Review of the Binary Options Broker Redwood
Redwood Options is a binary options broker founded in 2012 which has its headquarters located in London, UK. This company specializes in various types of binary options, including Above/Below and One Touch options. It also offers a wide variety of underlying assets or instruments to trade with these financial derivatives, such as currency pairs (Forex), stocks from various markets, stock indices and commodities such as precious metals. Redwood Options offers an online trading platform based on Spotoptions, one of the most comprehensive of its kind in the field of binary options.
Type of Broker
Redwood Options is a Binary Options Broker
Country of origin
The headquarters of this company are located in London, United Kingdom.
Not at the moment
Redwood Options offers its clients the possibility to trade with binary options based on the following underlying assets:
- Currency pairs (Forex): 12 currency pairs in the Forex market, including the most important as the EUR/USD, USD/JPY and GBP/USD, and other more exotic like the USD/TRY and USD/RUB.
- Commodities: 7 of the major commodities in the market, including crude oil and precious metals like gold and silver.
- Stocks: 20 shares of the major stock markets worldwide, such as Google, Microsoft, IBM, British Petroleum, HSBC Holdings, BAE Systems, Gazprom, Nissan Motors and Tata Motors among others.
- Indices: 22 major global indices. Redwood customers can trade with binary options based on indexes like the S&P 500, NASDAQ, FTSE 100, CAC 40, Nikkei 225 and Hang Seng among others.
Types of Binary Options
Redwood Options allows to trade with the following types of binary options:
- Above/Below Binary Options: It is the most common and popular type of binary option in the market because of its simplicity and the high returns offered for the trader. When is negotiating with these options, the trader must predict whether the underlying price will finish above or below the opening price of the option (the underlying market price at the time the option was purchased) once the contract expires . In other words, the trader just have to predict whether the price will go up or down. Above/Below options of Redwood Options generally have a maturity of one hour, however the investor can trade with options that have a shorter or longer expiration period, even just 60 seconds.
- One Touch Binary Options: These are American style binary options so its trading is different compared to the Above/Below options. In this case the trader must predict whether the underlying asset price will reach or not a predetermined price level (barrier) before the option expires. In case the underlying price reaches the barrier, the option is automatically settled without terminating the period of maturity. Usually these options have a longer maturity than the Above/Below options and also offer a higher yield of up to 500% in the case of Redwood Options.
- Custom Binary Options: These options are fully customized Above/Below binary options in which the trader can determine the main parameters of the option contract, including the underlying asset, the maturity period, the payment offered in case the option ends In the Money and the level of risk associated with the operation. In general, these options allow the traders to trade with binary options tailored to their trading strategies.
- TurboBinary Options: These are Above/Below binary options which are characterized by an expiration period of just 60 seconds. Thanks to this feature, these options are ideal for traders who are interested in short-term trades, mainly in highly volatile markets and instruments such as Forex, oil and gold for example.
Payment Offered by Redwood Options
- Above / Below Binary Options: The yield is 70% to 85% of the capital invested by the trader in the contract.
- Touch Binary Options: The yield is 70% to 500% of the capital invested by the trader in the contract.
-If the option expires "Out the money", this broker allows the trader to recover up to 10% of the investment to avoid a total loss.
This broker offers one trading account type for all clients, regardless of the initial deposit made by the customer. This account includes all services of the company, including the following:
- Various types of binary options.
- An online trading platform.
- A variety of underlying assets to trade with binary options.
- Customer Support.
- Binary Options Education.
- Market analysis.
- The opening of the trading account is free.
Trading Platform of Redwood Options
-Regular trading-platform: This is a web-based application (it requires no download or installation) which can be accessed directly from the website of Redwood Options. It is based on the platform SpotOptions which is specialized in binary options and it has a design that incorporates various trading functions such as updated quotes of various underlying assets and price charts. It is a trading platform created specifically for binary options trades of various kinds, therefore its design incorporated several tools for position managemente which allow the opening of new positions and control the options that are still active.
This application includes the following additional features:
- Double Up: This feature is designed so that the trader can increase the investment in a successful trade with binary options and double his profits. When a binary option is near its expiration time and the trader predicts that the market will continue in the same direction, Redwood Options offers the possibility of duplicate the option with just oneclick on the button "Double Up". In this way, the platform opens a new position with the same conditions as the original position, but with the current price of the underlying asset.
- Roll Over: This feature was designed to extend the maturity of a binary option, so it can be useful in those trades where the trader believes that an option which at the moment is "Out The Money", has the possibility to end "In The Money" if the expiration period is increased. The client of this broker has the ability to use this stop loss tool even 10 minutes before the expiration of the contract, however, the use of this feature requires the addition of an extra investment of 30% (the potential return also increases by 30%).
- Options Builder: This tool was designed so that the trader can trade in the market with their own custom binary options. Basically these are options that can be created and modified according to the needs and trading strategies of the investor. Through this function, the trader has the ability to determine the main parameters of the option contract , including the underlying asset, the maturity period, the return offered by the option (if it expires In The Money ) and the risk level associated with the operation.
It allows to open a free account, but for the moment Redwood Opotions is no offering a Demo account.
-The client of this broker can deposit and withdrawl funds through the following options: bank wire transfer, credit cards (the major credit cards like VISA and Mastercard), debit cards, Skrill, CashU and Webmoney.
Main Advantages of Redwood Options
- On a regular basis, this broker offers promotions to its customers, mainly in the form of bonuses to new customers who open a trading account and deposit funds.
- Redwood Options customers have the possibility to trade with customized binary options (options that can be modified by the trader ) and options that have a maturity of only 60 seconds.
- Through the trading platform of the broker, the trader may can extend the maturity of a binary option or duplicate a winning trade.
- Daily Market Analysis made by experts.
- No direct commissions charged by the operations of their clients.
- Redwood Options offers various education resources on binary options:
- An ebook about binary options and the market in general.
- Several video courses.
- Video tutorials about binary options and other topics related to trading in general.
- This broker offers the possibility to earn money by promoting its services as a binary options broker through Rushbucks affiliate program.
Main Broker Offers
The main promotions of Redwood Options are the following:
- A welcome bonus up to 100% for new clients that open a trading account and deposit funds.
Minimum account size
The minimum deposit required to start trading with Redwood Options is 200 US dollars or euros, depending on the currency chosen by the trader to open the trading account.
Minimum transaction size
25 US dollars/euros.
Maximun transaction size.
1000 US dollars/euros.
Link to the website
Open an account