The Best Binary Options Broker 2020!
Perfect For Beginners and Middle-Leveled Traders!
Free Demo Account!
Free Trading Education!
Get Your Sign-Up Bonus Now!
Good Broker For Experienced Traders!
Binary Options Brokers and Platforms – Reviews and Comparison
We have compared the best regulated binary options brokers and platforms in April 2020 and created this top list. Every broker and platform has been personally reviewed by us to help you find the best binary options platform for both beginners and experts. The sortable broker comparison list below shows which binary trading sites came out on top based on different criteria.
You can sort the list using payout (maximum returns), minimum deposit, bonus offers or if the operator is regulated or not. You can also read full reviews of each broker, helping you make the best choice. Below the comparison list is some advice on how to pick the best trading platform for you, as this will often come down to your personal requirements and needs.
Top Brokers in Russia
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How to Compare Brokers and Platforms
In order to trade binary options, you need to engage the services of a binary options broker that accepts clients from Russia. Here at binaryoptions.net we have provided a list with all the best comparison factors that will help you select which trading broker to open an account with. We have also looked at our most popular or frequently asked questions, and have noted that these are important factors when traders are comparing different brokers:
- What is the Minimum Deposit? (These range from $5 or $10 up to $250)
- Are they regulated or licensed, and with which regulator?
- Can I open a Demo Account?
- Is there a signals service, and is it free?
- Can I trade on my mobile phone and is there a mobile app?
- Is there a Bonus available for new trader accounts? What are the Terms and
- Who has the best binary trading platform? Do you need high detail charts with technical analysis indicators?
- Which broker has the best asset lists? Do they offer forex, cryptocurrency, commodities, indices and stocks – and how many of each?
- Which broker has the largest range of expiry times (30 seconds, 60 seconds, end of day, long term etc?)
- How much is the minimum trade size or amount?
- What types of options are available? (Touch, Ladder, Boundary, Pairs etc)
- Additional Tools – Like Early closure or Metatrader 4 (Mt4) plugin or integration
- Do they operate a Robot or offer automated trading software?
- What is the Customer Support like? Do they offer telephone, email and live chat support – and in which countries? Do they list direct contact details?
- Who has the best payouts or maximum returns? Check the markets you will trade.
We cover as many of these comparison factors as possible in our list above, but we go into much more depth within each review.
Regulated Binary Brokers
Regulation and licensing is a key factor when judging the best broker. Unregulated brokers are not always scams, or untrustworthy, but it does mean a trader must do more ‘due diligence’ before trading with them. A regulated broker is the safest option.
|Binary.com||Malta GA||BO, CFD|
|IQ Option||CySEC||BO, CFD, Crypto, Forex|
|BDSwiss||CySec||BO, CFD, Crypto, Forex|
|24Option||CySEC||BO, CFD, Crypto, Forex|
|Nadex Exchange||CFTC||BO, Forex|
Leading regulatory bodies include:
- CySec – The Cyprus Securities and Exchange Commission (Cyprus and the EU)
- FCA – Financial Conduct Authority (UK)
- CFTC – Commodity Futures Trading Commission (US)
- FSB – Financial Services Board (South Africa)
- ASIC – Australia Securities and Investment Commission
There are other regulators in addition to the above, and in some cases, brokers will be regulated by more than one organisation. This is becoming more common in Europe where binary options are coming under increased scrutiny. Reputable, premier brands will have regulation of some sort.
Regulation is there to protect traders, to ensure their money is correctly held and to give them a path to take in the event of a dispute. It should therefore be an important consideration when choosing a trading partner.
Both sign up bonuses and demo accounts are used to attract new clients. Bonuses are often a deposit match, a one-off payment or risk free trade . Whatever the form of bonus, there are terms and conditions that need to be read.
It is worth taking the time to understand those terms before signing up or clicking accept on a bonus offer. If the terms are not to your liking then the bonus loses any attraction and that broker may not be the best choice. Some bonus terms tie in your initial deposit too. It is worth reading T&Cs before agreeing to any bonus, and worth noting that many brokers will give you the option to ‘opt out’ of taking a bonus.
Using a bonus effectively is harder than it sounds. If considering taking up one of these offers, think about whether, and how, it might affect your trading. One common issue is that turnover requirements within the terms, often cause traders to ‘over trade’. If the bonus does not suit you, turn it down.
Binary options demo accounts are the best way to try both binary options trading, and specific brokers’ software and platforms – without needing to risk any money.
The Best Binary Options Broker 2020!
Perfect For Beginners and Middle-Leveled Traders!
Free Demo Account!
Free Trading Education!
Get Your Sign-Up Bonus Now!
Good Broker For Experienced Traders!
You can get demo accounts at more than one broker, try them out and only deposit real money at the one you find best. It can also be useful to have accounts at more than one broker. For example, payouts for two different assets might be best at different brokers. You can shop around, and use whichever account has the best payout for that asset.
Demo accounts offer the best way to try out a brand, risk free. Likewise if we recommend a brand, you can try it first, before risking anything.
Low Minimum Deposits
If you are looking to get involved with binary options for the first time, low minimum deposit requirements may be of interest. For traders just looking to try binary options, a low minimum deposit broker might be best. A small initial deposit keeps risks low. Minimum deposits start at just $5 and there are a growing number of brokers offering low minimum deposits – “low” would be any minimum under $50.
Likewise, all brokers will have a minimum trade requirement or trade amount too. These can vary greatly between platforms. Minimum trade figures range from $1 to $25 – which is a large difference if a trader plans to trade frequently. For some traders, this might be less of a factor in terms of finding the best broker for them, but for others it will be very important. Practice accounts are a zero risk way of learning to trade.
One element many traders use to find the best binary options trading account, is the payout percentage on offer. This is not always a simple comparison however. Payouts will change based on the underlying asset being traded, and the expiry time of the option. In addition, payouts will change as the broker manages their own risk. So if one broker was originally the best price, things may then revert and mean that another now has the top payout.
So the most an investor can do, is to check the payouts for assets, and expiry times they are most likely to make, and judge which brand offers the best terms most often. Demo accounts are good when researching payouts on specific assets and trades.
Exchange traded and over the counter brokers will have different payouts – and they will not be easy to compare. In general, exchange traded options offer superior value. Nadex are one example of an exchange.
So as you can see, finding the best trading account and broker is not always easy – but it is worth noting that you are free to move between brokers whenever you like. So even if an account turns out to be poor, it is easy to up sticks and find a new trading firm. Likewise, a trader could have multiple accounts, and open trades at the broker with the best terms for that particular trade.
Which is the Best Binary Trading Platform?
Naming the best trading platform is not easy, simply because trading platforms and proprietary (bespoke) software are normally a question of personal taste. One user might like a simple layout, while others might need a lot of data on screen all the time.
However, platforms do have different levels of quality, both in terms of ease of use, and features. Broadly speaking, brands which offer Contracts for Difference (CFDs) in addition to binary options, deliver a more feature-rich trading platform or advanced software.
So the likes of Nadex and IQ, will deliver a very professional trading platform. MetaTrader integration is also normally provided at the more professional brokers (Some use both mt4 and mt5 functionality) . This difference in quality is evidence of the maturity of binary options as a product, but binary brands will catch up very quickly.
Intro To The IQ Option Platform
How do Brokers Make Money?
Binary options brokers make money via one of two business models:
- As a counter-party, ensuring an ‘over round’ via payout percentages. Known as ‘Over the counter’ (OTC)
- Via a spread or commission on an exchange traded model
People who have experience of other forms of trading, and are now approaching over-the-counter (OTC) brokers for the first time may find themselves asking the question: “Where is the commission?”.
With OTC binaries however, there is no commission. In theory, the term ‘brokers’, is not correct. Binary firms are not arranging a deal or acting as a middleman, or as a market maker; What they are, is the counter-party to each of their customers’ positions. So there is no fee or commission for the trade. Instead, each customer is essentially betting against the house. Where brokers have both sides of a trade covered, they have a handsome margin. Where they do not, the payout still gives them a level of protection. In certain circumstances, the broker will also hedge it’s own position to mitigate risk.
Those companies (Nadex, for instance) that trade binary options via an exchange operate much more like a ‘broker’. Unlike the OTC market where the platform is the counter party, with exchange traded options, the broker is the middleman – matching buyers with sellers and charging a commission. This charge is normally hidden within the spread, rather than an explicit cost. There is far less risk involved for the broker, and therefore generally better returns per trade for the trader. Brokers can be actively compared using the spread – the tighter the spread (difference between buy and sell prices) the cheaper it is to trade.
Brokers using the spread model often also offer leverage, or trading on ‘margin’ via their software. This increases the trade size for the trader – and profit for the platform.
Should You Use Multiple Brokers?
There are some very good arguments for having more than one binary trading account:
- Brokers suit certain trades. Different brokers will suit different trading styles, or trade types. So one broker might be excellent for shorter term trade types, and have great payouts on forex pairs. But that same brand may be slightly less good when it comes to offering boundary trades or indices payouts. If a rival had a full set of long term expiries with great payouts, and lots of choice of boundary trades – it makes sense to have accounts with both platforms, and place trades with the broker that offered the best deal for each trade.
- Demo accounts. Multiple demo accounts makes perfect sense – you want to try as many brokers and trading platforms as possible before deciding where to trade.
- Reduce risk. Accounts at more than one broker protects you from any issues with a particular firm. From issues as serious as insolvency, to smaller things, like website downtime, software issues or a market being closed – multiple accounts reduces your risk of being affected by any hardship a broker might face.
- Multiple offers. Each sign up can mean a new bonus, so it might be worthwhile taking up more than one account to receive all the offers. As ever, read the terms – and also note that on occasion, larger deposits might mean larger bonuses – so splitting them may not be the best choice.
- Spread winnings. Some brokers may look for winning traders on their books, with a view to restricting their trading, perhaps limiting trade size – or worse. While this threat is thankfully small, multiple accounts means spreading the winnings out. Most brokers will search for “winners” based on total profit rather than strike rate, so hiding the volume across broker accounts can help you stay below their radar.
Exchange versus OTC (Over the Counter) Brokers
A broker that offers an exchange is much closer to a traditional ‘broker’ than OTC brokers. An exchange performs the job of ‘middleman’. They will match a seller of an asset, with a buyer of the same asset, and charge a commission for putting the deal together. The market itself will decide the prices – if there are more sellers than buyers, the price will drift down until demand rises. If there are more buyers than those willing to sell, the option price will rise.
A broker operating an exchange does not mind who wins and who loses. They take no risk on the trade themselves (unless the traders are trading on credit). The broker will make their commission on the trade regardless of the outcome.
Due to this reduced risk for the broker, the returns for a winning trader are generally larger. Commissions are usually small relative to the size of the trade, meaning they do not impact the payout too much. Other benefits include the fact that stop losses can be applied, and also that trades can be closed at any time (to take a profit or reduce losses).
The complications with exchanges, comes from the structure. An exchange traded binary option will “trade” somewhere between 0 and 100. Where 0 is the figure used where an event did not occur, and 100 where it did. If the current price is currently 30, a ‘buyer’ would risk 30 times his trade size, to potentially win 70. A ‘seller’ therefore, would risk 70 to win 30. While not a complicated equation, it is slightly more complex than the straight forward over the counter option.
OTC (Over The Counter) Brokers
The most common type is the Over the counter (OTC) broker, but this type of firm is not really a ‘broker’ at all strictly speaking. They are the counter-party to one side of the trade. So where a trader opens a position, the broker will win or lose money, based on whether the trade wins or loses. Only where the broker has another trader who has made the exact opposite trade, will they have assured profits.
Due to this increased risk, the brokers will offer a lower payout which mitigates some of the risk they are taking. It is therefore likely to be lower than an exchange traded broker. Some firms will also have built in ‘hedging’ mechanisms to reduce risk further. In some cases, one side of trade might be made unavailable if liabilities get too large.
The simplicity of binary options is retained with OTC brokers. They have also made great strides in competing with exchanges by offering ‘cash out’ values for options, allowing traders to close positions early, and set up stop losses. Once those features become common the gap between OTC and exchanges will get smaller. For now, traders are better off trading on an exchange – but might be advised to learn the differences via demo account.
Have you had a problem with your broker? Submit a complaint
Deposit and withdrawal options do vary at each brokerage. Each of our reviews will explain which each firm offer, but below is a list of the most common options.
If you are looking for brokers that support a specific payment method:
- Wire Transfer
- Credit cards / Debit cards
All of the factors covered above will ultimately affect the way a trader plays the market, and therefore, their profitability. The ideal situation is to get a binary broker that offers:
- Several financial assets spread across several markets
- Offers a reasonable bonus with a good payout approaching 90%
- Offers flexible expiration dates without boxing traders into very long expirations.
Trading using a broker’s platform will only be enjoyable, and profitable, if you are using a reputable operator. You also need to choose one that suits your trading style best – only you will know what that is. Read the above binary broker reviews carefully before making that crucial trading decision, but remember you are not tied in to any single broker, and can pick and choose.
COMPARE THE BEST CFD BROKERS
Updated: 03 April 2020
- Regulated by the FCA and ASIC.
- Offers multiple free deposit methods.
- Is an award-winning broker.
- Has a local London office.
- The product portfolio is somewhat limited.
- Well-regulated by one of the most trusted bodies in global finance.
- Commission-free trading is offered throughout.
- An extensive range of educational material is available.
- No proprietary trading platform is offered
- Bonuses are limited due to the stringent regulatory requirements in place.
- Regulated by the FCA
- More than 200 million trades
- Nice range of assets
- No ability to choose a trading platform
- Simplified service that meets most traders’ needs.
- Relatively quick customer service response.
- No charges for deposits or withdrawals.
- Access to global markets.
- Decent choice of educational materials.
- No toll-free support number.
- Lacks customer service in late evenings and over the weekend
- No Live Chat.
- Does not support MetaTrader 5 (MT5).
- Leverage is available up to 1:500.
- ROinvesting offers more than 300 CFD assets.
- ROinvesting is licensed and regulated by CySEC.
- The broker offers multiple platforms, including a WebTrader, MT4, and a mobile version.
- All assets offered are CFDs.
To provide the “ Best CFD Trading Platform” , a broker must meet several criteria. Whether you already have trading experience or are at the start of your currency trading journey, choosing a broker is an important process. In our CFD broker comparison , we assess key criteria, such as fees, support and trading offers, and explain what to look for when selecting providers. Beside trading conditions and costs, we also take into account the current situations on the market – in order to identify the right CFD broker for you.
What are the key criteria our traders use when evaluating CFD brokers
Choosing a reputable broker is a vital step in giving yourself the best platform to succeed in the trading industry, whether you are a new trader or have many years of experience. To be labelled as a reliable and trusted CFD broker, you must score well in several different categories. Here at AskTraders we look at several different criteria when assessing individual brokers. Some of which are fees, support, the account types, the platform, customer support and more. We also dive into the current CFD trading landscape to try to provide you with the best CFD broker on the market.
Opening a CFD trading account should be free, however there are costs involved in trading CFDs. These can include spreads, real-time prices, and add-ons for trading platforms as well as payment related charges like deposits and withdrawal fees.
In addition to these costs and fees, leverage is an essential aspect when ranking the best CFD trading platforms . Using leverage allows you to access more capital than you have in your trading account. High levels of leverage can be very appealing as they allow you to multiply your profits, however leverage can also lead to big losses. Leverage is crucial to CFD trading, high leverage may not be a fit for your current trading activities.
Several brokers now offer a variety of CFD trading accounts types aimed at different traders. Typically these range from beginner accounts for new traders to VIP accounts for those with many years of experience. The account type you are offered usually depends on your initial deposit amount, however trading volume can also be a factor. Depending on the account you sign up for there may also be different levels of customer support as well. If you do sign up to a beginners account, you will be able to upgrade your account as your capital and trading volume increase.
The broker’s platform you will be using to trade is an important factor to consider. Choosing an intuitive and easy to use interface is essential for successful CFD trading. Depending on which broker you opt for, there may also be the option of choosing specially developed software solutions. Many brokers will also allow you to use existing platforms such as Meta Trader 4.
Most traders will usually prefer a platform they can customise to suit their needs. When looking at the best CFD trading platforms, it is also important to focus on the technical analysis side: Are the charts easy to understand? Do they offer the indicators I need? What trading systems do they offer? Technical indicators will be vital to your trading strategy so, in general, the more the platform offers the better.
One feature that is prominent now is being able to trade while on the move. If this is something you feel you will need then look for a broker that provides an app for smartphones and tablets that is well-designed and easy to use.
The first thing to watch out for here is checking that the whole website is available in a language you can understand. Most brokers will have an English language website as well as the option to select from several other languages. When looking through the broker, it is crucial to make sure that you can understand all of the details on its website.
A critical point to watch out for here, and one that will be able to give you an impression on the CFD broker as a whole, is the broker’s website. It should be easy to use, well organised and to guide you through their offers swiftly. ‘One-click’ navigation is particularly popular as it allows you to view everything about the broker’s offer immediately. When navigating through the site, it is essential that you can view information such as contact options, cost models and fees, offers, account types, and terms of service. Information about the broker and an FAQ section may also be helpful.
While we hope your CFD trading experience goes smoothly problems may occur from time to time. These may be platform related or something to do with deposits or withdrawals. When evaluating a provider, we place great value on the contact options and the quality of the provider’s customer service.
The majority of brokers will provide you with a live online chat function where you can reach customer services quickly. Barring that, they should also offer other methods of contact such as via telephone, email, or an online contact form. All means of communication should be free of charge.
The customer support team must be able to communicate in your preferred language, as this could cause avoidable communication issues if they do not. That said, the majority of brokers will have support teams that can speak many different languages.
In addition to general customer support, some brokers may provide a VIP support service as well as a personal account manager, depending on your account or status.
When opening your trading account the first thing you will need to do is deposit funds. If you are successful enough to generate profits, you will then want to withdraw them to your bank account so it is vital to consider the payment methods available.
Almost all CFD brokers will offer you the opportunity to deposit money via credit card, bank transfer or online payment methods. Card transactions are still the most popular way of paying money into a trading account, as it is uncomplicated and takes a short amount of time.
Bank transfers are considered very secure, but processing usually takes several days.
As mentioned before, many brokers allow deposits via online payment services (Skrill, Neteller, PayPal, for example). These are popular methods of payments due to the speed of transactions.
As discussed previously, there may be fees associated with deposits and withdrawals, so it is essential to research and acknowledge these before proceeding. There may also be deposit and withdrawal limits that you need to be aware of before making a transaction.
One last point to be aware of is that you may have a limit on the number of payments you make per month, anything over that limit may incur a fee.
All of the points above require research so that you can be sure of all costs and limits involved when opening an account with that CFD broker.
BEST CFD OFFERS
Often brokers provide useful offers to their customers – starting with educational content. Only brokers with strong educational content can be considered worthy of the “ Best CFD Trading Platform ” award . Even experienced traders can benefit from offers such as webinars or video tutorials. Some brokers also offer seminars, while others limit themselves to a blog with tips or even a trading academy. Extras such as an economic calendar or market analysis tools can also be helpful.
REGULATION AND DEPOSIT PROTECTION
Regulation and deposit insurance are important issues, yet, they are not a guarantee that you will get a reputable CFD broker. There is always a risk that you could be subject to unfair practices or brokers not following regulations. However, you can be sure that regulated providers are licensed to offer their services on the market. The financial authorities that are responsible for the broker in that region will conduct regular checks on their activities.
To confirm that a broker is regulated, you can look up the directory of the authority specified on the broker’s website and examine their licensing information. We also suggest that you research the amount of deposit insurance the broker offers. It will allow you peace of mind knowing that the money in your CFD account is protected in the event of bankruptcy, up to a certain amount.
If you are worried about CFD fraud, there are a few checks that you may inevitably wish to perform. In a provider comparison, you should make sure that the data transfer is always encrypted. By choosing a secure password, you can also contribute to your data security.
When assessing a broker Information from the financial press is most beneficial. When it comes to forums, on the other hand, these can be less reliable. Like trading, the broker reviews in forums can be subject to many emotions. For example, someone who has made high returns with that broker may provide overly positive comments, overlooking any negatives. While someone who has done the opposite and lost money will tend write comments based on negative emotions and possibly not relay the full facts.
Established brokers, with experience or brokers that have received awards such as the “ Best CFD Trading Platform” can be often seen in the press. So make sure to look around and scour media coverage of the brokers as they may provide some insight. If they have received awards on numerous occasions, it will give you positive feedback on how they operate. Even if a broker has been named “ Best CFD Broker “ in the past, it is worth seeing if there are any more recent awards.
Any awards received will be able to provide a level of trust between you and the broker. Magazines and trading websites will subject brokers to a test and give annual titles and awards for CFD trading. They will scrutinise platforms, broker support services and security on regular occasions. It is undoubtedly an excellent means of assessing a broker – you can usually find the awards listed on their website.
How to Compare Brokers and Platforms
You’ve probably already conducted a few Google searches, hoping to find a website that gives you all the answers so you can begin your online trading journey. It’s very likely you were overwhelmed with the amount of information available – don’t be alarmed! Compare CFD Brokers was launched to provide an independent comparison of some of the best online trading platforms available in Australia.
Compare the best online trading platforms in Australia. All 3 are ASIC-Regulated;
Who are they?
Segregated Bank Accounts?
ASX Stock Comm. $
Australia 200 spread
B roker, T ight Spreads
AU’s fastest-growing and
cheapest CFD broker
USD $0.02 per side
How To Compare Online Trading Platforms – 5 Factors To Consider;
In order to find the best online trading platform, you’ll need to consider which trading features are important to you so you can go and compare these. If you’re a beginner then you might not know which features are important so we have put together the guide below – this identifies 5 of the features that we’d recommend you consider when comparing online trading platforms.
1. Trading Costs
Firstly, every trading platform provider will charge you to make trades on their platform; the key is to find a broker that is upfront with their trading costs and one that has costs that are reasonable to you.
The amount a broker charges you to trade is one of the most important factors when considering what trading platform to trade on. The lower your trading costs, the better chance you have of making a profit. Here are some trading costs you should consider before opening a trading account;
The TradeDirect365 CloudTrade platform
- Spread Costs
The ‘spread‘ is the difference between the bid and offer (buy & sell) price and is a normal charge in order to open a trade. The tighter the spread, the less you are paying. The wider the spread, the more you are paying. Please find a broker that offers tight, fixed spreads – TradeDirect365 is a good example of a broker with low-cost spreads.
Some brokers will charge a commission to open a trade however these are usually only applied to stock trades. Trades on Indices, FX, commodities etc. should not incur a commission cost, rather the broker will simply charge you the spread. please check if a broker charges commission on non-equity trades.
- Overnight Financing Charges
If you hold a trade open overnight you will probably be charged a small fee if you are ‘long‘ (a BUY trade). This is to cover the cost of lending to you on margin (trading). If you hold a ‘short’ position (a SELL trade), you will probably receive a fee.
- Exchange fees
Ask if there any exchange fees (i.e. ASX data fees etc.)?
- Inactive fees
Annoyingly and ridiculously, some brokers will charge an inactivity fee if you don’t trade with them within a certain time-frame. Make sure you ask a broker if they charge this before opening an account with them.
2. The Trading Platform
Please open a couple of demo (test) accounts with a range of brokers to trial their trading platform systems – try before you buy if you will. You need to be comfortable with the look and feel of a broker’s trading platform before you start to trade with them – remember, you will be placing your trades on this platform – is it easy-to-use and is the functionality perfect for what you need? If not, try out another broker’s platform!
We’ve all been there before – found our ideal broker who offers tight, fixed spreads, excellent customer service, great charting package, low commissions, appropriate range of markets etc. – and then absolutely hated their trading software for whatever reason. So test out some demo accounts before committing.
Trading with a broker who is ASIC-Regulated is absolutely critical – do not trade with a broker who does not hold the relevant AFSL (Australian Financial Services Licence), simple as that. A quick check on a broker’s website (or the ASIC website) will show whether or not they are regulated by ASIC.
Trading with an ASIC-regulated entity has many advantages, the biggest being that an online trading provider will be closely monitored by the regions’ governing regulator (i.e. ASIC) and will need to operate in accordance with local laws.
4. Range of Markets Available
Please ensure that your trading platform of choice offers the markets that you are hoping to trade. Most brokers will offer the world’s most popular markets but you might be looking for something more specific, penny stocks for example. Also, different brokers have different strengths – some may offer a lot of Australian stocks while others will focus on cryptos etc. Do your research to ensure they have the markets you are after.
5. Customer Support
The quality of service you receive from your trading platform provider is important too. If you receive poor service at a restaurant do you go back? Probably not. The same applies here. Only trade with a broker that gives you the very best customer support. After all, you are a beginner who needs help getting started and there should be someone available on phone/ email/ livechat to help you who is patient, friendly and knowledgeable.
How to find the right trading platform;
As mentioned, the number of online trading platforms available to retail traders are seemingly endless and it can be difficult to decipher between all the options. To help aide the decision making process, you should ask yourself the following questions;
Pepperstone’s cTrader trading platform
What kind of trader are you?
Are you a beginner or an experienced trader? Are you actively trading the markets or are you more casual? Your answers will dictate what you look for in a trading platform – from the look & feel, to the ease of use, to the range of markets available, educational tools etc. and these needs should complement your trading requirements.
What financial markets will you be trading?
There are thousands of financial instruments to choose from. So you need to decide which markets you wish to trade before opening an account. Some brokers will specialise in certain products, i.e. Pepperstone for FX, TradeDirect365 for Indices and City Index for stock trading.
How much will it cost to trade?
Definitely consider the trading costs involved with the trades you’re going to make. Each broker has different revenue models and their trading costs will differ. We’d recommend emailing the broker with a list of your anticipated trades and asking them what each will cost. Then you can compare each broker and decide on one that suits your needs.
What are the benefits of using an online trading platform in Australia?
There are many benefits (and risks) to trading the financial markets online. As a beginner you should proceed with extra care, if you proceed at all. It is estimated that around 85% of online traders lose money!. Please also read our free guide, ‘The habits of a successful trader’ to learn more about becoming a successful trader.
City Index’ Advantage Web platform
Trade the world’s most popular markets
Online trading is pretty cool – you can literally access 1000’s of financial markets, 24/5! Twenty years ago that was not possible. However, the power of the internet and evolving technology has allowed every day investors the ability to access global markets.
Trade rising and falling markets
Gone are the days when you could only buy stocks in the hope they increased in value (only). Online trading now allows people to “go short” (sell the market), if we anticipate that an asset will decline. This is a very popular reason why people trade online – they can speculate on both rising and falling market movements.
Online trading is a leveraged product
Leverage means you only need to deposit a relatively small amount of money onto your trading account in order to access significantly larger trade sizes. Click here for more on leverage .
You can make a profit if you get it right
As we mentioned above, some 85% of traders will lose money in their trading career. Not great numbers are they!? But that does mean there are 15% who do win money and are successful at this game. Put together a decent trading plan and you will have a chance at succeeding.
The risks of online trading?
Online trading can be a brutal experience if you get it wrong. You can lose a lot of money extremely quickly and not even understand why. We would urge everyone to do their research and open a few demo accounts. There is no shame in backing out and deciding its not for you. Some of the risks;
From time-to-time the markets can spike or crash in a flash (think 9/11). One second you could be in a healthy profit. The next, some major news is announced and you could be in serious debt – as simple as that.
Trading on leverage is a double edged sword in that it has its advantages and also its disadvantages. The disadvantage is that leverage can magnify your losses very quickly. If you have an open trade position and some volatility hits the market, you could be in serious trouble.
Owe more than you deposited
This is an unfortunate but very real possibility. You might deposit $2k onto your trading account but end up owing the broker more than that amount.
Compare the best Forex brokers on the market right now. Below you will find our highest rated Forex brokers who have all undergone our rigorous review process. For a list of the criteria we look for, see below our in-depth broker table.
We are consistently on the lookout for top-performing brokers and bringing them to you. We don’t just review a broker once, but we will go back to check that their client base are happy with the service they are supposed to be getting.
We understand that every trader is different, which is why despite this list being the our preferred brokers right now, it might not suit you and your needs.
You might want to focus on the brokers that offer the highest leverage or only those that offer CFD derivatives, therefore we have also compiled lists of different types of brokers. Here is a breakdown of the categories that you can start your broker search from:
100ForexBrokers Top FX Brokers 2020
100ForexBrokers Broker Review Criteria
To understand our thorough process when it comes to analysing brokers and their performance, you need to know that whilst brokers all offer similar products, their delivery can vary a huge amount.
We have devised a set criteria that we look for when comparing brokers, below are the major things that we look to when reviewing a broker.
This is hugely important, especially for beginners because we don’t want a new trader to have to invest a lot of money the first time they deposit. When you start trading you need time to build your confidence, which is why only starting with a small amount is always advised for first time traders.
Fees – Spreads & Commissions
Brokers are clever in the way they charge their clients, by charging on the spread, they earn money every time a trader takes a trade. For those traders that like to scalp, the brokers will earn considerably more than those who hold trades for weeks on end.
Therefore it is imperative that you are aware of the spreads the broker charges and especially how much they are likely to change. Spreads often widen dependent on the volatility of the market, so we make sure we understand how brokers charge and how wide their spreads go rather than just how small they are, which is usually how they’re advertised.
Regulation has been put in place to protect users. Therefore any brokers that do not have the relevant regulatory certification have not passed the procedures put in place to protect a user and is the reason why we would always recommend staying away from non-regulated brokers.
We have compiled a list of brokers that are regulated by the most sought after regulatory bodies, see here.
Like any business, customer service is hugely important for the retention of clients. If there are any problems then you will be forwarded to the customer service department who are in place to try to sort out any issues you have. In an ideal world, you would not need to contact a brokers customer service but realistically there are sometimes things that crop up. Even if there isn’t an issue, they can still be on hand to help guide you through the platform.
Therefore it is important for a broker to have a good team of customer service personnel. For every broker we review, we call up their team and see how long it is to get certain issues resolved, this is what we base our main judgement on when it comes to customer service.
Other Traders Feedback – Consumer Experience
Whilst we do a thorough review of each broker, there will always be things that are missed which is why customer feedback is imperative for our reviews. We look to see other users experience with the brokers and platforms to help form a judgement of the broker and in turn a ranking.
There are forums located across the web that discuss broker performances and we’re active in these groups to get an idea about how users are finding certain brokers and their platforms.
Platform & Software Ease
Most users that are looking for a broker are either new to trading or are not happy with their current provider. But primarily it is new traders, which is why an easy to use platform is important. No user wants an overcomplicated platform that could create errors when trading. Not understanding a platform can cause significant mishaps, taking larger than expected trades, not placing stop losses plus much more. This essentially can cost you money, therefore a platform that you can get to grips with quickly is important.
For the reasons above, we also do recommend choosing a broker with a demo account, this way you can practice with the platform before going live. Getting used to it in demo will reduce any human errors that are related to the platform.
A trading app isn’t a necessity however it does make life easier. Trading apps are basically another execution platform, similar to a brokers webtrader however they tend to have less functionality, you can normally do a lot more on a desktop webtrader. For this reason we would advise against doing your analysis and decision making on a trading app, rather just use it to execute at predetermined levels or manage positions (moving stop losses, take profit levels or closing out positions).
As mentioned it’s not essential to have one but it does show that a broker wants the best for its users and that it is willing to invest in user-friendly functionality. We find that those brokers that do have an app tend to out perform those that don’t but that isn’t always the case.
Education in trading is very important, simply put you cannot be a successful trader if you’re not educated about the financial markets, risk management and analysis techniques. Therefore brokers that offer education material should have users interests first.
We look at brokers educational content and assess the quality of it because we want to make sure that traders are being taught the correct procedures!
Judging a broker by its age is slightly bias but there is rationale behind it. Brokers that are found to be scams have normally not been around for a long time, they tend to be set up with the sole purpose of making some quick cash and then getting out. Which is why we look to those more established brands and brokers that have been going for 5+ years, they will have developed a following and you can also get good feedback from regular users.
Saying this can be unfair on new brokers that are legitimate but that does not mean that we discount any broker if they’re only been trading for a short period, we will still go through the same process and should they reach our standards, we’re more than happy to recommend to our readership.
A Brokers withdrawal process is very important. This is where you will begin to get a feeling whether a broker is looking to scam you. Those that make it very difficult to withdraw your money will give you numerous reasons why you shouldn’t; ‘you can make more with more in your account’, ‘we can manage your money for you’. All these types of reasons should have alarm bells ringing.
A good broker will have a quick process to withdraw your funds, at the end of the day, the whole reason you deposit into a trading account is to withdraw your profits from the account. Therefore this should be easy and seamless from the broker. Traditionally for security reasons, brokers will only allow you to withdraw to the account or card that you deposited with, this is common and a good security measure.
Opening an Account Processes
There is a balance between opening an account quickly for convenience versus opening one slowly as you’re going through several security procedures. Obviously you want your money to be secure and the broker needs to know that the person depositing is the person they claim to be but an easy process to opening an account is ideal because it can put people off, having to find a load of documents to prove you are who you say you are.
Risk Management Tools
This should be a staple for any broker, the ability to place stop loss and take profit orders. If a broker does not offer this then you should definitely not use that broker, even if everything else they offer is good, the fact that you can’t place stop-loss orders and in turn, manage your risk means that you are more likely to blow your account. Stop losses are key!
Trade execution refers to the ability to enter the market at the price or market level that you intended. Sometimes brokers have delayed execution, which means that if you hit the ‘buy’ button, the market moves up and then the broker enters you into the market, you will have missed out on the initial move. Quick execution is more relevant for those who are very active in the markets and are looking for short quick moves.
Execution can also be affected by the speed a market moves, sometimes the broker simply cannot get you in at the price you wanted, this is referred to as slippage and does occur with all brokers. The amount of slippage is difficult to pin down, which is why for execution we will take trades ourselves to check but also read other users experience when it comes to trading in volatile market conditions.
Number of Instruments on Offer
The number of instruments on offer is important because you want to have the choice of which market you want to trade. When it comes to trading Forex, your broker will offer the major currencies (EURUSD, GBPUSD, USDCAD, USDJPY, AUDUSD, USDCHF, NZDUSD), but they should also offer the crosses of these as well as a number of minor currency pairs, these might include the USDZAR and USDCNY.
Most brokers don’t offer just Forex but also several other asset classes, commodities, stocks, cryptocurrencies plus many more. This is very useful for those who want to diversify their trade portfolio and trade other markets as well as FX.
Additional features are definitely a plus when looking at choosing a broker, thing like having social trading on their platform is a huge plus for beginner traders because not only can they copy experts but they can learn from them and try to understand why they’re taking certain trades, it acts as a great educational tool as well as being profitable.
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