Payouts in Binary Options Trading
You most likely already know that in binary trading you’ll win if you manage to accurately predict the future movement of an underlying asset. In order to be able to place a prediction, you’ll have to purchase an online trading contract. In order to buy a contact, you’ll have to invest a certain amount of money.
In case you’ll accurately predict the outcome of the option, you’ll receive your initial investment back plus a certain percentage of that investment in profits. The percentage that the broker uses to calculate your winnings is called the payout percentage.
Consider the following example:
– You invest $100
– The payout percentage is 90%
In the above example if you win you’ll get a total sum of $190. The higher this percentage is, the higher your profit margin will be. This is why it’s so important to choose a binary options broker with large winning percentages.
How are payouts determined?
Payout rates are determined by brokers automatically taking in consideration multiple variables. Such variables include the type of the underlying asset, the type of the binary option, the duration of the expiry time and more. The general rule is that the harder an option is to predict, the better the payout rate will be.
For example, high/low contracts are usually very easy to predict. As such, companies usually offer lower winning rates in the case of these options. On the other hand, boundary binary contracts are much harder to predict and as such brokers generally offer very high winning percentages when it comes to these contracts.
This is also the case when it comes to assets. For example, the movement of commodities can be predicted much easier than the movement of forex currency pairs. As such, financial service providers generally offer higher profit percentages in case of forex options and lower payout rates in case of commodity contracts.
Average payouts in binary trading
At this moment the average payout margin in the financial trading business is around 85%. However, this is expected to increase to at least 95% during the next couple of years. Still, there are many companies that offer payout rates lower than this to unsuspecting traders.
You should only register at brokers that have payout rates of at least 85%. The brokers we listed on this page all have payout percentages even larger than the current industry average. Check out those brokers if you want to increase your profits.
But like explained in the segment above, payout rates also depend on the type of the binary option selected. While most high/low contracts might only offer average payout rates of 85%, in case of one-touch and boundary contracts traders may as well being offered payout margins between 200% and 500%.
Largest payouts in financial trading
As hinted above, the current industry average when it comes to binary options broker payouts is 85%. This naturally doesn’t mean that companies can’t offer payouts larger than this. There are already a large number of brokers that offer average return margins of 95% too.
However, if you want really large payouts then you should choose to trade boundary- and one-touch options. In most cases and at most reputable binary options brokers these contract types always offer payout rates above 200%. This is truly immense in the online trading business.
Likewise, as we hinted above, as the financial trading business expands payout rates will become larger and larger. In a few years not only will the average return margins be larger but the currently large payout rates of 200%+ will also increase considerably.
Binary Options Brokers with the Largest Payout Rates
In our experience only about 5% of all the existing legitimate and legal binary options brokers offer truly large winning percentages. There are literally hundreds of binary options brokers on the market these days. Finding the right one is not easy.
However, we believe that the service providers we listed on this page offer the largest and most rewarding winning rates in the business. If you make an independent research yourself, you’ll probably end up concluding the same as us anyway.
So, in case you want a binary options broker with large payout rates then you should check out the ones we listed on this page. Also, we managed to negotiate special bonus deals with these brokers. This means that if you register at one of these brokers by clicking on one of the red “Sign Up” buttons then you’ll receive a larger than usual bonus.
If you’re interested in becoming a successful and winning financial trader then read the articles posted on our website. These will teach you advanced binary options winning strategies that will help you increase your winning chances.
Becoming a winning trader is a choice. It has nothing to do with luck. – One element of becoming a winning trader is to choose a broker with large payouts while another is to learn how to properly trade online. Take action now.