As we mentioned it multiple times on the website, most of the new binary options brokers popping up every day online are white label brokers. A white label broker is basically a financial intermediary that uses a platform and a trading solution (including a website, a back-office and a risk management department) developed by a technology provider. These kinds of fully operational platforms allow new brokers to quickly come to market and offer a fully featured binary option trading solution and platform in order to quickly amass market shares using a specific marketing positioning. It is a common question asked by our readers. Who is the platform technology provider behind this or that broker? And today we try to present you the most important players in the industry while listing the main binary options brokers using their technologies. The information might not be exhaustive since most technology providers and white label brokers don’t want to disclose such information. There have been many cases of non-authorized or even scam brokers using such platforms that tainted the reputation of the related provider. Since then, there is a lot less transparency in the relationships between technology providers and the brokers using their technology.
An overview of the main binary options technology providers
Ae you can see, there exist many technology providers. The most popular ones are SpotOption, Techfinanicals, Tradologic and Hellomarkets.
- SpotOption is known as the leader on the market with many famous brand using its technology (Banc de Binary, OptionNow, OptionTrade, OptionWeb, Interactive Option…) but was recently linked to many issues with non-regulated brokers that failed to provide a satisfactory service to their clients. In total, SpotOption claims to provide more than 250 white label brokers with its technology for more than 5 billion dollars in volume per year.
- Techfinancials recently went public at the beginning of the year for what represented the first ever Initial Public Offering of a binary options related business in Europe. The technology provider raised as much as 05 million British pounds on the London Stock Exchange in March 2015 and recently reported strong growth for the year of 2014. According to the official press release from the company, revenues reached $15.5 million and jumped by 85% in 2014 compared to the previous year. The technology provider also announced that it registered 12 new third party brokers last year, totaling a number of 48 for 2014. These third party brokers are the white label brokers we were mentioning at the beginning of the article.
- Tradologic that also reported operational figures at the beginning of the year announced that it concluded new white label partnerships with an astonishing 45 new brokers just for 2015!! This number poses a certain amount of risk as Tradologic is infamously known for providing its technology to non-regulated brokers. The technology provided is rumored to work with more than 100 partners including OptionBit, Binex, Option365 or 888binary.
Techfinancials was formerly part of 24option
As you can see on the above infographic, 24option uses the Techfinancials technology but it nevertheless cannot be considered as a white label broker. Indeed, at the beginning, Techfinancials was integrated to 24option and developed the platform of the popular broker. Following the success of the 24option offer and platform, the management decided to provide its technology to third party brokers and split the company so that Techfinancials could become a separate entity.
Our recommended brokers all have their own proprietary platform and are not white label brokers
We can only recommend you to prefer traditional brokers that developed their own platform with an extended track record of satisfaction and all the required regulatory approvals. Indeed, white label brokers lack flexibility when it comes to improve their features as they end up being completely dependent on the technology provider. Moreover, they often propose worst trading conditions as they have to pay a fee to the solution provider. For your information, OptionTime, 24Option, TopOption and AnyOption all meet the above criteria and are among the most respected brokers on the market. We highly recommend that you only deposit with regulated binary options brokers (CySec and FCA, this will secure safe payouts and should you face any difficulties we can assist you.