I would consider a handful of brokers to be in my top 5. OptionBit are one of these. We always advise caution when working with new brokers that we haven’t tested but we’ve been trading with OptionBit for years and can vouch for their trustworthiness with your funds. Their offering is also pretty great, let’s take a look. OptionBit is continuously expanding and striving to improve the quality of services in order to differentiate itself from the other brokers in the market. It seems to be one of the most advanced systems on the web with the biggest selection of trading games including Above/Below, Touch and Range.
For many newcomers to the financial market, binary options trading is an intriguing experience. With binary options, it’s easy to participate in the highly rewarding financial market which was formerly the exclusive domain of those who are familiar with financial trading. Also known by other names like digital options or Fixed Return Options (FRO), binary options have only two possible outcomes for people who invest in this exotic financial vehicle. In addition, the returns are fixed and known before the options expires. This allows investors to be able to quantify their risk unlike traditional options. Due to the simplicity of how binary options operate, this type of investment has gained tremendous tractions during the last couple of years giving online brokers like OptionBit the opportunity to expand their business.
Despite their popularity, online binary options brokers like OptionBit do face an uphill battle trying to establish their credibility among newcomers to this market. One of the primary reason which hold back the growth of the binary options market is the fact most of the binary options brokers are located in Cyprus. Many newcomers to the binary options market tend to hold the misconception that Cyprus is lawless country when it comes to regulating its financial market without truly understanding what trading in a global market means.
Above/Below (i.e. Digital trading) is the classic Binary Option trading game. It is based on the cash-or-nothing Binary Options, where the trader predicts whether the price movement will go up or down at the time of expiry of the option (i.e. after a predetermined time ranging from one hour to month). It’s simple enough for beginners who want to start trading Binary Options online yet Above/Below options also attract more advanced trader’s and with the ability to use Binary Options strategies .
ETouch trading enables the trader to predict whether the price will touch one of two predetermined prices by the time of expiry of the option. With Touch trading you have the chance to received a pay-out of 160%-170% when the option is in the “in the money”, or lose 80%-100% of your initial investment if the option is “out of the money”.
Range trading is where the trader predicts whether the price of the asset will stay within a certain range (the range is predetermined before the trade is placed). This type of trade is currently unique to Binary Options and is only available on OptionBit™ trading platform.
The selection of trading types featured on OptionBit™ is more varied than those on any of the other financial Binary Options broker’s platforms.
Optionbit offer a very user-friendly experience with a big variety of financial games. They don’t currently offer weekend trading however this might change soon. Optionbit offer a large selection of underlying assets which cover global indexes, commodities, currencies and stocks as follow:
|Indices||Currency Pairs||Stocks ||Commodities|
|Nasdaq 100 Fut||EUR/JPY||CocaCola||Oil|
|SSE 180 (China)||Turkcell|
Optionbit trading Platform is available in 10 languages including Italian, Portuguese and Arabic.
Optionbit are offering payouts of up to 81% which is one of the highest compared to the other binary options brokers.
They also offer a welcome bonus of up to 50% on a first investment. And they provide more than just welcome bonuses; all traders have access to the special daily promotions while exclusive bonuses and rewards are available for their VIP players.
The OptionBit™ customer support services are also available in multiple languages. Therefore traders from all over the world can send an email or speak with a representative on the phone or via the OptionBit™ live-chat in their native language. They are efficient and reliable and can easily be reached.
Regulatory Framework For Binary Options Brokers Like OptionBit
First of all, the Binary Option market is an Over-the-Counter (OTC) market. This mean there is no centralized location where they are trading from. Stocks of major companies, on the other hand, are traded on major exchanges like the New York Stock Exchange or London Stock Exchange. Hence, these exchanges can be regulated by legislations in the country where they are located at.
OTC markets, however, operate on an entirely different principle. The binary option market itself is not regulated because of the difficulties of drafting legislations that encompasses enforcement across borders on a global scale. No sovereign country will want to give up its interest for the benefit of another country without something in return. A good analogy will be trying to argue that an apple is better than an orange.
Second, the binary options market is a fairly young market having just being developed over the last few years. As such, there are in fact very little regulations that govern how they are traded. In fact, the industry is largely self-regulated. So when newcomers complained that a certain binary option broker is not regulated, they are in fact barking up the wrong tree as there are hardly any regulations in existence in the first place.
Nevertheless, for binary options brokers like OptionBit to be located in Cyprus doesn’t mean that its operation is not regulated in anyway. All companies dealing with financial services in Cyprus have to be registered with the Cyprus Securities and Exchange Commission. They operate in the same manner as the Financial Services Authority in London having being required to follow a set of recommended guidelines laid down by the European Union*
*The Republic of Cyprus is a member state of the European Union (EU) and is also required to follow international treaty obligations before joining the EU.
Thus, a company like OptionBit is regulated very much the same way as another company that is registered with the Financial Services Authority in London. The main reasons why binary option brokers are not registered with the United States (U.S.) financial authorities is because the bulk of the clients are from the EU. In addition, U.S. requires firms to have a minimum of $20 million capitalization most likely in order to protect the interest of the larger firms. This line of reasoning is very much like Switzerland having the requirement that all brokers must have a banking license even though the brokers are not into banking.
Operational History of OptionBit
When it comes to choosing a broker to deal with, it’s important to look at the quality of their services rather than just depending on the presumption that the regulatory framework will protect an investor’s money. Nobody will argue that the U.S. financial market is the most tightly regulated financial market around the world and yet nobody can surpass the scale of financial fraud that occurred in the U.S during the last decade alone. So it’s kind of ironic to argue that without the U.S standard of regulations imposed on companies, investors’ interests are not protected!
Advantages to trading with Optionbit: