Binary trading is advertised as commission-free trading. Indeed, there is no spread to pay, like there is in Forex, and there is no fee per trade, like there is in stocks. Binary options commission or house advantage resides in the difference between option’s potential return (payout) and option’s out-of-money reward (if any).
You can use the calculator below to find out your broker’s edge on a particular binary tradeб given the payout amount and the out-of-money reward. It is similar to house edge in a roulette. This edge (commission) calculator assumes that the chance of winning is 50%. Of course, a skillful trader chooses proper entry direction and timing to skew the chances in own favor, but the goal of this free calculator is to allow some estimation and comparison of broker’s commission.