Binary Options Brokers with Custom Software

Introduction

There are certain binary option brokers that have decided to go against the normal trade types and contract specifications offered by a generality of brokers, to provide unique trade types and trade conditions of their own. These trade types and conditions cannot be captured by the conventional white-label solutions provided by SpotOption, Tech Financials Ltd, Tradologic, Hello-Markets or O-Systems software. Therefore, this select group of brokers have had to go the way of developing their own patented software to mirror their offering to the market. This is why we have brokers with customized platforms and software.

What Makes These Proprietary Platforms Unique?

The uniqueness of the individual platforms lies in their ability to capture the essence of the product offerings of the brokers that own them. These brokers want to run away from the “one size fits all” selling proposition of the white-label software. Even in the forex market where the MetaQuotes product, the MetaTrader platform is very popular, many brokers have either created their own software to run alongside the MT4, or have opted to operate strictly on their own trading engine.

This also allows developers to specialize and work strictly on software that can run on the programming languages of these platforms. Developers of MT4 software add-ons and experts can easily testify that one of the greatest problems they face is software piracy. This is a problem that customized platforms aim to fix, with a good measure of success recorded.

Individual Brokers

Here are some of the individual brokers that are known to operate with their own proprietary platforms in the binary options market.

StockPair Review

StockPair is a binary options platform that basically has two trade types. Our emphasis is on the second of the trade contract types, which is the pair options trade. This is a trade type which pits one asset against another asset of the same class or listed in the same sector. This is not a conventional binary options trade contract, and so will require a specialized trading engine. StockPair has been able to come up with unique trading engine for this trade type. Returns on trades also do not follow the conventional fixed return format for regular binary options. The structure of the payout for the pair options trade is such that if the trader bets on the asset that is generally expected to outperform its peer, the payout is low. However, if the trader bets on the underrated asset and this outperforms the asset that is the favourite to win, then a high yield payout is expected. This is an interesting trade type and since there is no software provider with a white-label solution that mirrors this trade, StockPair had to design its own trading engine for the pair options.

Binary.com Review (formerly BetonMarkets)

Binary.com, which used to be known as BetonMarket (BOM) was one of the first binary options brokers to participate in the retail end of the market. This company has a uniquely created trading platform with unique trade types. One hallmark of the Binary.com platform is that traders have a lot more flexibility than many other brokers. Traders can most of the time, choose their own strike prices for trades, allowing them to work trades around their own strategies. Profits are also expressed not as percentage of the invested amount. Rather, traders can choose what they want to earn from a trade, and the trading engine presents the amount that must be invested to be able to get the total payout. The peculiarity of the binary options trades on Binary.com are not captured on any white-label solutions out there, which is why Binary.com came up with a unique trade engine that takes care of things in this regard.

NADEX

By virtue of the fact that the North American Derivatives Exchange (NADEX) actually operates like an exchange and not like a conventional brokerage, there is no way NADEX could really operate with a white-label solution. This is why the IG Group which owns NADEX had to design a unique trading engine for their American operation. NADEX also has a unique feature on its platform: the ability to trade two news items on the platform (Non-Farm Payrolls and weekly Jobless Claims). The conventional trade type on NADEX is the 0-100 trade, where binary options settle at $0 or at $100, and profits or losses are calculated on the basis of the asset direction, the number of contracts purchased or sold and the difference between the purchase/sale price and the expiry value.

Saxo Bank Review

Denmark-based broker Saxo Bank, which has traditionally been known as a forex broker, delved into the binary options market with the launch of its forex options product in 2011. The forex Touch options, which will be traded on six of the most liquid forex pairs, will allow clients the ability to close-out their long or short positions at the current market price prior to expiry. Such a unique condition is not captured by any white-label platforms in the market presently, necessitating the development of a unique binary options platform by Saxo Bank.

CX Markets Review

CX Markets is the binary options brand of Cantor Exchange LLP, an American binary options broker which offers similar trade conditions to that of NADEX. The Cantor Direct® electronic trading technology is the in-house software through which traders can submit live trading orders into the exchange for execution and receive our proprietary market data information. There are also versions of the software for the iPhone and Android devices.

 

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