MFI Binary Options Indicator
The MFI binary options indicator is short for Money Flow Index and is a valuable tool in the arsenal of many traders. The technical indicator essentially uses price and volume data to produce overbought or oversold signals. This MFI binary options indicator review covers how to set it up and interpret the meaning of its results, a summary of its pros and cons, suitable strategies, and more.
Binary Options Brokers
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1Pocket Option50% Deposit Bonus
Ratings
$50$1MISABinary Options, Currencies, Commodities, Stocks, Indices, CryptosWeb, MT4, MT5Wire Transfer, Credit Card, Bitcoin Payments, Volet, Perfect Money, Visa, Mastercard, Debit Card, WebMoney, FasaPay, Ethereum Payments, Maestro, JetonCash, AirtelUSD -
2IQCent20% to 200% Deposit Bonus
Ratings
$250$0.011:500IFMRRCBinary Options, CFDs, Forex, Indices, Commodities, CryptoOnline Platform, TradingViewCredit Card, Debit Card, Wire Transfer, Bitcoin Payments, Ethereum Payments, Visa, MastercardUSD, EUR -
3CloseOption$10 Welcome Gift
Ratings
$5$1National Bank of GeorgiaBinary Options on Forex & CryptosOwnPayPal, WebMoney, Mastercard, Perfect Money, Wire Transfer, Bitcoin Payments, Ethereum PaymentsUSD -
4Videforex20% to 200% Deposit Bonus
Ratings
$250$0.011:500Binary Options, CFDs, Forex, Indices, Commodities, CryptoTradingViewSkrill, Perfect Money, Bitcoin Payments, Neteller, Credit Card, Visa, Mastercard, Ethereum PaymentsUSD, EUR, GBP, AUD, RUB -
5Binarium
Ratings
$5$1Forex, Stocks, CryptosOwnQIWI, Yandex Money, Bitcoin Payments, Neteller, WebMoney, Wire Transfer, Visa, Mastercard, Credit Card, Debit CardUSD, EUR, AUD, RUB -
6BinaryCent20% - 200% deposit bonus
Ratings
$250$0.011:500VFSCCFDs, Forex, Stocks, Cryptos, Options, CommoditiesOwnVisa, Mastercard, Debit Card, Credit Card, Skrill, WebMoney, Neteller, Bitcoin Payments, Wire Transfer, Perfect Money, Ethereum PaymentsUSD -
7RaceOption20% - 200% Deposit Bonus
Ratings
$250$0.011:500Binary Options, CFDsTradingViewCredit Card, Debit Card, Bitcoin Payments, Neteller, Skrill, Perfect Money, Mastercard, Visa, Ethereum PaymentsUSD, EUR, GBP, AUD, RUB -
8World Forex100% Deposit Bonus
Ratings
$10.01 Lots1:1000SVGFSAForex, CFD Stocks, Metals, Energies, Cryptos, Digital ContractsMT4, MT5Wire Transfer, Debit Card, Credit Card, Visa, Mastercard, Google Wallet, Apple Pay, Perfect Money, Bitcoin Payments, VoletUSD, EUR, RUB
Here is a summary of why we recommend these brokers:
- Pocket Option - Pocket Option offers ultra-short-term binaries from 5 seconds on one of the simplest web platforms for beginners. Payouts rival alternatives at 90%+ while the ‘Double Up’ and ‘Rollover’ features provide further opportunities to profit. Considering the negatives, the suite of 130+ assets trails binary brokers like Quotex, which offer 400+.
- IQCent - IQCent offers binary options with above-average payouts up to 98%. The broker supports an online platform with basic analysis tools but a wide range of timeframes, from 1 minute to 1 month, catering to short and long term trading strategies. Considering the negatives, there are no binaries on stocks.
- CloseOption - CloseOption offers binary options trading on 30+ fiat and digital currencies through an easy-to-use web-based platform. 15 contract timeframes are available from 30 seconds to 1 month, suiting both short-term and long-term traders. New users also get a joining gift.
- Videforex - Videforex continues to offer binary options with 20% payouts on crypto and up to 98% on less volatile assets, beating many competitors. A wide range of contract lengths are also supported from 5 seconds up to 1 month. New users will appreciate the welcome deposit bonus.
- Binarium - Binarium is an experienced binary options broker offering access to a range of financial markets with a proprietary, sleek platform. New users can claim a welcome bonus up to $1,500 or practice in the demo account with $10,000.
- BinaryCent - BinaryCent provides binary options trading on a range of markets through a slick proprietary platform. Traders can invest as little as $0.10 per trade and earn payouts up to 95%, and these are excellent terms that accommodate casual and low-capital traders while allowing profit opportunities.
- RaceOption - RaceOption offers 100+ binaries with decent payouts up to 95% and ultra-fast expiries from 5 seconds. With a $250 minimum deposit, clients can enjoy free deposits, fast withdrawals and a range of trading bonuses.
- World Forex - World Forex offers binary options where you simply decide the stake, price direction and contract timeframe. The payouts are high at up to 100% on American contracts and 85% on European, which also offers a partial refund to traders who close contracts before expiry.
Pocket Option
"Pocket Option excels for its easy-to-use web platform which provides a best-in-class user experience for short-term binary traders. The $50 minimum deposit is also accessible for beginners while opening an account is really easy. Looking at the negatives, Pocket Option still trails alternatives in its market offering and regulatory credentials."
Jemma Grist, Reviewer
Pocket Option Quick Facts
Bonus Offer | 50% Deposit Bonus |
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Minimum Deposit | $50 |
Payout % | 92% |
Expiry Times | 5 seconds - 4 hours |
Copy Trading | Yes |
Platforms | Web, MT4, MT5 |
Instruments | Binary Options, Currencies, Commodities, Stocks, Indices, Cryptos |
Account Currencies | USD |
Pros
- The web platform shines for its straightforward design and usability that will appeal to beginners looking to speculate on popular financial markets in a few clicks
- Extremely fast and smooth sign-up process that takes less than 2 minutes
- The MetaTrader platforms offer integrated analysis with helpful technical summaries for short-term traders
Cons
- You need to deposit $1000 to access the extended list of 250+ assets, otherwise just 130+ assets are available
- Pocket Option offers a slimmed down iteration of the MT4 and MT5 that doesn't provide the full charting package for advanced traders
- The maximum binary contract length of 4 hours is restrictive for longer-term trading strategies. Alternatives like Videforex offer binaries up to 1 month
IQCent
"IQCent will appeal to day traders looking for a straightforward binary options and CFD trading platform with low fees, a range of accounts, and copy trading. Getting started takes less than 1 minute and a $250 deposit. "
Jemma Grist, Reviewer
IQCent Quick Facts
Bonus Offer | 20% to 200% Deposit Bonus |
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Minimum Deposit | $250 |
Payout % | 98% |
Expiry Times | 5 seconds - 1 month |
Copy Trading | Yes |
Platforms | Online Platform, TradingView |
Instruments | Binary Options, CFDs, Forex, Indices, Commodities, Crypto |
Account Currencies | USD, EUR |
Pros
- The proprietary terminal offers TradingView-powered charts which deliver dozens of technical indicators and studies
- Keen traders can take part in trading contests with cash prizes
- There's an accessible $0.01 minimum stake for new day traders with a small budget
Cons
- The broker is not overseen by a respected regulator, though this is common among binary options firms
- There's no automated trading support for algo traders
- IQCent trails binary brokers like Quotex with its narrow investment offering of around 100 assets with no stocks
CloseOption
"CloseOption is a good pick for traders seeking a user-friendly binary options platform with high payouts and joining bonuses."
Tobias Robinson, Reviewer
CloseOption Quick Facts
Bonus Offer | $10 Welcome Gift |
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Minimum Deposit | $5 |
Payout % | 95% |
Expiry Times | 30 seconds - 1 month |
Copy Trading | No |
Platforms | Own |
Instruments | Binary Options on Forex & Cryptos |
Account Currencies | USD |
Pros
- The user-friendly platform is compatible with most web browsers
- CloseOption offers weekly trading tournaments with cash prizes
- Free demo account
Cons
- Clients need to deposit $50,000+ to qualify for the best payouts
- Binary options are only available on fiat and digital currencies
- CloseOption is not regulated by a well-regarded trading authority
Videforex
"Videforex will serve traders looking for a no-frills, easy-to-use platform to speculate on the direction of popular financial markets through binaries. With a sign-up process that takes a matter of minutes and a web-accessible platform, getting started is a breeze. "
William Berg, Reviewer
Videforex Quick Facts
Bonus Offer | 20% to 200% Deposit Bonus |
---|---|
Minimum Deposit | $250 |
Payout % | 98% |
Expiry Times | 5 seconds - 1 month |
Copy Trading | Yes |
Platforms | TradingView |
Instruments | Binary Options, CFDs, Forex, Indices, Commodities, Crypto |
Account Currencies | USD, EUR, GBP, AUD, RUB |
Pros
- Traders can earn up to 98% payouts on 100+ assets with the broker’s binary options, bringing it in line with competitors like IQCent.
- Videforex regularly runs trading contests, offering practice opportunities and cash prizes to beginners and experienced traders, with position sizes from just ¢0.01.
- Videforex is one of the few brokers with 24/7 multilingual video support, providing comprehensive assistance for active traders.
Cons
- The client terminal needs improvements based on our latest tests, sporting sometimes slow and unresponsive widgets which could dampen the experience for day traders.
- The absence of any educational tools is a serious drawback for newer traders who can find blogs, videos and live trading sessions at category leaders.
- Videforex lacks authorization from a trusted regulator, meaning traders may receive little to zero safeguards like segregated client accounts.
Binarium
"Binarium has been designed with simplicity in mind, featuring a fast, fully digital sign-up process and an intuitive platform and app with 4 chart types and 12 indicators. With binaries spanning 5 minutes to 3 months, it caters to short- and medium-term traders."
William Berg, Reviewer
Binarium Quick Facts
Minimum Deposit | $5 |
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Payout % | 80% |
Copy Trading | No |
Platforms | Own |
Instruments | Forex, Stocks, Cryptos |
Account Currencies | USD, EUR, AUD, RUB |
Pros
- Binarium has the best education centre we’ve seen amongst binary options brands, complete with information on core topics like trading basics and account options, plus professional video guides to using the platform.
- Binarium claims to segregate client funds with EU banks, meaning traders’ money should not be misused and providing an important layer of protection, which is especially relevant given its offshore status.
- The $10,000 demo account, deposit-doubling welcome bonus, smooth sign-up, and 24/7 support make for an attractive onboarding experience.
Cons
- Payouts of up to 80% are on the low side of binary options platforms based on our evaluations, which may deter traders looking for the possible best returns, though you can get back up to 15% of losing trades.
- Despite being operational since 2012, Binarium is an unregulated broker with limited transparency on its website, raising safety concerns and potentially putting your capital at risk.
- Binarium has some way to go to match the investment offering of binary firms like Quotex, with a particularly weak selection of around 20 currencies and 3 cryptocurrencies.
BinaryCent
"Traders who want a reliable binary options broker with a streamlined platform and high payouts should try out BinaryCent."
Tobias Robinson, Reviewer
BinaryCent Quick Facts
Bonus Offer | 20% - 200% deposit bonus |
---|---|
Minimum Deposit | $250 |
Payout % | 95% |
Expiry Times | 5 seconds - 30 days |
Copy Trading | Yes |
Platforms | Own |
Instruments | CFDs, Forex, Stocks, Cryptos, Options, Commodities |
Account Currencies | USD |
Pros
- Copy trading and binary options bots are useful for beginner traders
- Payouts up to 95% are higher than most competitors and increases profit potential
- Simple and straightforward proprietary platform for binary options trading
Cons
- Not overseen by any reputable regulator, raising risks and reducing customer protections
- The $250 minimum deposit is higher than most binary options brokers
- Not available to traders based in the US
RaceOption
"RaceOption will appeal to investors looking for a feature-rich binary options trading experience with regular contests, account-based perks, and copy trading. The catch is its unregulated status, with little to zero investor protections available based on our investigations."
William Berg, Reviewer
RaceOption Quick Facts
Bonus Offer | 20% - 200% Deposit Bonus |
---|---|
Minimum Deposit | $250 |
Payout % | 95% |
Expiry Times | 5 seconds - 30 days |
Copy Trading | Yes |
Platforms | TradingView |
Instruments | Binary Options, CFDs |
Account Currencies | USD, EUR, GBP, AUD, RUB |
Pros
- Payouts on popular underlying assets like EUR/USD can reach 95%, beating out most alternatives based on our evaluations, and increasing potential returns, while the first 3 trades are risk-free in Silver and Gold accounts.
- RaceOption is in the less than 1% of brokers that offers video chat, available 24/7 in multiple languages, although the knowledge of agents about trading and regulatory issues needs improvement from our direct experience.
- RaceOption makes account funding a breeze with fee-free and near-instant deposits via bank cards and cryptos, plus guaranteed withdrawals processing within 1 hour.
Cons
- RaceOption is an unregulated, high-risk broker that doesn’t provide investor compensation or legal recourse options should you run into trading or withdrawal issues.
- While still affordable for many retail investors, the $250 minimum deposit raises the entry barrier, especially compared to Deriv and World Forex who are designed for budget traders.
- RaceOption is one of the only brokers not to offer a demo account, which when considered alongside the absence of education, makes this broker a poor choice for beginners.
World Forex
"World Forex provides both highly leveraged CFDs and digital contracts, making this a good broker for clients who want flexible and rewarding ways to trade. The copy trading service will also appeal to newer traders."
Tobias Robinson, Reviewer
World Forex Quick Facts
Bonus Offer | 100% Deposit Bonus |
---|---|
Minimum Deposit | $1 |
Payout % | 100% |
Expiry Times | 1 minute - 7 days |
Copy Trading | Yes |
Platforms | MT4, MT5 |
Instruments | Forex, CFD Stocks, Metals, Energies, Cryptos, Digital Contracts |
Account Currencies | USD, EUR, RUB |
Pros
- STP/ECN technology
- MT4, MT5 and a proprietary trading terminal
- VPS hosting
Cons
- Weak regulation
- No negative balance protection
- Withdrawal fees apply
MFI Binary Options Indicator Basics
The MFI binary options indicator measures investor sentiment in an asset. The indicator uses price and volume data as variables to produce a value based on how much money is being used to purchase an investment versus how much is being sold.
The MFI is classed as an oscillator and returns values between 0-100 based on buy/sell ratios. Using the value of the MFI binary options indicator, signals are created which indicate whether a specific stock, index, crypto or other asset is overbought or oversold.
When an MFI value reaches above 80, an asset is classed as overbought, potentially signalling a price correction to a lower level in the short term. Conversely, MFI numbers below 20 signify that an asset is oversold, signalling that a price value may increase in the short term.
Using The MFI Indicator In Binary Options Trading
The MFI indicator is handy for binary options trading as it requires limited investor input and can use real-time market data to generate fast signals. In addition, the indicator is easy to interpret, meaning it is well-suited to beginners and simplified binary options trading platforms.
Also, the ability of the MFI binary options indicator to predict momentum swings through divergences allows traders to create evidenced, short-term price predictions. And these short-term movements are often the most lucrative for binary options traders.
Examples Explained
Here are three examples of how traders can use different MFI binary options indicator values to inform their trades…
Trader A is a crypto enthusiast using a binary options broker to speculate on the price of one of his favourite coins, Solana.
Solana is trading at $29.435 and Trader A thinks they spot an opportunity to profit. They use the MFI binary options indicator to conduct technical analysis.
After 10 minutes, the MFI value suddenly plummets to 4.02. This strong oversold signal suggests a potential price correction within the short term. As a result of this notable value, Trader A opens a long position on Solana with an expiry time of two minutes.
Trader B is a keen forex trader and wants to capitalize on the high payouts for correct binary options prediction on this market. They are using an MFI binary options indicator to analyze the EUR/USD market, which sits at 0.98685 at 22:18.
They see that despite the falling value of EUR/USD, the MFI value is steadily increasing. This slight divergence suggests that the downward trend may be curtailed and the price could rebound in the short to medium term. As a result, they place a five-minute binary options contract going long on the asset.
Trader C is looking to make a trade on a popular and liquid US stock, Alphabet. Google’s parent company is trading at $100. Trader A uses the MFI binary options indicator to help predict which direction the stock price will move.
For the last five candle intervals of 1 minute, the MFI value has gradually increased from 55 to 75. This indicates a positive short-term trend where more investors have been purchasing the stock than selling it.
Based on these values, Trader C concludes that there is significant buy pressure on Alphabet and that the stock price may continue to rise. Accordingly, they place a long binary options contract on the stock with an expiry time of 10 minutes.
Availability
Our experts found that a limited number of proprietary binary options platforms support the MFI binary options indicator. Also, many do not support additional indicators, even when using an adapter or downloading an extension. Instead, most favoured the RSI indicator, which does not consider the trading volume and paints a less complete picture.
Fortunately, binary options brokers that used third-party trading platforms, such as MetaTrader 4 (MT4), TradingView or NinjaTrader, offer a more complete range of technical analysis indicators and tools. As a result, the MFI binary options indicator can often be used for free on training accounts with third-party platforms.
The indicator is even so simple that the MT4 mobile trading apps for iPhone and Android could easily run and display it in real-time.
Pros Of The MFI Binary Options Indicator
- Momentum-based indicator – This indicator is particularly well suited to binary options trading due to its focus on short-term momentum
- Multi-use – Investors can use the MFI binary options indicator to predict a range of price movements and trends spanning multiple underlying assets, from stocks and forex to hard and soft commodities, plus cryptos
- Easy to set up – Limited input is needed from investors to use the MFI binary options indicator
- Simple to read – There is a single value generated by the oscillator, keeping the signals simple
Cons Of The MFI Binary Options Indicator
- Not well supported – Despite the simplicity of the MFI binary options indicator, some brokers do not support it on their proprietary platforms. Instead, traders may need to use third-party platforms like MT4
- Can be unreliable – The MFI binary options indicator is error-prone and can produce false signals, particularly in the case of zoning in on divergences. This can lead to incorrect price predictions and may result in losing trades
- An incomplete picture – When only looking and buy and sell volume, other important factors regarding a stock or asset may be missed, such as the health of the company. Also, the indicator only focuses on past data and information
- Divergences are rare – Arguably the most telling signal provided by the MFI binary options indicator, the divergence, does not occur very often
Strategies
Investors can utilize several trading strategies with data from the MFI binary options indicator. Traders can use binary options demo accounts to test these strategies for free on specific assets, as some markets, such as cryptos, may be more suited to MFI analysis.
Following Trends
In our earlier examples, Trader C followed an MFI binary options indicator trend signal. Traders can identify the indicator as signalling a trend when the MFI value shows consistent increases or decreases.
This is perhaps the most simple signal to follow, and investors can frequently enact the strategy. However, individual investors have to decide what constitutes a ‘‘consistent’’ trend here, as well as the size of the overall movement that indicates a signal.
These trends are short to medium-term signals, often suited to a one-minute binary options strategy up to 15-minute contracts.
Overbought & Oversold
When the MFI binary options indicator value is close to zero or 100, the indicator signals that a security or asset is oversold or overbought. This is the strategy that Trader A used in our earlier example.
Most MFI indicators have threshold values of over 80 for an overbought asset and below 20 for an oversold one. However, some investors may wish to alter these to 90 and 10, or even 95 and 5. Striking a balance between the number of actionable live signals and their strength is up to each trader, depending on their error/risk tolerance.
When the MFI indicator signals an asset is oversold, traders following this strategy will want to open a long position on an investment. Binary option contract lengths from 30 seconds to two minutes could work well here.
Conversely, when investors see an overbought signal, this strategy would look to open a short position. Again, traders can use 30-second to two-minute binary options contracts.
Divergence
Divergence is less common with the MFI binary options indicator but arguably the most powerful strategy for making accurate predictions. Trader B opened a position on a slight divergence, which they believed indicated an imminent momentum shift and price reversal.
The divergence strategy often involves medium to long-term binary options contracts, as turnarounds in the market may take longer to manifest. Binary options traders can target contract lengths of between five and ten minutes for liquid assets and test the efficacy of extended contracts if trading a more obscure security.
How To Set Up The MFI Binary Options Indicator
- Find Your Trading Asset – Before setting up the MFI binary options indicator, navigate to the section of your trading platform that covers your chosen trading asset. This can normally be accessed by typing in your security from the central hub of the platform, usually through a search bar.
- Add The Indicator – Now that you are on the page of the asset you wish to analyze, it is time to add the MFI binary options indicator to the chart or graph. Navigate to the indicator menu in your platform and either type in ‘MFI’ or manually select ‘Money Flow Index’ from the list.
- Adjust The Indicator – The indicator may ask you to define the overbought and oversold ranges. Investors can either leave these values at the standard 20 and 80 levels or adjust them based on their personal preferences. Additionally, most platforms will place this indicator at the bottom of your screen. This works for many investors, but those who wish to reposition it can click and drag the data set to another location on the trading platform. Furthermore, the MFI binary options indicator will readjust for different intervals as you zoom in and out on an asset’s price history, so try it out for different time frames.
- Monitor The Values – Whether you’re looking for divergence, strong trends or overbought and oversold zones, your next step is to monitor the MFI binary options indicator values to identify signals. Some platforms facilitate setting custom alerts when a parameter is reached. A few, using an adapter or extension, will allow you to automate the trading process.
Final Word On The MFI Binary Options Indicator
The MFI binary options indicator can provide useful signals for trading. It provides public insights into trader sentiment and potential upcoming short-term momentum shifts. This indicator is best utilized with other tools to produce a more holistic picture of an asset. Disappointingly, not many binary options platforms support this indicator, but its availability enhances those that do.
FAQs
Is The MFI Binary Options Indicator Free?
For the trading platforms we found supporting the MFI binary options indicator, there was no charge to add it to a graph and use it for analysis.
Can I Get The MFI Binary Options Indicator For MT4?
Yes, the MFI indicator comes as standard in the MT4 trading platform. However, not all binary options brokers and groups offer the MetaTrader 4 platform.
Why Is The MFI Binary Options Indicator Not Working?
No indicator will be effective 100% of the time. If your error tolerance is lower than the signals being put out by this indicator, consider changing your values from the standard 80/20.
Which Indicators Are Best For Binary Options Trading?
The MFI indicator is an excellent choice for binary options traders as it offers insight into short to medium-term trends and momentum changes. This indicator is also effective in combination with other tools, such as the MACD and Bollinger Bands.
Can I Test The MFI Binary Options Indicator?
Most binary options platforms support free demo programs where investors can connect and test new indicators and strategies using paper funds.