Trusted and Honest Binary Options Brokers

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Here we will try to explain how binary options brokers work and help you make informed decisions when it comes to binary options honest rating of binary options. But what is this ranking based on? Sorry for grabbing your attention this way, but this is really worth reading How the binary options industry works Binary options have become very popular among retail traders because they are very easy to use and require zero knowledge about financial instruments if you just want to trade them.

The thing is, since they are easy to use anyone can try binary options, and this is why brokers are desperate to attract new clients. This encourages them to advertise on binary options websites and pay the website owners money in exchange for promotion.

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The result is website owners promoting the brokers that pay them the most in order to make more money. This is how the broker rankings end up being created, with the brokers paying the most ranking on the top spots and receiving the best reviews and ratings.

You will probably notice that most websites listing binary options brokers also have banners and other advertising material displayed as they try to maximize the money they get from the brokers.

So, does that mean binary options brokers are not to be trusted? Advertising a business is a legitimate thing, and it is done by legitimate businesses in every industry, but it can also be done by shady brokers who may even be willing to outspend the honest ones.

Then how can you distinguish between reliable brokers and scams? You must first understand how binary brokers work. How do binary options brokers make their money?

When you buy an option, you must buy it from someone, which will be your counterparty.

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Binary options are just bets on the outcome of the market movement on a predetermined timeframe. This means that when you buy a binary option from your broker, you actually bet against the broker. It works in the same way how to store bitcoin correctly betting on sports against a bookmaker, only that in binary options you bet on financial assets, not on sporting events.

Never be swayed into joining up to any Binary Options trading site you come across online for there are many sites that simply offer huge sign up bonuses but fail in every other part of their operation, and as such it is pointless getting a large bonus but then find you have only a limited number of Binary Options which can be traded!

So, the broker makes money when you lose. This means that the broker must make sure it wins more than it loses, just like bookmakers do. How does the broker achieve this?

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Well, my answer would be that financial markets are not as predictable as many people think, especially in the short term. Also, most people trading binary options have no clue about what they are actually doing and they are just randomly betting on the market to see what the outcome is. Binary options brokers use two tricks to make sure they make more money than what they pay back to their clients: 1 They advertise in a way that encourages beginners to signup in order to make sure the majority of their clients are just novices who gamble on the markets.

Such clients are trading mostly for the thrill of staking real money and they may trade again and again even if they lose some money, because just as in sports betting, sometimes they will win and will be happy about it. Of course, there are also traders that are profitable and make money trading binary options, but they are just as few as the people making money from sports betting, and are a negligible proportion among the total number of traders.

Brokers can just accept the loses on those clients because they make much more money on those who lose on a regular basis.

List of Trusted Honest binary options brokers: Regulated Binary Trading

You may conclude that binary options brokers are just scams since they make money when the client loses, but this is a totally wrong assumption. Technically speaking, binary brokers are just market makers providing a pool of options that traders can buy.

This is how most derivatives brokers work, and this includes many forex brokers and also CFD Contract For Difference providers. They can be regulated by financial institutions and as long as they conduct their business in a honest way they are legitimate businesses.

What Are Binary Options?

Are all binary options brokers reliable? As I have just explained how binary options brokers make their money, the question that comes next is, are all binary options brokers reliable?

The sad truth is that the binary options industry is plagued by scams who only want to cheat their clients and take their money.

Many so called honest rating of binary options because they cannot be called brokers are just shady companies that will accept deposits and let you play on their platform as long as you lose, but will start to cheat if they see that you are winning. They may manipulate the price feed in their favor and they may even delay your withdrawal request in order to play with your nerves until you decide to cancel your withdrawal and gamble your money away until you lose them. Some fake brokers may offer you bogus bonuses with a lot of restrictions attached, that will make it impossible to request withdrawals until the bonus conditions are met.

How the binary options industry works

Those conditions are usually absurd as they require you to place tons of trades that will most likely result in the loss of your balance. While there are many fake brokers that appeal to some of the ugly tricks described above, there are also some reliable brokers that are regulated and conduct their business in a honest manner.

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The honest brokers are safe to use as they will always pay your winnings and will not cheat against you. Just as there are honest and reliable online bookmakers there are also safe and reliable binary options brokers. This has the ugly effect that sometimes you will see shady brokers ranking on the top spots on binary options reviews websites and having banners all over the internet.

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The final effect is that many people lose faith in binary options after being cheated and tend to think that all brokers are the same, which is not true. How to avoid binary options scams?

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While there can be honest brokers that are not regulated, the risks are just much higher. There are hundreds of such so-called robots that are nothing else but marketing tricks to attract new clients for shady brokers. The robots will just randomly trade on your behalf until you lose your deposit. Anyway, as a general rule in investing, what sounds too good to be true is actually a scam.

You should also be cautious about recommendations from websites that are filled with banners and that speak about bonuses. They are usually just advertising the brokers that pay the most. The best binary options brokers in So, considering all warnings described above, should you still be trading binary options? You can safely do it if you choose one of the large regulated brokers.

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Those brokers honest rating of binary options a very large client base and have no problem in paying traders who win. They are serious businesses that want to work long term and know that in order to be successful in this business in the long run, a broker must be reliable and have a good reputation. I would recommend IQ Option as the best binary options broker, since it is the largest binary broker by number of clients and it is the most technologically advanced broker.

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Other safe brokers with very large client base are Expert Option and Olymp Trade. Best binary options brokers for US traders It is unfortunate that US citizens cannot register to the regulated brokers. I don't know about any retail binary options brokers who accept US customers, so I am unable to recommend anything.

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This means the broker offers a wide range of options that traders can buy. It doesn't matter if it is a call or a put option, the process is the same: the trader buys the option from the broker With new advanced platforms that allow traders to interact with each other and copy the trades of the most successful ones, this new trend may soon transform the financial trading industry forever Read More Resources: 1.

Binary Option Wikipedia article about binary options 2. Derivative Instruments Wikipedia article about derivatives.