If you are looking for the hippest new options for making money on the stock market, then you should probably be looking into binary options. There are actually a lot of people that are trying their luck on the stock market and do not know about binary options and what they are. But at the same time, there are a lot of people that only focus on binary options and are making a great living out of it. Just like anything else, there are detractors and there are great supports of binary options. Some people like to deal with them and believe that they are good for making money, while others believe that they are a waste of time and money.
Generally, binary options function just like anything else. If you know what you are doing and you have put in the time to study what is happening with them, then you can really make a killing with them.
Basically, the way that they work is on an all or nothing basis. And that is what attracts people to them, and at the same time, that is why some people do not like binary options. When you by a binary option for a set amount of money, there is another set amount that you can get if the stock finished in the positives, but if it does not do well, then you will lose all your money. There is no quarter or half in binary options, it is all or nothing, no matter how much the value of your stock has increased or decreased. That is why they are called binary options, because there are only two possible outcomes.
If you are still unsure of how it works, here is a quick rundown. If you buy a binary option for 10 dollars, it might be worth 100 dollars if all ends well. Once your stock reaches its maturity date, you then look at its value. If it is worth more than 10 dollars, then you get all 100 dollars that were promised to you, but if the stock decreases in value, then you get absolutely nothing.
So the process is very clear cut. However, that does not mean that it is a simple way to make money on the stock market. But it is an effective way to make money on the stock market if you are willing to put in the time and the effort. When you are dealing with binary options, it is like dealing with anything else on the stock market. As long as you are willing to put in the effort and dedicate yourself to learning how to trade binary options, you will do well.
The fact that it is an all or nothing deal is what attracts a lot of people. It is exciting and it is also potentially very profitable, and that is why binary options are becoming so popular. Our tip! This review.
TradersRoom is a binary broker operating out of Cyprus. The broker’s platform is powered by SpotOption – a leading provider of binary brokerage software solutions.
With TradersRoom you can trade using two different ways: ProTrader and FastTrader. ProTrader is just a regular binary option platform, while FastTrader shows you a more compact view that I don’t find to be particularly useful (it only has the return percentage and the expiry time of the options with no graphs).
The returns of TradersRoom are a bit low, compared to those of other brokers: are not the best you will find but they’re not the worst either:
• For High/Low options the return for EUR/USD is 71%, for Gold – 71%, and for Oil – 70%.
• The return for 60 Seconds options is 72% for EUR/USD and 70% for Gold.
• One Touch options offer a return rate of 400%.
Let me give you an idea what do these percentages mean. Say you deposit $500 and start betting $25 per option. With a return rate of 71%, you would have to win at least 58.5 out of every 100 bets in order to break even and start returning your investment. Other digital options providers offer you far better returns: at Dragon Options you will have a typical return of 75% on High/Low EUR/USD options, and OneTwoTrade’s return rate for the same asset is 85%, which significantly increases your chances of profitability.
Bet size & refund
Bet sizes: The minimum bet size here is $35, which is a bit steep, given that binary brokers usually start at $25 (TraderXP), or even $10 (iQ Option (www.binary24.de/broker-vergleich/iq-option). At BDSwiss (Review here: http://www.binary24.de/broker-vergleich/bdswiss) you can place a bet for as little as $1. The maximum amount you can place on a single bet is $1,500. Refund: If you lose a bet (e.g. the option expires out of the money), you automatically get a refund of 4% credited to your balance. Whenever brokers offer such refund, its amount usually ranges between 1% and 10% so TradersRoom’s cashback is about average.
Depending on your deposit, with TradersRoom you can sign up for a Bronze, Silver or Gold account:
• Bronze: $250 – $999. With this account type you will be getting a monthly call/chat with an account manager.
• Silver: $1,000 – $4,999. Silver account holders will get a chance to talk to their account managers once a week, and they are also entitled to special bonuses.
• Gold: $5,000 – $20,000. If you have a Gold status account, a personal broker will be calling you every day. I would probably get really annoyed but hey – that’s probably what TradersRoom considers to be good customer service. Apart from that, you’ll be eligible for bonuses and priority withdrawals.
High/Low: Also known as Put/Call options, these are the most popular options you can bet on. The basic principle is simple: you place a bet on whether the price of a value (NASDAQ or Gold for example) will go up or down. Then you wait for the option to expire and if you have guessed right, you collect your winnings. If the option goes opposite your prediction, you lose the bet and get a refund. The expiry time for High/Low options on TradersRoom is 10 minutes.
60 Second: These are pretty much the same as High/Low options but the expiration time is 60 seconds instead of 10 minutes.
One Touch: That’s an option type that carries high risk and low probability of winning randomly, and that is why it offers a super high return of 400%. If you don’t just gamble but bet after analyzing the market, you may give these options a try.
Here’s how they work: you have a pre-set level and you need to guess whether the asset’s price will reach that level. In case it does, the option is settled immediately and your profit is added to your account balance.
Deposit and Withdrawal
To start betting on TradersRoom, you would have to make an initial deposit of at least $250 and you can do that via bank wire or credit card (all major cards are supported).
Withdrawals are possible through credit cards, wire transfer or check (keep in mind that while the others are processed free of charge, for check withdrawals you will have to pay a fee of $10). The minimum amount to be cashed out is $100.
TradersRoom offers deposit bonuses and daily promotions but you would need to contact the customer support to find out more about these. Generally all the broker’s bonuses come with a release condition: in order to redeem the bonus, you would need to wager 15 times the bonus+deposit amount. Find under www.binary24.de/ratgeber/binaere-optionen-bonus-angebote a full list of all bonus offers.
TradersRoom is an average Joe when it comes to binary brokers: it doesn’t offer any special features, the returns are low and despite my numerous attempts, I couldn’t get in touch with the customer support. There is nothing to make me choose this broker over another one.