Here you will find a list with the leading binary options brokers that offer the best payouts in the industry. Trade only with brokers that offer you high payout options. Calculating the payouts from binary options trading can be a bit tricky if you haven’t done any betting before, or if you are not familiar with the method which is used to form your winnings. Basically, your final profit will be based on the winning stake offered by the broker and on the money you invested.
Let’s say that you made a successful trade with $100 and your broker offered you a 60% winning stake. In this case, your final earnings will be $100 (your initial deposit) + 60% of it. So, the final result is that $160 will be added to your bank balance.
Best Forex Brokers for United States
Payouts Between Trade Contracts
Keep in mind that the payouts offered by your broker will vary depending on the contract you choose. In most cases, brokers offer a payout between 60% and 90%, but the sum can be larger for specific types of contracts. Also, many brokers have special payouts that may include a refund in case your prediction turns out wrong. For example, a 90% payout can be split into 80% profit and 10% that will be refunded if you lose. Of course, you can opt to not take advantage of the refund, so your profits will be 90%, but you won’t receive any money if you fail to predict the price’s movement.
Contracts like High Yield Options can offer payouts of up to 500%, but they are a bit more special, and we’ll talk about them in another article.
What Payouts Do you Go For?
This is one of the most difficult questions that binary options traders need to answer. Many traders don’t have a pre-made payout strategy, and they either aim for several small payouts or for one large payout. So which one should you choose? I’ll try to help you with a little story I made up.
Assume that you have two traders – Peter and Megan. Peter is the type of trader who wants to make one large deal and see enjoy profits that are 10 times larger than his initial investment. This is why Peter decides to try with a run bet. In this case, he has to guess what the last number of a stock’s price will be after five ticks of the stock. At the moment, the price is 2.8299, and Peter’s choice will be entirely based on luck, because it is nearly impossible to accurately predict what the last number will be in a couple of minutes or hours. Peter picks 5 and invests $100 in this trade, and is looking to get a payout of at least $1,000.
On the other side you have Megan – a more experienced trader who is looking to get several small payouts. She decides to start a Touch/No Touch trade which offers a “small” 80% payout. She also invests $100 and her speculation is based on the latest financial news and charting data.
So, who’ll be more successful in the long run? Peter picked one number from 0-9, so he has just 10% chance of winning. Of course, if he wins, he’ll get a hefty amount of money, but he won’t be so lucky next time, right? Meanwhile, Megan’s chance of winning is 50:50 and her choice is based on figures and statistics, so she has a much larger chance to get it right. Therefore, if you want to get a steady passive income from binary options trading, you should focus on small payouts and trades which are easier to predict.
Statistics show that 98% of traders who prefer to aim for one large payout generated by run bets fail and sooner or later lose their entire bank. You’ll rarely see a trader who regularly makes money from run bets and is able to predict them accurately. This is why I recommend focusing on Touch/No Touch traders or similar bets that are based on statistics and news. Not only this, but you’ll also have a larger chance of winning.