anyoption review

Binary Options. Review of Top Brokers.

 Lately, more and more often, sales on the Forex market are taking on a new format. Binary or European options are much more convenient compared to normal market instruments. Firstly, their advantages consist in that all risks for the trader are known in advance. The absence of spread and swap is also pleasant. Among their qualities, we can also name guaranteed execution and a fairly high profit (up to 85% per transaction) compared to spot deals.

 Today, the binary option market is represented by a few companies. However, we have to mention the two biggest “mastodons” of this market: AnyOption and FrontStocks. The beginner trader has a question: who to choose? Let’s go study in detail the plusses and minuses of each company.

 Probably the first thing that jumps out is the multitude of banners and ads of this brand on the Internet. But as we know, quantity doesn’t always correspond to quality. So, let’s do a detailed study. Having entered the site, I saw that AnyOption position themselves, not as a broker, but as a bank. As we know, to carry out this type of activity, special documents are needed. Having studied the contents of the site, and even using Google, I wasn’t able to find any banking license. So why give themselves the big name of bank? I don’t get it.

 OK, let’s go from theory to practice. First, I feel like opening a demo account. With anticipation, I click on the “Demo” link, but what is it? Instead of opening a training account, I was proposed a terminal guide with tips. And what about trading on the demo? There is no such service. Unfortunate. Because, before putting real money, everyone would like to trade with “gum wrappers” to test the service for free.

 Nothing to do, we’ll open a real account right now. I go to the registration form. We have to fill 18 boxes. Among them, more than 10 ask to enter personal information. Are asked: full name, address with postal code, and also phone number and cellphone number. I didn’t want to fill this out, but the form indicated that the boxes were compulsory. So I had no choice but to give it up, even if I didn’t feel like it.

 Having registered and written my password on a piece of paper, I began to get ready for bed. And I decided to put off getting to know AnyOption until the morning. In vain! At 10:40 PM, the telephone rang. A young guy’s voice told me he wanted to help me fill the account. Hm… I don’t know about you, but I didn’t like such an aggressive sales policy by AnyOption. I don’t like when inopportune managers try to stick it to you with something.

 In the morning, I went to the site with the certitude of putting my first “training” $25. I authorised myself and entered information about my card. But the site snorted and displayed a red warning message that the minimum sum to put in the account is $100 USD. “Yes, the entry ticket to your place is a bit expensive, mister.” And I right away had another thought in my head “And if I don’t like it, there might be a minimum sum to pull out also?” There’s no road for retreat. The account is open, and the bridges are burned. Finally, after hesitating a bit, I made my decision.

 Havingpicked up all my will, and having choked my greed, I spent $100 from my card. And finally I have access to the terminal and the transactions!

 When we pronounce the word “terminal”, we imagine something grandiose and monumental. But in practice, AnyOption’s terminal is a tiny blue rectangle. It has a chart for the last 30 minutes, and two buttons: “Call” and “Put”. AnyOption’s terminal contains a minimum of functions, and unfortunately, is utterly useless to analyse the market situation. It turned out to be not very informative after having verified it. We can’t look at trades that occurred an hour ago, a day ago, a week ago. There’s no possibility to switch from line charts to more useful candlestick charts.

 Among the instruments in the terminal, there are three varieties of option contracts. The trader only needs Option+. This is a binary option. And for other types of transactions, no matter what I did, I couldn’t find a practical use for them. And here, I bought an option. I lost it. I bought a second one, I won it. In the winning case, I obtained 68% of the profit. In the losing case, I lost the whole value of the option. Having practised on transactions for a few hours, I did some simple math, and I drew the conclusion that on average, a profitable option gives about 60-71%. The trade process occurs normally, but in Spartan conditions. You have the impression that everything is minuscule on the screen. I was forced to do transactions while wearing my glasses, while squinting at the dingy chart.

 Below the terminal, I found this warning: “The levels shown on our site are the levels according to which anyoption™ will sell options. It does not reflect the levels of the prices on the market in real-time.” It happens that the price on the chart and the price with which you will buy the option can be different. Why do this? It’s obvious that it induces the trader into error. I wrote a letter to AnyOption’s support, asking to clarify this. In reality, I discovered that you can buy an option at not the same price that you see on the computer’s screen. And claims in this case won’t be accepted because in the contract it’s written that this is normal practice for AnyOption.

 Another unpleasant moment appeared a few days later. The mailbox that I indicated during registration is periodically bombed by letters from AnyOption’s manager. In them, he asks to fill the account to a minimum of $100 and he promises rosy trading.

 And here comes a new day, so it’s time to continue with the second participant in my review. FrontStocks Ltd. supplies binary and European option services since 2009. The company’s site can be found at the following address: www.FrontStocks.com and is presented using appeasing tones of grey, black and red. While reading the pages, I find the company’s story, photos and the names of the founding fathers. The company’s roots can be found in New Zealand, and the founders themselves are from Switzerland and Germany. The trade platform of FrontStocks Ltd. is called a market maker. The first question that comes to mind is, “What is it and how does it work?” I find the answer fairly quickly. For curious visitors like me, in the “Business model” section, the developers put a client transaction processing schematic image with a detailed description.

 And what about the documents? I go to the documentation page. The company’s registration documents are presented as four files that can be downloaded and printed. There are two certificates, a memorandum, and another certificate. Further down are documents which regulate the company’s activities. There are a lot. There’s a huge list of 17 files. I decided not to read everything, since it can take a ton of time. But according to the contents of the first three files, I understood that the document attitude is of Swiss precision and seriousness.

 Having read a lot of theoretical knowledge, I decided to open a training account. I click on the “Free practice account” button, and I find myself on the registration page. We don’t have to fill in anything. I quickly confirm the captcha graphic, and here I already have the account number and password. Nothing is simpler! Being astounded by such care for the customer, I didn’t hold back and I wanted to open a real account right away to see how they work.

 I click on a pretty button with racing car flags and the message “Express registration”. A page with a registration form opens. Usually I type slowly on the keyboard, so it was pleasant to see that there were only three boxes to fill. I was asked to enter my e-mail, the access password, and choose the type of account among four proposed. What should a beginner do? And here is the answer, I find a link with advice on the side. I see that the basic account type is called “Standard”, and the minimum sum to put in it is only 5 dollars. Very affordable. Exactly what’s needed for the first step. I choose it, and I finish the registration process.

 Having quickly put money in the account, I began studying the terminal. NovaTrader is a trading platform that doesn’t need to be downloaded and installed. It works directly in my browser’s window. The terminal’s main window is a chart of the traded instrument with two axis: price and time. The current price is marked with a red line and a number beside it. Below, management elements are disposed. On the left we can see three buttons to change the chart’s appearance: line, candlesticks, bars. If you’re a beginner, you can start by using line. It’s easier to understand the chart like this. More advanced traders have the possibility to switch right away to candlestick and use the trade method based on the analysis of the candlestick chart. A bit on the right are seven buttons with the choice of minimum temporal value on the chart (timeframe). By using them, we change the temporal scale in the terminal’s window from 60 minutes to 60 days. This allows following the trading in a large time range, and choose any strategy: short-term, medium-term or long-term. As concerns the analysis and work with the chart, everything is convenient, clear and functional.

 And what about the types of transactions? Six are proposed to us: binary option, express, hourly, barrier, one touch flash bet and two touch flash bet. Having tried all of them, I concluded that “binary option” and “express” are interesting for me. These transactions are mastered nearly right away since they don’t require any specific knowledge. In general, by guessing the direction of movement of the chart, up or down, we can obtain profit with them. Options resemble each other by their purpose, but there is still a small difference. “Express” gives a fixed profit of 85% per transaction, and is executed in 30 seconds. The “binary option”, on the other hand, gives a bit less, 75%. But, however, it is accomplished in a few seconds. Conclusion: to trade on the news, it’s better to use “binary option” when it’s important to enter the market as fast as possible. But, for more long-term and measured trading, it’s preferable to use “express” to pull maximum profit from the option.

 Next, I wondered about the transaction execution price. Remembering my bitter experience with AnyOption, I decided to ask questions in FrontStocks’ chat. It was obvious that execution prices correspond entirely to prices in the chart. In addition to this, on FrontStocks’ site, there’s a public quotations archive where prices are saved on all trade instruments during a long time. And each person that wants to, with the least doubt, can re-verify the result of their transaction, and compare FrontStocks’ quotations with the quotations of other companies. Legitimacy and transparency are tops!

 I’d like to add something else. During the last two days I noticed that in my e-mail, there were no letters from FrontStocks. And on my phone number that I indicated specifically in my profile, nobody called with persuasion to put money in the account. In general, employees of the company behave respectably and don’t bother the customer. They don’t impose their services. Definitely, it’s a quality for customers who appreciate their time and don’t like annoying spam. And in the end, I decided to read news about the company. I found that FrontStocks had already absorbed the competitor IKON Brokers, developed its trading indices and also delivered a few prizes and accomplished a few large-scale actions. I also liked a fairly lively and creative approach towards the customer on the forums.

 By the way, FrontStocks is doing a 35% EXTRA bonus promotion. It gives the possibility of obtaining an additional 35 percent credit of a deposit. A good additional support to begin trading. Dare, and may the profit be with you!

anyoption review