Stock Prices

Trading Stock Prices with Binary Options

Before anyone enters the highly volatile world of binary options trading, there are a few things that should be taken into consideration.  Among them is the need to educate yourself as to what causes movement in stock prices.  A successful binary options trade experience hinges upon being able to aptly predict large swings in stock prices.  Knowing the causes to look out for can help the new trader to anticipate these changes and manipulate their trades to take full advantage of the situation.  With hundreds of stocks to choose from, it can be difficult to decide which options to utilize and which stocks to educate yourself about.  Some of the factors to take into consideration are listed here.

  • Know the financial status of the company: When considering whether or not to trade on a stock option, the more information you can learn about that company’s finances, the better your decision making will be.  Know the history of the company you are considering.  Earnings reports greatly affect stock prices.  If a company shows a loss, that loss can be detrimental to the stock price, and the traders involved with the stocks can react accordingly.  However, if a company posts a loss on their earnings report, but that loss is significantly less than the previous quarter’s loss that can be interpreted as good news and an improving situation.  The same event can be interpreted in a completely different way if you know the history of the company and their earnings report.

Stock Prices

Stock Prices

  • The state of the Government: The regulatory policies of the government that is involved with a particular company can have an immense impact on a company.  When a new regime comes into power, the policies and rules that govern commerce can change overnight.  It is imperative that an experienced trader keeps this in mind as they try to manipulate the situation to their advantage.  Changes in government regulations can cost companies extreme amounts of money in order to comply, which can drop stock prices.  By the same token, relaxing those requirements, or eliminating certain rules, can save a company an immense amount of money, which leads to the stock prices going up.  Knowing the politics of the people that taking over, or the people that are leaving, can greatly assist the trader in their long term decision making.

  • The public perception:  Judging the perception of the general public towards a company and their stock is important as well.  If there has been recent poor publicity regarding a company, that can affect stock prices in the short term.  Things like labor practices that come into question, product malfunctions that lead to recalls or safety issues becoming public knowledge can all impact prices in a severe way.    In addition to issues that are specific to the company, there is also the public opinion of the worldwide economy and the overall consumer confidence index to consider.

These areas are vitally important to the stock price stability of a given company.  Staying abreast of these issues is a mandatory task for the experienced trader who wants to turn these topics into their distinct advantage when trading binary options.

Technical Analysis Indicators

How to Effectively Use Technical Analysis Indicators

Most traders and investors use technical indicators derived from market observables like price and volume to forecast future direction. These trading indicators often help to identify high probability entry and exit setups that can either be manually executed, or automated through the use of trading softwares. There are hundreds of indicators available on most trading platforms. As useful as technical indicators can be, their effective use requires the adherence to certain principles, the most prominent among which are listed below:

 

Understand Your Indicator(s)

Understand how the technical indicators you plan to use are computed, and what they are designed to achieve. Since there are a large number of indicators; each with their own inherent characteristics; you should know when to use one. Trend-following indicators like moving averages and MACD fail utterly during consolidating markets, while oscillators like Stochastics and RSI will whipsaw you out of a trade during trending phases.

 

Use a Family of Indicators

Never base your trades on only one indicator. Use multiple indicators; but make sure they complement each other. Very often, traders in the rush to incorporate a number of indicators into their trading strategy, commit the mistake of using indicators that are deduced from the same market variables. This will result in redundant trading signals.

 

Apply indicators on multiple time frames

The same indicator can tell you different things when applied to different time frames. Use multiple time frames to see if your trading hypothesis stands the test of time. A day trader can view 5-minutes, 15-minutes and hourly charts to further confirm his trades. Similarly for a swing trader, the hourly, daily and weekly time-frames are the weapons of choice. However, it is important to remember that each trader is different, and so will be his or her time-frames. Work through as many time-frames as you can, and see what best suits your trading style and temperament.

 

Watch out for divergence with price

When your indicator and price diverge from each other, sit up and take notice. Something is usually happening behind the scenes. Divergences often precede significant price movements. If your asset is trending up and the indicator is pointing down, the upward trend is at risk of pausing or even reversing. The same holds true for downtrends.

 

Back test the indicators

Before trading live with an indicator, back test it with sufficient amounts of past data. The underlying logic behind this exercise is that if an indicator worked well in the past, it is more than likely to replicate its success in forecasting profitable trades with future market data.

 

Acknowledge that every indicator will fail at some point of time

Just like everything else in life, your indicator is not infallible. There will be periods when it just won’t work and you will be forced to take trading losses. Don’t take it personally. Indicators are not magic, and losses are inevitable. Console yourself with the fact that using indicators will probably limit your losses than what you would have otherwise encountered.

 

Price is supreme                                                                                                                                            The last and foremost principle of financial trading is that whatever indicator you choose to use, never ignore price. Since most indicators are themselves derived from price, following price action can help save you a lot of pain. No matter what an indicator says, the final call should always be based on price. If it tells you to enter, just buy; if it tells you to sell, just run for your lives!

 

Final Thoughts

The secret of successful trading doesn’t lie in the number of indicators you use. Analyzing too many indicators can lead to information overload, whereby you try to interpret so much data that all of it essentially lost. Judiciously select your indicators and understand what they are meant to do to reap the profits of these wonderful tools.

Binary Options Terms and Conditions

Binary Options Terms and Conditions

Binary options terms and conditions vary from one broker to another. It is advisable to first read these terms and conditions and any other policies before starting any trading activity. Also, reading terms and conditions can be a way of identifying scam brokers so take the time to read this vital information. For an ideal broker, major components of their terms and conditions are as outlined below.

 

Components of Binary Options Terms and Conditions

 

Binary Options Terms and Conditions

Binary Options Terms and Conditions

Intellectual Property Rights and Trademarks

This is mainly the first subsection in binary options terms and conditions. They are simply declarations by a broker regarding ownership of all the copyrights of the trading platform and all the logos on their web pages. By accepting the terms in this sub section, a trader cannot use the logos or other copyrighted material other than instructed by the broker.

 

Use of Material and Information

In this sub section, traders are bound not to transmit viruses or any other malware that can disrupt proper site operation. This subsection also restricts downloads from the site unless the broker allows for the reproduction of their site either partially or in full.

 

Links

In the terms and conditions on broker websites, this subsection outlines use of links on a broker’s site. It is simply a statement to indemnify the broker from damages that may occur from use of third party links. For instance, if you incur losses on a third party site and you decide to prosecute the broker, the statements under this subsection protect the broker from taking responsibility for these losses.

 

Warranties and Guarantees

This sub section entails all the trading guarantees and warrantees a broker can provide. A broker disclaims liability in case of errors in their information, education and trading materials provided. A broker may also state that they do not guarantee the proper functioning of the trading platform at all times and that they are not liable for losses that may occur from the malfunctioning of a trading platform.

 

Services Offered

A broker may decide to add the services offered in their terms and conditions. Here, a broker may also outline the number of operational accounts a customer can have.

 

Bonuses terms and conditions

A broker will also outline independent terms and conditions for bonuses offered. They include the expiry days for the bonuses and rules for making withdrawals when a trader is given a bonus. It also entails trading requirements to be met when withdrawing bonuses.

 

Termination

This section of the terms and conditions comprises conditions which can lead to termination of a trading contract and in some cases, a trading account. Mostly, brokers require a customer to submit a written notice incase they intend to terminate their trading activities with the broker.

 

Last Word

Depending on the broker chosen, terms and conditions are subject to different levels of complexity. Some brokers may add other subsections like risk warning and availability. It is advisable to take the time while reading these terms and conditions to avoid disputes or scams in the future.

Bull and Bear Markets

Bull and Bear Markets

Anyone who is remotely connected to the world of financial trading and investing would have frequently heard of the terms “bull” and “bear” markets. Despite the regularity with which these terms appear in financial media, very few have a definite understanding of what they actually mean. Since the nature and direction of the market in which you are invested is a major determinant of your portfolio’s success, it is important that you know what exactly the terms bull and bear market signify, and how each will affect your investment strategy.

What Are Bear and Bull Markets?

In simple terms, a bull market is a market that is on the rise. It is characterized by a sustained increase in asset prices. Investor optimism is high; so is the risk taking appetite.

On the other hand, a bear market is a market that is in a decline. During such periods, investors believe that the downward trend in prices will continue in the long run, and as such, desist from taking on too much risk.

Characteristics of Bull and Bear Markets

Bull and Bear Markets

Bull and Bear Markets

In addition to the direction of asset prices, bull and bear markets are accompanied by some more distinct characteristics that investors should be aware of. Listed below are some of the more general factors that are typically affected by the nature of the current market.

  • Demand and Supply - During a bull market, the demand for the underlying asset is strong, while the supply is weak. In other words, the number of investors willing to buy the asset far exceeds the number of sellers. In a bear market, the converse is true as much more people are looking to sell than to buy. This results in a drop in demand, which subsequently leads to a decline in asset prices.
  • Differing Investor Psychologies - Investor psychology and behavior are the fundamental drivers of any market. In a bull market, traders and investors are filled with optimism about the prospect of profit. Greed is also a very common trait during rising markets, and is often the most defining reason for the end of a bull market. Conversely, a bear market is filled with investor pessimism. Market confidence is at a low, and the fear that the downtrend will perpetually continue keeps investors from investing.
  • Change in Economic Activity – Equity markets are a leading indicator of the strength of an economy. Because the businesses whose stocks are trading on the exchanges are the participants of the greater economy, the stock market and the economy are strongly connected. A bull market is associated with a strong economy as most businesses record huge profits on the back of strong consumer spending. In a bear market, the reverse occurs. People have less money to spend which results in a drop in business performance. As profits shrink, unemployment rises, leading to a vicious spiral.

What to do during Bull and Bear Markets?

In a bull market, the best strategy for an investor is to take advantage of rising asset prices by buying early in the trend. When to sell is the tougher part. Since no one can accurately determine the peak of any trend, waiting to sell at the peak is impossible to achieve.  An ideal selling strategy would be to set a fixed profit objective, and then get out as soon as it is met. Any losses during a bull market should be minor and temporary. Investors can confidently invest because the odds of making a profit are higher.

In a bear market, prices are in a decline and the probability of suffering a loss is greater. Even if someone decides to invest with the hope of a change in trend, he or she is more than likely to take a loss before any turnaround materializes. The only meaningful strategy to employ during bear markets is to short-sell the asset. But again, since short-selling involves unlimited downside risk, only professional traders and investors should attempt it.

Conclusion

Having an understanding of the market’s long-term trend can give a big boost to your portfolio’s performance. Before you decide to invest, take the time to study and analyze what phase the market is currently in. And once you deduce the broad underlying trend, make sure to invest in that direction because a rising tide lifts all boats!

How Money is Made in Binary Options

How Money is Made in Binary Options

Before trying to gain a better and deeper insight as to how it is possible to earn money from binary options, let’s understand first what exactly this type of trading is. Over the course of the past few years, binary options trading has become widely accepted as a form of investment in the financial markets. This doesn’t work the same way as with traditional stock and foreign exchange markets wherein the brokers charge commissions or spreads butit does earn money for traders and investors in many other different ways. Here we go with some ideas on how money is made in binary options:

How Money Is Made for Brokers

On the part of the brokers, how do you think they are earning money in binary options? There are two precise methods that they usually get money from and they are through the pricing of the binary options and from the trading activities of traders.

  • Pricing of the Binary Options. One way of earning money in this form of investment in the financial markets is through the pricing of binary options. A broker normally gets its pricing structures from the providers of liquidity. What most traders do not know is that the pricing on where they are trading is actually slightly marked up from those that are available in the market. If you pay closer attention to the expected payout, you would realize that the calculation of the payout is not based on a true percentage. There’s a part of the payout that is retained by the broker or brokerage firm and this is what it earns as the commission in binary options.

 

How Money is Made in Binary Options

How Money is Made in Binary Options

  • Trading Activities of Traders. Another way of making money in binary options for brokers is in the trading activities of investors. Supposing that a broker has 500 clients and assuming that half of these clients placed trades that the US dollar will go up within the next hour and they bet $100 each. The other half of the clients also bet $100 each believing that the value of the US dollar will fail. This means that the total money pooled in the binary options market is $50,000. The payout ratio on the trading platform is 80% for a trade that ends in-the-money. At expiration, it is found that the US dollar ended up so what happens is that those who placed their bets that the US dollar would go up win $180 each and those who bet that it would fail, would not have any returns and would lose $100 each. Hence, the broker pays out a total of $45,000 which means that they walk away with $5,000 earnings.

 

How Money is Made for Traders

Now that you’ve learned the basics as to how money is made for brokers, let’s try to find out how money is earned for traders too. There is no secret formula to earning huge profits so your only weapon really is a well thought out strategy in place to make money in your trades. Here are ways to earn money for traders:

  • Diversifying Trades. If your chosen binary options broker allows you to place a huge number of different trades, then you’ll have higher chances of earning money. The concept is pretty simple with this form of investment. All you need to do is make a forecast as to the direction of an underlying asset upon expiration. If the trade ends in your favor, then you’ll earn profits.

 

  • Closing Trades Early. You will find that some binary options trading websites offer their traders a choice of early exit trades to reap profits prior to the end of the contract.

Hopefully this helps you paint a picture as to how brokers and traders earn money out of this popular form of investment in the financial markets. Whenever you’re ready, get started with binary options today and have fun trading!

Exotic Options

Exotic Options: A Getaway From Ordinary Trading

Those who are somewhat new to investment trading will likely come across information about exotic options while doing research. This discovery has led many to wonder what the difference is between ordinary and exotic options. Individuals that take the time to research this topic are also likely to come across the phrase “Exotic Options: A Getaway from Ordinary Trading”.

While researching the difference, the subject of binary options will also be present. Exotic options, also referred to as binary options, are trades that don’t follow the rules and regulations of regular trading. Normal options, which are also known as plain vanilla options, offer the ability to purchase a predetermined amount of stock in an underlying asset. The purchase price of a vanilla options asset is set as the amount the investor agreed upon at inception, which is also known as the strike price.

Exotic options are different in many ways and offer many more types of options than what are available on the ordinary market exchange. Exotic options are not found, nor are they available through the major stock exchanges. To dabble in exotic options an investor must find a reputable broker that offers these ‘over the counter’, or OTC trades.

Exotic Options

Exotic Options

Before entering into a trade agreement with an OTC broker, it is important to closely read and understand their terms and conditions. Knowing the specifics of call and put payouts concerning exotic options is another important thing to know before committing. Since many of the exotic options change during the life span of the investment, being certain of the risks and features of a particular investment can make trading far less risky.

With exotic or binary options, the payoff amount will vary upon the initial rules of each asset. For example, with a chooser option, the investor can choose either a call or a put during the trading lifespan of an asset. A regular option only offers the call or put decision upon inception. Another popular example of an exotic option is the barrier option.

A barrier option offers a payoff that is determined by whether or not the chosen asset reaches or exceeds the predetermined price. With this particular exotic option, the holder can only buy into the asset after the strike price reaches the agreed ‘barrier’. Regular vanilla options enable the holder to buy the asset at the strike price any time they chose after inception. There are numerous other exotic options to choose from besides the barrier and chooser options.

An investor that is interested in exotic options should use extreme caution because most OTC brokers do not adhere to the government regulations enforced on normal options brokers. However, there are many advantages of exotic options that make them a perfect way to enhance a trading experience. After learning of these advantages, the phrase “Exotic Options: A Getaway from Ordinary Trading’, becomes even more enticing.

What Bill Gross, Steve Jobs and Steve Wynn Share

What Bill Gross, Steve Jobs and Steve Wynn Share

Financial trailblazers like J.P. Morgan, online retail forward-thinkers like Amazon’s Jeff Bezos and technology wizards like Bill Gates are names that have become synonymous with their respective marquee companies.

While it is common for the world to acknowledge the changes that such individuals have made to how most of humanity lives and expect them to flourish along with the businesses they masterminded, what causes some of them to suddenly up sticks and leave the corporations that they work so hard to build? We investigate three of the most famous cases to find out the different reasons why Bill Gross, Steve Jobs and Steve Wynn suddenly left the companies that were clearly a labor of love for them.

 

What Bill Gross, Steve Jobs and Steve Wynn Share

What Bill Gross, Steve Jobs and Steve Wynn Share

Bill Gross

Bill Gross is an investor known throughout the world as the ‘bond king.’ He is the founder of Pacific Investment Management Corporation also known as Pimco, one of the largest mutual fund managers in the world. In September 2014, following what was termed as ‘fundamental differences’ within the company, Bill quit his $2 trillion investment firm in dramatic fashion after being at the helm for 40 years. His move had a profound effect on global finance, triggering a 35 percent increase in the share price of Janus Capital, the rival company he joined.

It is widely believed that Bill’s decision to quit Pimco was largely due to disagreements with Mohamed El-Erian, who quit in January 2014 and was widely regarded as Gross’s successor. Another factor that led to his downfall was a pattern of erratic behavior on his part that caused the Pimco executive committee to issue him with a warning.

 

Steve Jobs

The case of Steve Jobs leaving the company he founded is perhaps the most famous one of all. The beginning of the story is a familiar one; Steve co-founded Apple Inc. in 1976 and, shortly after, unveiled the first Mac, the father of the modern personal computer. His board of directors, led by Apple CEO John Sculley didn’t quite share Jobs’ vision for the company and in 1986, he was kicked out.

Jobs went on to found NeXT, a company that initially – and unsuccessfully – produced computer hardware but later found success with its software. In fact, the software was so successful that in 1997, Apple paid Jobs’ company over half a billion dollars to develop software for its range of computers. As part of the deal, Jobs returned to Apple as a consultant, then becoming temporary CEO and finally regaining control of the company by 2000, leading the tech giant into a period of unprecedented growth.

 

Steve Wynn

Steve Wynn’s story is yet another one of an entrepreneur rising from the ashes after being pushed out of his own company. In the 1970s, Wynn purchased a rundown gambling hall in Las Vegas known as the Golden Nugget, turning it into the kind of lavish resort that the Las Vegas strip is now known for. In 1989, he built the world’s then most expensive hotel, the Mirage, which is the inspiration for all the ultra-stylish megaresorts that now dot Las Vegas. After building Treasure Island and his masterpiece, The Bellagio, his company was victim of a hostile takeover by MGM resorts which made Wynn fabulously wealthy but diminished his influence.

However, Wynn had an ace up his sleeve: just before sealing the deal with MGM Resorts, he razed an old hotel known as the Desert Inn and, in its place, built the $3 billion Wynn Hotel, the first property in the portfolio of Wynn Resorts Ltd. That would grow to include Encore Resort and the Wynn Macao. What is remarkable is that Steve Wynn makes three quarters of a billion dollars every year while MGM Resorts continues to lose money.

Every one of us harbors some sort of professional ambition. A few individuals go beyond this and make grand plans, and a select few actually get to realize their big dream become reality. These individuals have built corporations that have become household names throughout the globe and some can even claim to have changed the world. However, the biggest test these individuals will face is keeping their companies under their control or – if not – rising back to the top of the game if they are forced out.

Broker Scams

Forex Binary Options Broker Scams

Given the fact that there are many different brokers out there, it’s not impossible that you’ll be fooled by those who don’t have any other goal but to steal your hard-earned money. If you’ve been burned by broker scams before, know that you’re not alone. Stealing, cheating and outright scamming is very common in binary options so you need to get real information first before risking your money. How do you protect yourself from broker scams? Here are a few tips and tricks:

  • Check out independent broker reviews. If you want to do business with a reliable forex binary options broker, conduct your own thorough research about the brokers you’re interested in. Start by visiting their websites and checking out trader reviews and ratings sites then scroll towards the bottom of the pages. This is where you would normally see a long list of comments from random visitors. Read through them and decide for yourself.

 

Broker Scams

Broker Scams

  • Don’t fall for offers that are too good to be true. A lot of traders fall into the hands of scammers because they easily get fooled with the attractive discounts and commissions that they’re promised with. The rule of thumb here is that if the offer you receive seems too good to be true, there must be something wrong somewhere so you better move on to your other options. Keep in mind that you don’t just deposit some money at a binary trading broker and start earning quick cash without doing anything much.

 

  • Look for a broker with a strong regulatory system. It’s very important that the brokerage firm you sign up with is carefully regulated because there’s no point in having the best strategy in forex binary options with your broker coming from a country that doesn’t have a strong regulatory system.

 

  • Test out brokers before buying. Another important thing to keep in mind to prevent getting scammed by brokers is try them first before making any financial commitment. See if the broker answers your questions and responds to them quickly. Check if it also offers you reliable and professional binary options advice or not.

 

  • Go over the terms and conditions. You should never trust a broker that changes its terms and conditions at any point and before making an investment, look out for clauses in the terms of the broker to see if there’s anything that talks about allowing for retroactive changes especially in terms of payouts. You see, it helps to be a bit more savvy because you get to avoid scams this way.

It can be really frustrating to make an investment, expect your money to generate profits for you and end up realizing that you’ve fallen in the trap of broker scams. You don’t want to lose instead of winning income so know who you should trust before making a huge investment. Also, given that forex binary options trading is very risky, only use the money that you are willing to lose because if you gamble everything you have, you might end up without a penny. If you’re considering the idea of depositing at any binary broker, research first before making a move. You owe it to yourself. Best of luck on your trades!

Binary Brokers - 24option or Traderush?

Binary Brokers – 24option or Traderush?

A binary options trader’s success depends greatly on the broker that he or she chooses for trading transactions. A broker can limit or enhance one’s earning potential. Traderush and 24option are two extremely popular sites for trading binary options. The following information can help a prospective trader to choose binary brokers: 24option or Traderush:

Software

Binary Brokers - 24option or Traderush?

Binary Brokers – 24option or Traderush?

The 24option broker uses Tech Financials software for its processes. Traderush uses SpotOption. The difference between the two software types are their special features and trading times. SpotOption offers trading on 180 different assets, and it offers Bitcoin and Forex trading. Tech Financials offers boundary trading and fixed strikes. Tech Financials offers currency pairs, as well. Both software types offer mobile applications so that traders can conduct business on the go.

Demonstrations

New traders can benefit from reading special instructions or practicing binary options trading before they get involved. Traderush allows prospective traders to view a video that explains the process. The 24option site offers a full-blown demo account so that prospective traders can practice and develop a unique trading style before they conduct business. The 24option broker wins in this category.

Bonuses

Both brokers are equal when it comes to bonuses. New traders can earn up to a 100 percent bonus on their initial deposits. Therefore, the bonus category is a draw.

Return Rates and Refunds

Traders can earn returns of as much as 89 percent on 24option. Additionally, 24option offers a small 10 percent refund to traders who experience “out of the money” results. Traderush has a return rate of 81 percent, and the broker does not offer a refund option. Therefore, 24option wins for return rates and refunds.

Deposits and Withdrawals

Both brokers offer a wide variety of deposit methods such as Visa, MasterCard, Skrill, wire transfers and more. Traderush requires a new trader to make a deposit of at least $200 before he or she can trade. The minimum investment amount for a trade is $10. The 24option broker requires an initial deposit of at least $250, and the company requires a minimum trade of at least $24. The 24option broker has a $10 minimum for withdrawals, and the Traderush broker has a $30 minimum. Traderush wins for deposits and loses for withdrawals.

Trading Types

The 24option site offers four main types of binary options trading: Boundary, One Touch, Short-Term and High/Low. Traderush offers 60-Second options and One-Touch options.

Consumer Reviews

Traderush and 24option are extremely close in terms of consumer reviews. Traderush has an overall score of 4.0 stars, and 24option has an overall score of 3.9 stars.

Binary Brokers: 24option or Traderush?

When looking at the overall picture, 24option seems to be the best choice for a new trader. The 24option broker is a reliable top-notch broker with a wide variety of trading options and deposit options for its customers.

24option Vs. Banc de Binary

Which Broker is Honest – 24option or Banc de Binary

Honesty is one of the top qualities that a person will want to review when he or she is searching for a binary options broker. A prospective trader can use several methods to determine whether one broker is more honest than another broker is. Banc De Binary and 24option are two highly popular brokers for binary options trading. The following information will help a prospective trader to decide which broker is honest – 24option or Banc De Binary:

Consumer Reviews

24option Vs. Banc de Binary

24option Vs. Banc de Binary

Consumer reviews are the first place that a trader will want to look for information on honesty as well as other attributes. Traders give honest opinions of their experiences with brokers in consumer reviews, and they rate the brokers with a star value. The 24option broker has an overall rating of 3.9 stars. Banc De Binary has an overall rating of 3 stars. Consumers who rated Banc De Binary had complaints about login issues, low return rates and a lack of multi-language support. Some users complained about sub-par educational support. Additionally, some users complained of difficulty withdrawing their money. Users who had complaints about 24option mostly griped about the withdrawal fees. However, they praised 24option’s reliable support system.

Transparency and Information

A prospective trader will want to review the information that a broker provides to decide whether it is an honest broker. The 24option site has a full page that is dedicated to educating new traders. The guide explains rates, fees, transaction types and deposit methods in a way that new traders can easily understand. Persons who have further questions can use the chat box to speak with a rep online. Alternatively, they can call a dedicated phone number or send an email. Transparency and multiple contact methods indicate that the broker is an honest one. Banc De Binary has a large FAQ page and the same options for contact that 24option offers.

Refunds for “Out of the Money” Transactions

Brokers do not have to offer refunds for “out of the money” transactions. However, such offers are a sign of honesty and willingness to work with one’s traders. Banc De Binary does not offer a refund to its traders. The 24option broker offers refunds of up to 15 percent for lost investments.

Tenure

Long-term tenure can sometimes make consumers feel comfortable with a company. The Banc De Binary broker was founded in 2008. The 24option broker was founded in 2010. Banc De Binary has slightly more tenure than 24option has.

Which Broker Is Honest – 24option or Banc De Binary?

The 24option broker seems to be the more honest broker in the overall picture. Consumer reviews clearly indicate that Banc De Binary may not be the best option for a person. The 24option broker seems to have less withdrawal problems and a high quality all around experience.