For a long time ZoneOptions used to be the ideal choice among binary options brokers for beginners. However, time has not stood still, and where the competition has innovated, ZoneOptions still offers exactly the same product. That's not bad, but there are better options (see reviews) available nowadays. In this binary option broker review, we look at the details of ZoneOptions.
Binary options offered
ZoneOptions has a reasonable range of binary options. Firstly, can you trade in a number of different options types. The following types are available:
- High/low: An option whereby you predict whether the price will go up or down from the current rate.
- Touch/no touch: An option that pays out if you correctly predicts whether the price will reach a certain value for the end of the term.
- Boundary: An option whereby you must predict whether the price will fall within or without a certain bandwidth on the maturity date(also called 'in/out').
Secondly you can buy these options on various types of underlying assets. ZoneOptions has binary options on stocks (+/-30 of the world's most traded shares), on commodities (gold, silver and oil), on global stock market indices and binary options on forex (foreign currency/currencies). This range is smaller than what most competitive brokers offer.
Risk and return
Returns on binary options at ZoneOptions can range between 65% and 360% per option. That is to say, if you predict the outcome of the option correctly, you stand to gain 65% to 360% on the amount risked (plus the deposited amount itself). We found 65% to be too low. To this end, we recommend to only choose those options if you are almost certain of your prediction of the price direction.
The options that give a return of 360% are so-called 'high yield' options. There is a reason why this return is so high: the probability that the touch or the boundary would be reached is small. These binary options are a good example of high return, high risk. If you buy high yield options, you would expect that you would usually lose your investment. But if they turn out alright just once, then you get the chance to book a hefty profit.
Another unique option is the 'early closure' option. It gives you the opportunity to even terminate the binary option that you've taken before the time of expiration. This is a big advantage because, for example, you can make profit if the option ends 'in the money' and thus protect yourself against loss if the share price drops later. However, early closure is going to be at the expense of your return.
The trading platform
ZoneOptions’ trading platform is completely web-based and accessible through your internet browser. That means you can reach them from any computer and that you don't have to install anything to trade.
We find the trading platform very well structured and finished. Everything is exactly where you expect it to be, and that makes the process easy and intuitive. The main screen shows a list of all available options, in which you can set up a filter to determine what products you do and do not want to see. If you click on an option, you'll get more information about the option, including a price chart. That makes it easy to see at a glance a picture of how the price develops. The software from ZoneOptions is the main plus point to this broker.
For mobile phones, ZoneOptions has a special mobile web application for binary options trading. If you are visiting the website of ZoneOptions with your smartphone, and you log into your account, you automatically go into the mobile application. From there you have all the same possibilities as you have on your computer, but displayed for a smaller screen.
Minimum deposit, position size, and bonus
You can open an account at ZoneOptions starting from 200 pounds. In the world of binary options, that is slightly less than average: the minimum deposit for binary options brokers (review) is generally between 100 and 500 pounds. The broker does not use a 'margin call', so you can trade options directly with your entire deposit.
The minimum size of a binary option at ZoneOptions is 20 pounds. Above that minimum, an option of any size may be opened. You never risk more than the amount for which an option was opened, even if the value of underlying asset plummets.
In the past, ZoneOptions offered new customers a welcome bonus. That is no longer the case. However, you get a 100% risk-free first trade. (That is, if you predict the outcome incorrectly in your first trade, you will receive the purchase price of the option (up to 50 pounds) back in full.)
Conclusion of this broker review
All in all, we are not satisfied with the possibilities that ZoneOptions offers these days. The software is easy and intuitive, but the trading options are too limited. The return/risk is too low. At end of this broker review, our assessment for ZoneOptions is a rating inadequate (2/5 stars) give.
Binary options broker ZoneOptions review summary:
|Minimum/maximum position size||GBP 20 / 2,000|
|Term of options||60 seconds – 24 hour|
|Binary options on||Equities, stock market indices, forex, and commodities|
|Software platforms||Web-based trading|
|Minimum first deposit||GBP 200|
|Deposit methods||& Bank transfer|
|Bonus||100% risk-free first trade|