Our list of legit and recommended brokers

Broker reviewsBlacklist ratingTrade nowEarly expiryAvg returnsMin depositsMin tradeRatingsTrade now
90% $10 $1
 
200% $50 $10
 
85% $250 $10
 
85% $50 $1
 
90% $50 $1
 
85% $200 $20
 
85% $100 $5
 
95% $250 $1
 
85% $10 $1
 
80% $5 $1
 
80% - 90% $250 $5
 
80% $250 $25
 
85% $250 $5 
 

 

Unverified brokers

Broker reviewsBlacklist ratingTrade nowEarly expiryAvg returnsMin depositsMin tradeRatingsTrade now
90% $250 $25
 
85% $200 $20
 
85% $300 $10
 
85% $250 $25
 
70% $100 $10
 
85% $200 $10
 
80% $200 $5
 
80% $200 $10
 
85% $250 $25
 
85% $250 $25
 
80% $200 $10
 
90% $250 $1
 
80% $200 $20
 

 

The Blacklist – Brokers To Avoid

BLACKLISTEDRatingEarly ExpiryAvg ReturnsMin DepositSee Warning
65-75%$250WARNING
65-75%$200WARNING
70-81%$200WARNING

 

Helping you avoid the scam brokers and find the legit ones is why we created the trader driven Binary Options Blacklist. We welcome you to our virtually ‘no holds barred’ ratings, comments and broker reviews website.

The binary options industry experienced an increased in popularity lately. Traders from all over the world now have access to an industry that prides itself as being the simplest form of trading.

Yet, there’s a lot of controversy surrounding it. Many brokers simply fly under the radar. Meaning, they’re not regulated. Others, simply don’t operate legally in a country or territory. For this, they use offshore companies.

In other parts of the world, trading binary options is simply illegal. It’s not allowed for a broker to offer the services.

Moreover, on top of all these, in most of the countries in the world, there’s no legislation. Because of that, brokers found an opportunity to profit from people’s desire to make a quick buck. As such, the industry is plagued with scammers.

Not all brokers fall into this category, though. Many of them run eligible businesses. However, the problem comes not from the broker’s side, but from the traders. Traders have the impression binary options is an easy game. First, this is not a game. Second, it can be anything, but trading binary options is not easy.

When compared with other financial products and financial sectors, trading binary options comes with a handicap. From the start, the traders must use a risk-reward ratio that is unfair.

To put this into perspective, imagine the Forex industry. Any serious trader doesn’t even think of going in a trade without 1:2 or more as a risk-reward ratio.

This means that for every pip or amount risk, the expected reward is minimum two times. This gives room for error and allows traders to incorporate losses while the account still grows.

In the binary options industry, the maximum reward is around 90%, with most of the times the rate or return being well below this number. From the start, traders face tough conditions.

What Are Binary Options

In principle, trading a binary option is a super-simple process. Or, at least, it should be.

All you should do as a trader is to guess the direction of a market or financial product. Namely, if you think the price of an underlying security will move to the upside, then you should trade a call option.

On the other hand, if you think it will fall, you’ll trade a put option. Note that you can only buy an option. A put for a bearish setup and a call for a bullish one.

When compared with Forex trading, the difference is that a Forex trader buys or goes long, and sells or goes short. Still, he/she needs to give the general direction.

Moreover, when it comes to binary trading, traders must set an expiration date. In fact, a binary option has two elements traders need to decide upon: the striking price and the expiration date.

No only traders need to indicate the direction (that’s the entry price or the striking price), but they need to indicate a point in time when the option will expire.

In plain English, a point in time when the comparison between the striking price and current price will be made. Based on the outcome, it is said that the option expires in the money or out of the money.

The pros of trading binary options come from the simplicity of the product. Moreover, with a sound money management plan and avoiding short-term expiration date, trading binary options is a nice way to diversify a portfolio.

Unfortunately, the cons overcome the pros. Because traders need to indicate the time element. The holy grail in trading is price and time, and binary options include them both.

 

Binary Options Scams, Ripoffs & Bad Trading Sites

As mentioned earlier, the industry is plagued with binary options scam brokers. Because of this, it is very difficult to read a positive review even for good brokers.

Traders must know one thing in advance: a broker  must be regulated. This is not valid only for the binary options industry. In general, if you place your money in a trading account, you’ll want that entity to be regulated.

The financial authority that regulates a broker gives a license number. To be regulated, the broker must follow specific rules and have a specific conduct when doing business. The license can be suspended if the financial authority finds out otherwise.

Unfortunately, regulation costs money. It is an expensive process and brokers don’t like spending money if they can find other ways to attract traders.

As such, they register the company in an offshore environment, without being regulated by a financial authority. From this moment, scamming people is quite easy.

The most popular and “legal” way to scam traders is to offer them a welcome bonus. This is similar to the Trojan horse in the Greek drama story.

The thing is that the brokers offer the bonus but tie it up to a super-unrealistic trading volume. In other words, traders can’t even withdraw their deposit, until the trading volume is reached.

Needless to say that the more you trade, the more risks you’ll take, and, in the end, the chances are with the broker, meaning traders will lose their capital. Statistically, in Forex trading, over ninety percent of retail traders lose their first deposit.

In binary trading, the chances are even bigger than the ones in the Forex industry. A bad trading site doesn’t make public the registration/regulation number. That’s the first sign the broker is not trustworthy.

We use the comments here on the binaryoptionsblacklist.com to rate and classify different brokers. A green badge means the broker is trustworthy, according to the median of the comments here, and is verified. An unverified broker gets an orange badge, while a scam deserves nothing but a red badge.

 

Approved – A green badge means this is a broker that we trust. We would and or do trade with today. These are the current leaders of the binary options industry, & where the majority of traders are trading today. They have a positive reputation in general, a track record of integrity, fairness and competitive returns. We feel most confident trading binary options at these sites.

 

 

Use Caution – A yellow badge means that we have not done enough research to decide on this broker yet. This is a broker that has been recommended by others as a place to trade. There was not enough info to make an informed decision about the broker to rate them green or blacklisted. Comments and trader reviews highly encouraged on yellow rated sites to help educate everyone and update our ratings.

 

 

BlackListed – When a broker has the blacklisted red badge this means that we would not trade there. There is enough negative information found through our research that we decided this is not a binary trading broker that we would feel comfortable depositing money at. Since we would not deposit our money there, they get the Black List badge.

Binary Options Trading Sites Listings – How We Get Our Top List

 

Without being regulated, a broker will always have a dark shadow on its name. The purpose of regulation is to protect customer’s interests.

A good example comes from the Forex industry. When the SNB (Swiss National Bank) dropped the peg on the 1.20 floor on the EURCHF pair, many brokers went busted.

However, because they were regulated, the clients could receive the money from their trading account. It took a few months, but the whole process was well-communicated and there was never a shadow of a doubt that the financial authority would not step in.

As such, regulation is a must. Regulation comes with specific conduct. A broker cannot simply do what it wants with the funds it receives.

Tougher regulation comes with segregated accounts. It means the funds deposited will not be touched by the broker. They’ll be deposited in a separate, segregated account at a custodial bank. The broker will only earn from commissions and fees. This way, everyone’s interests will be aligned in the same direction.

A good broker doesn’t have a minimum deposit. Or, if it does, it is quite small. They leave the option in the hands of the trader and use the time they trade to offer the best possible trading experience. Starting with the opening of an account process and ending with withdrawals, there should be no flaws what-so-ever.

Typically, a good broker will have good reviews. However, even reviews are sometimes scams. Because of the tough competition, people are sometimes paid to say things about a broker.

Other things like the possibility to trade on a demo account, to choose if you want a bonus or not, if the broker offers a trading app or not – all these are part of a good broker. However, everything comes after regulation.

 

Scam Brokers and Claims of Fraud and Theft – What Is Really Going On?

Unfortunately, the binary options industry has a bad reputation. The problems start from the way the industry is advertised.

Traders should know that buying a call or a put option requires the same strategy as buying or selling any financial product. Therefore, everything is the same.

While traders know there’s a lot of risk involved and succeeding in financial trading is not an easy task, the binary options traders fall prey to false advertising. How many of you saw at least one commercial in your Inbox or online saying that the lady that sells groceries just made a profit of a thousand dollars in a day? Probably all of you.

Now, let’s try to keep it real. Why would anyone advertise like this? Moreover, why would anyone believe this is true?

In fact, binary options trading is no different than Forex trading, or CFD’s, Stocks, and so on. The process is the same: traders use technical or fundamental analysis to buy/sell a financial product.

What makes binary options even more difficult is the time element. Traders must choose an expiration date for their option, on top of the right direction.

Most of the binary options blacklist brokers end up stealing people’s money. They have aggressive selling techniques, dedicated trading managers, that simply don’t care about the basic principle of money management in trading.

Scam brokers will always push for traders to trade more and more. Especially short-term to very-short-term expiration dates. In fact, the chances to be consistently profitable trading one-minute or five-minute binary options are almost close to zero.

Moreover, unverified brokers use the same principles as a market maker broker does in the Forex industry. Namely, they create a “virtual market” for their clients.

In other words, they don’t “route” the orders to the interbank market or other liquidity providers. They keep all their orders in house and bet on the fact that the clients will eventually lose their funds.

When that happens, they book the funds for themselves. There are plenty of software specialized in mirroring quotations.

 

Independent Binary Broker Reviews – Comments and Ratings from Traders

That is an interesting topic to consider it, especially if traders want to find verified brokers. There are several things to consider.

Firstly, regulation. If the broker is regulated, it means a financial authority verified it and its activities. Moreover, the process repeats on a constant basis.

Secondly, independent parties, like websites as this one, may take upon the task of listing scams in the industry, honest brokers, and give a ranking of good and bad brokers.

On top of it, customers reviews matter the most. Here, too, things must be taken with a grain of salt. There’s a lot of spamming going on. Scam brokers comment and spam forums too. For this, we moderate any obvious spam and links and allow only appropriate behavior.

A customer review matters the most in all industries. If a broker scams once, it will do it again, on and on. As such, traders must decide on their own if the broker is indeed the partner they’re looking for.

This feedback helps us with our ratings for the brokers listed here. However, the lists here are just that: lists.

Traders must know that buying or selling a financial product comes with a risk. While there are plenty of opportunities, there’s also the risk of losing all the capital involved.

For this, any broker, no matter if binary or Forex, makes sure the clients know that they should never trade more than they can afford to lose.

 

Conclusion

Trading is a game of probabilities. But, above anything, trading is not a game. These are real money involved. As such, traders must know the risks and the potential rewards involved. Moreover, trading is not an easy task.

There’s a lot of work involved, like in any regular job. Sometimes the market simply doesn’t move. When this happens, traders will insist on trading. They end up overtrading and if they are on the wrong side of the market, the funds are gone.

But, successful trading is not impossible. Patience and discipline are key. Together with a proper trading education and the right partner (broker), traders can make it.

The broker and the trader should have the same interests. Only when this is the case, traders have a fair representation in the financial market.

Never deposit more than you can afford to lose. We wish you the best of luck on your trades!

 

***NO links in your comment if you want it to be approved and published. All comments are manually moderated by our team, and all variations of an email address/link will be removed and the poster will be banned. Only genuine feedback on broker experience is allowed!!! Sorry!! But the spammers are relentless.