proscons“In 2015, there are well over 100 binary options brokers. You should avoid most of them.” That is what it says at the top of our homepage. There is a good reason for that. There are hundreds of binary options brokers out there, and the overwhelming majority of them are either out-and-out scams, or simply incompetent.

You may have heard it stated that a broker needs to be regulated in order to be trustworthy, and the fact that most brokers are unregulated explains why they cannot be trusted. Things are not really that simple, though. Of the brokers we recommend, some are regulated, and some are not. Regulation is generally a good sign, that much is fact. But it is not the only measure of good intentions or solid business practices, and getting regulated is a complicated process for a broker to undertake.

Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
90% $10 $1
 
200% $50 $10
 
85% $200 $20
 
85% $100 $5
 
85% $10 $1
 
95% $250 $1
 
80% $5 $1
 
80% - 90% $250 $5
 
85% $250 $5  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
95% $250 $1
 
80% $10 $0.10
 
160% - 180% $50 $2
 
95% $250 $1
 
90% $250 $1
 
80% - 90% $250 $5
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
200% $50 $10
 
95% $250 $1
 
90% $50 $1
 
80% $5 $1
 
80% - 90% $250 $5
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  200% $50 $10
 
  85% $200 $20
 
  85% $100 $5
 
  95% $250 $1
 
  85% $10 $1
 
  80% - 90% $250 $5
 
  85% $250 $5  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
90% $10 $1
 
200% $50 $10
 
85% $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  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
90% $10 $1
 
90% $50 $1
 
85% $100 $5
 
85% $10 $1
 
85% $50 $1
 
85% $200 $20
 
95% $250 $1
 
80% $250 $25
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  85% $50 $1
 
  200% $50 $10
 
  95% $250 $1
 
  85% $200 $20
 
  85% $10 $1
 
  85% $100 $5
 
  80% $250 $25
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $50 $1
 
  95% $250 $1
 
  85% $10 $1
 
  80% - 90% $250 $5
 
  80% $250 $25
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $50 $1
 
  85% $100 $5
 
  95% $250 $1
 
  85% $10 $1
 
  80% - 90% $250 $5
 
  80% $250 $25
 
  85% $250 $5  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $250 $10
 
  85% $50 $1
 
  85% $100 $5
 
  85% $10 $1
 
  95% $250 $1
 
  80% - 90% $250 $5
 
  80% $250 $25
 
  85% $250 $5  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $50 $1
 
  85% $100 $5
 
  85% $10 $1
 
  95% $250 $1
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $50 $1
 
  85% $100 $5
 
  85% $10 $1
 
  95% $250 $1
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $50 $1
 
  85% $10 $1
 
  95% $250 $1
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $50 $1
 
  90% $50 $1
 
  85% $10 $1
 
  95% $250 $1
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $10 $1
 
  85% $50 $1
 
  95% $250 $1
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
90% $10 $1
 
85% $200 $20
 
85% $100 $5
 
95% $250 $1
 
80% - 90% $250 $5
 
85% $250 $5  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $100 $5
 
  85% $50 $1
 
  85% $10 $1
 
  95% $250 $1
 
  80% $250 $25
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  200% $50 $10
 
  85% $250 $10
 
  85% $50 $1
 
  85% $100 $5
 
  95% $250 $1
 
  85% $10 $1
 
  80% - 90% $250 $5
 
  80% $250 $25
 
  85% $250 $5  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
200% $50 $10
 
95% $250 $1
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  200% $50 $10
 
  85% $250 $10
 
  85% $200 $20
 
  95% $250 $1
 
  85% $10 $1
 
  80% - 90% $250 $5
 
  85% $250 $5  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  85% $50 $1
 
  200% $50 $10
 
  85% $200 $20
 
  95% $250 $1
 
  85% $100 $5
 
  85% $10 $1
 
  80% - 90% $250 $5
 
  80% $250 $25
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
95% $250 $1
 
85% $10 $1
 
80% - 90% $250 $5
 
85% $50 $1
 

Here are some of the regulated brokers we recommend:

Here are some of the unregulated brokers we recommend:

As you can see, these brokers are pretty evenly divided between regulated and unregulated status. You might think that regulated brokers would comprise the majority, but we weigh a lot of factors into account before we suggest you trade with a broker. All of these brokers, including the unregulated ones, have shown their quality in terms of customer service, withdrawal terms, bonus money, trade types, and more. You might think trading with a regulated broker is always best, but there are some specific advantages and disadvantages. Let’s talk about those now.

Advantages of Trading with a Regulated Broker

Why would you want to trade with a broker that is regulated? The best reason is to protect yourself through legal oversight. Regulated brokers are subject to very specific terms of operation. They have to follow the rules set by CySEC or any other financial regulatory authority which they operate under. These rules were set by government bodies with your interests firmly in mind. In order to maintain their regulated status, these brokers cannot cheat you out of your money, and must offer you a quality product and fair market prices.

Disadvantages of Trading with a Regulated Broker

What possible reason would you not want to trade with a regulated broker? Well, for one thing, deciding only to trade with a regulated broker cuts off your access to some companies that do good business and offer great trading features, like CherryTrade or Porter Finance, both of which currently have some of our highest ratings from traders just like you.

For another, if you are in the USA, you may not even be able to trade with a regulated broker at all! Many regulated brokers refuse USA customers. This is not strictly necessary, but there are CFTC restrictions on USA traders, and most regulated companies like to err on the side of caution. This effectively means that they close their doors to US customers altogether. You may not be able to register for an account, or even view the website. If you are in the USA and you try to visit Banc De Binary, for example, you will simply get a message that says, “The CFTC and SEC have asserted that Banc De Binary is not permitted to offer its binary option products to U.S. residents without registering with those agencies.”

Why do I say that this is not strictly necessary? Well, it clearly is for Banc De Binary, which has dealt with the CFTC and SEC directly, and still managed to draw this conclusion. But what the CFTC actually has to say about USA citizens trading binary options is this:

“It is against the law to solicit U.S. persons to buy and sell commodity options, even if they are called ‘prediction’ contracts, unless they are listed for trading and traded on a CFTC-registered exchange or unless legally exempt.”

In theory, a regulated broker should be able to allow you to trade in the US, even if it is not specifically registered with the CFTC, so long as you are not able to trade currencies and commodities. Of course, this in itself could be seen as a disadvantage, but this could apply equally to regulated and unregulated brokers. Porter Finance for example is unregulated and takes USA customers, but allows them only to trade stocks and indices. This may be fine for some traders, but not for others.

What Do We Look for in a Recommended Broker?

When we recommend a broker to our traders, here are the factors that we take into account:

  • Regulatory status. While it is not essential to us that a broker be regulated, especially for USA customers, we do factor this in. All other things being equal, a regulated broker is one we would recommend above an unregulated broker. It just isn’t everything.
  • Whether or not a broker accepts USA traders. We recommend brokers that close their doors to USA customers, but we try to find the best of those which accept USA customers and promote them as well. We do not want to leave Americans out in the cold.
  • Deposit and withdrawal details, including acceptable currencies and deposit methods. We look for a low minimum deposit amount and as much flexibility as possible concerning withdrawals. We like brokers that keep minimum thresholds low and reduce or eliminate fees. Brokers that make it easy for you to get at your money are what you want, regulated or not.
  • A range of account tiers with excellent features. We love brokers that offer extra benefits to traders for depositing more money, and start those benefits at the most basic level. Brokers that offer one-on-one training, personal account management, risk-free trades and other bonuses that go beyond traditional match deposits are the best. We also like to see a lot of free training materials.
  • Demo accounts. Demo accounts in the binary options world are more common than they once were, but they do not look like they are ever going to be the norm. This is a shame, because they are one of the best features you can possibly find. We love promoting brokers that give traders a chance to test drive without losing any money, preferably for as long as they want. This more than any other feature will save you money!
  • Trade control features like double up, rollover, and early close. These put control back in the hands of the trader.
  • A low minimum trade size and a high maximum trade size. You should be able to manage your bankroll with care, whether you have a huge bankroll or you are starting with $100. MarketsWorld is our favorite in this regard. They let you trade with just $1!
  • Customer service. Another very important feature is customer service. The features on a site are only as good as the team that helps you to make the most of them. If you see a site which makes lofty promises and fails to deliver on them, you should always run the other way. We look for companies that are responsive to emails and offer friendly, prompt, and knowledgeable customer service.
  • Trader reviews. Finally, we also recommend brokers on the basis of customer reviews. We are strongly influenced when traders tell us repeatedly that a broker is a bad one. When traders repeatedly share great experiences with us about another broker, we check that broker out to see what they offer. The most highly rated brokers according to traders are the ones that we rank highest on our list of recommendations.

If a regulated binary options broker meets your needs and offers you all the features you are searching for, by all means, trade with them. But if you are living in the USA or you find another broker that fits your needs but is unregulated, think about trading with them anyway. As you can see, there are a lot of important factors to weigh before you select a broker to trade with, and regulation is just one of them. Start with our recommended brokers list, and you will be on the right track!