Update on the broker CWOption
Like many other binary options brokers, the company CWOption closed its operations in mid-2018 due to the ban on these trading instruments in Europe and other jurisdictions. To this, we must also add the bad reputation that binary options have acquired among retail traders.
However, if you are interested in trading binary options and other instruments such as Forex and CFD through a recognized and regulated broker, you can try IQOption.
You can get more information about this company in the following guide: IQOption broker review
Review of the Binary Options Broker CWOption
Type of Broker
Country of origin
- Forex Market: 15 currency pairs of the Forex market, including the most important such as the EUR/USD, GBP/USD and USD/JPY and other more exotic like the USD/RUB and USD/TRY.
- Commodities: 7 of the most important and traded commodities in the market including crude oil, gold and silver.
- Stocks: 30 of the most important stocks of the main stock markets in Europe, United States and Asia including Amazon, IBM, Google, Barclays, Fiat, Tata Motors and Nissan among others.
- Indices: 20 stock indices. In this case, the client of CWOption can trade with options based on the main indices of the most important stock markets including S&P 500, Nasdaq, Dow Jones, FTSE 100, CAC 40, Bombay SE, DAX 30, ASX and other.
- Cryptocurrencies: Bitcoin against the USD, CNY and other.
Types of Binary Options
- High/Low Binary Options (Classic binary options): This is the most common and traded type of binary option in the market thanks to its simplicity and the high and fast income that it offers to the trader. In this case the trader must establish if the underlying asset price is going to end above or below the acquisition price once the option expires. In other words, the trader must predict if the price goes up or down. Usually, the expiration period of the High/Low options offered by CWOption is 1 hour, but this value can vary up to several months. For example, the client can trade with 30 seconds options
- One-Touch Binary Options: It is a more complex type of binary option in which the trader must predict if the price of the financial asset (the underlying asset) will reach or not a predetermined price level. If the price touches that level, the option automatically expires without terminating its expiration period. Normally, these options have a longer expiration period than the Above/Below options and offer better performance of up to 500%.
- Customized binary options: These are customized above/below options in which the trader can modify the main parameters of the option such as the expiration period, the underlying asset, the earning offered if the option expires “In The Money” and the risk level of the operation. In this way, the clients of this broker can trade with completely adapted to their needs and trading strategies.
- 30-120 seconds options: These binary options have an expiration period of just 30-120 seconds. For this reason, these very short term options are ideal for traders who want to take advantage of market micro-movements. Due to the fact that these micro-movements occur many times a day, the trader has the opportunity to perform several trades each trading session with this type of option.
- Pair options: These are binary options in which the trader speculates about the performance of financial assets compared with the performance of another asset such as the case of a stock of a specific sector in relation to another stock in the same sector (eg Google vs. Facebook). Generally, for these transactions are used pairs of assets that are closely related, such as precious metals (gold and silver), stocks (Intel and Apple), indexes and others.
- Ladder Bet Options: This is a special type of binary options trade that offer various strike prices instead of one as in the case of High/Low binary options for example. The concept behind these transactions is that the total payment of the trade depends on the price to be able to reach all levels or exercise prices (target prices), which are arranged like the rungs of a ladder. This means that the trader can obtain partial or total payments with these options, which offers greater flexibility in the trader´s transactions.
Payments Offered by CWOption
- High/Low Binary options: 70%-85% of the contract inversion.
- One Touch Binary Options: 75% to 500% of the contract inversion.
- Pair Binary options: 70%-85% of the contract inversion.
- Ladder bet Binary options: A performance up to 1500% of the contract inversion.
- Micro Accounts (minimum deposit of $250): This account is designed for beginner traders with little capital who wish to gain trading experience with binary options without exposing themselves to large levels of risk. It offers a minimum transaction size of $10. Traders with Micro accounts do not receive the same benefits that can be obtained with more important accounts, however, they can have access to daily market reports and analysis in their email, as well as tutorials and video tutorials on trading in general and binary options.
- Mini Accounts (minimum deposit of $500): It is an account type created for traders with little experience but with a higher level of capital to trade in the binary options market and who are willing to expose themselves to a higher level of risk. It offers the same services and benefits as Micro accounts, including daily trading advice and recommendations, as well as remote support from the CWOption trading room.
- Standard Accounts (minimum deposit of $1000): This is CWOption’s regular trading account and is designed for intermediate level traders with a higher level of capital and trading experience with binary options. It includes all benefits of the Micro and Mini accounts along with more underlying assets (such as commodities, indexes, and shares) to trade with binary options. Traders wit a Standard account enjoy VIP spreads, personal training and improved trading conditions.
- Gold Account (minimum deposit of $5000): This is a type of account created for professional traders and with a high level of trading experience with binary options. In addition to the services and benefits that characterize Standard accounts, it also offers fixed spreads, higher payments for options expired In The Money and a personal account manager who is always willing to discuss ideas and advise the customer. Traders who have a Gold account receive numerous special offers, including trading signals from outside suppliers.
- Platinum Account (minimum deposit of $20000): It is a type of account for VIP clients of CWOption. It offers a series of additional services for the trader, such as higher payments for options that expire In The Money, a VIP account manager that provides personalized service, analysis and personalized reports of the market, trading platforms with all their functions enabled and more.
- Roll Over: This function offers the possibility of extending the expiration period of a binary option. Thanks to this is a very useful tool in those trades in which the trader predicts that an option that is “Out The Money” for the moment presents a high probability of expiring “In The Money” if the contract period is extended. However, this function should be used carefully as there is always the possibility that the option expires “Out The Money” even with the extended period
- Double Up: Through this function, the clients of this broker have the possibility to increase the volume of their trades. For example, if an option is close to its expiration time and the trader predicts that the underlying asset price will continue in the same direction, he can create a new trade with the same conditions but for the current price of the asset. In this case, this feature allows the trader to double the profit that he can get in a trade.
- Settle Now: This function allows the trader to sell a binary option back to the broker until 1 hour before the contract expires. This tool not only adds a dynamic edge to the platform but also allows the trader to limit and reduce their losses and secure their profits in advance. Settle Now function is available only when indicated by the platform.
Main Advantages of CWOption
- CWOption offers regular promotions and bonuses for regular clients and traders that open a trading account and deposit funds.
- The trader has the possibility to trade with several types of binary options based on many financial instruments (underlying assets), such as Ladder Bets and pair options.
- Among its services, CWOption includes short term options (with maturities of 30 to 120 seconds) and the ability to trade with custom options through the Option Builder function.
- For Gold and VIP Accounts, this company offers a free service of trading signals.
- This broker offers specialized daily and weekly reviews of the market.
- The process of opening a trading account is simple and fast.
- The client of this broker has the possibility to extend and reduce the expiration period of an option.
- Through its website, this broker offers a free e-book about binary options.
- This broker offers excellent customer service which includes the following features:
- 24 hours customer service.
- Contact through e-mail, telephone and live chat.
- A free account manager.
- The possibility to chat at any moment with a dealer of the company.
- One to one trading.
- For customers with a VIP account, the broker has many extra advantages such as special VIP service, high-quality educational resources, professional training and access to analysis tools and reports from Trading Central.
- This broker offers many educational resources to its clients.
- CWOption offers the possibility to earn money by promoting its services as a broker through an affiliate program.
Main Brokers Offers
- A 100% welcome bonus for new clients that open a trading account and deposit funds.