August 29, 2015 at 8:11 pm
I have been thinking and looking around on the internet and it seems that every second broker you see are SpotOption platforms. It is like they increase 10 fold every week lol. Why is this? Are they the cheapest to setup or simply the best option to go with then looking to start your own brokerage?
August 29, 2015 at 8:19 pm
Once again a kind of grey area. Are they the most used? For sure, no doubt. Are they the best when looking from a trader’s point of view – probably not!
I did some research and yes, SpotOption platforms seem to be cheaper to setup, thus the majority of businessmen decide to go that route. Cheaper is not always the better option. Sometimes spending a few extra pays off in the end.
August 31, 2015 at 1:28 pm
Yeah for sure these brokers are EVERYWHERE that use Spotoption as their platform. It must probably be the best bang for your buck out there. I don’t see any other reason why all the binary options brokers would be using them otherwise. I’m not sure, but I think it’s also a very flexible platform where they can set different stuff like spread, trade execution and so on. I might be wrong. Someone else have any knowledge of this?
August 31, 2015 at 4:16 pm
It could be, but I’m also not sure. I reckon that it does indeed give you these settings that you are talking about that you can change, but there is no way of knowing. The only way to be sure is if you actually buy the platform yourself. This being said, other platforms would probably have the same settings.
So I think that the main reason why most brokers use SpotOption is probably because it is the cheapest one out there. I have never really had a liking in brokers that use this particular platform. There is too many issues with trading on them in the past.
September 1, 2015 at 12:15 pm
This is a very good question. I for one am not a fan of spot-option brands at all. The conversation of white label vs black label brokers comes up whenever discussing this topic. I believe spot-option brokers do make up a majority of the market but that does not necessarily make them the best choice for traders. Re-quotes and slippage are VERY common in my opinion (and personal experience with these) and because of this and other reasons I prefer to use more targeted brands like 24options or stock-pair who run their own specific software’s and are not as over-saturated in the market as these spot-option brands are. If you notice all spot-option brokers are the same you can tell by the platform and the software they use for trading. (they are like a fast food chain)
The reason why they increase every week is again due to over-saturation and the in and out comparison of a fast food chain is a good analogy for them since they operate a lot like that. All in all I would recommend to stay away but trade at your own risk if your going to go with a spot-option broker make sure to use one that has some good reviews or one that you know someone who can recommend they are safe.
September 1, 2015 at 12:31 pm
Hey Lenny, Hope all is well with you.
In response to your question about why Spotoptions brokers are so popular the answer is actually on their website. If you google spotoption.com you can actually find their parent site listed. Once on there, there is a good amount of info to read on how they started and pretty much everything you really need to know about the spotopion company. They even offer demo accounts for binary options that are awesome!
You get 50k of fake money to play with and this REALLY can help to number one, understand how the spotoption platforms work in order to better your trading and number two practice your strategies which also betters your trading.
This is a win, win for me personally however I cannot comment on how the live platforms work but I do use the demo accounts there and like them a lot so far.
September 1, 2015 at 12:42 pm
Lenny no they are not the cheapest or the easiest in fact they are the worst! I had an account with Banc De Binary a few years ago and never got my money out. No response from customer service no emails calls were dropped. Very shady. Will never use a spotoption broker again…
P.S marketsworld is the best I am with them now.
September 1, 2015 at 1:18 pm
Hey there Lenny,
To answer your question yes they are the easiest to set up that is why there are 1000s of them around. I think its cheap and easy to set up for people looking to start up their own brokerages with them and that’s why a lot of brokers use them as a stepping stone. 20k I think is around the price to license the brokerage and start it up. Something like that.
Hope this helps
September 1, 2015 at 1:50 pm
To all of you commenting you do realize that SpotOption is not responsible for the brokers that they lease the SpotOption software too right?.
SpotOption is not a broker but rather more like a franchise that licenses their software to pretty much anyone who has enough money to do so.
The end result is what you would expect to get. A mix of some shady brokers some good ones and some that start of good and then bust.
The longevity of any SpotOption software utilizing broker is questionable and for that reason I remain neutral on this topic.
Im what you would consider somewhat of a “broker hopper” and do not like to stay with any one broker for too long or keep all of my eggs in one basket.
I will tell you this though, I was with BeeOptions for a while and they were good, for a bit.
Until one day they just decided to go bust and become a bucketshop, and stop paying out to depositors.
Again the reason for this inconsistency in customer latency goes back to the business model and structure of how these brokers who use the spotoption platform operate.
They are essentially piggy backing off of a well known brand without much work or previous knowledge on the market they are getting in.
At least that is what it seems like from my point of view as a trader and for that reason I would also advise to be cautious when dealing with SpotOption brokers.
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