TechFinancials is one of the major players of the binary options scene. You probably already thought about trading with them, even if you don’t know it. Maybe you even have money deposited at TechFinancials. This is why you need to know the service better.
In this article, you will learn:
With this information, you will understand the binary options world better and be able to find a better broker.
TechFinancials is a white label platform provider. This means, they provide trading platforms, banking services, and everything else that you need to start your own binary options broker. All partners of TechFinancials have to do is pick their preferred features and create their own broker brand, and they are ready to go and accept customers.
TechFinancials offers products for all sorts of financial investments, but binary options are one of their main focuses. They supply brokers from all over the world, and if you have looked at least at a few different brokers before, there is a good chance you have already seen a TechFinancials broker.
TechFinancials provides these services to its customers:
This is everything you need to start your own broker, short of a logo and a name. The front end, the part that the customers see, allows for almost limitless customisations, but the technical part is run by TechFinancials. The system works just like car brands that sell the same car.
TechFinancials offers a toolbox with which its customers can build their own broker. They can use parts of this toolbox, but most of them choose the entire thing. Theoretically, a broker could build their own trading platform and combine it with the TechFinancials payment solution and customer relations management, but this approach would add a lot of complications without providing significant advantages.
TechFinancials is a major player in the binary options world. They, SpotOption, and Tradologic supply most binary options brokers. There are very few brokers that built their own trading platforms, for example IQ Option or Binary.com. At least 90 percent of all binary options brokers use a white label broker.
The great success of TechFinancials and other white label brokers is in large parts due to the fact that it allows CFD brokers and stock brokers to easily include a binary options platform in their lineup. All they have to do is apply their already existing branding to the TechFinancials white label solution, and they can attract an entirely new customer base. When you trade binary options with a broker that offers many types of investments, you are almost always trading with a white label broker.
The most prominent TechFinancials broker used to be 24option. A great example for how far white label brokers can go, 24option was one of the major reasons why new brokers choose to partner with TechFinancials, too.
In a stunning move, 24option decided to leave TechFinancials in early 2017 and create its own trading platform. Nonetheless, 24option still serves as the poster child for the success brokers can have with TechFinancials.
TechFinancials also operates the broker OptionFair. OptionFair is not a white label broker run by someone else, it is directly connected to TechFinancials.
Other TechFinancials customers are:
This is not a complete list but it includes the most popular customers of TechFinancials.
Since new brokers choose to use the TechFinancials platform every day, it is impossible to provide an accurate list of all customers and websites. Luckily, there are a few features that enable you to spot white labels. Those features are:
TechFinancials has introduced the idea of high-yield trading to the binary options world. High-yield options work just like regular options but slightly adapt their trading style to offer higher payouts in exchange for riskier predictions.
For example, one touch options allow you to predict whether the market will reach a target price. With high-yield options, this target price is a little further away from the current market price than with regular one touch options.
High-yield options are a great way of taking advantage of stronger movements.
Long-term options are binary options with longer expiries. Instead of using expiries from a few seconds to a few hours, long-term options allow you to invest for weeks, months, and years. This system is especially attractive to traders who want to trade long-term market movements with the higher payouts of binary options.
TechFinancials introduced long-term options to the binary options world. Most partner sites use the service, and when you see a broker with long-term options, it is possible it is this platform.
Boundary options are a rare trading tool that allows you to win a trade without having to predict the direction in which the market will move. TechFinancials has introduced boundary options to the binary options world and still is one of their main suppliers.
Boundary options are an option type that define two target prices in equal distance to the current market price – one above it and one below it. When the market touches either target price, you win your option. This system is ideal for traders of news and other events that create strong movements that could go into either direction.
When you find a broker that offers boundary options, there is a good chance that you are dealing with a TechFinancials customer.
TechFinancials platforms offer the option of managing your trades after you made them. You can close them early and take the profit – albeit at a reduced payout. If you are unsure whether you will win your option, this feature might allow you to turn a losing trade into a winner.
Other trading platforms lack this feature. Once you invest, there is nothing you can do.
TechFinancials equips its trading platforms with financial news from Yahoo. If you see a Yahoo news feed on a trading platform, you are almost certainly dealing with a TechFinancials broker.
Since many brokers rely on white label products, the main question for traders becomes whether they can make any money with them. We already mentioned the questionable business practices of TechFinancials main competitor, SpotOption. Unfortunately, similar points of critique apply to TechFinancials.
In contrast to SpotOption, TechFinancials is traded at a stock exchange – the London stock exchange. As a publicly traded company, they are subject to several checks and requirements that guarantee government oversight. The result is a significant plus in security.
Nonetheless, there are many complaints about the firm and their brands. Traders criticise that real-life trading payouts never lived up to the promised payouts, that they were pressured into depositing more money, and that the withdrawal procedures were so unnecessary complicated that they were denied their money when the made the slightest mistake.
Additionally, the Israeli government cracked down on the big white label brokers that are based in its country.
Since there are many trustworthy brokers out there that use their own trading platforms, there is no reason to sign up with brands that use white label brokers that are shrouded in such dark clouds. The business model of white label brokers seems designed to extract as much cash from traders as possible.
TechFinancials is a white label broker that supplies trading systems for many binary options brokers. In fact, most brokers use trading systems made by them or their two main competitors instead of creating their own system.
Since all of TechFinancials’ customers are more or less the same, it makes sense to sign up with OptionFair, the in-house broker.
TechFinancials is not a scam. However, we recommend using a broker that developed its own trading platform, for example IQ Option or Binary.com.