sad truth is that the binary options industry is plagued by scams who only want to cheat their clients and take their money. Many so called brokers (because they cannot be called brokers) are just shady companies that will accept deposits and let you play on their platform as long as you lose, but will start to cheat if they see that you are winning. They may manipulate the price feed in their favor and they may even delay your withdrawal request in order to play with your nerves until you decide to cancel your withdrawal and gamble your money away until you lose them. Some fake brokers may offer you bogus bonuses with a lot of restrictions attached, that will make it impossible to request withdrawals until the bonus conditions are met. Those conditions are usually absurd as they require you to place tons of trades that will most likely result in the loss of your balance.

While there are many fake brokers that appeal to some of the ugly tricks described above, there are also some reliable brokers that are regulated and conduct their business in a honest manner. The honest brokers are safe to use as they will always pay your winnings and will not cheat against you. Just as there are honest and reliable online bookmakers there are also safe and reliable binary options brokers.

The sad thing about the binary options industry is that many shady brokers pay a lot of money in advertising because they keep all the deposits they receive without paying back their customers’ winnings. This has the ugly effect that sometimes you will see shady brokers ranking on the top spots on binary options reviews websites and having banners all over the internet. The final effect is that many people lose faith in binary options after being cheated and tend to think that all brokers are the same, which is not true.

How to avoid binary options scams?

A first step in avoiding binary options scams is to avoid brokers that are not regulated and that don’t have clear information about the company on their website. While there can be honest brokers that are not regulated, the risks are just much higher.

Another thing to avoid are the so called “binary options robots” that will show you a very well made marketing video explaining how they are making thousands of dollars every day, and how they will let you use their robot and make tons of money for yourself because they are generous, or because they “need your help”. There are hundreds of such so-called robots that are nothing else but marketing tricks to attract new clients for shady brokers. The robots will just randomly trade on your behalf until you lose your deposit.

Anyway, as a general rule in investing, what sounds too good to be true is actually a scam. You should also be cautious about recommendations from websites that are filled with banners and that speak about bonuses. They are usually just advertising the brokers that pay the most.

The best binary options brokers in 2020

So, considering all warnings described above, should you still be trading binary options? You can safely do it if you choose one of the large regulated brokers. Those brokers have a very large client base and have no problem in paying traders who win. They are serious businesses that want to work long term and know that in order to be successful in this business in the long run, a broker must be reliable and have a good reputation.

I would recommend IQ Option as the best binary options broker, since it is the largest binary broker by number of clients and it is the most technologically advanced broker. Other safe brokers with very large client base are Expert Option and Olymp Trade.

While there may be other regulated brokers as well, I would not go as far as to recommend them because I haven’t tested them myself.

Anyway, my advice is to trade only longer term binary options and avoid 60 seconds options unless you just want to have some fun and you don’t care if you lose.

Best binary options brokers for US traders

It is unfortunate that US citizens cannot register to the regulated brokers. This is because of the FATCA legislation that makes business with US clients very expensive for foreign financial companies. Because compliance with FATCA is extremely expensive most non-US financial institutions have given up on US clients, and this includes banks and brokerages alike.

I don’t know about any retail binary options brokers who accept US customers, so I am unable to recommend anything.

Most people familiar with binary options only know about trading with a regular binary options broker. This means the broker offers a wide range of options that traders can buy. It doesn’t matter if it is a call or a put option, the process is the same: the trader buys the option from the broker. Read More

Social Trading is the raising star of the online trading world, with more and more people discovering the opportunities of harnessing the power of crowd intelligence. With new advanced platforms that allow traders to interact with each other and copy the trades of the most successful ones, this new trend may soon transform the financial trading industry forever. Read More


1. Binary Option (Wikipedia article about binary options)

2. Derivative Instruments (Wikipedia article about derivatives)

How to choose a binary options broker

As we see more and more binary options brokers soliciting customers, for a trader who wishes to trade binary options, it can get difficult and confusing in choosing a binary options broker. A quick look at various online forums and websites gives out conflicting reviews and opinions which only tend to add to the confusion. So how does a trader go about choosing a binary options broker? Read this article to help you choose a binary options broker.

Just like with choosing a forex broker, the task of researching into various binary options brokers before you blindly sign up and deposit your funds is essential. While there are many legit brokers, there are equally dodgy and shady binary options brokers. This is one of the main reasons why there are so many complaints about various binary options brokers. In most cases, the trader has not done their research into the broker and only realizes that they have been scammed when it comes to withdrawing their funds. In some cases, traders have lost as much as $1000 for failing to research for the right and legit binary options broker. You can spare a couple of minutes to read through this article, or you could risk giving your money to a shady binary options broker.

Choosing a binary options broker – What to look for

When it comes to selecting a binary options broker, any trader should first look into the following checklist criteria which we briefly explain.

Start by reading the About Us Section

One of the easiest way to filter out dodgy binary options brokers is to simply read the ‘About Us’ section. It is very simple to identify how legit a binary options broker is by simply reading the contents of this page. A legit binary options broker tends to give out as much of details as possible. Traders should specifically look for the following:

The broker’s company details including registration number, country of domicile, number of years in the business.

Validate the address of the broker

Look for the address of the broker. Now-a-days more and more brokers conveniently set up a virtual office in places like London just to make their company look fancy. Doing a search of the company can instantly reveal if the company is indeed legitimate or just has a virtual office. Stay away from binary options brokers that have a virtual office. If the broker is hesitant to give out their details, there is no guarantee that you can trust them with your money.

Read the Terms & Conditions

The terms and conditions although lengthy and complicated as they might seem is in fact a very good place to get all the finer details. It is essential for traders to read through the terms and conditions as it makes for a legal document. Pay attention to the sections dealing with deposit and withdrawal of funds, look for any restrictions or any fees that may be charged and so on. You would be surprised to know that of the many traders who feel they were cheated, simply did not pay attention to the terms and conditions. Again, it pays to spend some time reading through the binary options broker’s website rather than deposit your funds and then have difficulties during withdrawal.

Check for Regulation

Regulation is a grossly misunderstood area for traders. Just because a binary options broker is regulated doesn’t mean that they are legit. Regulation from CySec in Cyprus is one of the most common licenses held by binary options brokers. Yet, despite the broker being licensed, there have been instances when traders were cheated out of their money. Having a license does not guarantee anything and there have been no documented evidence of a financial regulation authority intervening to help out a trader. However, when a binary options broker is regulated, it does mean that they are subject to fair and transparent business practices which make it a little bit better to trust the broker.

Number of years in business

Logically, the longer a binary options broker has been in business, the less likely that they will cheat their customers. Always check when the binary options broker’s business was established in order to learn how long they have been in business. For a new binary options broker, it is much easier to disappear with funds overnight or to cause problems with withdrawals than it is for a broker that has been in business.

This is also the reason why you get to see big bonuses being offered mostly by new binary options brokers rather than the established ones. See here List of best bonuses from BinaryOptions brokers

Check their customer support (Chat/Email and Phone)

The next step is to contact the binary options broker’s customer support via Phone/Email and Chat. This will help you know how professional and helpful the support staff is while at the same time allows you to get an idea about the broker’s operations.

To conclude, despite doing the above research, there is no guarantee that the broker who meets all the above criteria is legit. There are many cases of well established business going bust and thus taking their customer’s money with them as well. However, by sticking to the above criteria, a trader has a better chance of choosing the right binary options broker.

Best Binary Options Brokers 2020:
  • Binarium

    Best Binary Options Broker 2020!
    Good Choice for Beginners!
    Free Trading Education, Free Demo Account!
    Get a Sign-Up Bonus Now!

  • Binomo

    2nd in our ranking!

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