Everything You Need to Know About One-Touch Binary Options

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You Need to Know About Binary One-Touch Options

If you’re really new to binary options one touch or are at the starting of your knowledge regarding the various forms of binaries, it would help you and your monthly final income to learn all of them. The explanation of why it is important that you know about various binary styles is not to be obscured by the fact that each one of them produces new skills in your company strategy.

Install the different binary options one touch forms to know more instead of starting behind the experienced traders. And because we are here to give you the easiest tips and advice to do so, the basic details and data for a different binary sort-the single touch binary alternative-will be accessible now. Here you will find the fastest and easiest trading guide with a single click binary option!

What Is Binary Options One Touch?

Binary options one touch is a common form of extremely special binary alternative. Some call it exotic. The reward is given since you excel in either meeting or achieving the price of the underlying value selected by you. This form of binary is usually distinguished by the ability to change the position, length, and payoff of the firewall.

Related like all types of binary options one touch, binary options dealing with a single click has two potential final effects. If the value of the one-touch alternative exceeds the specified value, you get the full payoff but you don’t get anything if the value of the commodity does not meet the predetermined amount. When you trade with a single contact binary alternative, you need to take two key factors into account.

What You Need To Know About Binary Options Outside the U.S

What Do You Need To Know About Binary Options Outside the U.S?

Binary options let traders profit from price fluctuations in multiple global markets, but it’s important to understand the risks and rewards of these controversial and often-misunderstood financial instruments. Binary options bear little resemblance to traditional options, featuring different payouts, fees, and risks, as well as a unique liquidity structure and investment process.

Binary options traded outside the U.S. are also structured differently than those available on U.S. exchanges. They offer a viable alternative when speculating or hedging but only if the trader fully understands the two potential and opposing outcomes.

The Financial Industry Regulatory Authority (FINRA) summed up regulator skepticism about these exotic instruments, advising investors “to be particularly wary of non-U.S. companies that offer binary options trading platforms. These include trading applications with names that often imply an easy path to riches.” 

Key Takeaways

  • Binary options have a clear expiration date, time, and strike price.
  • Traders profit from price fluctuations in multiple global markets using binary options, though those traded outside the U.S. are structured differently than those available on U.S. exchanges.
  • Non-U.S. binary options typically have a fixed payout and risk, and are offered by individual brokers rather than directly on an exchange.
  • While typical high-low binary options are the most common type of binary option, international brokers typically offer several other types of binaries as well.

Binary options outside the U.S. are an alternative for speculating or hedging but come with advantages and disadvantages. The positives include a known risk and reward, no commissions, innumerable strike prices, and expiry dates. Negatives include non-ownership of the traded asset, little regulatory oversight, and a winning payout that is usually less than the loss on losing trades.

Understanding Binary Options Outside the U.S

What Are Binary Options?

Binary options are deceptively simple to understand, making them a popular choice for low-skilled traders. The most commonly traded instrument is a high-low or fixed-return option that provides access to stocks, indices, commodities, and foreign exchange.

These options have a clearly stated expiration date, time, and strike price. If a trader wagers correctly on the market’s direction and price at the time of expiration, they are paid a fixed return regardless of how much the instrument has moved since the transaction, while an incorrect wager loses the original investment.

The binary options trader buys a call when bullish on a stock, index, commodity, or currency pair, or a put on those instruments when bearish. For a call to make money, the market must trade above the strike price at the expiration time. For a put to make money, the market must trade below the strike price at the expiration time.

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The broker discloses the strike price, expiration date, payout, and risk when the trade is first established. For most high-low binary options traded outside the U.S., the strike price is the current price or rate of the underlying financial product. Therefore, the trader is wagering whether the price on the expiration date will be higher or lower than the current price.

Binary Options Outside the US

Foreign Versus U.S. Binary Options

Non-U.S. binary options typically have a fixed payout and risk and are offered by individual brokers rather than directly on an exchange. These brokers profit from the difference between what they pay out on winning trades and what they collect on losing trades. While there are exceptions, these instruments are supposed to be held until expiration in an “all-or-nothing” payout structure.

Foreign brokers are not legally allowed to solicit U.S. residents unless registered with a U.S. regulatory body such as the Securities and Exchange Commission (SEC) or Commodities Futures Trading Commission (CFTC).

The Chicago Board Options Exchange (CBOE) began listing binary options for U.S. residents in 2008.   The SEC regulates the CBOE, which offers investors increased protection compared to over-the-counter markets. Chicago-based Nadex also runs a binary options exchange for U.S. residents, subject to oversight by the CFTC.

These options can be traded at any time, with the rate fluctuating between one and 100, based on the current probability of the position finishing in or out of the money. There is full transparency at all times and the trader can take the profit or loss they see on their screen prior to expiration.

They can also enter as the rate fluctuates, taking advantage of varying risk-to-reward scenarios, or hold until expiration and close the position with the maximum gain or loss documented at the time of entry. Each trade requires a willing buyer and seller because U.S. binary options trade through an exchange, which makes money through a fee that matches counter-parties.

High-Low Binary Option Example

Your analysis indicates the Standard & Poor’s 500 index will rally for the rest of the trading day and you to buy an index call option. It’s currently trading at 1,800 so you’re wagering the index’s price at expiration will be above that number. Since binary options are available for many time frames—from minutes to months away—you choose an expiration time or date that supports your analysis.

You choose an option that expires in 30 minutes, paying out 70% plus your original stake if the S&P 500 is above 1,800 at that time or you lose the entire stake if the S&P 500 is below 1,800. Minimum and maximum investments vary from broker to broker.

Say you invest $100 in the call that expires in 30 minutes. The S&P 500 price at expiration determines whether you make or lose money. The price at expiration may be the last quoted price, or the (bid + ask)/2. Each binary options broker outlines their own expiration price rules.

In this case, assume the last quote on the S&P 500 before expiration was 1,802. Therefore, you make a $70 profit (or 70% of $100) and maintain your original $100 investment. If the price finished below 1,800, you would lose your original $100 investment.

If the price expires exactly on the strike price, it is common for the trader to receive her/his money back with no profit or loss, although brokers may have different rules. The profit and/or original investment is automatically added to the trader’s account when the position is closed.

Other Types of Binary Options

The example above is for a typical high-low binary option—the most common type of binary option—outside the U.S. International brokers will typically offer several other types of binaries as well.

These include “one-touch” options, where the traded instrument needs to touch the strike price just once before expiration to make money. There is a target above and below the current price, so traders can pick which target they believe will be hit before the expiration date/time.

Meanwhile, a “range” binary option allows traders to select a price range the asset will trade within until expiration. A payout is received if price stays within the range, while the investment is lost if it exits the range.

As competition in the binary options space heats up, brokers are offering additional products that boast 50% to 500% payouts. While product structures and requirements may change, the risk and reward is always known at the trade’s outset, allowing the trader to potentially make more on a position than they lose. Of course, an option offering a 500% payout will be structured in such a way that the probability of winning the payout is very low.

Unlike their U.S. counterparts, some foreign brokers allow traders to exit positions before expiration, but most do not. Exiting a trade before expiration typically results in a lower payout (specified by broker) or small loss, but the trader won’t lose their entire investment.

The Upside and Downside

Risk and reward are known in advance, offering a major advantage. There are only two outcomes: win a fixed amount or lose a fixed amount, and there are generally no commissions or fees. They’re simple to use and there’s only one decision to make: Is the underlying asset going up or down?

In addition, there are also no liquidity concerns because the trader doesn’t own the underlying asset and brokers can offer innumerable strike prices and expiration times/dates, which is an attractive feature. The trader can also access multiple asset classes anytime a market is open somewhere in the world.

On the downside, the reward is always less than the risk when playing high-low binary options. As a result, the trader must be right a high percentage of the time to cover inevitable losses.

While payout and risk fluctuate from broker to broker and instrument to instrument, one thing remains constant: losing trades cost the trader more than they can make on winning trades. Other types of binary options may provide payouts where the reward is potentially greater than the risk but the percentage of winning trades will be lower.

IQ Option Review

Your Capital might be at Risk

In this IQ Option Review, we will do an in depth analysis of one of the biggest Binary Option brokers in the industry. We will take a look at the trading platform, customer service and regulatory oversight. The FXaxe reviewers also decided to delve into the Binary Options community to gather as much information as possible on IQ Option.

IQ Option has been operating as a broker since early 2020. Since then, we have observed how the broker has grown their online presence and reputation. Many traders would also be aware as to efforts that IQ option has gone to furnish their brand. They are sponsors of the Aston Martin racing team and have no doubt garnered lots of interest from motor sport fanatics.

The FXaxe reviewers also tried out the IQ option trading platform and posed as potential traders. This allowed our team to get a good sense of the way IQ option would treat their traders and how successful traders could be on their platform.

Overview

First Impressions of the Site

When we first arrived at IQ option we were surprised at how simplistic the initial landing page was. There was relatively little clutter and no overt marketing gimmicks. This is something that we usually find to be a positive attribute given the amount of brokers who spam their landing pages with selling points. Clearly IQ option knows that their product can do the selling.

When it comes to registration on the site, it is relatively straight forward and only requires some basic information. You can either choose to first start trading as a demo account or you can deposit the relatively small minimum amount of only $10. This at first startled us as we had never seen a broker with such a small minimum deposit requirement.

Our demo traders invested $50 as we thought that this was enough for us to get a sense of the trading platform and the customer service.

IQ Option Trading Accounts

Another thing that really surprised us about IQ Option was there account options. Unlike many other Binary Option brokers, IQ option decided to keep it simple with only two different account options. Although this may be disappointing for those traders who valued a VIP service, IQ Option clearly wanted to see all traders on the same level.

They were of the view that all traders should be respected and treated with the same amount of care irrespective of their investment size.

  • Real Account. This is one step up from the demo account and can be accessed with the minimum investment of only $10. With this account, you can request withdrawals and they are processed within 24 hours. You can also partake in the numerous trading competitions that they have at IQ Option. There are no restrictions on trading functionality with the real account and the trader has access to over 70 assets to trade.
  • VIP Account. One level up from the real account is the VIP account. This is available to all traders who deposit more the $3,000. Apart from all the standard features that come with the Real account, the VIP account also comes with a personal manager. This manager stands at the ready to help out traders with general account questions. One interesting benefit that we found comes with the VIP account is a monthly report on your trading record by their analysts. Nothing is more important than understanding your returns and how different strategies have worked.

Deposits and Withdrawals

IQ Option takes a number of payment options when it comes to funding your account. These include Master Card, Visa, Web Money, Skrill, Cash U, Neteller and Wire Transfer. The deposit amount depends on the account type that your are considering opening. If you are only interested in the Real account then you only have to deposit a minimum of $10.

Although you can elect to trade on the $3,000 VIP account, you have to first be comfortable with your trading before you consider investing more than you are willing to lose. What we would recommend is investing about $100 and then measuring your performance over the first few months. This will mean that you can best understand your expected return from accounts with more funds in them.

IQ Option prides themselves on how many withdrawals that they have processed over the past year. This was impressive but we wanted to see this in action for ourselves. When we requested a withdrawal from IQ Option, they acknowledged our request and told us that it had been forwarded to their payments team

In order to prevent possible money laundering, the IQ Option team requires proof of identity and address. Assuming that all of these documents are in place, the trader can request payment using the same methods that he used to deposit the funds. Once complete, the withdrawal is done in under 24 hours. You can also request a withdrawal amount anywhere from $2 up to $1 million.

IQ Option Trading Platform

Unlike many Binary Option brokers, IQ Option has chosen to develop their own proprietary platform. The seamless navigation on the IQ Option platform really impressed us. This allowed a trader to easily locate the tools that they needed on the fly. IQ Option claims that the platform was developed by traders for traders. It does indeed feel like that.

We also liked the fact that traders had a range of charting tools such as Bollinger bands, Momentum and moving averages. Despite this added functionality, the platform still seems uncluttered which is indeed a dream for an avid technical chartist. The platform is also pretty easy to understand and all of the functionality included does should not deter new traders who are merely finding their feet.

There are over 100 assets to trade on the platform including Commodities, Equity, Forex and stock indices. In terms of expiry time, the Options range from 60 seconds all the way on to end of day. This allows the trader to hone a day trading strategy that best suits their timeframe.

Unfortunately, the platform does not allow for an early termination of the trades. However, given that the minimum investment per trade is only $1, early termination is not really worthwhile assuming investment amount is not considerable. When entering trades we also found the trades are registered really quickly. This means that the trader can implement a number of scalping strategies. IQ Option call this “turbo” trading.

IQ option has also decided to withdraw their Robot Trading system for traders. Although this may be disappointing for those traders who would like to use algorithms to trade. We do, however, have a number of alternative trading robots for you to try.

IQ Option also values international traders who’s language is not English. That is why the IQ Option platform has been translated into at least 13 different languages. In fact, IQ Option were one of the first brokers who started offering their services in Russia.

American Options

On top of the standard Binary Option offering, IQ option allows traders to trade classical American Options. These are essentially options that have all of the benefits of the Binary Option (limited downside) but do not cap the upside.

Many traders have issues with Binary Options as the payout often does not warrant the amount that has been staked on the trade (not 1 to 1). Hence, with the American options the trader has the benefit of an infinite upside.

The American option at IQ Option can also be traded on a at least 100 different assets from stocks to commodities and equities. They are also traded on an exchange and external liquidity provider. This means that you are probably getting the best prices that you can for the options.

Another great benefit of an American option over a Binary Option is that the option can be exercised prior to expiry. Binary options function like a European option in that exit can only be done on the expiry of the option. This places a winning trade at a disadvantage.

However, if you like the benefits of large payouts on binary trades that are far out of the money, that is where the IQ Option digital options come in handy.

Digital Options

Another great feature of the IQ Option platform are there digital options. These are essentially a combination of a binary option and a CFD.

They allow the trader to choose the expiry rate on the PUT or CALL option that they like. This means that they could target rates that are either currently in the money or are significantly out of the money.

The contracts that are significantly out of the money would allow the trader to make considerably more money on their initial investment. Some of these accounts have returns that are as much as 2,000%.

Of course, unlike traditional binary options or European Options, digital options allow the trader to exit the position before expiry of the trade. This means that the trader could indeed realise their profit early should the trade have been in the money.

However, unlike CFDs digital options only have a maximum defined loss. This means that the trader will only ever lose the initial investment that was required for the option investment.

This is why digital options may be the ideal alternative for those traders who would like the high return and early exit benefits of a CFD with the defined downside risk of a binary option.

IQ Option CryptoCurrencies

As anyone who is following the financial markets must know, Cryptocurrency looks to be taken over in a big way. IQ Option was one of the first option brokers to start offering a range of Crypto Currency CFDs.

We have previously covered tips around how to trade bitcoin and how to trade ether but IQ Option offers at least 10 other alt coins for you to trade. These include Bitcoin Cash, Dash, Ethereum Classic, Monero, Zcash, Omisego, Ripple, Litecoin and IOTA.

This will allow the trader to make some really high returns on these volatile assets. It is also worth noting that because they are so volatile, the trader should take extra caution and make certain that they have adequate and strong stops in place. Currently, IQ Option does not offer leverage on their crypto currency pairs.

We also asked someone at the IQ option team whether there were any other plans to include more Crypto assets on the platform. They confirmed that the moment more trading demand picks up in some other alt coins, they will be added to the platform. This is something that we are quite excited about.

IQ Option Mobile Platform

The IQ Option Mobile Application really stood out for us. It does indeed seem as if IQ Option has invested a considerable amount of money on the mobile functionality. The app is really easy to use and has a clean and relatively simplistic graphical interface. However, traders still have most of the charting options that they have on the standard platform.

When using the mobile charting feature, the trader can easily adjust the time horizon, plot trend lines as well as resistance and support levels. Moreover, unlike many of these other application, trades are entered just as quickly as they are on the web application. This means that you would be able to catch trends and reversals in an optimal time frame.

The app also keeps you up to date with the trading by push notifications. You can set key trading levels and the application will alert you to a breach of these levels. This means that no matter where you are you can enter a profitable trade.

IQ Option Regulation

IQ Option is owned and operated by IQ Option Europe Ltd. It is regulated by CySec (Cyprus Securities and Exchange Commission) with registration number 247/14. When a broker is regulated by CySec it means that they are authorised to sell their products to clients in the EU. The FXaxe reviewers were impressed with the transparency with which the broker operates on a holding company level.

If one were to take a look at IQ Option’s terms and conditions, you can see that they take their regulation very seriously. For example, when CySec started to outlaw bonuses on deposits last year, IQ Option was one of the first brokers to do away with it.

It also seems as if IQ Option has taken additional steps that are not really required by CySec to shield their clients. These include policies on how client funds are secured as well as withdrawal policies and privacy policies. Indeed, many traders may find IQ Options initial documentation as quite onerous but this is all to make certain that both the trader and IQ Option are protected in the case of any disputes.

Customer Support

Although customer service was quite responsive and helpful via email, there was quite a delay in the response. It is also quite unfortunate that there is no live chat and phone support. This meant that if there was a pressing issue with our account (such as security), we could not urgently get in touch with the broker.

Traders can of course elect to get the VIP account and this would allow them to make use of the personal account manager. However, traders would need to invest $3k in order to benefit from this service. Although we would have liked to have seen better responses from IQ Option we can only assume that this was as a result of the sheer volume of traders on the platform and it was not a something we worried about.

Education and Training

One place where IQ Option really shined for us was their training and education materials. Firstly, the demo account is a great way for new traders to learn the ins and outs of trading without risking it on the market. This demo account gives you “virtual” funds to trade. This is usually $1,000 and you can place virtual trades.

Indeed, a popular “scam” tactic that is used by Binary Option brokers is to offer a demo account that has different trading levels than a real account. This means that the trader would be duped into thinking that the trading is way more profitable than it actually was.

The team at FXaxe opened a demo account and traded on a real account to confirm that the levels were indeed consistent. We can confirm that IQ Option is completely honest and transparent with their demo accounts. The trading conditions on the demo account are exactly the same as those of the real account.

Yet, this is only where the training starts. Once you have invested, you have access to all of the interactive training materials on offer. These include a number of trading strategy videos, webinars, tutorials and a number of e-books. These training materials are also well suited to traders of different skill levels from a complete beginner to advanced traders.

IQ Option Trading Competitions

Something that we found quite refreshing were the trading competitions that IQ Option had available. Traders are by their nature really competitive and this was a great way for them to test their skills against other traders. Apart from the numerous prizes on offer, these Binary Option tournaments also bring a great deal of light hearted fun to trading.

There is a small entry fee that is required in order to partake in the tournament. They happen regularly and are usually about 30 minutes in length. This means that the trader does not have to spend too much time on the competition. When you sign up for the competition, you are given $10k in virtual funds (similar to the demo). At the end of the 20 minute competition, the trader with the highest returns wins the prize.

The prize sometimes depends on the number of people who have entered that particular tournament but it can also be fixed on some occasions. The trading competition also allows you to “buy in” again to the tournament once you have depleted your demo funds. This will then replenish your 10k demo funds and allow you to continue trading similar to an extended game of poker. The tournament can also be quite lucrative as prize money is sometimes up to 100x the entry fee.

In order to get a better sense exactly of how the tournament worked, a member of the FXaxe team signed up to one. We founds it really quite exciting especially when you start climbing the rankings. It also involved quite a bit of psychology as our trader needed to anticipate the strategy and returns of the other competitors. Hence, one could adjust how aggressive they wanted to be based on the position of the other traders.

IQ Option in the Press

As we have seen, IQ Option seems to really value their public image. Apart from the obvious publicity that comes from sponsoring the Aston Martin racing team, IQ Option has received a number of broker awards from the community. For example, IQ Option recently won an award from MasterForex-V for being the most reliable brokers on the market.

They also won an award from Show FX World for being the most innovative Binary Option broker. Unlike most brokers who claim to be “industry leaders” with no verifiable record, these awards are indeed from reputable sources and added more confidence in our view of IQ Option.

Conclusion

In conclusion, our reviewers were quite impressed with IQ Option and hence awarded it such a high ranking. It is quite rare for us to come across a broker that we find ticks most of our boxes in terms of transparency, regulation and functionality.

The platform and trading application is functional enough for professional traders while being simple enough for beginners learning their craft. This most likely came down to the unique design of the platform bespoke to the needs of IQ Option and the traders it collaborated with.

While on the platform, we found the trading to be smooth and effortless. Moreover, the trading competitions were an interesting add on that really intrigued our reviewers.

There were a few noted drawbacks of course. Firstly, IQ Option only has two account levels. Traders who wanted to get more extensive interaction from a dedicated account manager may be disappointed with this. We also found the lack of chat or telephone support to be unfortunate especially for urgent queries.

Lastly, IQ Option is not available to people who are resident in the United States, Canada, Israel and Japan. You can read more about binary and forex brokers which are regulated to offer services in these jurisdictions.

However, if you are a trader who is not in one of these countries and wants to use the most innovative and time tested broker on the market, then IQ Option is one of your best bets. It gets our FXaxe stamp of approval.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners!
    Big Sign-Up Bonus!
    Free Trading Education!
    Free Demo Account!

  • Binomo
    Binomo

    Only For Experienced Traders!

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Website www.iqoption.com
Minimum Deposit $10
Max Payout 91% in case of correct prediction
CFD Spreads 5-10 pips on Majors
Support Features Email, Contact Form and live chat
Demo Account Demo
Deposit & Withdrawal Methods Visa, Mastercard, Bank Wire, Skrill, WebMoney, Cash U
Account Currencies USD,GBP,JPY,EUR,RUB,CAD,Yuan,NZD
Jurisdiction Cyprus
Languages Available English, Turkish, Spanish, Portuguese, Chinese, Swedish, Korean, French, Italian, Arabic, Indonesian
Option Types High / Low, Dynamic Option, Classic Option, Forex & CFDs
Option Expiry Times 60 seconds to 24 hours
Mobile Trading iOS & Android
FXaxe Rating