How to Create Your Binary Option? Effective Business Strategies
Many people think of volatility arbitrage as a profitable kind of investments. Nevertheless, most beginners think only about the career of a trader while it is much more beneficial to invest money in opening a broker. In such a situation, a reasonable question arises – how to create your binary option?
In this article, we will tell you:
- How to become a binary options broker and about the most lucrative ways to set up a business.
- How to make a binary options website, and which software it is better to purchase.
- What is the creation of a platform for binary options and new financial tools for successful trading.
Initially, volatility arbitrage was an off-exchange trade and was controlled by regulators. In 1873, the Chicago Options Exchange was established, and it had a set of rules. Today, the company is considered to be the largest and most successful stock exchange in the US market. It successfully implements innovative financial products and technological tools and is a leader in the field of electronic trading. Today, Chicago Stock Exchange provides its services to about two thousand two hundred firms, several dozens of global indexes, and one hundred forty exchange-traded funds.
And it is not the only offer of the financial giant. It also has a unique hybrid system of working with orders. Traders can use a voice auction or an electronic system and choose the way of processing orders independently. 95% of all transactions are processed in an electronic form. 5% are operations with big investors who work through brokers.
We would like to show you several numbers – on the very first trading day (April 26, 1973), there were nine hundred eleven signed contracts in the exchange's portfolio. In 2007, the capitalization has exceeded four hundred fifty trillion dollars. Since 2010, Chicago Stock Exchange has been trading shares in a public mode. Today, about one million contracts are signed every day.
The situation in the global binary options market has changed dramatically in the middle of 2017. According to data provided by CPattern Finance Magnates Intelligence, Russia has become the leader by the size of an average account opened from brokers. The sum of the average asset of Russian traders is about six hundred dollars. The second place is taken by Switzerland and the third – by Austria. Sales representatives from Latvia, Georgia, and Moldova stay on their tail. Spain, Germany, and Kazakhstan are also included in the top 10 of the most active countries in the binary options market.
Two years ago, the list was headed by European countries but the change of priorities occurred as a result of a significant requirement strengthening of European regulators.
The most popular ways to earn money on binary options are the following options:
- The most accessible and simple type of working on an option is the White Label affiliate system. In fact, it is a subsidiary of an existing and developed broker. The parent company requires a certain percentage of profit from the junior enterprise. At the same time, a beginning entrepreneur can choose his own price list, the logo, and the design, as well as an order and a schedule of work. The undoubted advantage of the scheme is that you are provided with the necessary software and professional technical support.
- A gambling license. The main direction is the provision of gambling and sports betting services. It is also possible to open a binary options broker if the jurisdiction that issued the license has officially allowed the placement of financial bets. If you have any questions related to the development and maintenance of gambling platforms and platforms for binary options, please contact Win&Win Casino.
- A broker’s license. Later in this article, we will tell you in detail how to become a binary options broker.
Binary options as a business provide additional business strategies, which have proven themselves as high-potential and quite profitable options:
- Partnership agreements. One of the ways to earn money in the financial market is to attract potential clients to a brokerage resource with the help of a referral link. A broker can pay for each attracted user a fixed amount of money or a certain percentage of the deposit asset created by the future trader.
Additional ways to cooperate with a broker:
- A web partner. For the development of this type of business, you do not need any specific knowledge in the field of financial trading. For a fruitful cooperation, it is enough to have a popular Internet resource (a personal website, blog or forum), through which customers will be attracted.
- A local representative. It means the opening of an office under the company's brand. Responsibilities of an entrepreneur will include advising clients and training of potential traders. According to statistics, the average monthly income in this area is about five thousand dollars.
- A franchise. The broker provides his partner with a ready-made business platform that needs to be developed under the company's brand. An entrepreneur here has to attract and train customers.
- An information marketing business. Coaches and teachers that share their knowledge about trading and analysing the financial market have appeared since the creation of binary options. In simple words, the information business is the sale of experience, knowledge, and skills. For a successful development, the main thing is the availability of all necessary information and the ability to serve it up correctly. The only problem is the creation of a good advertising campaign. Today, there is a huge number of competing organisations on the market, and against the background of which your product should stand out. If you have any questions about the development of an effective marketing promotion – contact the Win&Win Casino company. Our experts are ready to offer successful strategies for the development of online websites and an offline business.
The development strategy of the binary options trading business
1. The establishment of a legal entity
To start making money on the market as a broker, you need to take the following steps:
- Choose a foreign jurisdiction to found a company.
- Collect the package of documents.
- Conclude an agreement and obtain a license in the selected jurisdiction. For the registration of the company, you may need from two thousand to three hundred thousand dollars. The size of investments depends on features of cooperation. Thus, the beginning entrepreneur is provided with an opportunity to buy or rent a license and open a trade enterprise under the brand of an existing company.
2. Bank account
We recommend you to create an asset in a banking establishment abroad as well. It can take from fourteen to thirty days to open a branch in the US or European bank. A beginning broker will have to pay from three to thirty thousand dollars. It is not recommended to save money on the services of a bank with a good reputation. They are very expensive but all costs will be paid off, and you will get secure and high-quality services.
3. The development of a website
We do not recommend you to make independent attempts to create a website or cooperate with unknown developers in order to save money.
A good web portal with relevant content is one of the main ways to attract new customers and significantly increase profits. The question “How to make a binary options website?” should be addressed to true professionals in their field. Win&Win Casino is ready to offer services of the best designers and programmers. Our specialists will develop a successful strategy for an advertising campaign and provide you with comprehensive technical support throughout the entire period of cooperation.
4. The creating a platform for binary options
A beginner in the field of binary options is recommended to pay attention to the following products:
- FinMax. This trading platform provides an opportunity to copy successful transactions (we will discuss this feature further in this article) and pleases customers with a wide range of financial tools for independent manipulations in the binary options market. The system allows you to develop your own strategies and use a large number of technical indicators to analyse the market. The minimum size of a deposit is ten dollars.
- UTIP. The developer specialises in the creation of new services for binary platforms and implementation of specialised tools into web resources. Interfaces of the platform are integrated with Forex. Clients can always buy complex software or order the separate software.
- SportOptions. It exists in the market since 2009. The developer has software solutions for several large Forex enterprises in Russia. SportOptions creates various analytical tools and platforms for binary options and develops specialised websites.
- Trade Box. The company creates the most convenient and progressive platforms. Interesting features of its platforms are bets on asset prices of precious metals, climatic conditions, and much more. Visual effects deserve special attention. Some elements of the animation create the impression of gambling.
- MaxiDealer. The software was developed as a simplified tool for managing all financial trading processes. The intuitive interface is additionally equipped with high-quality graphics elements and unobtrusive background sound.
5. A web terminal and the integration of payment services
The daily technological development enabled us to stop using outdated versions of PC applications. Web terminals are a kind of innovative software that allows you to make the trading process as efficient, simple, and fast as possible. The application does not need to be downloaded and installed on a computer or mobile devices, and the software looks like a separate window with a full set of financial and analytical tools.
A very important aspect of the creation of a convenient and profitable platform is the integration of payment systems. Services allow customers to deposit funds quickly, which saves their time significantly. To connect a payment system, it is necessary to collect a package of documents and send a request to the company that provides these services. Specialists from Win&Win Casino will provide you with detailed information on the most popular payment systems and offer the most favourable conditions for the integration of electronic systems into your website.
6. A land-based location
A recently opened brokerage company, in most cases, consists only of the sales department.
The staff can be divided into two categories:
- Back-office. The main task of employees is to find new clients and distribute the broker's offer. Usually, the system of “cold calls” is used.
- Front-office. Staff deals with technical support, assistance with carrying out financial transactions online, and also employees advise clients on all issues that may arise.
Copying of binary options
The system of copying transactions is an innovative product on the market. The service does not have a fixed title. Different brokers use different terms like “social trading”, “auto-follow”, and so on. This is a convenient feature for those beginners who cannot trade on their own.
A work technique: the broker gathers statistics of trading of the most successful traders, giving customers an opportunity to copy profitable transactions to their trading account. Currently, this service is presented on the FinMax platform and is called “Social Radar”.
Mobile trading is becoming one of the most preferred and promising ways to trade binary options. We recommend owners of trading platforms to pay close attention to mobile applications.
The main advantages of the mobile version of binary options platforms:
- Trade as you go. Customers get an opportunity to carry out activities regardless of their location.
- Additional motivation. An interesting trend is that many brokers offer those customers who register via a mobile device some pleasant rewards and bonuses. The unobtrusive marketing vehicle has already proven its effectiveness.
- Timely notifications. When trading from a web platform, users have to go to the website or check email for messages regularly. If you are using a mobile application, all notifications will be displayed instantly, allowing a trader to always be aware of the latest changes and news.
Profit of a broker depends on the following factors:
- turnover (the number of active traders);
- the effectiveness of the advertising campaign;
- quality of work of his partners.
Direct earnings depend on the sum of losing transactions and commissions on financial manipulation. For example – a trader purchased an option for ten dollars and made a mistake. The broker receives the entire amount. If the operation was successful, 1.5% of income remains in the broker’s asset – as the commission of an intermediary company. And now multiply this number by hundreds of daily operations.
According to statistics, the approximate monthly income of a broker is about ten million dollars.
Items of expenditure that are not included in costs that were mentioned above:
- payments to liquidity providers;
- training and salary for the company’s personnel;
- contributions to regulators;
- financing of an advertising campaign;
- rent of premises, purchase of the office equipment, and much more.
The review of earnings of the world's biggest brokers (the information is provided by MrBinary):
- The annual profit of the owner of the OptionFair brand is eight million six hundred thousand dollars.
- 24option earns nine million three hundred thousand dollars per year. The brand has expanded its sphere of influence. Now it has offices in thirty countries of the world and provides services in fifteen languages.
- The annual turnover of IQ Option is about one hundred million dollars. It has representative offices in thirty-six countries.
Win&Win Casino offers its customers a full range of technical solutions for the organisation and successful development of the gambling business.
Our services and products:
high-quality software from developers with a good reputation (it is possible to rent and purchase the software);
development of the software from scratch;
integration of payment systems on the website;
creation of online resources on a turnkey basis;
rent of land-based spaces for opening gambling establishments and brokerage offices;
round-the-clock technical support;
development and implementation of effective marketing strategies.
If you have any questions on the cooperation, you can contact us:
by e-mail: firstname.lastname@example.org;
in Skype: ww_connect;
via the feedback form.