Leading binary broker AnyOption has recently extended me an offer to do a review of their trading site. If you’ve read any fraction of the material I’ve written in the past about investing and day trading – you know I’m going to give you the skinny about the plusses and minuses without prejudice – and this review of will be no different.
The Pros of an Account at AnyOption
Wide Variety of Binary Options Contracts to Choose From
There is a ton of stuff to like – not the least of which is the large number of assets to trade – some 50 securities in all. The breadth of securities is very nice as well – including commodities such as Gold, Silver, and Oil. The ability to enter fixed payment contracts on these commodities greatly increases the ability of a commodities trader or ETF option trader to set up my favorite kind of pincher trade (either I get what I want in a trade, or the binary options kick in and I collect a premium in exchange for not getting what I want). I love setting up those kinds of trades – and their wide selection of contracts allows me to act on a different variety of securities than those we’ve covered elsewhere, such as those offered by other binary options brokers.
Weekly Expiring ‘One Touch’ Options Offer an Unheard of 200-350% Return!
I don’t even know what to say about these special “one-touch” options. Suffice to say they are extremely exciting to think about. The rules on these are a little different – think of them as having 5 expirations instead of one – that’s probably the easiest way to think about it. If the underlying security closes above the strike price level of the one touch option (in the case of a call one-touch option) ANY DAY OF THE WEEK, the option is in the money (ITM) and payout at the end of the week is guaranteed – regardless what happens the rest of the week.
I don’t know about you – but that is exciting when you consider the potential gains – 200-350% on a single one week investment. Try getting that from a standard option or even a leveraged forex trade in a week!
Potentially Unlimited Contract Position Size
This is a BIG difference from other trading platforms I have reviewed. While there is a limitation on the size of any INDIVIDUAL contract ($3000 or $4000 depending on whether plain or ‘one-touch’ binary option) – it does NOT have a limitation on HOW MANY contracts you can purchase. This makes it possible to create significant sized positions that simply aren’t possible at another binary broker. Forex traders should love the ability to be able to create hedges large enough to offset large leveraged positions they have taken in their forex trading accounts. Don’t underestimate the importance of size. Size DOES matter.
Bonus Offers Sometimes Available
We’re starting to tread into a bit of a grey area for me re: their policies. I am not familiar enough with their program to be able to tell you how large or how often they offer bonuses on deposits or possibly trades. You’ll have to check back in here from time to time (I’ll comment this page to update information as I learn it).
Other Tidbits and Benefits Not Mentioned Elsewhere
One thing to really like about this platform is the guaranteed 15% return of investment on out of the money (OTM) trades. If a contract for $1000 expires OTM, you still get $150 back. What this does is it greatly simplifies the straddle computations I like to make (see binary hedging). Also, the range of yields is narrower – typically 65-71% on fixed return contracts. While this is not as high as others, the narrow range and guaranteed 15% return on plain binary options trades (not on ‘one-touch’ contracts) make hedging computations easier to prepare in advance.
Lastly, I like the ability to make deposits by credit card or ACH/EFT/Swift or wire. There are some limitations and rules on withdrawals – but that shouldn’t be a big deal – all are typical of the industry. You should be trading with money that you won’t be needing right away so the withdrawal restrictions (one freebie per month – EFT/ACH within 3 days preferred) should not be an issue for you. Also, most trading sites have similar restrictions – so again this really should be a non-issue for most traders.
Minimum Deposit / Minimum Investment
One last quick thing to mention is the account minimums. Although you may have seen elsewhere that the minimum deposit is $200, the correct figure is $100 – got that direct from the horse’s mouth in chat the other day. Secondly, the minimum investment there is $25. This figure is also a result of my chat with customer service there. Sorry if there have been any miscommunications on that topic here or elsewhere.
Cons of Trading with AnyOption
Lack of Clarity on Bonus Cash
We alluded to it earlier, but there is some yet to be learned about deposit and or trading bonuses. As you are already aware, I am HUGELY in favor of cash bonuses on deposits – I mean really – take the low hanging fruit whenever you can get it right? We’ll have to monitor their site for cash bonus announcements – and we’ll pass them on to you via our email newsletter. Speaking of which… have you subscribed yet? It’s free…
Update: They do offer bonus cash on a case by case basis to active traders. The more you use your account with them, the greater the odds of earning bonus cash. They have also recently rolled out new programs allowing early closure and trade extension options on contracts.
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Slightly Lower Yields Partially Offset by 15% Guarantee Return of Capital
You are certain to find (at any given time) higher contract yields at brokers such as EZTrader. What you will NOT find at those sites is a blanket guarantee of a 15% return on OTM contracts. EZTrader will offer 15% on SOME contracts but not all… something to be aware of.
Contracts Offered Not At The Real Time Strike Price
Now to be fair – I have not had a lot of experience watching their contracts in real time – but if you look at the fine print of their FAQ page you’ll note that contract pricing is based on their own internal algorithm – not the underlying spot price of the security – so keep that in mind. We’ll be watching the trading activity at their site this month and report back our findings as to the disposition of that algorythm relative to the spot price – as best we can track it. We don’t anticipate this to be a huge issue, as there are likely to be significant numbers of people on both sides of any binary contract at any given time. A significant imbalance would likely have to occur to move the price significantly off the spot price – but again – we’ll keep an eye out and report back. Editor’s note: Nothing significant noted relative to pricing, certainly not relative to other competitors in the space. AnyOption continues to have the hands down best reputation in the industry.
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I hope you have found this to be informative and helpful. Please feel free to add your comments and experiences below.