Binary Options Buying New Highs & Selling New Lows Strategy

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Options Broker 2020!
    Great Choice For Beginners!
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    Free Demo Account 1000$!
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  • BINOMO
    BINOMO

    Only For Experienced Traders!

20 Best Binary Options Brokers 2020

It is most likely that you have come across the term Binary Options while surfing the net, even if you don’t know what it means. Maybe someone told you, or you read somewhere that you could make impressive returns trading on binary options, and it sounded too good to be true. Maybe they said you could lose all your investment in a flash of a second, and got you scared to even try. There are many in similar circumstances with many questions about binary options lingering in their minds. Before we get to any aspects of Binary options, let explore what it is first, for the sake of anyone who is completely green to the concept.

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Binary options are a form of financial trading that involves a fixed amount of pay-off or nothing. That’s why it is called binary options anyway. It is either a 1/0 or Yes/No. There is no other option between. The trading is normally carried out online. The online trade is enabled by binary options traders. The trade involves a variety of instruments like fixed return options and digital options as forex, stocks and market interest rates. That explains why some people will tell you that you can quickly double your money, while others say you can lose it all. There is a lot of speculation among the masses about how binary options work. Many people have lost their hard-earned money because of lack of information. Before you get involved, it is prudent toe sure you understand all the risks involved. You should also work with a binary options broker that you can trust. There are many binary options brokers in the business.

We seek to bust the myths and present the facts as far as binary options and binary options brokers are concerned. There is a lot of misleading information circulating around. There are not many objective options broker reviews either. This is a review of some of the best binary options brokers. The review is essentially a binary options brokers list. The review will give you a deeper understanding of how they operate. The review seeks to arm you with relevant information before you get involved with binary options. Trading in binary options, otherwise known as hedging, can be a blessing or a curse to yourself depending on how you handle. We certainly seek to ensure it is never a curse. The review will explore various aspects of the binary options brokers such as

  • Trading platform
  • Minimum deposit
  • Maximum returns
  • Bonuses

The review will also explore the various laws and regulations governing binary options trading in various countries. It will also highlight a few dos and don’ts as far as binary options trading is concerned. We cannot promise that you make a lot of money after going through the review, but we can promise to show you how not to lose all your money. Tag along and let’s find out what binary options trading is really all about, and find binary options trading best brokers as well.. Below is a binary options broker list with some of their terms of engagement.

Note: Based on my experience, I personally recommend IQoption , ExpertOption & Olymp Trade but please read the full review to select the one that suits you especially from first 5.

Best Binary Options Brokers 2020 Comparison Table

Broker Min Deposit ($) Min Stake ($) Max Payout (%)
IQ Option 10 1 95 1st Choice
ExpertOption 50 1 95 2nd Choice
Olymp Trade 10 1 92 3rd Choice
HighLow 10 10 90
OptionRobot 100 5 85
Ayrex 25 5 85
CryptoRobot365 10 1 90
BinaryRobot365 10 1 95
Binary.com 250 5 85
Finmax 250 10 90
FXMasterBot 100 5 90
BinaryCent 250 10 95
BinaryMate 250 10 90
RaceOption 250 1 90
AutoMatedBinary 10 1 90
ZoomTrader 1000 10 83
HYoption 100 5 83
24Option 100 24 88
Binomo 10 1 90

Best Binary Options Brokers 2020

1) IQ Option

IQ Option is a Seychelles-based online trading platform launched in 2020. It has found a lot of favor in South Africa. It is one of the best binary option brokers in South Africa. They claim to be one of the fastest growing online trading platforms, with over 25 million members to date. Their services include forex trading, stock trading, and ETF trading. There are binary options brokers too. They have over 10 million digital options on which you can trade. You engage in the binary options trade by speculating on the global market currencies, indices, stocks, and commodities movement.

Trading Platform

IQ Option has a website and App on which you can trade. It depends on what you prefer or what is accessible to you. You go to the instruments menu and choose the asset you want to trade in. Each asset is assigned the current profit percentage. You then choose the duration that you want to explore the asset for. The end of the duration will be marked with a red line on the chart. The system will also set a deadline for making the selected trade. Then put up the value you want to trade and confirm using the call or put buttons. You have the option to sell the option before it expires. If you choose to wait until the end of the duration, you will get 95% profit if your prediction was correct or lose the investment if your predictions were wrong.

  • The minimum deposit on IQ Option is $10 for a real account or $3000 for a premium account
  • The minimum investment is $1
  • The maximum returns are 95% profit on your stake
  • IQ Option offers no bonuses.
  • IQ Option is certainly one of the best trading brokers.

2) Expertoption

Expertoption is a binary options broker with a global trading platform. The platform is available to people in over 150 countries across the world. Expertoption was launched in 2020, and it has 8,707,538 registered traders so far. Expertoption is an award-winning platform, having been recognized as an award-winning platform in the China Trading Expo Shenzhen, 6-7 May 2020. The broker offers up to 100 options of assets to trade with. Expertoption does not offer its services to residents of the following countries; USA, Canada, European Economic Area, Switzerland, New Zealand, Australia, Japan, North Korea, Puerto Rico, Sudan.

Trading Platform

Expertoption operates both website and app trading platforms. You can log in to your account on any platform you feel comfortable with. They offer a free demo account too, for novice traders to first test their knowledge before investing any money. The platform has an education center for green beginners too. There is a lot of educational material on the center that you can go through and get relevant insight pertaining to binary options trading. The platform is quite responsive, and it runs 24/7. It offers the following technical analysis tools.

  • Four chart types, eight indicators, trend lines
  • Social trading – this feature allows you to watch other people around the world closing deals, or to trade with your friends
  • The demo account gives you $10000 to try out with

The platform offers five types of trading accounts as follows;

  • Basic – this account is for people who prefer a light start. The minimum deposit for this account is $50
  • Silver – this account includes free consultations. Apparently, many people choose to start here. The minimum deposit is $500.
  • Gold – this account offers you more privileges features and smart investment tips. The minimum deposit for this account is $2500
  • Platinum – this account is regarded as the ultimate account for serious investors. The platform offers exclusive account management and their best expertise. The minimum deposit for the account is $5000.
  • Exclusive – this exclusive account is only an invited-persons only account. It is reserved for people with the highest returns. You can contact your account manager about it, that is if you already have a platinum account.

The maximum returns can go up to 95% profit on the invested amount.

3) Olymp Trade

Olymp Trade is a Cyprus-based online trading platform launched in 2020. The platform boasts of over 20000 traders in a day. It is currently registering a growth 7% in payouts every month, with last month’s payouts totaling to $ 7 969 557. Olymp trade is yet another incredible option for a beginner. It has very insightful educational resources for trading. It is one of the best binary options brokers in Nigeria.

Trading Platform

Olymp trade runs web, android and apple trading platforms. They offer a demo account that you can experiment with first before moving to a real account. It is one of the best binary options brokers with demo accounts. They offer 24/7 trading and over 60 assets that you can trade with. The trading platforms are quite responsive and self-explanatory. The process of setting up and completing a trade is quite simple. The platform also offers you trading signals from experienced VIP traders, to help you make profitable trades.

  • The minimum deposit is $10
  • The minimum investment is $1
  • The maximum returns are 92% profit on your stake

4) HighLow

HighLow is an Australian based binary options broker. A number of platforms won’t admit Australian traders. This is one of the best Australian binary options brokers. It is a great platform for those who like trading for short duration times. It is one of the best 60second binary options brokers. The platform prides itself in a wide range of binary options and some of the highest payouts. They have done over 200% profit on investment payouts. HighLow runs on the MarketsPulse trading platform. It does not accept trader from the US though.

Platform

HighLow has a web, Android, and iPhone Apps trading platforms. They offer a demo account for beginners with a $50 bonus upon sign-up. It is one of the best binary options brokers for beginners. It allows them to test their knowledge before putting in all their money. You select the instrument you want to trade from the top toolbar. It has the current market value indicated on it. You then set up the duration you want to trade for and confirm. There is an expiration duration line beyond which you cannot make any changes on the investment. Your speculations should not go out of the set high and low marks.

  • The minimum deposit is $10
  • The minimum investment is $1
  • The maximum returns are 90% profit on your stake
  • There is a bonus of $50 upon signup
  • HighLow is one of the best binary options brokers with low minimum deposit.

5) Optionrobot

Optionrobot is a high-risk high-return binary options trading robot service. If you are not shy of taking huge risks with high potential returns if all goes well, then Optionrobot the platform for you. The platform’s robots generate trading signals and execute the trade directly to your broker account. Optionrobot boasts of an 83% winning rate. That’s rather impressive. You might not want to stake money you cannot afford to lose on Optionrobot though.

Trading Platform

Joining Optionrobot is quite easy and straightforward. You just sign-up, make a deposit and set up your robot to start trading. Optionrobot features three trading systems. The systems have different risk levels. They are;

  • Classic System – this system has the lowest-risks, and the lowest potential income as well. It is considered the safest and secure. The prospects of making any substantial returns are quite slim though.
  • Martingale System – this system offers you the highest possible returns, but also the highest risks. If you get it right on this system, you’ll be smiling all day long. The risks of losing your money remain high though.
  • Fibonacci System – this is the most accurate system. It is a middle-ground between the two. It strikes the critical balance between returns and risks. You could lose money as much as you could win some.

The other important aspect of the Optionrobot is the trading indicators. These help you set up the robot. The robot monitors these indicators as long as it is active, and makes decisions based on the settings you provide. Optionrobot has six trading indicators that you can make use of. You can work with multiple indicators depending on your knowledge of them. All the indicators need to send a sell signal to the robot for it to sell though. They also need to all have a buy signal if the robot is to buy. The signals include;

6) Ayrex

Ayrex is yet another binary trading broker from Cyprus. Ayrex launched its platform in 2020. It is however not regulated by CySEC though. The company has applied for licensing from CySEC. The platform boasts of over 230000 subscribers to date. It also takes pride in some of the fastest trading speeds with 99.95% of its trades taking place in a mere 28ms. The platform allows direct or high low speculation on the trend of the asset you choose to trade with. Except for the being unlicensed Ayrex seems like the ultimate binary options trading broker.

Trading Platform

Ayrex has a very interactive and responsive website. They also operate Android and iPhone Apps. You can choose to log in to any of these platforms depending on which one works best for you. Ayrex offers several trading accounts. One of the accounts that stand out is the Islamic account. Ayrex has put up an account for Islamic people, that is in full compliance with sharia laws. Trading on Ayrex.com is easy and straightforward.

  • First, you register for a free account
  • You will have to verify your identity
  • You then make the minimum deposit of $25
  • Click the start trading button
  • Select the options you want to work with. Ayrex has a couple of options.
  • Choose the asset that you want to trade with
  • Speculate depending on the option you have chosen
  • Stake the amount you want so long as it within the minimum and maximum investment values
  • Confirm the trade before the deadline and wait for the results.

Ayrex may not be the best platform for beginners. There is not much learning material or guidance resources available. You need to know how to analyze the market and make correct predictions before you engage on the platform. Otherwise, you will be risking losing your capital. You can choose a demo account first before engaging on the real account so that you get to learn the ropes.

On the short-term direct speculations, Ayres pays up to 80% profits on the invested amount. The long-term or high-low speculations could attract a payout of up to 85% profits on the invested amount. Ayrex has frequent trade signals that have been proven to have a winning rate of 60%. That’s is not a winning rate you want to put your trust one if you are not experienced though, considering their payouts are a bit low. All factors considered, they are still one of the best binary options brokers 2020.

7) Cryptorobot365

Cryptorobot365 is yet another Seychelles-based binary trading broker. It mainly deals with cryptocurrencies. You can trade with Ethereum, Bitcoin, Monero, Litecoin or Ripple. The platform, unlike the others, is quite straightforward. You just buy the cryptocurrency of your choice under speculation that it will appreciate in price. The platform is an automatic platform. It monitors the trends in the cryptocurrency market and sells or buys cryptocurrency on your behalf to help you make profits.

Trading Platform

There is not much to learn about the Cryptorobot365 trading platform. They have web and app trading platforms. You can choose any depending on your preference. The platform needs you just to deposit the minimum amount, select the cryptocurrency you want to trade in, and activate the robot. It is one of the best binary options robots. This model is a great option for people without sufficient knowledge about cryptocurrencies. Keep in mind that you could lose the money too. The platform has a demo account that you can use to try out first before you invest your money.

  • The minimum deposit is $250
  • The maximum returns are dependent on the margins of the sales made

8) BinaryRobot365

Binaryrobot365 is yet another robot based binary options broker. Instead of you monitoring the markets, yet set the ideal market conditions and let the robot make the trade when it detects them. Binaryrobot365 claims to register up to 90% win-rate among it traders. It is a great platform for novice traders to try their hand in binary trading. Binaryrobot365 is one of the best binary options brokers in India.

Trading Platform

Binaryrobot365 operates web and app platforms. You just sign up for an account, choose a binary robot service provider and switch on the auto-trade function. It is important to note that the binary robot you choose is a central determinant of whether you are going to make money or not. Make sure the service provider you settle for can be trusted. The robots are technically developed and are based on empirical data. Some of the market factors are non-quantifiable though. Therefore, the robots cannot guarantee you returns.

  • The minimum deposit is $100
  • The maximum returns are dependent on the broker you choose. The returns range between 85% and 90% profit on your investment.

9) Binary.com

Binary.com is a UK-based binary trading broker. It has been licensed by and is under the regulation of the British Isles, Malta, Ireland and the UK. It is one of the most transparent binary options brokers uk. It has made declarations of owning the company, and it is in charge of the market operations. The platform brings together aspects of gambling and binary trading. Its services include FX margins, Crypto trading via MT5 and CFDs. Binary.com offers you over 100 instruments to trade with. Binary.com also offers you interactive webinars, daily market reports and eBooks and videos for learning, all for free.

Trading Platform

Binary.com operates a website and Android and iPhone Apps. You can log in to your account on any platform of your choice. The platform also offers you the option to trade on a virtual account before you move to a real account. Newbies to binary trading can take advantage of the virtual platform and learn the ropes. The platforms run 24/7 all year long. They have interactive and easy to understand charts to help you follow the market trends. The platforms are quite responsive too.

The minimum deposit for a bank transfer or by bank card is $10. Those with e-wallets can deposit as little as $5. You start trading by choosing an instrument to trade with and setting aside a trading duration. You have to have to complete the trade before the expiry time.

The return percentages are not fixed. They vary from time to time. You need to have more than 25 turnovers so that you can have a withdrawable amount. Binary.com also pays a 1.5% payout commission.

The bonuses are not fixed either. You can get two types of bonuses. There is the deposit bonus and the free bonus. You get the deposit bonus one you deposit money above a certain amount. The free bonus is given as per the results of your trades.

10) Finmax

Finmax is a Bulgaria-based binary options broker. The platform was launched in 2020 and boasts of a team of financial market professionals who help people around the work trade in binary options. The platform does not admit US traders though. Finmax has a couple of awards under its belt. They are an indication of its prowess as far as binary trading is concerned. Finmax also offers some of the shorted trade durations. You can set the trade to last for as little as 30 seconds. You can also set long durations. They can be as long as six months, depending on your speculations.

Trading Platform

The trading platform allows an easy sign-up process. It has a lot of educational materials. You have access to eBooks, videos and live webinars from the financial market professionals. Finmax also offers a free demo account that you can use to familiarize yourself with the account. Finmax offers five types of real trader accounts. They are;

  • Bronze – this trader account has a minimum deposit of $250 and full access to all the features. It also attracts up to 25% bonuses and as well as a payout of 75% more than assets.
  • Silver- this account requires a minimum deposit of $1000. It features risk-free trading for up to 25% of your deposit and up to 50% bonuses.
  • Gold- this gold account requires a deposit of $5000. It features +2% of return per each trade and up to 100% in bonuses
  • Platinum – this account requires a minimum deposit of $25000. It features +4% of return per each trade and up to 100% in bonuses
  • VIP – this account requires a minimum deposit of $100000. It features +6% of return per each trade and up to 100% in bonuses

The accounts’ privileges rise with the account’s rank. The high ranked accounts have a lot more privileges.

Trading on the platform once you have the account is easy and straightforward. You choose the asset you want to trade in. You then choose the above and below points. These are the high and low points you are speculating the asset to remain within. You then choose the expiry time and complete the trade before the deadline.

Finmax offers up to 90% profits on the invested amounts. These are some of the highest binary trading revenues you can get.

11) FXMasterBot

FXMasterbot is yet another binary trading robot. It offers 17 forex pairs and five cryptocurrencies to trade with. FXMasterbot claims the platform made by a team of financial analytics professionals. It delivers trading signals after every minute. The system just like many robots, allows you to connect to your broker’s platform.

Trading Platform

Engaging in FXMasterbot is quite simple. You just need to sign-up for an account, then fund your broker’s accounts and set-up the robot and activate it. The robot will trade according to the delivered signals. Unfortunately, the information available about the operation and payout of FXMasterbot is quite scanty.

You can log in into your account using the browser platform or the Apps, either Android or Apple depending on your preferences. It is not prudent to invest on a platform whose results you don’t know and have no way of finding out though. There have been various complaints from traders who have used the platform.

12) Binarycent

Binarycent is a forex CFD trading platform. You trade in binary options with forex as the asset. Binarycent has one of the lowest minimum investment amounts. You can invest as little as 10 cents on Binarycent. Binarycent works just like a majority of the other binary options brokers.

Trading Platform

Binarycent offers three types of accounts depending on the starting capital you have. They are;

  • Bronze – this is the lowest caliber trading account on Binarycent. The minimum deposit required is the $250. The account features 24/7 live video support, I hour withdrawals, 20% bonus, and a copy trading tool.
  • Silver – The minimum deposit for this account is $1000. The account features all the privileges on the bronze account, plus 50% bonus, master class training, and first three risk-free trades.
  • Gold – this is the highest caliber account requiring a minimum deposit of $3000. It features all the features in the silver account, plus 100% bonus, and a personal success manager.

Binarycent also offers a demo account for novice traders. You need to have a certain level of knowledge before you decide to engage in the platform though. Once you have one of these accounts, you can go ahead and choose an asset to trade with. Set up the duration and put up your stake.

Binarycent has maximum revenues of up to 95% profit on the staked amount. You can access the platform through your windows or mac browser, as well as through an Android or Apple App. Their methods of funding the account and withdrawing are quite simple. Unfortunately, the platform offers no trade signals. Your trade is solely based on your analysis and speculation, unless you have the Gold account. You can get some advice from your success manager. Either way, the decisions are still all yours. The manager can only give pointers.

13) Binarymate

Binarymate is a UK-based binary options broker. The UK has strict regulations for binary options trading. Binarymate is registered in the UK, and it accepts US traders too. It is one of the most reliable and secure binary options trading platforms. It is actually one of the most trusted binary options brokers. Binarymate offers more than 100 assets to trade with. It boasts of 5372 trading accounts in the system and $ 3452175 worth of trading volume in the last month. The platform also offers a lot of training and educational materials that newbies can take advantage of.

Trading Platform

Binarymate operates a proprietary website, but they don’t have either android and iPhone Apps. You can conveniently access the platform from any device of your choice. The platform is quite easy to sign-up to. They have three types of accounts, each with a minimum deposit. The perks of having an account with Binarymate include;

  • 24/7 live video support
  • 1-hour withdrawal processing time
  • Secure trading and data protection

The accounts are;

  • Bronze- the bronze package features a minimum deposit of $250. You will also get a 20% bonus on your deposit.
  • Silver- this account requires a minimum deposit of $1000. It also comes with a 50% bonus
  • Gold- this is the highest caliber account. It requires a minimum deposit of $3000. It allows you to choose between a bonus of $250 or risk-free trades.

Binarymate offers stellar customer care support and through their live chat video agents. The agents are available 24/7. It is the best binary options brokers with low minimum deposit uk.

You have the option to start with a demo account if you are a novice to binary trading. You do not have to invest your money before you have learned the ropes and risk losing it. Binarymate is one of the few offshore binary options brokers US. It also one of the best binary options brokers usa.

  • Minimum deposit: $250
  • Maximum returns: 90%
  • Bonuses: up to $250, risk-free trades

14) Raceoption

Raceoption is yet another highly rated binary options broker. Raceoption is UK-based and is subject to the UK’s strict laws and regulations. The brokerage was launched in 2020, and it has one of the friendliest platforms. Raceoption accepts traders from all over the world, including those from the US. The platform boasts of average trader earnings of 1217 per month. It has 1570 traders as at the moment and more than $1.9 million in trader earnings per month.

Trading Platform

Raceoption operates a user-friendly proprietary website and an App on both Android and Apple platforms. Raceoption offers three types of accounts. You can sign-up for any one of them depending on the starting capital that you have. The platform offers you over 100 assets that you can trade in. Trading on the platform is quite easy and straightforward too. Below are some general steps;

  • You first select the asset you want to trade in on the drop-down menu.
  • Choose your preferred expiry time
  • Choose the amount you want to invest
  • Confirm the trade before the deadline allowed
  • You will profit with a fixed amount if it turns out you were right.

Raceoption has the signature three accounts. They are;

  • Bronze- this account requires a minimum deposit of $250. It features a bonus of 20%, 24/7 live support, I hour withdrawal, demo account and copy trading tool.
  • Silver– this account requires a minimum deposit of $1000. It has all the features in the bronze account, plus 50% bonuses, a master class training, first 3 risk-free trades and an individual account manager.
  • Gold- this is the ultimate account on Raceoption. It requires a minimum deposit of $3000. It has all the features in the silver account, plus integrated technical analysis, and up to 100% in bonuses.

Raceoption has a wide range of funding and withdrawal methods. You can choose one that suits your convenience. Raceoption has up to 90% payout profits. These are some of the highest payouts in the industry. Many brokers do not admit USA traders. Raceoption is the best binary options brokers for USA traders. It is one of the best us regulated binary options brokers.

15) AutoMatedBinary

Automatedbinary is a binary options trading robot. It is a great service for novice binary traders and veterans as well. It allows you to work with several binary options brokers. You can connect your robot account with several binary options brokers too. Automatedbinary offers you three robots plans depending on the level of risk you are willing to take. Keep in mind that high-risk options mean you can easily lose the money, but you will get a pretty sum if you turn out to be right. Low-risk options may not have high returns even if you are right.

Trading Platform

Automatedbinary runs a proprietary website and an App on both iPhone and Android platforms. Engaging on the platform is quite simple. You just sign up, choose the broker you want to work with, and fund the broker account. Keep in mind that the payouts and bonuses you get are dependent on the broker you choose. The brokers have different accounts on offer depending on the amount you can deposit as the minimum deposit.

You then embark on setting up the robot. Choose the risk plan you are willing to work with. Automatedbinary offers three risk plans. They include;

  • Safe classic – this is a basic low-risk plan. It is a great place for novice traders to begin so that they have time to study the trends before possibly losing a lot. You can set the trade amounts to be anywhere between $5 and $500.
  • Compound martingale – this is a high-risk plan. It is mainly used by casino gamblers. This plan is better for a veteran who has studied the trends for a while and knows what to do when. You can easily lose the money on this plan, but you will be smiling all day long if you turn out right.
  • Accurate Fibonacci – this plan is a middle ground between the latter two. Many traders choose this plan. It represents reasonable risk levels and impressive returns when your speculations are on point. You could still lose though.

The next part of setting up the robot is the match indicators. The indicators are the prompts that tell the robot when to buy or sell. Automatedbinary offers six indicators. You can choose one that you are comfortable with, or multiple if you know how to work with them. Keep in mind that the indicators must send identical prompts for the robot to execute any trade. If you are using two indicators, both indicators might signal to buy for the robot to sell. It applies the same if you are using six of them. More indicators reduce the risk involved in the trade. However, you might end up with zero or very little returns if you combine too many indicators. Automatedbinary works with the following indicators.

  • TREND indicator
  • CCI indicator
  • RSI indicator
  • Williams indicator
  • Stoch indicator
  • MACD indicator.

16) ZoomTrader

Zoomtrader is a Belgium-based binary options trader. Just like many others, it offers the opportunity to trade in stocks, forex pairs, and commodity movement. Zoomtrader has a very interactive platform. However, the platform has no information about its previous trades or revenues generated. That is always a red flag.

Trading Platform

Just like all the others, Zoomtrader offers web and mobile trading platforms. It features three types of trading accounts. The accounts are as follows;

  • Bronze – this account requires a minimum deposit of $1000. It has one trading strategy, weekly market reviews, and an introductory video course.
  • Silver – this account requires a minimum deposit of $5000. It features two trading strategies, daily and weekly market reviews, introductory and advanced video course.
  • Gold – this account requires a minimum deposit of $100000. It features five trading strategies, daily and weekly market reviews, introductory and advanced video course, individual account manager, weekly one-on-one trading sessions and same day withdrawals.

ZoomTrader features payouts of up to 83% profit on investment and bonuses of up to 100% on the first deposit.

17) HyOption

Hyoption is a binary options broker that is licensed by CySEC. It is owned by a company called HYCM based in Cyprus. Hyoption just like many other brokers allows you to trade in binary options using various assets. It offers up to 100 assets that you can trade with. Hyoption does not offer much information regarding how many subscribers they have on the platform, or the revenues collected. Their trading platform has similar features as many other brokers that we have reviewed.

Trading Platform

The Hyoption trading platform is user-friendly and features most of the basic features we have become accustomed to. They operate both proprietary webs and Apps on both Android and iPhone. The system allows you to choose an asset of your choice and speculate on its trend over a preferred period of time. Hyoption have a wide range of options with regard to time. The options range from 30 seconds options to 1-month options.

Hyoption has a very straightforward and easy to use the account. The minimum deposit for a Hyoption account is $100. The minimum investment amount is $5. It offers maximum payouts of up to 83% profit on the invested amount. Hyoption offers bonuses of up to $10000 for new traders. The bonuses are subject to terms and conditions regarding their withdrawal though.

18) 24option

24option is an online trading platform based in Belize City, Belize. It has been around since 2020, and it is one of the most stable and reliable trading platforms. It is under the rules and regulations of CySEC (we are going to talk about this later on in the review). 24optios’s binary trading is enabled by a third-party entity named TechFinancials trading platform. 24option does not accept traders from the US and Australia.

Trading Platform

24option has a website and Apps on both play store and Apple store. Once on the platform, you choose the CFD (contract for difference) you want to trade with on the upper toolbar. There is a filter to control the CFDs you want to see. The platform features indices, forex, stock, and commodities. Next is to choose the direction in which you want to invest. There are numbers in the Buy/Sell buttons that indicate the points required to pass for a successful trade. You trade has to be higher than the number indicated in the buttons. Then choose the duration for which you want to trade and confirm. The graph will show you the progress of your trade. Green means your speculation is positive while red means they are negative.

  • The minimum deposit on 24option is $250
  • The minimum investment is $24
  • The maximum returns are 88% profit on your stake
  • There are bonuses of up to 100%
  • Regardless of a high minimum deposit 24option has already carved a name for itself as one the best option trading brokers.

19) Binomo

Binomo is yet another Seychelles-based binary options broker that has been in operation since 2020. It has been providing brokerage services for Russians. Binomo is registered and regulated by the EU. Binomo prides itself on unique and affords trading conditions. It is hailed as one of the safest and most reliable binary trading platforms in the industry. It is a great platform for binary trading newbies too. It has a wide range of training resources.

Trading Platform

In 2020 Binomo had the best trading platform. It still has one of the best trading platforms today. When the platform was launched in 2020, it shook the market and won Binomo a huge chunk of the market. Binomo offers up to 80 assets that you can trade with. The assets include some of the worlds largest companies. Binomo offers four types of accounts each with different privileges depending on the minimum deposit. The accounts are;

  • Demo account– this account is meant for novice traders to experiment before they start staking actual money.
  • Standard account– the minimum deposit for a standard account it as low as $10. This account allows you access to the real market and analytical support. You can also take part in tournaments and special offers. This account has payouts of up to 83% profits on the staked amount.
  • Gold account– this account has a minimum deposit of $500. The privileges of this account include an expanded list for trading assets, a personal manager, bonus funds and 5% refund on losses. This account has payouts of up to 86 % profits on the staked amount.
  • VIP account – this account attracts a minimum deposit of $1000. It is accompanied by privileges such as 10% refund on losses, the widest choice of assets, personal manager accessible on skype, and 4 hours withdrawals. This account has maximum payouts of up to 90% profits on the staked amount.

Best Binary Options Broker Selection Guide

The reviews above are meant to give you insight about how binary options trading works and the various brokers involved. Our aim is to ensure you have a blissful and profitable trading experience. It would be unfortunate for you to invest your hard-earned cash into a certain platform, only to lose it all. Before you settle on any of the brokers, there are a few common factors you are supposed to consider. The factors are;

Licensing and Regulation

The binary options brokers are supposed to be licensed for operation by the relevant authorities. They should be operating under the regulation of these authorities. The regulation is always in place to ensure you are protected from scams. If you are not a financial analysis professional, it would be difficult to tell whether the market trends being displayed on the charts are real. The regulation is meant to ensure the brokers do not take advantage of the naivety of some traders. Regardless of any reviews you might have seen about various brokers, ensure the broker you choose to trade with is licensed and under regulations. For instance, CYSEC is one of the most respected regulation bodies. It regulates brokers based in Cyprus. It might be challenging to best binary options brokers for us traders because of USA’s tight regualtions.

Minimum Deposit

Ultimately, you can only invest the amount that you have. Take time to explore the various binary options brokers whose minimum deposits you can meet. Fortunately, many of the brokers have broken down their services into various packages for people with different financial capabilities. Check relevant reviews to find out which of the brokers whose minimum deposit you can meet is best for you. They are a number of brokers with very minute minimum deposits.

Maximum Payouts

Different brokers offer different percentages of payouts. Obviously, everyone would want the broker with the highest payouts. Compare the payout and other factors such as customer support, market signals and tips, educational materials, and others. This will help you judge how fair the payouts the broker is offering are.

Conclusion

The reviews and guide above should help you choose your best-suiter binary options broker. We sincerely hope this review can help you trade in binary options profitably. The review has some of the top binary options brokers. You should be able to get a great binary options broker. Happy trading!

Binary Options Strategies

Why To Use Strategies While Trading Binary Options

There’s no doubt that financial instruments can appear intimidating. When news about the financial markets appears on TV, you’ll often see financial traders sweating over complicated-looking graphs on multiple computer monitors or barking at each other across crowded trading floors. The commentary will describe exotic investment vehicles that can seemingly only be understood by people with PhDs in rocket science. To be clear, there are financial instruments that are very hard for the layperson to understand, but that’s not true of all of them.

Binary options are more popular than some investment vehicles because they are less complicated. There’s a clue in the name, ‘binary,’ because as an investor you’re only having to choose between two options: will the value of an asset go up over time or down? Traders will place a bet on whether the price will increase, which is called a call, or decrease which is called a put. So, in terms of probability, you could look at binary options trading as a bit like gambling on a coin toss.

Minimising Risk

Now, having said that, binary options trading carries a high level of risk and can cause you to lose all of your funds, and it’s because of this risk that binary options strategies are so important. You can trade safely if you do your research and put effective binary options strategies in place. We’re going to help you spot the market signals that will help you to do just that.

For a start, here are your golden rules:

  • don’t invest all your capital at once
  • be aware of how your asset is moving before you invest
  • never invest more than 10% of your total equity in a placement

Reasons to Use Binary Options Strategies

Although we think binary options strategies are worthwhile, you could just as easily go with gut instinct, flip a coin or consult a horoscope to help you decide what to do. You might even be successful here and there, but long-term this is a surefire way to lose all of your capital. Probability won’t let you win with random behaviour, any more than it will let you win 50 consecutive coin tosses. To win consecutively as a trader you will need binary options strategies, and we are using the plural because you will need more than one.

Binary Options Strategies – Description and benefits

The main reason to use any trading strategy is that it will stop you from making emotional decisions. As a trader, all of your decisions need to be grounded in logic and rationality. There is very little room for hunches or luck. The other benefit of using binary options strategies is that they allow you to do active ‘field research’, meaning that if you take a defined approach to each investment and document it, and may be it fails, then you can tweak and refine it, and if it succeeds you can use it again and maybe try to improve. The markets are your laboratory where you go about testing your trading strategies, over a set number of trades and a set period of time. When you hit your time limit then you can look back and ask yourself whether your strategy is working, is it making you enough money, could it be improved etc.

Any other approach is going to leave you guessing. If you base your trades on guesswork, then you won’t know why they succeeded or why they failed. Using binary trading strategies will give you something more concrete to base your future adjustments on.

It’s important to know not just why you succeeded or failed, but why you succeeded or failed. Conducting a series of stand-alone trades with nothing to link them is as reckless as hoping for those 50 consecutive heads to come up in a coin toss marathon. When you trade, you shouldn’t just be crossing your fingers each time and being surprised by every outcome. And long term, the law of averages says that the best thing you can hope for is to break even, which is no way to make a living. It may not even be a feasible ambition because to break even you have to win more than you lose, and that seems highly unlikely without binary options strategies.

Money Management Strategies – What They Are and Why You Need One

A lot of people fall into the trap of developing a trading strategy but not a money management strategy. It’s all very well choosing what kind of asset you want to trade and how much risk you want to be exposed to, but you also need to give some thought to money management, because it will help you to build the kind of account balance that will see you through bad periods and help you sustain winning streaks.

Let’s consider the effects of having no money management strategy on someone who gambles a tenth of their balance on a single trade. If the trade doesn’t win, they now have to increase their account balance by 20% just to break even. If three trades in a row go south, then they will need a 30% jump in their account balance to get back to the breakeven point. This is a common scenario that can dig you in deep quite quickly.

Lots of losing streaks are longer than three trades, so you can see how money management strategies play an important role within binary options strategies. Without a good money management strategy, you will undermine your efforts even if you have a good trading strategy in place. Losing streaks will inevitably happen, so you must have a plan to deal with them.

Analysis and Improvement Strategies

There is no Rosetta Stone of binary trading strategies. The only constant with the markets is change, so the best traders need to adapt all the time. You could say they constantly evolve, even when they’ve become highly successful. It’s not like there’s a magic point that they get to where they know everything, and every trade they make is a winner. That day never comes. But they do get to the point where they analyse every trade deeply and thoroughly. If there’s any magic then it lies there.

By analyzing and improving your trading and money management strategies you’ll remove the parts that aren’t working, refine the parts that are and become more profitable over the long term. Even if you’re already making money, but you aren’t trying to constantly improve, who’s to say that you aren’t actually leaving profits on the table?

Types of Binary Options Strategies

There are three common elements to binary options strategies.

  • Using signals to guide you
  • Deciding how much of your funds to trade
  • Constant refinement

To create a successful strategy, you need to understand as much as you can about every aspect of it. Here’s how to do that.

Step 1 Using signals to guide you

A signal is something that tells you that the price of an asset is about to move one way or another. Asset prices move all the time of course, but what if there was something that could let you know which way it was going to move before it happened? There is, and we call this thing a signal.

Signals can be created using news events and/or technical analysis. Getting signals from news events is probably the more common one among new or inexperienced traders. Things like company announcements, industry announcements, governments releasing inflation figures, these sorts of things can all be viewed as signals that can affect prices.

If you want to develop a working strategy, then you need to think about what news events to expect and when. Most binary options trading platforms will feature economic calendars, so you’ll be informed that in a couple of days’ time a firm’s earnings reports are due. This kind of pre-warning will help to inform your analysis.

The best binary option trading platforms will also let you know what’s expected in that earnings report. This will help you to make decisions about which way the market is going to move before the report comes out.

A news-based approach to trading has the benefit of being fairly easy to learn and understand. It’s not like you need to gain secret knowledge. You’re just taking common knowledge and thinking about its implications for the asset that you’re interested in.

The disadvantage of news-based signals is that they don’t stop markets being unpredictable. For instance, if an earnings report shows that a company has boosted its profits, you might think that that’s a positive result. But that same report might suggest that profits were expected to be higher, or that the company expects to face stiff competition. There are all sorts of unknown quantities that can spook the markets and pull the rug out from under that good news.

Technical analysis gives traders a narrower view than that offered by the news. It focuses on how an asset price moved in the past, with the aim of finding patterns that may offer clues about how the price will move in future. This is an area that can become a rabbit hole of complexity—make no mistake—but the underlying principle is fairly straightforward. You try to work out future behaviour of an asset price based on its past behaviour.

So, the question is, which one of these binary trading strategies should you be using; a news approach or a technical analysis approach? Well, everyone is different, with different strengths and weaknesses, so the best advice we can give to you is to try them both and see which one works best for you. Either of them can bring you success if they gel with you.

Now, you may be wondering how much that little experiment is going to cost you. What if you’re terrible at using the analytical approach and it ends up costing you a fortune? Well, there’s no need for concern. Most decent brokers will be able to offer you a demo account to practice on. You’ll have full access to the trading platform, you won’t be using real money. You’ll get the chance to trade in binary options with zero risks. Sure, you won’t make any money with your demo account, but you won’t lose any either. Instead, you will have an ideal testbed on which to see how your strategies play out.

The last thing to say about signals and strategies is to concentrate on the short-term. Some investment strategies try to predict asset price shifts over long periods of time, even up to a decade. In binary options trading, you’re not really interested in this kind of information. You’re more concerned with what the price will do in the next two minutes, or hour or day.

Step 2 – Deciding how much of your funds to trade with

Money management strategies vary in their complexity. A simple one will have you investing the same amount for every trade, but it’s risky and doesn’t take your overall level of profitability into account or how much capital you have at your disposal. So, we only mention this because you might hear it mentioned and we want you to avoid it.

Another one that you may hear about is the Martingale money management strategy. The idea behind this approach is to recover from your losses as quickly as possible by increasing the size of your trades after each loss. For instance, you could set an amount of money that you will trade with, and if you experience a loss then you double it. If it’s successful then you aren’t just back to where you started, you’re ahead.

It shouldn’t be too hard to see that there is a problem with this strategy. Namely, if you experience a losing streak that won’t quit then the Martingale strategy would have you increasing your investment on every following trade. So, if you had a run of 11 straight losses, number 12 would be a gamble that was 2,048 times bigger than that first trade. Unless you’re a billionaire, it’s going to be hard to keep that kind of optimistic speculation going.

It all comes down to how good you are at making predictions and how good you are at ending losing streaks. You need to keep in mind that there are no certainties in binary options trading. Even surefire trades that you would stake your life on can end up losing, and losses can easily turn into streaks, even if you’re the best trader in the world because at the end of the day nobody has a crystal ball. That’s why the Martingale money management system is not for everyone. It does have its place, but it needs to be employed with caution, so it may not suit beginners.

A percentage-based system doesn’t come with as much risk, so it’s the one that the majority of traders usually prefer, especially binary options trading newbies. It’s a fairly simple concept. The amount of money you put into a trade is based on the amount of money you have in your trading account. It’s kind of the opposite of the doubling down approach that the Martingale strategy uses because after each losing trade your subsequent trades will be for lower amounts. But if you win, your following wagers will be for greater amounts, because your account balance will have gone up.

This conservative approach is designed to preserve as much of your capital as possible so that you can trade for as long as possible, and it gives you the best possible chance of clawing your way back from successive defeats and capitalizing on your successes.

The only variable for you to consider is what percentage of your balance to use. Typically, a trader who is not risk-averse will probably go for around 5%, while everyone else will probably prefer something nearer to 2%.

As an example, let’s assume you feel comfortable with 5% of your balance being invested in a trade. A $500 account balance gives you a $25 trade. If your balance dropped to $300, your trades would now be only $15. If your balance rose to $800, each trade would be $40.

With this strategy, you will only be gambling with what you can sustain. It’s a measured approach that adapts to your current situation and prevents you from throwing good money after bad when you eventually stumble into a rut of successive losing trades, and it won’t let you become overconfident if you win a few either. For these reasons, it’s one of the binary options strategies that’s hard to fault.

Step 3 – Constant refinement

Diaries aren’t just for moody teenagers. They are also essential for developing you into a better trader. It doesn’t matter whether you have a little black book or an Excel spreadsheet. Whatever works for you. The important thing is to record every trade that you make so you can build up a body of ‘evidence’. In time you’ll have a detailed history of what works and what doesn’t, and that will help to ensure that the trades you make in future are successful more often.

A diary is like a silent partner for beginning traders. It allows you to look back at trades and give yourself good advice. Try placing trades based on both technical analysis and news events signals but record them separately in your diary so you can see which one works the best for you. When you’re involved in the day-to-day business of trading, you may not realize exactly how you’re approaching it, but your diary will always tell you the truth. So, for instance, you might think that technical analysis suits you best because you’re getting twice the profits that you’re making with signals. But your diary will tell you that you’re actually spending twice as much time studying technical analysis, so it’s an unfair comparison. Maybe you’re getting greater returns per hour of invested time looking for news events signals. Only your diary can tell you.

A trading diary also delivers the kind of granular detail that is essential to fine-tuning any of your binary options strategies. This is important when you get to a decent level of competence and are only looking to improve by small amounts—icing the cake so to speak. But you can only do this if you understand the details of what you’re doing well enough to tweak them.

Don’t forget to use your trading diary to check every aspect of your trading strategy, including money management, your choice of assets, and the size of each trade.

When you get in to the detail, consider noting which days of the week are best and which times of day are best for the best results. Do you perform better with some brokers and some trading platforms? Make a note of it; it’s all-important.

Having said all that, try not to succumb to information overload. Although you’re recording everything you don’t have to change everything at the same time when you’re trying to refine your approach. If you do that it’s hard to know which aspect of the change worked. If you change broker and then asset class and then trade amount all at the same time and you have a run of successful trades, how will you know which one of those three things that you changed contributed to those successes? It is far better to change one thing at a time, then you will know that it was responsible for the change.

Binary Options Trading Strategy Examples

Let’s take a more detailed look at some binary options strategies. The ones listed below are some of the most frequently used, but there are plenty of others available as well. As you learn more, you’ll no doubt come across traders who split, combine and adapt their binary options trading strategies to suit their own goals. You’ll probably be tempted to try this kind of thing yourself, but it’s important when you start out to learn the basics and save the customized approach for later. Whichever one you choose, don’t forget to combine them with a money management strategy too.

Asset prices usually move in line with a trend. You’ll often see a zigzag of ups and downs that are actually all part of a larger upward or downward trend. When you understand the shape of the trend you begin to see that the zigzag movements can be predictable in certain situations, and when you can predict those movements you have an opportunity to execute profitable binary options trades.

To put it simply you have a couple of main options: you can gamble on the overall trend or on each of those zigzags. Trading the overall trend means looking at the big picture. You’re not interested in trying to capitalise on the minor ups and downs of an asset price. Instead, you are looking at a shift in price over the longer term.

Trading on swings in price requires that you place more trades, which is inherently riskier but potentially more rewarding.

Upward trend – New highs and new lows will usually be higher than past highs and lows in an upward trend.

Downward trend – New highs and new lows will usually be lower than past highs and lows in a downward trend.

Of course, you shouldn’t lose sight of the fact that you are free to use both approaches to trading. It’s a free country!

One of the most frequently used ways of trading trends is with High / Low options. Every binary options trading platform will offer this kind of trade. With a high option, you’re betting that the price will go up and with a low option you’re betting that the price will go down. The only variable is the period of time during which you think this will happen.

A riskier, but potentially more profitable variation of this is called a one-touch option. Instead of just betting on whether the price will go higher or lower, you’re predicting whether it will hit a specified number called the target price.

Example 2 – Trading on News Events

This is a fairly popular type of trading strategy. You will use the news as your source of intelligence. When a company reports greater profits or a new and exciting product then the theory states that generally, this will cause more people to want to own shares in that company and this demand will push up their price. The opposite is true if the company announces bad news of some sort. In both cases, binary options traders are in a position to make money if they can anticipate the direction of the next shift in the share price.

The downside of this type of approach is that it is not clear cut. When you trade on the basis of news events you place your fortune in the hands of fate.

So, it’s a good thing that there are other strategies that you can take to increase your chances of successfully trading binary options. Here are three of them.

Boundary options – when you’re certain that an asset price will change but you can’t be quite sure which way it’s going to go then a boundary option can be really useful. With it, you set two target prices, one of which is below the current price and one of which is above. The difference between them is called the price channel. If the asset price passes either of them then you win. If it only moves inside the channel then you lose.

Trading the breakout – The breakout represents a window of opportunity. It’s the time, anywhere from 30 seconds to several minutes after a piece of news about an asset goes public. It’s the perfect opportunity to use a high/low option because it’s here that traders will try to limit their losses or alter their positions for profit, and so it’s here that you’re likely to see significant fluctuations. You’ll sometimes hear breakout trading being called the 60-second option because the timeframe is literally that short.

Intelligent High / Low trades – it seems counterintuitive, but sometimes good news may result in falling prices in the markets. That’s because even though the news may appear to be good on the surface, such as a rise in manufacturing productivity, if the markets were expecting a greater rise then the news comes as a disappointment which they will then adjust for. If you can predict when such things will happen then high/low trades can help you to profit from them.

Example 3 – Using Candlestick Formations

As a new trader, you might find this strategy the most difficult to understand, but the good news is that once you do it is going to be the simplest one to put into practice and profit from.

When you look at a typical graph of an asset price then you’ll be looking at an oversimplification that features a before and after. If you want to know more (and you do) then look to candlesticks to fill in the details.

Candlesticks appear on an asset’s chart over time. The bottom of the Candlestick indicates the lowest price it reached during a particular time period and the top indicates the highest price it hit. In the middle you will also see the opening and closing price, so a candlestick gives you an easy to digest view of the price range fluctuations for that asset in that particular time period.

Now the way to use candlesticks in trading is to recognize different formations of them. Once you can do this you can better understand which way the price will go next.

For instance, if you see a candlestick with a gap then that means the asset price jumped significantly higher or lower. Gaps are unusual because prices usually move in a much more gradual fashion, hitting the majority of price points on the way. When one appears during a period of low trading volume then it’s telling you that there is likely to be a quick correction.

This can happen just before a market closes for the day when there aren’t many traders left placing trades. The gap can be produced in this situation by large trades, but that doesn’t mean that the asset is strong. Maybe the gap wouldn’t have appeared if more trading had been going on, so knowing this you can estimate the gap in the price of this asset and use that information to plan your trades.

If gaps appear when trading activity is high, but the price is not moving much then this can indicate that there may be a new breakout, or surge in that direction. Again, use this information to your advantage when you trade.

If a gap appears when trading volume is normal and there’s a trend in one direction, it might suggest that the trend is accelerating. Good intelligence to have for your next trade.

Developing a Binary Options Strategy Without Risking Money

If you’ve taken all of the advice in this article on board then you’ll no doubt be wanting to test your new binary options strategies, but you still might be reluctant to get your feet wet when you are aware of how easy it is to lose money. You don’t want to blow all the money in your trading account on testing out your theories, do you?

That’s where a binary options demo account comes in useful. Every half-decent broker will let you use their trading platform demo fashion, gambling nothing more than numbers on a screen instead of money from your account. It’s probably the best way there is to start testing (and recording in your diary, naturally) your binary options strategies, without losing your shirt.

The Strategies

One of the beauties of binary options trading is that there is virtually no limit to the kinds of assets that can trade in. Trade on those assets that are most familiar to you such as euro-dollar exchange rates. Consistently trading a single asset will help you to gain that all-important familiarity with it to help you predict changes more easily. There are two types of strategies explained below that can be of great benefit in binary options trading.

1. Trend Strategy

This is a popular strategy, and it is also called the bull-bear strategy. To implement it you’ll need to keep an eye on the rising, declining and the flat trend line of the traded asset. If you see a flat trend line and think that the asset price is about to climb, use the No Touch Option.

If the trend line shows that the asset is going to go up, choose CALL.

If the trend line shows a decline in the asset price, choose PUT.

This method works just like the CALL/PUT option but in this instance, you decide on a price that the asset mustn’t hit during the time period you specify. So, save Facebook’s share price is $490 and the trading platform says the No Touch price is $495. If it doesn’t hit $495 during the time of the trade, then you win.

2. Pinocchio strategy

Use this strategy when you expect the asset price to fall or rise dramatically. Choose ‘call’ if you think it’s going to go up or ‘put’ if you think it’s going to go down. This one is best tested on a demo account before you go live.

3. Straddle Strategy

This approach is best used when the market is volatile and when you’re expecting significant news about a particular asset to break. This is a strategy that’s much respected throughout the world of trading. It lets you avoid choosing between CALL and PUT; you put them both on the selected asset instead.

The overall plan is to use PUT when the asset’s value has gone up, but there is a suspicion that it will go down again soon. As soon as the decline starts, put the CALL option on it, because you expect it to rebound soon. You can also use this strategy in the other direction, by placing CALL on a low-priced asset and PUT on a rising asset value. This boosts your chances of success by covering you in both directions. The straddle strategy is a favourite of traders when the market or asset is tending to fluctuate.

4. Risk Reversal Strategy

This is one of the most popular binary options strategies because it’s designed to reduce the amount of risk involved with trading and boost the likelihood of securing a profitable trade. With this approach, you place CALL and PUT options on an asset at the same time. This can really help when assets are volatile.

5. Hedging Strategy

This is another one of those binary options strategies where you place both call and put positions, with strike prices that overlap. The thinking is that at least one of them will pay out. You can make more than if you just select one option, and if you lose then it will still be a lot less than the straight loss you would suffer from just one option. It’s a useful tool to add to your trading bag of tricks.

6. Fundamental Analysis

Binary options strategies almost always require that you have knowledge of the underlying assets that you are effectively gambling on. The theory with fundamental analysis is that you really go to town on understanding the business whose share movements you are interested in understanding. To do this you need to get to grips with things like their earnings reports and financial statements.

As a trader, this review helps you to understand how the company has been performing and how its stock reacts to particular market news. If you know well enough what kind of shape the company is in and what kind of events have caused its share price to fluctuate, then you’ll be much better placed to predict and therefore profit from future changes.

We hope that this guide has been useful in preparing you to take your first steps with creating your own binary options strategies.

Buying on New Highs Strategy

Video Transcription:

Hey, traders. Welcome to video 15 of the Advanced Forex Strategies course. This is Cory Mitchell. In this video we are looking at the only time you should buy on new highs and new lows.We’re going to be using this on a one and five minute chart, brought to you by Investoo.com.

So, trend trading is where the money is. Whether it’s short term or long term, we want to be trading in the direction of momentum. We don’t generally want to buy as the price makes a new high or sell as the price makes a new low. We’ve discussed this in prior videos. This gets us in too late into the move. There is one exception though that we’re going to cover in this video.

Prior videos we were looking at ways to enter more at the turning point, so this was well before we would have seen a new high or new low, and we’d actually be looking to get out as the price is making a new high or low. So all those things still apply here. This is just another tool you can use in your trading day. This is an active strategy. You must be there to trade. It is not set and forget. Therefore, you’re going to need to be sitting in front of your computer watching for this, manually entering and manually exiting.

Typically these moves happen so fast there is no time to set a stop or target. Therefore, only very disciplined traders should utilize this strategy. I can’t emphasize this enough. If you have a tendency or a problem with cutting your losses, do not trade this strategy. Only if the price is moving very strongly, that is, each price bar is covering large distances do former highs and lows become potential entry points. When the price is moving very strongly toward a former high, there is enough momentum to keep pushing that price. There is potential for a very quick profit there.

There should be no pause before the breakout. If the price is moving very slowly toward a high or low with lots of choppy bars, little momentum, you want to avoid trading those types of breakouts. We are looking for sharp, clean movement where the price is aggressively moving toward a former high with zero pauses, meaning there is tons of buyers in there and it is likely just going to continue to slingshot above that former high. The former high just gives you an entry point, and you are just looking to ride that momentum. Same with the low. If there’s heavy selling heading into a former low, these are subjective in the sense that you can pick any high or low that you want.

We’re going to cover a few examples, but it is somewhat subjective. You want heavy selling, so that it’s just relentless selling going into that, no real pauses, and the price breaks through that low and it just provides you an entry point. One or five minute charts work best for this strategy. Only take trades while the major markets are open. Otherwise, there’s a higher probability that that momentum will fail. So, for example if you’re trading the Euro/USD, you would want London or New York to be open. We have no time to enter a stop or target, nor is there a defined one. There is no precise exit or entry. We are adapting to the market in real- time, trading momentum, so we don’t know exactly when that momentum is going to end, if it’s going to continue.

So as we go through this strategy, I’ll show you its very adaptable, very subjective, where we’re just trying to capture that momentum and as soon as it dies out, we are out. So there’s no defined stop or target on this one. Basically we are expecting momentum to carry us on-side immediately after we enter the trade. If the price drops back below the former high if we’re trading momentum to a new high, or rallies back above a former low if we’re expecting the price to drop, we give it a couple pips breathing room but that is it. If it fails to go as anticipated, we exit immediately. So we are expecting this thing to like break that high or break that low and just keep running. If it doesn’t, get out immediately.

The premise for a trade is no longer there if that momentum dies. So get out immediately, manually exit market order. So we’re going to be using two market orders. We’re going to be using a market order to get in and a market order to get out.

A lot of traders are afraid of market orders and they think their broker’s going to screw them or something. If you think that, you should be trading with a different broker who you don’t think that. And two, I use market orders on most of my positions, and even a limit order is a market order in the Forex.

Typically, you can see slippage on that limit order as well, so using a market order is really no different. And if you want to get in, you want to get in. Use a market order. When you want to get out, you have to get out. Use a market order. So here’s the basic strategy. When the price moves about half a pip or one pip above a former high, we are going to buy. And if it drops one pip or half a pip below a former low, we’re going to sell, only when the price is moving very aggressively as we’ve covered.

You basically want to get swept up in the momentum of the trade. Your order is just kind of a blip right there on the former high, and you get carried away with the current momentum. If it’s questionable whether you think you’re going to be on-side right away, skip the trade. Assuming you are on-side, so the price does move in your favor and you’re making money on the trade, it shows a profit on your screen, stay in for at least one price bar. So that will be one minute or five minutes depending on the price bar you’re looking at. But do not give back profit. The only object is to catch momentum, so as soon as that momentum wanes, get out. So basically you’re looking for bars stacked on top of bars with no real pullback whatsoever. As soon as there’s a pullback, get out with a market order. There’s zero hesitation here. It’s in very quickly, out very quickly. These trades are going to last you probably, if you’re on a one minute chart they might last you one minute to three minutes. If you’re on a five minute chart it might last you five minutes to probably eight minutes, possibly ten minutes. These are going to be rare.

It sounds like, oh that happens all the time. I see that on my chart. As we go through, I’m going to try to explain. As I mentioned, it is a bit subjective so there is a bit of a feel involved here, but I’ll try to express that to you. These trades are going to be pretty rare, rarer yet if your spread is beyond one pip. That means you’ll need to have a pretty volatile day overall to make this strategy profitable. As we’ll look, a lot of times these little pops of momentum will be seven or eight pips for the most part.

The odd time you might get one that is really huge, maybe about 10 minutes after a news release or something you might get one that runs 20 pips or so, but it’s pretty rare. Most of these that we’re going to see on a normal day are going to be about seven to eight pips. So if you have a bigger spread, two or three pips, that basically eats up your profit, so they’re going to be even rarer yet then.

So how rare? Right now, as I’m making this video the Euro/USD is moving about 70 pips per day, even a little bit less. I think it’s fluctuated between 60 and 70 pips over the last few weeks, so not a lot of volatility. So we’re seeing maybe two of these trades a week. If we move back up to a little bit more of a historical average of 100 pips a day, 90 to 100, you may see a few more of these. So you might be able to get up to about one a day, or at least a few a week.

This strategy is highly subjective, requires quick reflexes, zero hesitation on the entry and exit, and you should practice it extensively in a demo account before using. So this is a day trading strategy. First lets go over you can just go to have like a one-click trading. So this you can just boom, boom, boom, boom. Makes it a little bit quicker. Once you’ve entered, let’s say… so let’s look at this one here. As we can see, we’re not really making a lot of movement. I should point out… so yellow is the London session.

This kind of beige is the London and New York overlap period. In the Euro-USD we’re looking at a one minute chart. So this is just an indicator I’ve added to help highlight when the sessions are and blue is after London’s closed and only New York is open. So that will help you make these trades during the right time. Remember we said you only want to trade these when a major market is open.

So in this case I just pulled up the Euro/USD, and we want to be trading either when London or New York is open. And preferably this is a good time to do it, when they are both open, because typically we’re going to see a lot of volatility then and the most volume. So using my little tool here, we can see even if we do make a new high or anything here there is not enough movement. That whole thing was only six pips, so even if we had a big breakout, if this whole thing was only six pips there’s just not enough momentum for us to even worry about trading new highs and new lows. Once this starts to begin, we have a new scenario. These types of trending moves we would simply be trying to use our other types of strategies. We have a beautiful move here. We could use a mini-channel breakout or just the trend following strategy. We have a little pause here at the bottom that we could have traded a breakout on. So no, we would not be looking to trade new highs anywhere in this area. We do not have enough momentum. Here we have a move down to a new low, but we have this pause right before it occurs. Even though it does continue to drop, it is not of interest to us. If we wanted to trade that, we would use the other strategies mentioned. We would not just use this new high or new low strategy. So let’s look at an example of what this actually would be, and as I said these are pretty rare, so we’re only going to see about one, maybe one a day. And in this case, May 30th, this is the one that would’ve at least triggered my interest for sure, and that is the move to this new high here. So why does this interest me? We can see we’ve moved down.

The trend, while questionable at this point, once we start to move back up makes us think, all right, we still have overall upward momentum today. We’re up on the day, at least through the London/New York session, and we can see it starts to really escalate here. We have these price bars which, and if we’re looking at the very right side of the chart, are starting to go I guess what we call parabolic almost, where we’re escalating toward that high, and when we get to it we’re really moving through it. Is there a slight question? Could it stop here?

There’s always that risk, but if you look at these bars we’re starting to really see some strong buying coming in, so there’s a good chance that as soon as we enter about half a pip or so above this former high, which would have been right about here, we’re getting swept up in all that buying which is what we want. So we want to enter, and as soon as that happens we want to be pushed on-side, which we would have been. So we had bought here and we’re instantly showing a profit. Now, I said as soon as that momentum starts to give way we get out. So we would have market bought right in here. Ways to get in. We could use a tool like this. You can also download plug-ins, which are like a level two. If you’re unfamiliar with a level two, it basically shows you liquidity at each level but it also gives you some functionality for opening positions, closing positions, stuff like that.

So this is the most simple one built into Metatrader. It’ll work fine for the most part, but if you are interested in actively day trading you may want to look at upgrading to a plug-in for Metatrader which gives you a bit more functionality. So here you could just hit market buy, right at this point here, as soon as it’s about a pip and a half above. You need to be thinking ahead, so as this is rising, your finger’s on that trigger. You’re also going to have to figure out in real time, basically split seconds how much your position size is going to be. So on this, if I’m expecting to be on-side right away, I probably don’t want to give back more than a couple pips. So let’s say I decide, all right. If it falls back, it’s broken out, if it comes back three pips against me, I am out. So you’ve got to be able to decide can I take one lot. At one lot, that’s ten bucks per pip. So you’re looking at about 30 pips of risk for that position. Then think about your account size.

Can you withstand a $30 loss? Is it 1% of your account or less? And then you’ll have to do that math. The more you do this it’ll become very quick, and since you know your account often you can figure some of these things in advance. So we have a short move, and we basically wait for any sort of pullback. We do not have to wait for bars to complete. We will wait for the first one to compete since we’re on-side, and then the next one shoots in our favor. As soon as it starts to pull back, we get out. So basically you can even think of it this way. We’re giving it about a three pip stop down here, so giving back three pips profit is the absolute maximum we would be looking for, but I will usually get out as soon as I start to see any sort of movement against the trend.

So that would have been a four pip move against the trend, which was up, so I would have been looking to probably get out between about, once it had pulled back two or three pips, likely more I’d be looking to get out in the two pip area, meaning once it pulled back two pips I’d be looking to get out three pips at the absolute maximum.

So conservatively we’d be getting out about here at 13644.5 or at about 13643.5 is kind of where I’d be looking to pull the trigger on these. Yes, it did go higher. That does matter. All we’re doing is trading this momentum. All these other moves, we can trade just using our trend trading methods as usual. This is just something else to add. So don’t think of it as a way to, I’m going to clean up with this strategy. We just tack it on. It’s a way to add a few extra pips to the bottom line when these opportunities occur, but it’s not going to be a staple trading method.

On this pullback we can just trade a normal trend trading type strategy like we’ve covered in other videos. So the breakout is simply to capture a few pips which in this case would have been about five if we got out around that 144.5 I think we said. So that yeah, you would have got about five pips. So as soon as that started to turn, we’d be out. Let’s look at a few other examples which wouldn’t have worked out, and we’re going to explain why. So here, a little pullback, we have a move to a new high but we can see.

You can see a big difference between these bars here and these bars which are just kind of chopping along. Each bar retraces the former bar, whereas here, these bars do not retrace each other. So that is one of the tell tale signs. Even here we’re starting to slow down as London closes. We have a couple nice red bars here. This one retraces the last, so as we get toward this point, just not enough momentum to really concern ourselves with whereas this, quite a bit different. Here we would have just generally used another trend trading strategy.

Here we wouldn’t have traded this breakout simply because we had this pause right before the breakout which shows some hesitancy on the part of the buyers. Yes, did this end up going higher, but can we say are we going to get swept up in a buying frenzy here? No, that’s questionable because there was a pause there that shows that we’re not exactly sure if these buyers are totally committed. Here, they seem a lot more committed. It’s all green bars.

As I said, these are going to be pretty rare. I looked through the rest of the week and I didn’t really see a whole lot that would’ve interested me. So this is a somewhat subjective strategy. Go through your charts, see if you can find… let’s see if we see one here. Yeah, even all these, not talking about five pip movements here, so just not enough for us to get involved. So go through your charts, see how with your spread, with your broker, using your market orders how this could work for you. It’s probably going to take quite a bit of experimenting in your demo account. Don’t just jump in and use this with real money. So go in there, practice it, see what sort of moves, what sort of extent the price needs to be moving in order to make this profitable for you with your spread and the pairs you trade, because it can be a very good strategy but it is somewhat subjective and there’s not a whole lot of hard and fast rules you can apply to it simply because we’re basing it on current movement which will change every single day. So this one only went five pips.

There’s no way to say, all right, I want a ten pip target and that’s it. It doesn’t really work that way for this sort of strategy, so we really need to be able to adapt in real time. I think this will make you better as a trader overall if you can find a way to make this profitable for yourself. So for this one, a little bit more advanced, definitely a totally different take on some of the strategies that we’ve been using. The other strategies are your staples. This one is just something you can add on top. You must manually enter and exit, whether it’s a prof or a loss. This is tough for many traders. You can have zero hesitation, especially if it’s a loss. If that thing doesn’t go in your favor right away, get out. Risk 1% or less of your account on one pair, that way even a string of losses won’t significantly draw down your account. You will need to ballpark your position size based on how much you expect to risk. I typically keep risk to about three pips on these things. If that thing doesn’t go right away, I’m out. So three pips, absolute max. That way I can calculate my stop. All right, three pips, I know what that is. What position size can I take based on my account size to keep my risk under 1%? Momentum has to be there. You’re expected to get carried on-side immediately after entry. If that is questionable, use a different strategy or wait for a different entry point. Trading loss [inaudible 00:21:56]. Only trade with capital you can afford to use.

And with this strategy especially, since it is subjective you’re going to have to come up with a few little guidelines for yourself to really make this your own, plus every trader uses a different broker. You have slightly different spreads, different commissions, that sort of thing. Those types of thing will affect this strategy. So test it out extensively in a demo account until you’re profitable with it before using it with real capital. Until next time, have a trade.

More About Adam

Adam is an experienced financial trader who writes about Forex trading, binary options, technical analysis and more.

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