BKTrading (Baumann & Krauss Trading) is a new binary options broker that started working in early 2015. They use the well-known spotoption platform used by other established firms. To date, BKTrading is not regulated by CySec or any other body, and is not MiFID compliant. As they do not fall under the MiFID guidelines, they can offer trading to US-based traders.
BKTrading’s main focus is on the trader experience, but what currently sets them apart from other brokers is the very low minimum deposit, at just £10. Plus the 10% refund for options that end out of the money (losing trades).
Here are some other important details about the BKTrading brand;
- Demo Account – No
- Minimum deposit – £10
- Minimum trade – £5
- Signal service – No.
- Bonus Details – 100%.
- Mobile App – No
Platform features
BKTrading offers a well-known trading platform based on the Spotoption model.
The option type is the first decision for traders (there are more details about each option type below). Traders can then select the asset category they are interested in. To the right of the asset categories are four icons that allow traders to configure the trading area to their own preference – ranging from a single trading window with full details to a set of rows, giving access to numerous assets simultaneously.
Among the asset categories is the specific choice of assets, and that is the expiry time and trade amount (the minimum trade with BKTrading is just £5). Both can be changed as needed. Among the trading parameters is the price chart for the asset. The time frame can be changed so that trends can be more easily identified. At the bottom is a ‘Trader’s Choice Box’, which illustrates the direction in which trader sentiment is currently trending. On the price chart is a ‘Strategy Advisor’ – it contains some general technical analysis tools on the current price chart, and offers trading advice based on the outcome.
To the right of the price chart are the trade buttons. The potential payout is displayed just below the amount and will automatically update if that amount field is changed. Below is the payout and the ‘protected’ amount – this will be displayed when applicable. To the right of the payout information are the trade buttons. As with everything else, they are clearly identified, the Call and Put buttons contain the appropriate arrows, and the strike price is positioned between them – it changes color to the latest price change, up (green) or down (red).
Selecting one of the trade buttons opens the ‘Trade Approval’ window, which is an opportunity for the trader to check the details of the trade. If you confirm the approval, it will be traded and it will then appear in the ‘Open positions’ window of the trading area.
The ‘Open Positions / Expired Positions’ window sits below the trading windows and allows traders to track all their open and closed trades. These are grouped into trade types with all the relevant details for each trade listed below.
Trade Choice
BKTrading offers options on forex, commodities, stocks and indices. Their asset lists are quite comprehensive. Indexes are the largest list. Coupled with the largest range of trading options of any broker, this means traders using BKTrading will be spoiled for choice.
They offer seven types of options:
Binary Options – The Basic Binary Option. Will the asset increase in value, or decrease?
Pairs – How will two assets perform against each other? Generally, pairs consist of two related stocks (eg BMW vs Daimler), but can also be offered against commodities (eg Gold vs Silver) or indices.
Long-term – same as a traditional binary option, but with much longer term expiration times, usually weeks or months.
Short Term – As the name suggests, very short term binary options with very short expiration times. BKTrading provides 60,90,120,180 and 300 seconds expiry.
One Touch – Will an asset price ‘touch’ a specified value at least once before the expiry time? At BKTrading only the ‘touch’ option is available (there is no ‘no touch’ option). The strike price is often some distance from the strike price – so the payouts can be very large – up to 1000% – which some traders may find useful during volatile periods.
Ladder – Ladders offer a range of price levels that can be traded in either direction. As the levels rise or fall relative to the strike price, the payouts can become larger if a large price movement is required to complete the trade in the money.
Forex – This is an option offered by very few brokers, so it is a great addition to BKTrading. It allows traders to trade currency pairs ‘per pip’, and set stop losses and target prices. It is an innovation that brings traders closer to true Forex trading than the simpler form of binary options.
Mobile
BKTrading has not yet developed a mobile app.
Payout
Payouts at BKTrading are very competitive. Most traded assets show payouts of around 77%. As always, the payouts will vary depending on the maturities and the asset chosen. Higher payouts are also available with different trading options. For example, learning or one-touch options offer significant payouts for larger price movements. Forex also works ‘per pip’, so you can generate higher payouts if needed.
Withdrawal and deposit options
Deposits to BKTrading can be made by credit card (Visa, Mastercard, Diners and American Express). Wire transfer is possible, but it has a minimum transaction of £500 – plus a £25 fee. A transfer can also be delayed, meaning the funds may not be available to trade immediately. The minimum deposit per credit card is just £10 – the initial deposit determines the account type a trader moves into (see table). £10 gets access to the ‘Basic’ account, £1,000 the ‘Standard’ and so on – to the ‘VIP’ account – which sees traders paid an extra 3% in all trades;
Withdrawals are also handled based on the account type, while VIP accounts are withdrawn immediately.
Withdrawals are available via the same processes as a deposit – but there is a minimum of £100. Traders must provide certain documents before a withdrawal can be processed. Here are the terms as set out by BKTrading;
1. ID picture: this can be any public document such as passport or driver’s license.
2. An address proof, such as a receipt within the last six months of a public utility bill.
3. A copy of the credit card used for the investment must be sent. To ensure your own safety, cover your card number on the front of the card, so that only the last 4 digits are visible, and also cover the CVV number on the back of the card, so that the signature is visible.
The withdrawal process lags behind other binary options brokers, but makes sure to make major improvements as the firm matures.
Other Properties
BKTrading offers its customers the following features and benefits:
- TA Wizard – Technical analysis tool, available on the price charts.
- Variety of educational materials – includes seminars, books, financial reports and even one to one training
- Support 24/7