The minimum deposit is one important characteristic when it comes to choose your binary options broker. You may indeed want to choose a broker that offers a low minimum deposit in order to be able to try all the broker platform functionalities and option types without having to risk too much cash. Binary options brokers are known for their low minimum deposit compared to forex, stocks, or CFD brokers. One of the biggest advantage of binary options is that they are short-term leveraged financial instrument that don’t require big amounts of cash.
Minimum deposits are slowly increasing under regulatory pressure
For many years, minimum deposits to open a new trading account with a regulated binary options broker could be as low as $100. Nevertheless, under the pressure from European financial regulators, most regulated binary option brokers were forced to raise their minimum deposit to $200. It is the case for OptionTime that raised its minimum deposit to $200 in early 2015 under the CySec pressure. The Cypriot financial regulator doubled the threshold of minimum deposits in order to limit the binary option trading activity to people that can afford it and that are able to invest at least $200.
Minimum deposit details of the best binary options brokers
Trade-off between minimum deposit and minimum investment
Minimum deposit – it corresponds to the minimum amount of cash you need to deposit in order to open a real trading account.
Minimum investment – it corresponds to the minimum amount of cash you need to invest to open a binary options position with a real trading account.
Depending on your trading profile, you may opt for a broker that offers a high minimum deposit with a low minimum investment rather than a broker that that offers a low minimum deposit with a high minimum investment. It all depends on the amount of money you are willing to invest and the number of trades you are willing to open. For instance, with a broker that offers a minimum deposit of $100 but a minimum investment of $50, you will only be able to perform 2 trades (if they end up not making any profit). With a broker that offers a minimum deposit of $200 but a minimum investment of $10, you will be able to perform at least 20 trades.
TopOption is the only regulated broker with a $100 minimum deposit
Only TopOption is able to propose a minimum deposit of $100, which represents a big competitive advantage for the binary option broker. The broker is indeed proposing different type of trading account: the Starter account with a minimum deposit of $100, the Pro account with a minimum deposit of $1’000 and a VIP account with a minimum deposit of $5’000. You will thus be able to open a Starter trading account with a first deposit of only $100. You will nevertheless suffer from fewer functionalities and a weaker level of client support.