With a whole range of different companies to chose from, it can be hard to spot any real differences between binary options brokers. A myriad of brokers vie for new trading clients in the ever more competitive and cut throat world of binary options.
It seems that most traders end up settling on a broker after being seduced by the slick marketing campaign or opening sign up offer. Binary Options brokers tend to be highly proactive when it comes to ‘recruiting traders’. They look to seal a deal with a potential trader quickly. Financial incentives in the form of bonuses are frequently used to ensure new clients sign on the dotted line.
Most traders can be forgiven for thinking that brokers are offering essentially the same service. In truth the similarities actually run much deeper. The actual platforms offered are frequently white labelled products. As a result underneath they offer the same technologies and features.
This commonality between brokers makes the point of differentiation actually very small. Each brokerage would like you to think that they offer something truly unique, however in reality differences are often small. In fact in many cases traders will find they don’t exist at all.
Underneath the surface of the trading platform will reside the core technology. This allows the creation and sale of contracts. This technology comes from key market players. The three biggest are SpotOption, Tradologic and Techfinancials.
Each of these is a well established platform offering tailored technology solutions. They are ‘off the peg’. In fact almost anyone with sufficient capital can use them to setup and run a brokerage. Platforms contain the full range of infrastructure for operating a brokerage. This includes the platform itself, a live pricing engine to calculate odds across multiple markets and a back-office suite for client account management. In short a complete ‘off-the-peg’ solution for anyone interested in setting up and maintaining a financial brokerage.
These off the peg solutions obviously have an implication for what is offered to trading clients. Ultimately the solutions provided are in fact, very similar. Furthermore competition means that innovative new features are quickly replicated across platforms as providers compete for market share. The result is a sea of ‘similar’ broker platforms. Each are trying to differentiate themselves but have little to be able to do this.
For most binary options brokers, the only point of difference from their peers will come down to their branding and what they can offer a client in terms of account deposit bonus or support. Of course support is an unknown quantity when a client first signs up. The trader will struggle to use this as a point of difference when making a choice as to where they can deposit their money.
This is perhaps the reason behind the aggressive marketing of account bonuses that we have seen in recent times. The leading binary options brokers are keen to attract the client to their ‘me too platform’ . To do this they offer a bigger incentive to make themselves stand out from their competition. 24Option for example offers a 100% deposit bonus to new depositing clients.
Ultimately there is little in the way of difference between binary options brokers in the trading world these days. The solutions offered are now rather the same to the point that this little or no difference between what can be achieved when trading with one brokers as opposed to another.
For the trading clients this is perhaps no bad thing. It shows that brokers have taken on board client requirements to offer a comprehensive trading solution with a lot of choice on offer. For the trader it means there is little reason in spending hours making a decision on which to use. If the broker is regulated and well funded there is a little reason not to use them.