Do many Binary Option providers really differ?

Many will have noticed that some of the more well known Binary Options providers offer the same rates for their options as their major competitors. What is less well known is the fact that many of the more well known sites including Banc De Binary, OneTwoTrade and Trade Rush all use the same platform for their sites. 

The platform used by many sites is provided by the company SpotOption who offer a total white label package to anyone who is willing to pay their price. For those who don’t know what a white label means it a package that allows you to run a site using the companies software and risk management system. This helps explain why many of the Binary Options site have the same layout and design. The white label site package offered by SpotOption even includes a risk management element, which also helps explain why the prices offered by many sites are exactly identical. 

While this means that the site functionality is largely the same among many of the big names in the Binary Options industry is the same, it does not mean the service offered by the provider is the same. For example OneTwoTrade is a licensed gaming operator within Europe, while many other platforms operate unregulated and of course one should be extremely wary about using platforms that operate unregulated. 

What is really interesting though is the fact that so many providers are able to operate successfully using the same White Label risk management system. This cements my opinion that odds offered by many Binary Options sites strongly favor the provider meaning that the customer is extremely like to be a loser in the long term. 

As I have discovered in previous posts in order to come out ahead you need to be able to predict the movement of instruments with a very high degree of accuracy. While some may be able to predict the movement of such instruments with a high degree of accuracy most people will be lucky to correctly predict price movement with 50% of accuracy. In fact many trading successful trading systems predict price movements with a low degree of accuracy. However they maximize returns when correct and minimize loses when wrong. This is not possible when one makes a binary bet as it’s a fixed odd win/loss position.  

The fact SpotOption advertises their white label Binary Options platform as a profitable business suggests to me that one would be extremely unlikely to come out as a winner in the long run when trading binary options with a SpotOption powered platform. 

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