Ladder binary options are a relatively new and still quite rare form of binary option trading that allows traders to receive “stepped” return rates as an asset price reaches certain levels. This article is not about ladder binary options themselves but we should probably at least provide a brief overview for those unfamiliar with these contracts (which will probably be most people reading this).
Ladder options are structured somewhat differently depending on the broker offering them, but they all have certain core features in common. Most commonly the broker will offer you 3-5 price levels, choice of expiry, and call or put options for each price level. Confusing isn’t it? These options would be hard enough to explain even without the fact that each broker does them a bit differently. So, we’re going to let a picture say a “thousand words” for us instead.
The image above should give a general idea of how these options work. Unfortunately, aside from that we really can’t get much more detailed because beyond these basics each broker handles things differently. As you can see though these options can offer returns above 1100%! And actually, they go all the way up to 1,250% in some cases. Though obviously any trade offering a return like that is a serious long-shot trade.
The Best Brokers Offering Ladder Binary Options Trading
At the time of this writing there are only a small handful of brokers offering these ladder binary options so your choice are quite limited. This is especially true if you happen to be a US based trader. However, we did find two good brokers catering to US traders. Of the binary options brokers offering these options we ended up with a list of only three which we could recommend. The others are either downright low-quality brokers or, in a couple cases, brokers which we simply don’t have enough information on or experience with.
Our #1 choice for the best broker offering ladder binary options is Banc de Binary. BDB is one of the oldest and most respected brokers in the industry and also serves one of the largest client bases. Unfortunately, Banc de Binary is no longer accepting US traders for the time being. They are working on changing that, but it won’t be any time soon. You can read our last review of their trading platform and service here.
Our #1 choice for US-based binary options traders is GTOptions, hands down no contest. In fact the only reason they are not #1 overall is because they have less of an established history than BDB. But not by much and it was a close call to make. However, of the three brokers offering ladder binary options listed here, I liked the GTOptions implementation of them the best. GTOptions also offers pairs, long-term options, 60-second options, and one-touch options. Six contract varieties in total. That is more than all but a few other brokers. The industry average is four.
And our “runner-up” choice for US binary options traders would be the newer broker, GOptions. We’ve had the chance to trade on their platform a bit and get a feel for their service by “borrowing” a friend’s account for a week and promising to replenish any lost funds, while letting him keep any profits (which there was, to the tune of a couple hundred bucks anyway). We quite liked the platform itself and with its interesting contract choices which, in addition to ladder options, includes pair options, 30-second and 2 minutes options, and of course all the standard choices. A solid choice overall.
It will be interesting to watch and see if these contracts spread to other brokers as their popularity increases like what happened with 60-second options after Traderush first introduced them. For now your choices are limited, but the three brokers which we have included here all have good platforms overall, in addition to offering the ladder options. If you have any experience with these brokers or with trading in these option contracts then please feel free to leave a comment below for your fellow traders!