In this optionFair review we cover the policies and trading site of this leading binary options broker. This review of binary options broker optionFair is honestly a welcome relief from the same old hum-drum binary options brokers. optionFair represents a breath of fresh air and innovation in an otherwise mostly bland market. It’s easy to look at the logo to the left and think to yourself, “Yep, same old assets and yields,” but that would be a gross injustice to a very innovative trading firm. Let’s take a look at some of the specifics of the TYPES of contracts offered at optionFair which you simply will not find ANYWHERE else.
FIRST: Please Note that optionFair is NOT presently able to accept US and Israeli resident clients.
Hopefully this will change soon. US and Israeli residents please CLICK HERE
What Binary Options Trading Position Do You Want?
“What sort of question is that?” you might ask. “What do you mean what trading position do I want? You only get put or call positions right?” Wrong. optionFair allows you to be on whatever side of the trade you can imagine. Remember the binary options hedging position we used to create to create a “goldilocks zone”? What if you could BUY that position from the get-go without the risk of starting out with a naked put or call position? Wouldn’t that be a better way to trade if that’s the position you wanted to take? Well now you can at optionFair. It’s called a “Inbound Option.” You invest the same way you would a standard binary options trade however instead of buying a call or a put and then waiting for the market to move so you can create your hedged position, now you buy the box right off the shelf. Yields on contracts where the underlying asset expires inside the box payout the same as a normal binary options contract. Yields outside the box are typically a 15% return of initial capital. But that is not the only type of trade offered.
Binary Options Trading “Outside the Box”
optionFair Offers Bounded Options Allow a Trader to Buy a Range of Values - Inside or Outside the Box
Yeah, as the headline implies, you can buy outside the box positions as well. What this means is you would buy a position where you end up “in the money” if the asset prices at expiry OUTSIDE the pre-determined range at the time of purchase of the contract. Think of it as though you had a binary call option with a strike price above the money paired with a put option with a strike price below the current price. If you hit on either position (it’s considered a single position but bear with me), the contract expires in the money and you get 70-85% yield depending on the contract terms. If it expires out of the money, typically a 15% return of initially invested capital is given.
Other Types of Contracts Available
As if the above hybrid binary options contracts weren’t enough, there are also several other types of positions to exploit, namely:
- No Touch Options – If the asset doesn’t hit the target price at any time during contract duration, option expires in the money
- Note – this is NOT a “price only matters at expiry option.” The option is live and eligible to “touch” during the entire life of the contract.
- One Touch Options – Similar to the No Touch options. If at any time during the duration of the contract the underlying asset “touches” the target price, the contract expires in the money. This is like a binary options version of a standard or “American” option contract.
I have to imagine these two particular kinds of contracts have to be VERY popular with traders. No more nail-biting on an “in the money” position as time ticks down to expiration.
Taking Advantage of Early Closure Option
If for example you have anything other than a One-Touch contract you have the ability to execute early closure on that trade. There are computations related to the value and yield of such a trade but there is no calculation to make in advance. The nice thing however is that the opportunity to MAKE such a decision (to close a position prior to expiration) is a great advantage.
The All Important Bonus Cash
Bonus cash at optionFair is only a one-time affair, but the offer is good. First deposits on new accounts receive an escalating bonus from 10-30% based on the amount of the deposit. Up to $499 receives 10%, up to $999 receives 20%, and $1000 to a max $5000 receives 30%. Bonus cash is restricted until 20x the BONUS amount is traded meaning: A $1000 deposit receives $300 in bonus cash which is free to withdraw once $6000 in trading volume (20 x 300) is reached. This is more than fair given the decent % bonus I think.
Important Notes on Withdrawals and Deposits
After initial deposit the maximum deposit is $1000/day, $5000/week, or $15K/month. Withdrawals are a little confusing but they make sense so bear with me a second. Withdrawals UP TO the amount of total deposits are made back to the original funding source (prevents money kiting schemes). Profits above deposits made are wired to the bank account of your designation. Traders are allowed one free withdrawal per month ($30 fee thereafter). In the instance of a 1st withdrawal of the month that exceeds deposits (ie a profit withdrawal), the wire portion of the payment is NOT considered a 2nd withdrawal so long as it exceeds $250 (otherwise $30 fee applies). Sorry if that sounds confusing, but it honestly is designed to reduce money fraud.
Funding options are USD, GBP, and EUR, established when the account is initially opened. Minimum deposit $200 (or 200EUR, or 200GBP depending on your account base currency). Minimum trade size is $10, max trade size $1000 with max total account exposure of $2000. Unlimited number of contracts otherwise.
Binary Options Securities Traded
Honestly their securities offered aren’t exactly the most extravagant but can you blame them given the awesome variety of contracts offered? Anyway, here’s a quick run-down of what you can expect to trade at optionFair.
Indexes:
FTSE-100, DAX-30, Dow Jones, Nasdaq Composite, IBEX- 35
Stocks:
Vodafone, Lloyds, British Petroleum PLC (BP), Barclays PLC, Google Inc, Apple Inc, Telefonica SA
Commodities:
Gold, Silver
Forex Pairs:
Euro-Dollar, Pound-Dollar, Euro-Japanese Yen, Dollar-Japanese Yen, Pound-Japanese Yen, Euro-Pound, Australian Dollar-USD, USD-Canadian Dollar
Conclusion:
What binary options broker optionFair lacks in terms of variety of assets traded they more than make up for in terms of types of contracts available. There are a LOT of reasons traders will be happy using optionFair. I just hope they start taking US clients!