Assuming other variables remain equal, it makes sense to use the US binary options brokers with the highest returns. Why settle for a 50% return when several reliable brokers offer 70%, 80%, and more? Having said that, it is important to realize your potential return on investment (ROI) reflects the volatility of the instrument being traded. In other words, the higher the return, the greater the risk. This is a simple axiom that is nearly always reliable.
When it comes to choosing the best binary options broker, you’ll find there are several factors that complicate this principle. We’ll cover them in detail below.
First, you’ll learn how to identify your potential return on any given binary options trade before you execute it. We’ll then present several criteria to keep in mind when choosing a broker. You’ll also learn why the US binary options sites with the highest returns are not necessarily the best places to execute trades. Lastly, we’ll give you our short list of recommended brokers that offer competitive returns across various asset classes.
How To Determine Your ROI When Trading Binary Options
At all of the sites we recommend, your potential return for any given trade is listed with the other details related to the instrument. This is the case whether you’re trading currency pairs, commodities, or any other asset class.
For example, suppose you’re considering a simple up-or-down option on a Euro-Dollar currency pair. The market price is listed at 1.48242, and you need only decide whether the option will close above or below that price. On the details screen, you’ll see a graph displaying the recent movement of the underlying currency pair. You’ll also see the percentage return you’ll earn if you forecast the pair’s future movement correctly.
This is a notable departure from the way most people are accustomed to thinking about the ROI on their options trades. With traditional options, your returns are unknown. This is because they are based on the extent to which the price of the underlying asset passes the strike price. Binary options work differently. They are “all or nothing” instruments. If you predict the movement, or settling point, of the underlying asset’s price correctly, you’ll win the posted payout. If your forecast is incorrect, you’ll lose your initial investment.
It’s worth noting that a lot of brokers, including several on our list of recommendations, offer a rebate up to 15% on out of the money trades. For example, if you execute a trade with an investment of $100, and guess incorrectly, you may only forfeit $85. This is important to take into account when considering the US binary options brokers with the highest returns. Those that don’t offer such a rebate on losing trades are less attractive.
How To Find Binary Options Brokers With The Highest Returns
The advertisements placed by binary brokers invariably proclaim their highest returns. The problem is, the ads can be misleading. Sometimes, they display a payout percentage (e.g. 300%) as the typical ROI you can expect on most trades, when in fact, it reflects the return on their most volatile instruments. Other times, the advertisements list a payout that was available in the past, but has since evaporated – in some cases, never to return.
So, how do you know which binary options brokers offer the highest returns? Start with our list of recommendations. One of the criteria we use when reviewing sites is their payout percentages. They must meet a certain threshold to make the list. That said, we encourage you to compare them to the returns offered by other brokers.
Top US Binary Options Brokers With The Highest Returns
Before we present our top picks, it’s important to understand the factors that influence our choices. Earlier, we mentioned that brokers offering the highest returns may not necessarily be the best places to put your investment monies. Other criteria are just as important.
Visit this page to see todays list of USA brokers.
In addition to high returns, a high-quality broker should use a reliable binary options platform. You should be able to invest in several asset classes, selecting from a variety of expiration dates. A good broker should offer generous bonuses, plenty of hassle-free deposit options, and have a track record for making timely payouts. Minimal initial deposits and around-the-clock customer support are also valuable. With these criteria in mind, here are our top 6 US binary options brokers:
- To repeat, avoid focusing solely on the US binary options brokers with the highest returns. The criteria we’ve mentioned above is just as important. With that in mind, we recommend visiting each of the six sites on our list to give them a quick test drive.