SpotOption is one of the oldest binary options white label platform providers on the market today. The brand is spread across hundreds of brokers and well known for a couple of things. One of them is versatility and depth of the platform. They have long been an innovator when it comes to binary options trading and features important to traders. Another is that the ease of use on the broker side and largely unregulated nature of binary options has made them a favorite of scammers. This doesn’t mean that SpotOption is a fraud or that all SpotOption based brokers are frauds, far from it. There are many regulated and trusted brokers operating under this banner and more are sure to come. SpotOption itself is licensed by CySEC and has recently opened a new office in London for the express purpose of servicing regulated binary options trading in the EU. They also have a similar office in Hong Kong, servicing the Asian market.
When it comes to individual brokers there are some variations depending on which version of SpotOption they are running and which features they choose to run. For the purposes of this review I will be focusing on the latest version but I will touch base on the evolution before going on. The original platform, simply called SpotOption, was advanced but buggy. High/low and some other exotic options were available and first versions of the OptionBuilder were present but it had none of the depth later versions have. Some brokers are still running on the original but most are using the more advanced Spot2 platform. This platform has expanded features to include CFD and spot forex trading, copy trading, Ladders, more advanced charting and fixed some bugs found in the earlier version.
SpotOptions Is Fully Featured
Standard high/low options come in a variety of trading styles with expiry ranging from 30 seconds to 6 months or more, with dozens of other choices in between. In terms of strategy and time frame the platform can be used for them all. Exotic options include Pairs, One Touch and Ladders. Pairs trade like forex but are combinations like Gold/Silver or Goog/MSFT. Payouts for these options run in the range of 75%-85%, same for high/low. One Touch options require only one touch of a set strike price before expiry. They trade when the market is closed and have expiry like end of next week or at the close of tomorrow. They carry more risk and give higher payouts, 100%-300% depending on conditions. The Ladder Options are my favorite trade on the platform and SpotOption’s answer to the high yielding 0-100 option product offered by AnyOption. These options trade in the above/below style with set strikes and payouts that can go up to 700% or more.
The copy trade feature, known as SpotFollow or iFollow, is powered by the same algorithms that operate the eToro forex social trading platform. You can trade iFollow on eToro but it is not recommended. The best method is to use a good, regulated, SpotOption broker but be warned, copy trading is very risky. The system uses a leader board that can be filtered by asset, success rate and etc. You set trades with limits like trade size, total amount to be risked, how long you follow and how many trades you will follow. The idea is sound, the risk is that you choose the wrong person to follow.
Spot forex and CFD trading is also available. Spot forex trades just like it does on a standard forex broker; you trade lots, have unlimited risk and profit/lose based on the number of pips of movement. CFD’s, contracts for difference, are similar to binary options but trade more like spreads having a maximum and minimum payout based on the movement of the underlying asset. These are similar to NADEX Binary Options.
Early Out/Close Now and Rollover features are usually available too, features of the standard high/low trade. Early Out allows you to close a position before the indicated expiry time. It is usually only available on options with expiry longer than 15 minutes and has a window of availability. Payout will depend on the price level of the asset, if it has moved counter to your trade you will lose some money but if it has moved higher you may win some profit. Rollover allows you to add more time to an options once per position by adding a little money to your trade. It is also typically only available to options with longer time frames.
Options can be viewed in 4 different screens. The first is modeled off the original version, a single large ticket window per option. Others include a bar listing, smaller ticket windows where you can watch a dozen or more assets at one time and a larger single window version where you find the best charts. These charts aren’t quite what you get with MT4 but do give a nice candle stick view of the option you are trading.
However improved there are still some problems. The system is still a little buggy in the shortest time frames, 30 and 60 seconds, but these types of options are sketchy in the first place so that issue does not bothering me, price lags in the higher time frames are not noticeable. They are also lacking a range type option which can be found on other platforms which could be a problem for some traders. Not surprising as they have a higher likelihood of closing in the money.
What’s The Verdict?
Basically, this is the most fully featured binary options platform on the market. There is little you can find at another broker you can’t find here. In terms of the difference in features between SpotOption and other platforms is this, they might have something SpotOption doesn’t have but SpotOption has so much more than the every other platform it puts them in a category all their own. The expiry is really what does it, they don’t limit the type of trading so they become an option, no pun intended, for more types of traders.
Availability of the platform is just about global, except for in the US. Otherwise there are both CySEC regulated and non-regulated brokers using it, regulated the recommended choice. Payouts are average, only 75% to 85% for regular high/low binary, but the exotic options are much better. Money is usually safe, but it can depend on which broker you choose. The number of scammers is getting smaller and smaller but there are a few still out there. US traders can expect to see a solution for them soon. SpotOption has been working with Cantor Exchange to produce a viable CFTC approved exchange and testing is underway now.
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