When it comes to choosing a binary options broker, the minimum deposit is something you should really think about. We always recommend new traders to start with lowest minimum deposit available. This will give you the opportunity to test the platform and services of the broker without having to engage a huge amount of capital.
We believe that beginners should never invest more than $500 on their first binary options trading account. There are many new brokers and trading robots out there that request initial deposits as high as $5,000. We strongly recommend you to avoid these brokers as most of them turn out to be trading scams that simply want to steal your money.
Best Binary Option Brokers with Low Minimum Deposit
Professional Vs Low Minimum Deposit Binary Option Brokers
When it comes to the binary options world there are two kinds of traders. There are the newly interested type of people eager to learn about the markets and start out small and then there are the advanced traders who would benefit from professional binary brokers.
There is no such thing as the ‘right’ type. We all have our own styles, ideas, and financial goals when it comes to trading and because of this vast diversity in the way we approach the online investment world, there are obviously going to be different avenues and routes for each.
For those of you with a little more experience in the markets, you will benefit greatly from choosing between one of the more professional binary option brokers in Kenya.
Don’t let this use of the world professional fool you, it’s really got nothing to do with experience level but for our purposes, we’re talking about a broker that caters more towards clients with experience. If you’re new to binary options, your best choice hands down is a broker like Olymp Trade. They have a simplistic trading platform, brokers who will answer any questions you might have and the most appealing part to a new trader, you can start with just a bucks!
For those of you coming from a former trading background with a little more understanding of the financial markets, the steps, the technical analysis and charts and so on, choosing a broker that gears more towards your skill level is going to help you much more in the long run.
The major difference here is that these professional binary brokers have higher minimum deposit requirements simply to weed out newcomers from the more advanced. If you know what you’re doing and know how to trade binary options, depositing $250 for example is much more realistic and easy for someone with experience who knows how orders are placed and how stock charts work than someone who just wants to start out slow and dabble.
When it comes to professional binary brokers, we recommend just two.
- 24Option was created by traders for traders. They have former equities, bonds, and currency pros behind the scenes who work tirelessly to create one of the most advanced and professional binary trading platforms online. They have an incredible number of resources available to their clients and have agents standing by 24/7. The big thing here is that their minimum deposit to open an account is $250.
- Like 24Option, Binary Options is also a huge powerhouse in the binary options world. You’ve likely heard of them as they are literally like the McDonald’s of the binary world. They are huge, respected and everywhere. While they do focus on more advanced traders as their minimum deposit amount is also $5, they definitely want to work with new customers and the inexperienced traders out there. They have a ton of resources available, coaches, seminars and everything you could need to learn the markets.
What it all comes down to is the minimum deposit. Some people balk at $250 and go searching for the lowest possible. While a broker like Olymp Trade who allows new accounts for just $10 is still a good choice for a beginner, for those of you with a little more experience, the extra $240 needed to get in with one of the big boys isn’t a big deal if you know what you’re doing. It’s your money and sits in your account no matter what, it simply all comes down to is what makes you comfortable.
Check out our full Olymp Trade review to see what powerhouse professional binary brokers look like and what they have to offer.
Binary Options Broker Regulations
Regulated binary brokers are a rare commodity in the binary options industry and for good reason. With over 200 different brokers now operating online and competing for your account, many people are now curious about regulated binary brokers and just what in means to be a regulated binary options broker.
For the longest time, regulation in this industry was synonymous with Banc de Binary. This broker liked to flaunt their licenses while continually promising both current and prospective clients that they would soon be regulated by new agencies. We learned in earlier in June that the Securities and Exchange Commission and the Commodities and Futures Trading Commission in the United States filed suit against the broker for offering binary options to American citizens. Regulated binary brokers in the industry were quick to pause and take notice.
This suit filed against Banc de Binary, who for the longest time was one of the Top Binary Options Brokers in the industry really rattled the community and we quickly saw many brokers begin to turn away US customers. Granted, many still offer their services to American traders and those brokers can be found on the review page, identified by the little green arrow. But regardless of where you’re coming from, the whole notion of binary options regulation and regulated binary brokers is a popular topic.
Regulated Binary Brokers – CySec
The most common agency we’ve come to see plastered across binary broker sites and trading platforms is a stamp of approval signifying that the broker is regulated by the Cyprus Securities and Exchange Commission. Scratching your head right? Isn’t the Cypriot economy on the verge of collapse and yet here you are seeing these regulated binary brokers with a Cyprus agency giving them the green light. Moving on.
From our understanding of the Cyprus licensing requirements, once a broker achieves this status, they must stop allowing US clients to trade financial instruments. We’ve seen this with many brokers, most notably with 24option recently as they fully pulled the plug on US accounts.
The point of this is to understand that CySec is not the same as the United States SEC. They are less known, operating in a volatile economic climate and appear to hand out licenses to everyone and their mother.
That said, there are plenty of unlicensed and non-regulated binary brokers we would trust more than those with the actual license stamped on their platform. It’s all about preference and understanding the risks. If you’re interested, you can actually read the current regulated binary brokers list on the CySec site.
Another big agency that has recently become more involved is the Financial Services Agency out of the United Kingdom. Right off the bat, you’re likely thinking that an agency out of the UK is certainly more established and trustworthy than an agency operating out of Cyprus handing out licenses for a set fee.
But no, the FSA is just as interesting of an agency. Formed back in 2001, it is essentially nothing more than an independent company acting outside of government oversight that operates by collecting fees from the financial industry. What does this all mean? These licenses can be bought and if they can be bought, could it be that they are just purchased by the company to give you some peace of mind despite the fact that neither agency is really all that powerful?
Regulated Binary Brokers – What To Watch For
So what it all comes down to is the simple fact that choosing between regulated binary brokers and those without the license is really more of a personal preference. Many big name brokers who have been around since the beginning are not regulated and have no intentions of doing so. They are established, have solid reputations and let their business practices speak for themselves without forking over capital just so they can add “regulated” branding to their sites.
On the other hand, many other brokers see it as a way to instill a sense of legitimacy and are now in the process of acquiring these licenses.
Bottom line, if you’re in the United States, Uncle Sam doesn’t want you trading binary options. Whether it’s for your own protection or more likely, the fact that they can’t take a cut of the action, is anyone’s guess. However, many big name brokers like uBinary and 99Binary still offer accounts to US traders. Not only that, but both have the lowest minimum deposits in the entire binary industry!
For those of you in the rest of the world, the regulations are still very lax and most countries have no issues with their citizens trading binary options online. It’s all about what you’re looking for. No one can tell you to choose regulated binary brokers or not. It’s simply a preference.