Review of the Binary Options Broker Optionsmarter
Optionsmarter is a binary options broker from Europe which offers 3 types of options, including Above/Below and One Touch, and a wide range of underlying assets such as stocks, indices, currency pairs (Forex) and commodities. This company was founded in 2012 in Cyprus. Currently is the only binary options broker who offers social trading.
Type of Broker
Optionsmarter is a Binary Options Broker
Country of origin
The headquarters of this company are located in London, United Kingdom.
Not at the moment
Optionsmarter offers its clients the possibility to trade with binary options based on the following underlying assets:
- Currency pairs (Forex): 10 currency pairs in the Forex market, including the most important as the EUR/USD, USD/JPY, USD/CHF and GBP/USD, and other more exotic.
- Commodities: 6 of the major commodities in the market, including precious metals like gold and silver. Also, the trader has the possibility to trade with options based on futures contracts on copper and crude oil.
- Stocks: 20 shares of the major stock markets worldwide (North America, Europe and Asia), including IBM, Google, Twitter, Amazon, Barclays, France Telecom and China Life among other.
- Indices: 16 major global indices. Optionsmarter customers can trade with binary options based on indexes like the Dow Jones, S&P 500, NASDAQ, CAC 40, FTSE 100, Nikkei 225, Hang Seng and other.
Types of Binary Options
Above/Below (High/Low) Binary Options: This is the most common and traded type of binary options thanks to its simplicity compared to other instruments and the fast and high income that is able to offer. In this case, the trader must predict if the asset price will finish above or below the strike price (in most cases is the price at which the position is opened) once the option expires. The High/Low options of Optionsmarter have different maturities, that can range from 1 minute to 1 week, however the most common maturity is 1 hour
Touch/No Touch Binary Options: This a different type of binary option compared to the Above/Below type because the trader has to predict if the asset price will touch or not a predetermined price level (barrier) before the option expires. These are American options, so the trading conditions are sligthly different compared to European options. For example, 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 compared to Above/Below options and also offer a higher yield of up to 500% in the case of Optionsmarter.
Range Options: These options are ideal in markets with low volatility and no clear trend. With this type of binary option, the trader must predict if the underlyng asset price is going to stay or not within a certain price range (formed by a lower and a upper barrier) until the option expires. It is a more complex type of binary option compared to the previous two.
60 Seconds Options: These are High/Low binary options which have a maturity of just 60 seconds. Thanks to this feature, these options are ideal to make fast trades and earn money with micro market movements, mainly in volatile instruments such as Forex, precious metals and oil for example.
Payment Offered by Optionsmarter
The payout offered by Optionsmarter for the different types of binary options that expire "In The Money" is the following:
-70%-85% of the contract inversion for Above/Below Binary Options.
-70%-500% of the contract inversion for One Touch Binary Options.
-70%-85% of the contract inversion for Range Binary Options.
For options that expire "Out The Money", this broker allows to recover up to 10% of the amount invested in the option. This allows the trader to reduce the impact of losses.
This broker offers one type of trading account for all its clients regardless of the initial deposit made by them. In this case, this account includes all services provided by this broker, like the online trading platform, the bonus packages for new clients and the possibility to trade with 3 types of binary options based on all financial instruments regularly offered by Optionsmarter like those mentioned above.
The opening of this account is completely free.
Trading Platform of Optionsmarter
Optionsmarter offers a web based trading platform which can be accessed from anyplace with Internet connection through the broker´s website. This application is powered by Tradesmarter. In this case the clients only needs to access their trading account with their username and password. This platform is a complete and relatively simple application with an user friendly interface thanks to the simplicity of binary options trading. It allows to trade with Above/Below, Touch and Range binary options and it has tools for the management of open positions, which among other things allow to open and close operations, monitor active options in real time and other similar. This platform also includes updated quotes and price charts.
Social Trading: It is a novel application (unique in the sector) that allows the client to copy instantly with one click all trades performed by other traders who trade regularly with Optionsmarter. In this way, customers can leverage the knowledge and expertise of experienced traders in the field of binary options.
Sell Back: This tool offers the possibility to sell back to the broker a binary option before its expiry time. Basically it is a stop loss feature through which traders can close a winning option (In The Money) if they believe that the market can move against they at any time. It may also be useful for limiting losses in losing trades.
Risk-o-meter: Though this feature, the trader can modify the risk parameters of the option. This means that the trader can vary the gain-loss ratio, by increasing/decreasing the potential gain and increasing/decreasing the risk. For example, with an option that offers a payout of 80%, the trader can reduce the payout to 72% and increase the amount that can be recovered from the trade to 10% (in case the option expires Out The Money).
Trader Sentiment: This feature shows the market sentiment of the clients of Optionsmarter with respect to an underlying asset. In other words it shows what is the percentage of Call and Put binary options that are open based on an asset as the EUR/USD for example.
It allows to open a free account, but for the moment OptionSmarter is no offering a Demo account.
-This broker offers the following options to deposit and withdrawal funds: bank wire transfer, credit cards (the major credit cards like VISA and Mastercard) and Skrill.
The accepted currencies are the USD, EUR, AUD and GBP.
Main Advantages of Optionsmarter
- This broker offers regular promotions for the opening of trading accounts and the deposit of funds. Currently it offers a bonus of 30% over the amount deposited in the account.
- Optionsmarter offers a good customer service with the following contact methods: e-mail and telephone.
- Through its website, Optionsmarter offers free basic education related to binary options which includes a glossary.
- Different options of education for traders including one on one training sessions by phone and Skype groups, live webinars and other.
- Currently, it is the only binary options broker that offers a social trading platform that allows to copy any trade performed by any trader of the company.
- An account manager for every client.
- Optionsmarter does not charge any hidden commission or fee to its clients for their trades with binary options.
- The trading platform of this broker is a simple application which requires no download and installation because it is web-based.
- This broker offers the possibility to trade with three types of binary options with many underlying assets which allows to trade in various markets from one application.
- It offers the advantage that it allows the trader to sell back a binary options to the broker.
- Daily market analysis performed by experts.
- Optionsmarter offers the possibility to earn money by promoting its services as a broker through an affiliate program called Optionsmarter Affiliates.
Main Broker Offers
- A 30% bonus for every deposit of $300 or more in the trading account (regular bonus).
- This is a promotion which allows to protect a certain percentajes of the losses depending on the level of credit of the account. This promotion is offered up to 50% on the amount deposited by the trader.
- This broker has established a point system which rewards traders with different gifts (like the latest iPhone or iPad) to perform various tasks such as opening an account, deposit funds, trade with binary options, refer a friend and other.
- One free risk trade (the trader recover the money if the option expires Out The Money) which is equivalent to 10%-50% of the deposit amount with a maximum bonus offer of $1000.
Minimum account size
The minimum deposit required to start trading with Optionsmarter is 250 US dollars or 200 euros.
Minimum transaction size
25 US dollars/euros.
Maximun transaction size
1000 US dollars/euros.
Link to the website
Open an account