The highest payout binary options brokers offer the best returns on correct up/down predictions. But which binary options platforms offer high payoffs and how should you compare brokers?
In this guide, we rank the binary options brokers with the highest payouts in 2023. We also explain how payouts work and why you should consider more than just the maximum returns.
Binary Options Payouts Explained
Binary options payouts are the expected returns that traders will receive if they successfully predict the price movement of an underlying asset. The trader’s account will be credited with the agreed profit if the contract finishes ‘in-the-money’.
Payouts are set by the broker and are quoted before you open any trades, usually as a percentage of the initial stake. These percentages typically range between 20% and 90% depending on the broker, underlying asset, and market conditions.
Popular stocks and major forex pairs, for example, typically have higher payouts while more volatile assets with less liquidity, such as cryptos and minor currency pairs, normally have lower payoffs.
Importantly, binary options brokers with the highest payouts usually offer returns in excess of 95%+. Some brands even offer payoffs of 400%.
Now you might be wondering how a brand can offer payouts of 100%+ and stay in business, let alone make a profit.
Well, there are a couple of reasons:
- Market activity sometimes leads to a large volume of traders betting in one direction. And due to an increased probability that the trade will indeed finish in that direction, brokers can sometimes offer payouts in excess of 100% in the opposite direction.
- High payouts are normally only offered on a limited number of a broker’s sometimes extensive list of assets. The majority of their binaries will have lower payouts, under 100%.
How Binary Options Payouts Work
Let’s say that you want to open a trade on the GBP/USD in the wake of a major policy announcement from the Fed.
Your binary options broker offers a 90% payout on a $100 stake.
If you are successful, your profit would be: $100 x 90% = $90
If you are unsuccessful, your loss would be: $100
As you can see, with typical payouts, you are risking a greater potential loss than you are profit. As such, for every 100 trades, you will need to win more than you lose to ensure you break even or profit.
Importantly, the higher the payout, the fewer wins you need to generate a return in the long term. Thus, binary options brokers with high payouts are attractive to aspiring traders.
Comparing The Highest Payout Binary Options Brokers
The three binary options brokers with the highest payouts are:
Spectre.ai
Spectre.ai has high payouts that can reach an impressive 400% on its EPIC products.
- Payout: Up to 400%
- Minimum Deposit: $0
- Expiry Times: 1 second – end of day
World Forex
World Forex is suitable for both beginners and experienced binary options traders with 24/7 support, a free training programme and MT4/MT5 integration.
- Payout: Up to 100%
- Minimum Deposit: $1
- Expiry Times: 1 minute – 1 week
Quotex
Quotex offers a bespoke trading platform with a sleek design and trading signals.
- Payout: Up to 98%
- Minimum Deposit: $10
- Expiry Times: 5 seconds – 4 hours
Other Factors
While high payouts are a key consideration, there are other factors to take into account when choosing a binary options broker:
Reliability & Reputation
Safety and security are important in binary options trading.
The industry has a track record of scams with several notable regulators choosing not to represent or license binary options firms, including the Financial Conduct Authority in the UK.
As a result, traders often look to offshore brokers to trade binaries. These firms may try to entice potential traders with high binary options payouts, joining promotions and other financial incentives.
To avoid untrustworthy providers, only trade with established brands that are popular in the binary options trading community. See our list of the highest payout binary options brokers for our top picks.
Available Assets
Binary options brokers with high payouts offer access to different underlying assets. Forex pairs, stocks, and commodities are usually available. A growing number of platforms are also offering opportunities on cryptos like Bitcoin, though payouts tend to be lower.
Expiries
Also check the binary options contract lengths available on the assets you’re interested in. Some firms offer ultra-short-term binaries that last 30 seconds to 60 minutes, while other brands offer contracts that last hours, days, or weeks.
Features & Tools
Popular high payout binary options brokers also offer additional tools and services to enhance the user experience. This includes copy trading, whereby you follow the trades and setups of experienced investors.
Additionally, some brands let users double up on winning trades and cash out of contracts early to secure profits or minimize losses.
Risk-free trades are also provided by some platforms.
Demo Accounts
Binary options demo accounts allow traders to trial a broker’s platform and test their strategy.
Paper trading profiles can also be used to view a brand’s payouts on popular assets. Payoffs by instrument are usually displayed directly in the trading terminal, either in the new order widget or asset navigation menu.
Fees & Costs
While some binary options brokers boast high payouts, they could make up for potential losses by placing fees and charges in other areas. These can include higher deposit or withdrawal fees and inactivity penalties.
Customer Support
If you come across a problem, having responsive, helpful customer support is valuable. The highest payout binary options brokers often offer 24/5 or 24/7 assistance via live chat, email and telephone. Some brands also offer video support and help through popular social media channels.
Final Word On Binary Options Brokers With High Payouts
The highest payout binary options brokers offer the best returns on ‘in-the-money’ trades. Some platforms can even offer payoffs in excess of 100% if the market conditions allow it, for example, if the trading volume has all gone in one direction.
But while binary options brokers with high payouts may feel like an obvious place to start for beginners, there are other factors to consider, including the range of underlying assets, expiry times, minimum deposits, plus additional features and copy trading tools.
Head to our ranking of the highest payout binary options brokers to get started.
FAQ
What Is Considered A High Binary Options Payout?
Typically, brokers will set the payout of a binary options contract between 20% and 90% depending on the underlying asset and market conditions.