Redwood Options Review – Worthy or Worthless?
In our latest Redwood Options review we take a close look at this popular new broker that has relatively recently entered the market. Redwood officially launched in April of 2013, but has been able to shoot towards the top of this fiercely competitive market in a very short time. This is at least partly thanks to its backing by the same parent company that brought us TradeRush (our personal broker and a long-time favorite). This association brings to the table not only tremendous experience in successfully managing a binary options trading service but also the reassuring financial backing that comes from being a part of this highly successful and profitable firm. No chance of an iOption type bankruptcy event with these guys. In addition they have consistently lead the industry in innovation – being the first to introduce both 60-second binary options, and pair options trading to a primarily binary options platform – and have an outstanding reputation as a reliable and trustworthy company. We see these as highly desirable traits in a market which is still somewhat of a “wild west” atmosphere at the moment (though that is changing quickly as these instruments continue to grow in popularity and become more mainstream).
Redwood Options Basic Info
Home Page: http://www.redwoodoptions.com/
Minimum Deposit: $200 (or EUR, 20000 JPY)
Accepts US Clients? Globally? Yes / Yes
Minimum Trade Size: $5 on 60-Second | $25 on Standard High/Low
Deposit Bonus? Yes – Up To 100% (and no less than 30%)
Contract Varieties: High/Low, 60-Second, Builder, One-Touch, Pairs
Maximum Trade Size: $5,000 (and no position limit)
Maximum Returns: 81% Standard / 600% for One-Touch
Demo Account? Yes – Details At End Of Review
Read On For The Full Review Of Redwood Options…
Redwood Options Accessibility/User-Friendliness – (8.9/10)
The fact is that most binary options brokers do pretty well in this category almost by default simply due to the very nature of the instruments they specialize in. The relative simplicity of these instruments compared to most other forms of financial markets speculation is one of their biggest selling points, after all. And most good brokers do their very best to keep it as simple and user-friendly as they can while still providing the kind of trading capability that clients expect and demand. This simplicity is attractive even to sophisticated traders as it allows you to concentrate your efforts on more important things (like learning the markets you trade in).
Redwood Options has a fairly intuitive platform layout and a very accessible site navigation structure, with everything of importance within just a couple clicks. When it comes to ease-of-use of the trading platform, Redwood is probably about on par with other top brokers in the business. Some do better, many do worse. But this isn’t the only thing we take into account when considering a broker’s score for this category. We also think that accessibility is partly influenced by the quantity and quality of educational and market analysis material available. Redwood Options does pretty well here, providing an excellent assortment of general educational material, including a video academy, video courses and an eBook. In addition to this they also provide ongoing, up-to-date market commentary and analysis.
The Redwood Trading Platform & Features – (9.5/10)
We found that the trading platform at Redwood was, unsurprisingly, quite similar to that of TradeRush. Both brokers are, of course, owned by the same parent company and with TradeRush being such a huge success why get too far away from what you know works and know traders love. Redwood Options tried to incorporate all of the best and newest features and innovations which have been introduced by some top brokers, including TradeRush. This includes the newest innovation of them all, bringing some pair options trading capability to the standard binary options platform. Until very recently this was the sole providence of StockPair, which specializes in pair options (and is another favorite of ours – pair options are great). During our review period of a bit over 30-days we encountered no technical glitches or other serious problems and overall they did very well here, living up to the standards set by TradeRush before them.
Some Redwood Options Platform & Features Highlights
- One-Touch Up To 600% Return Rates
- Option Builder For Custom Contract Creation
- Detailed Pop-Out Charts
- Up To 81% Payouts On 60-Second Options – Highest in the industry
- Options Offer a 10% Return of Investment for OTM Trades
- Traders Choice Bar – “Wisdom of the crowds” feature
- The Popular “Double-Up” and “Roll-Over” Features
Redwood’s Underlying Asset selection – (8.8/10)
The underlying asset selection available at Redwood Options is another area where they are about on par with other big names in the business. However, Redwood has the edge in one way that most of the competition does not. And that edge is the pair options trading capability which was briefly mentioned earlier in the platform section. While they can’t compete with StockPair most brokers offer no pair options at all so this is a nice addition to the primarily binary options platform. Directly below here you will find our breakdown of the underlying assets at Redwood.
- 21+ Major Global Indices
- 20+ Popular Global Stocks
- 13 Major Currency Pairs (Including the new BitCoin/USD pair!)
- 7 Hot Commodities
- Plus A Growing Variety Of Pair Options Combinations
When you include the pair options and contract varieties you’ll find that Redwood Options has an asset lineup which is very comparable with those of the other top brokers, and decidedly better than some.
Redwood Options Top/Avg. Return Rates – (9.7/10)
The payouts/return rates offered at Redwood are really very good. While doing this Redwood Options review we were actually surprised at how consistently good they were over the course of our 30-day review period (roughly, we actually went a few days over). This was surprising because it is not necessarily obvious at first glance. Redwood Options does not have the highest top payouts for standard high/low binary options in the industry by any means. They advertise this number as being “Up To 81%” for the regular high/low contracts. While this is good for the industry – being in the top half at least – it is not the best, with some top brokers offering as high as 87% or even higher in some rare cases. This doesn’t tell the whole story though and there is more to consider here. The more important number is the average return rate offered on all trades. During our time there we calculated this as being nearly 78%, which is possibly the highest we’ve ever seen in our time trading with and reviewing brokers. It is certainly among the very best at a minimum.
In addition to the top-notch payouts on their standard, high/low type binary options contracts, Redwood Options also has great payouts on their other contract varieties. They return rates on these other contract types can be very important depending on how much you may end up trading in them. 60-Second binary options for instance have grown wildly popular since their original introduction by TradeRush in 2012. And there is great news for those who enjoy these options. Redwood has the highest payouts in the industry on its 60-second binary options contracts at up to 81% That’s the very best we currently know of and most others top out at 75%. :Last but not least, Redwood offers return rates of up to a whopping 600% on the weekly one-touch binary options contracts. Also one of the highest rates in the business for these contracts. Overall they did really outstanding here and it was not something which we had expected to find at a newer broker like this.
Review Of Redwood Customer Service – (8.3/10)
This is the category in which Redwood received its lowest scoring. This was not, however, due to giving us poor customer service during our time there. The customer service team at Redwood Options was unfailingly friendly and helpful throughout our brief stay with them during the review period. The points which they lose comes from the fact that as of this writing (12/21/2013) they can only offer customer support in the English language. Many other popular brokers offer support in several widely spoken languages so Redwood is behind the curve here. We are told, however, that they are working hard on adding support in several more languages and that this should be implemented over the coming year. And, of course, as long as you are an English speaker (which is highly likely if you’re reading this) then this will not affect you at all.
Overall Redwood Options Review Score = 45.4 = 9.0/10
Redwood Options Demo Account Offer Information
At the beginning of this review we promised that later on we would provide the details needed to get your hands on a special completely free 24-hour Redwood Options demo account. This offer is for BOTSchool readers/visitors only and allows you to try out their platform and various contract type for 24 hours without risking a dime of your own hard-earned money. All you need to do to access this Redwood demo account is register for free just like you normally would, and then provide the following code to the Redwood customer service: “RED DEMO”. This will give you $500,000 to play with for 24 hours. While 24 hours isn’t a heck of a long time it should be enough to try out all the different contracts and platform features so that you have a good handle on things by the time you’re ready to trade with real funds. Enjoy!