Redwood Options is a new binary options broker that was opened specifically with United States traders in mind. The broker is the sister site of renowned binary broker Trade Rush, which is also one of the most prominent brokers in the entire business and one of the first companies to offer binaries.
The same company that runs Trade Rush also owns Redwood Options. As explained above, Redwood was created with US traders in mind, offering attractive bonus deals, multiple options types as well as a large selection of assets and competitive payout rates.
Platform and Software
At this moment the broker uses the binary options trading platform developed by the company SpotOption. This means that the broker’s software is not unique and the same features and tools can also be found at many other brokers of this kind.
Nevertheless, the SpotOption platform used by Redwood was optimized so that it contains brand-specific colors and images. Traders will however be able to profit from proprietary features as well such as daily market review and a complete educational center.
Daily market review
One of the most interesting features provided by the binary options broker is its daily market review broadcast. This feature will make it possible for traders to learn about the most important events that take place during a day that might influence the movement of assets.
The education center provided has three main parts, which are the Academy, independent courses and an online library of various eBooks. The Academy is the most important feature of these three because it contains advanced video tutorials as well.
Types of Option Contracts
At this moment traders will have the possibility to trade on most of the currently existing binary options contracts. The most basic contracts are simply called “binary options” at Redwood. These are standard high/low options that are the easiest to predict between all the available options.
One-touch options are more advanced forms of options available that will require traders to predict if the value of an asset will reach a previously established line. These are a bit more complicated to predict but as a consequence offer higher payouts as well. Another options types available is the 60 seconds options. As their name suggests, these options always expire within a period of 60 seconds. In our opinion, these options are the hardest to predict due to their very short expiration time.
Traders will also be able to use a special tool called Option Builder that will allow them to create their own binary options contracts. This tool will enable traders to select any of the assets provided, choose the expiration time as well as insert the desired investment amount.
The Option Builder tool also allows traders to choose their own payout rate as well as rebate. This way they will always be able to control how much money they can lose in case something may go wrong. Traders may even be able to recover as much as 80% of the money that was invested in losing investments if they want to.
Redwood Options offers a very large number of assets, which are the following:
Stocks: City, Microsoft, Apple, Nike, Gazprom, Lukoil, Sberbank, Coca Cola, HSBC Holdings, Tata Motors, TurkCell, Tesco, petrobras, Nissan Motor, IBM, Reuters, BAE Systems, Rolls Royce.
Forex: Bitcoin/USD, EUR/USD, GBP/USD, USD/JPY, EUR/JPY, EUG/GBP, USD/TRY, USD/RUB, USD/ZAR, USD/SGD, NZD/USD, USD/CHF.
Commodities: Gold, wheat, sugar, coffee, oil, platinum, silver.
Indices: MICEX 10, TOPIX, TEL AVIV 25, STRAITS TIMES, NIKKEI225, KL FUTURE, SSE180, HANG SENG, BOMBAY SE, KUWAIT, DUBAI, TADAWUL, MSM 30, RTS, ISE 30, FTSE 100, CAC, DAX, NASDAQ, S&P 500, DOW
Redwood is one of the few brokers that offer Bitcoin binary options trading as well.
Redwood Options offers decent payout rates that depend on the type of the underlying asset as well as the type of the contract selected. The standard offered payout rate at the broker is around 85% but with the help of rebates traders may well reach payout rates of as much as 90% and more.
It’s very important to understand that your long term winning margin is not only influenced by the payout rate alone. If a broker also offers rebate then you should add that on top of the payout rate. Sure, when you win you will not be paid out the payout rate + the rebate rate but in the long term the rebate matters as well because when you lose you will get some of your money back.
Consider the following example:
– More advantageous: Payout rate of 70% + rebate rate of 20%
– Less advantageous: Payout rate of 85% + rebate rate of 0%
In the first example you will technically have a long-term payout rate of 90% while in the second example you will only have a payout rate of 85%.
Bonuses and Promotions
From time to time Redwood Options will launch several interesting and rewarding promotions. You should always pay a lot of attention to the broker’s main page to see if it launched a new offer. Also, at any moment in time you will be able to secure a bonus of 100% on your first deposit.
This bonus is not provided by default and you will have to ask the broker’s customer support in order to credit it into your account if you wish to receive it. Just bear in mind that this bonus will force you to execute a certain number of trades before you will be allowed to make a withdrawal.
Only accept the bonus if you know for sure that you will be able to match the broker’s trading requirements before you request a withdrawal. Generally, if you don’t intend to trade with large sums it might be better if you don’t accept the bonus.
Deposits and Withdrawals
At Redwood Options you will be able to deposit and withdraw money using various tools such as credit cards, Maestro and Wire transfer. In order to open your account you will have to deposit a sum of at least $200. This is one of the lowest minimum deposit limits required by binary options companies.
There is also a minimum withdrawal policy in place that is just $100. Withdrawals are generally processed very fast by the broker, however sometimes traders might have to wait from a few days up to a week until a withdrawal is processed.
The minimum investment per trade required by the broker is just $5.
Redwood Options is a solid binary options broker that offers a significant number of assets as well as option types. The only drawback of this company is that it does not offer massive payout percentages compared to some other brokers of this kind. However, this aspect is compensated by the significant rebate provided on losing trades.
In order to register traders will only have to deposit a sum of $200, which is a great plus. Likewise, the minimum investment per trade is also of $5, which to our knowledge is one of the smallest minimum investment requirements in the whole business.