Is IG Binary Options Broker good Find out in our review!

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Contents

IG Binary Options review

Rating:

A proficient broker is always a good friend and partner. This is even more significant if you are eager to trade binary options. But where to find a decent binary broker? Fortunately, we are here offering a decent solution – IG Binary Broker. If you are interested, then read our review!

Min. Deposit: $10 Demo: Yes

Platform: Custom Bonus: N/A

Regulation: FSA US Clients: No

Sign up with IQ option Instead
RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

Honest 24option review: About the Company

IG broker is the veteran of financial companies, which headquarters is located in the UK. Beside being one of the global leaders in online trading, it provides swift and flexible access to more than 10,000 financial markets. Their trading experience and history is just stunning. The company was established in 1974 as the world’s first spread betting firm. Its main aim is still to become the default choice for active traders around the world. Being already an award-winning multi-platform trading company, it is the first-class provider of CFDs and one of the leaders in Foreign Exchange. IG Binary Options review also admits that IG is a member of the FTSE 250 with market capitalisation of 2.9 billion GBP , with many offices across Asia, Europe, Africa, America in 17 countries. In addition, IG is regulated by FSA. Unfortunately, it does not accept US clients.

It has so much to offer not only to CFD or Forex trader, but to BO one

IG Options Review: Trading Markets

The amount of financial markets available is impressive. Among many others are:

The access to trading these markets is fully available through their trading platform.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Good for Beginners!
    Free Education + Free Demo Account!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Only For Experienced Traders!

IG Options Accounts reviews

IG broker has not created multiple trading accounts that may confuse a trader. Instead you are offered 2 types of trading account with minimum deposit evaluated 10 EUR. IG Binary Options review outlines the following:

  • Trader
    This kind of account is targeted towards pro and experienced traders and thus requires the trader to meet the actual standards as stated in the MiFID regulations.
  • Limited Risk
    This account type does not differ much from the Trader account, by it has limited risk as specified in the name. It is more suitable for less proficient traders and perhaps novices.

Moreover, with both types of trading accounts, IG’s trader will be granted an access to more than 10,000 markets. Such colossal amount would strike anyone. But that is not all. As the matter of fact, IG offers an execution merely stockbroking account for those traders who desire to only trade in the equity market.

Beside accounts that need to be funded, you can use a demo one to backtest the service IG offers. Additionally, you can practise options trading by exploiting the IG platform in a risk-free environment. Well, in our IG Binary review we should pinpoint main differences to be aware of: Trades made through the demo account will not be subject to slippage, dividend adjustments and interest or out of hours price moves; Trades will not be rejected, which may take place on a live account; The last one – you will not be charged for chart packages.

RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

IG Options Trading Platform

IG Broker understands how important is to satisfy all needs of the traders. Therefore, IG has divided their trading platforms into two categories:

  • Core platforms
    Well, the core platforms were designed with mobility in mind particularly for those traders who are permanently on the move. In fact, these core platforms consist of IG’s award winning web based flagship trading platform, mobile trading apps sharpened for smartphones and tablet users, including iPad and Windows tablets.
  • Specialist platforms
    IG’s specialist platforms are designed for advanced traders and for those who desire to reach the high level of proficiency. IG Binary review informs that those specialist platforms encompass the following: Level 2 Dealer Platform – provides direct market access for IG’s traders; ProRealTime Platform – offers an improved charting package and other monitoring tools; MetaTrader 4 – this is an industry standard platform for spot Forex trading and CFDs.

IG Options Deposits and Withdrawals

IG Options offer the following ways to make the deposit: you can use credit/debit card, Internet Bank transfer and Telegraphic Transfer, DBS/POSB Bill Payment and Standard Chartered Bill payment.

If you want to withdraw your funds, you again need to use credit/debit card and Internet Bank transfers.

IG Options Customer Support

Customer support there is wonderful at IG Binary Broker. They have proficient and trained staff that responds once you request their aid. With such long experience behind the company, IG has spent many years to create decent customer support and educational materials.

The website itself supports 11 languages. Among them are: English, Russian, French, German, Italian, Spanish, Portuguese, Japanese, Chinese, Swedish and Dutch.

You can reach customer support 24/7 by dialing respective phone numbers or emailing them. In addition, you can use live chat to speak directly with a support agent in real-time.

IG Options Account Application

Making an account application at IG Options broker is not difficult. The first thing you should do is to fill out the basic form that may take only 5 minutes to complete. Then you have to send your documents to the broker. In turn, IG Options must validate your ID and residential address and also assess your knowledge or prior experience in trading. After that you can place your first trade.

Some IG Binary Options Reviews say that such account application is inappropriate. However, this company tries to identify who you are, because it is interested not only in your money, but in your trading proficiency level and reliability.

IG Options Review Conclusion

Is IG Broker the right choice? It depends. It provides a huge diversity of trading markets, gives you all the necessary tools and first-rate trading platforms but what if you just want to trade options? We would suggest you pick one of the Best Binary Options Brokers.

But, if you want our recommendation, it is definitely 24option!

RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

IG Review 2020

Summary

Recommended for traders of any experience level looking for an easy-to-use trading platform

IG was established in the UK in 1974 and is one of the biggest CFD brokers in the world. It is regulated by several bodies globally, including top-tier regulators like the Financial Conduct Authority (FCA) and the Federal Financial Supervisory Authority (BaFin). IG Group is listed on the London Stock Exchange.

IG is considered safe because it is listed on a stock exchange, discloses its financials and is overseen by top-tier regulators.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFDs are not provided for US clients. Forex trading involves risk. Losses can exceed deposits.

IG pros and cons

IG’s web trading platform is well designed, user-friendly and easy to customize. You will also find many useful educational tools to learn. Funding and withdrawing money is easy and there are multiple options.

On the other hand, IG’s trading fees are high for stock CFDs. The product portfolio is limited, in most countries IG offers only CFD and options trading. The phone support has poor quality too.

Pros Cons
• First-class web trading platform • High stock CFD fees
• Superb educational tools • Limited product portfolio
• Great deposit and withdrawal options • Poor phone support
IG main features and highlights
��️ Country of regulation UK, EU, Switzerland, US, Singapore, Japan, South Africa, UAE, Australia, New Zealand
�� Trading fees class Average
�� Inactivity fee charged Yes
�� Withdrawal fee amount $0
�� Minimum deposit $0
�� Time to open an account 1-3 days
�� Deposit with credit card Available
�� Depositing with electronic wallet Available
�� Number of base currencies supported 6
�� Demo account provided Yes
��️ Products offered Stock, ETF, Forex, Options, CFD, Crypto, Equities for UK clients, Robo-advisory service in the UK, IPOs

Gergely Korpos

Author of this review

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

IG review
Fees

IG has low fees for stock index CFD, while forex fees are average to low. There is no fee for withdrawal and the inactivity fee is charged only after 2 years. On the negative side, the stock CFD fees are high.

Pros Cons
• No withdrawal fee • Inactivity fee
• Low index CFD trading fees • High stock CFD fee
IG fees snapshot
Assets Fee level Fee terms
S&P 500 CFD Low The fees are built into spread, 0.6 is the average spread cost.
Europe 50 CFD Low The fees are built into spread, 1.5 is the average spread cost.
EURUSD Average The fees are built into spread, 0.7 pips is the average spread cost.
Inactivity fee Low $12 per month after 2 years of inactivity

We ranked IG’s fee levels as low, average or high based on how they compare to those of all reviewed brokers.

To get things rolling, let’s go over some lingo related to broker fees. What you need to keep an eye on are trading fees and non-trading fees.

  • Trading fees occur when you trade. These can be commissions, spreads, financing rates and conversion fees.
  • Non-trading fees include charges not directly related to trading, like withdrawal fees or inactivity fees.

In the sections below, you will find the most relevant fees of IG for each asset class.

We also compared IG’s fees with those of two similar brokers we selected, XTB and eToro. This selection is based on objective factors such as products offered, client profile, fee structure, etc. See a more detailed rundown of IG alternatives.

To have a clear overview of IG, let’s start with the trading fees.

IG trading fees

IG trading fees are average. The fee structure is transparent, you’ll easily find information on the website. There are different fee structures for different asset classes:

  • Trading commission for share CFDs, real shares and options
  • All-inclusivespreads for forex, stock index CFDs, commodity CFDs, bond CFDs and even crypto CFDs
  • Administration fee and spreads for Smart Portfolios

We know it’s hard to compare trading fees for CFD brokers. So how did we approach the problem of making their fees clear and comparable? We compare brokers by calculating all the fees of a typical trade for selected products.

We have chosen popular instruments within each asset class:

  • Stock index CFDs: SPX and EUSTX50
  • Stock CFDs: Apple and Vodafone
  • Forex: EURUSD, GBPUSD, AUDUSD, EURCHF and EURGBP

A typical trade means buying a leveraged position, holding it for one week and then selling. For the volume, we chose a $2,000 position for the stock index and stock CFDs and $20,000 for the forex transactions. The leverage we used is:

  • 20:1 for stock index CFDs
  • 5:1 for stock CFDs
  • 30:1 for forex

These catch-all benchmark fees include spreads, commissions and financing costs for all brokers. Let’s see the verdict for IG fees.

CFD fees

IG has mostly average CFD trading fees. Its fees are among the lowest when it comes to index CFD trading, but the stock CFD fees are high.

CFD fees for a $2,000 long position held for one week

IG XTB eToro
S&P 500 index CFD fee $2.1 $2.0 $2.4
Europe 50 index CFD fee $1.6 $2.2 $2.7
Apple CFD fee $31.9 $17.9 $6.3
Vodafone CFD fee $25.7 $20.9

Forex fees

IG has average forex fees for EURUSD, GBPUSD and AUDUSD. EURCHF and EURGBP fees are low.

Forex benchmark fees of a $20,000 30:1 long position held for one week

IG XTB eToro
EURUSD benchmark fee $16.9 $15.0 $19.6
GBPUSD benchmark fee $15.1 $11.1 $16.2
AUDUSD benchmark fee $14.1 $10.0 $12.4
EURCHF benchmark fee $6.9 $6.6 $11.8
EURGBP benchmark fee $11.1 $9.9 $19.9

Real stock fees

IG provides real stocks only for some clients, such as residents of the UK or Australia.

Stock and ETF commission of a $2,000 trade

IG XTB eToro
US stock $15.0 $10.0 $0.0
UK stock $9.6 $10.0 $0.0
German stock $11.0 $8.8 $0.0

IG charges a commission for trading with real stocks:

IG stock trading fees
Market Commission per trade Minimum fee
UK – 0-2 trades (previous month) £8 £8
UK – 3+ trades (previous month) £3 £3
USA – any number of trades (previous month) with manual currency conversion $0.02 per share $15
USA – 0-2 trades (previous month) with instant currency conversion £10 £10
USA – 3+ trades (previous month) with instant currency conversion Free Free
Ireland
Germany
Netherlands
Belgium
Austria
0.10% €10
Australia 0.10% AUD 10

At IG, your charges depend on how much trades you have made in the previous months. For example, if you have traded UK trades more than three times before, your commissions per trade for UK shares will be £3 instead of £8.

Smart Portfolios

Smart Portfolios are available only for UK residents.

If you invest in IG’s Smart Portfolios, you will pay a ‘Total Cost of Ownership’ fee, consisting of several components: the cost of the underlying ETFs, the management fee and the spread costs:

IG Smart Portfolios fees
Total value of Smart Portfolio £0 – £50,000 £50,000 – £250,000 £250,000 and over
Average ETF costs Avg. 0.14% (range: 0.17-0.19%)
Management fees 0.65% 0.35% 0.10%
Estimated costs of spreads 0.07% 0.07% 0.07%
Total cost of ownership 0.86% 0.56% 0.31%

Options

IG’s options fees are low, although the contract sizes are also smaller compared to regular exchange-traded options.

Options trading is available only in the following countries: Austria, Denmark, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Romania, Sweden.

IG options trading fees
Market Commission per contract
GBP £0.1
USD $0.1
EUR €0.1

68% of retail CFD accounts lose money

Non-trading fees

It charges no account, deposit, or withdrawal fees. There is also a low inactivity fee of $12 per month, charged after 2 years of inactivity.

IG non-trading fees

IG XTB eToro
Account fee No No No
Inactivity fee Yes No Yes
Deposit fee $0 $0 $0
Withdrawal fee $0 $0 $25

IG review
Account opening

IG’s account opening is seamless and fully digital. There is no minimum deposit for bank transfers and a low, $300 minimum deposit for credit/debit cards and PayPal. On the other hand, account verification takes around 3 business days, which is slower than at some other brokers.

Pros Cons
• Fully digital • Slower account opening
• Low minimum deposit
• No minimum deposit for bank transfer

Can you open an account?

Visit broker
68% of retail CFD accounts lose money

If you are from the US, you can use only IG’s forex trading, and not its CFD trading.

Minimum deposit

The required IG minimum deposit is $0 for bank transfers and $300 for credit/debit cards and PayPal.

Account types

The country of your residency determines which account type you can open. In most countries, you can trade only with forex, CFDs and options.

IG account types

Some small countries, like Gibraltar, the British Virgin Islands, etc.

Countries Products
All countries, except below Forex, CFD
Austria, Denmark, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Romania, Sweden Forex, CFD, Options
Equity** , forex, CFD
USA Forex

*There are also tax-efficient accounts, such as ISA and SIPP.

**You will need to open a second account for stock trading.

How to open your account

IG has a straightforward and fully digital account opening process. The online registration takes only 5-10 minutes, but the account verification can take a bit longer. Our account was verified after 3 business days.

The 5 steps of IG account opening:

  1. Enter your name, email address, country of residence and select your account type.
  2. Provide some personal details, like your date of birth and address.
  3. Answer a few questions about your financial and employment status.
  4. Provide information about your financial knowledge and fill out a short test.
  5. Verify your ID and residency. You can upload a national ID, passport or driver’s license for verifying your ID. Utility bills and bank statements are accepted for residency verification.

IG review
Deposit and withdrawal

IG offers free and fast deposit and withdrawal. There are various options for funding your account, including traditional methods such as bank wire and credit card funding, as well as PayPal.

Pros Cons
• Credit/Debit card available None
• Free withdrawal
• No deposit fee

Account base currencies

At IG, you can choose from 6 base currencies. The available base currencies are USD, GBP, AUD, EUR, SGD, HKD . This currency selection is better than at IG competitors.

Base currencies at IG vs similar brokers

IG XTB eToro
Number of base currencies 6 4 1

When you open an account, you cannot select your account base currency. You can change the currency of your account only if you write an email to IG’s Customer Service. It would better if you could select your account base currency at the beginning of the account opening process.

Why does this matter? For two reasons. If you fund your account in the same currency as your bank account or you trade assets in the same currency as your account base currency, you don’t have to pay a conversion fee.

A convenient way to save on currency conversion fees is opening a multi-currency bank account at a digital bank. Revolut or Transferwise both offer bank accounts in several currencies with great currency exchange rates as well as free or cheap international bank transfers. Opening an account only takes a few minutes on your phone.

Deposit fees and options

IG charges no deposit fees. In addition to bank transfer, you can also deposit money via credit/debit cards and PayPal.

In case of bank card deposit, IG accepts:

  • Debit cards: Maestro, Visa, Electron, MasterCard
  • Credit cards: Visa, Mastercard
  • Major prepaid cards
IG deposit options
IG XTB eToro
Bank transfer Yes Yes Yes
Credit/Debit card Yes Yes Yes
Electronic wallets Yes Yes Yes

A bank transfer can take several business days, while payment with a credit/debit card is instant.

You can only deposit money from accounts that are in your name.

IG withdrawal fees and options

IG doesn’t charge any withdrawal fee. This is a great offer, especially compared to eToro, where withdrawals carry a high, $25 fee.

IG withdrawal fees and options

IG XTB eToro
Bank Transfer Yes Yes Yes
Credit/Debit card Yes No Yes
Electronic wallets No No Yes
Withdrawal fee $0 $0 $25

How long does it take to withdraw money from IG? We tested the debit card withdrawal and it took 2 business days.

You can only withdraw money to accounts in your name.

How do you withdraw money from IG?

  1. Log in to your ‘My IG’ account.
  2. Select the account you wish to withdraw the money from.
  3. Click on the three dots menu on the right side.
  4. Go to ‘Withdraw Funds.’
  5. Select the withdrawal method you prefer.
  6. Enter the withdrawal amount.
  7. Initiate the withdrawal.

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IG review
Web trading platform

IG’s web trading platform is great for both beginners and professional traders. It is easy to use, has all the necessary functions and can be customized.

Pros Cons
• User-friendly None
• Clear fee report
• Two-step (safer) login
IG platforms to choose from
Trading platform Score Available
Web 5.0 / 5 stars Yes
Mobile 4.5 / 5 stars Yes
Desktop No

You can use IG’s trading platform or MetaTrader 4, a third-party trading platform. In this review, we tested IG’s own trading platform.

The web trading platform is available only in English.

Look and feel

The IG trading platform is one of the most intuitive and well-designed web trading platforms we have seen.

You can easily customize the trading platform. The flexible design allows you to move windows around and save layouts. You can create watchlists and there is also a one-click trading feature.

Login and security

You can easily set up two-step authentication. You have to download the ‘IG Authentication’ app on your mobile and activate the two-factor authentication.

Search functions

You can search for products in the sidebar on the left. It works as you would expect. You can also browse available investment options by typing manually or browsing through the asset class categories.

Placing orders

You can choose from many order types:

  • Market order
  • Limit order
  • Stop-loss order
  • Trailing stop order
  • Guaranteed stop order

If you are not familiar with the basic order types, read this overview.

There are also order time limits you can use:

  • Good ’til canceled (GTC)
  • Good ’til date (GTD)

Alerts and notifications

Alerts and notification are all available, they can be set if you go to ‘MyIG,’ then ‘Settings,’ and click on ‘Communication Preferences.’

You can choose from multiple alert and trade/deal notifications:

  • price alert (prices reach an important level)
  • indicator alert (technical tools reach an important level)
  • economic alert (big economic announcements)
  • automated or manual deal opening/closing
  • automated or manual position editing

Portfolio and fee reports

IG provides clear portfolio and fee reports. The main performance and status of your account is available on the dashboard of your live account. By opening the menu on the right, you can see the ‘History’ tab where you can check all the costs and returns on past trades.

Visit web platform page
68% of retail CFD accounts lose money

IG review
Mobile trading platform

The IG mobile trading platform is easy to use and has great functionalities. On the down side, there is no two-step authentication.

Pros Cons
• User-friendly • No two-step (safer) login
• Good search function • No Touch/Face ID login
• Good variety of order types

You can use both IG’s own mobile trading platform and the MetaTrader 4 platform. They are available for both iOS and Android devices.

In this review, we tested IG’s own platform on an Android device.

The mobile platform is available only in English.

Look and feel

The IG mobile platform is very intuitive, similarly to the web trading platform. You can easily find all available features.

The design is OK, nothing great, and not as good as the web trading platform.

Login and security

You can use only a one-step login. A two-step login would be safer.

You can’t use fingerprint or Face ID authentication either. Providing this feature would be more convenient.

Search functions

The search functions are the same as at the web trading platform. When searching, the assets are categorized.

Placing orders

You can use the same order types and order time limits as the ones on the web trading platform.

Alerts and notifications

The mobile platform’s alerts function is not as extensive as the web trading platform’s. You can set only price alerts.

Visit broker
68% of retail CFD accounts lose money

IG review
Desktop trading platform

IG’s in-house developed trading platform has no desktop version. If you prefer a desktop-based platform, you can use only MetaTrader 4.

Visit broker
68% of retail CFD accounts lose money

IG review
Markets and products

At IG, most clients can only trade with CFDs, forex and options. There are literally thousands of CFDs available to trade. Residents in the UK and some other countries can also trade with real shares. Other popular assets, like mutual funds or bonds, are not available.

IG is primarily a CFD and forex broker. US clients can only trade with forex products.

You can also trade with stocks if you are from one of the few countries where this is provided, like the UK.

To learn more about CFDs, read our CFD trading tips.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFDs are not provided for US clients. Forex trading involves risk. Losses can exceed deposits.

Whether you wish to trade CFDs of currency pairs, stock indices, stocks, ETFs, commodities, bonds, futures or cryptos, you will find an extraordinarily wide selection of products at IG. This stands out compared to the product range of its main competitors.

IG XTB eToro
Currency pairs (#) 95 49 47
Stock index CFDs (#) 68 42 13
Stock CFDs (#) 10,500 1,700 1,900
ETF CFDs (#) 1,900 103 145
Commodity CFDs (#) 47 18 6
Bond CFDs (#) 13 3
Cryptos (#) 8 25 17

You can’t change the default leverage level of the products. This is a drawback, as we believe this is an important factor you should be in control of.

Changing the leverage manually is a very useful feature when you want to lower the risk of your trade. For example, instead of trading with 5:1 leverage, only trade with 2:1 leverage in case of stock CFDs. Be careful with forex and CFD trading, since the pre-set leverage levels are high.

Real stocks and ETFs

You can trade with stocks if you are from:

  • UK
  • Ireland
  • Malta
  • Cyprus
  • Australia
  • Some smaller countries, like Gibraltar, the British Virgin Islands, etc.

IG gives you access to an average number of markets compared to other primarily CFD brokers.

IG XTB eToro
Stock markets (#) 8 17 16
ETFs (#) 2,000 170 145

Options

Options trading is available only in the following countries: Austria, Denmark, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Romania, Sweden.

At IG you can trade with

  • equity index
  • forex and
  • commodity options.

The most popular equity indexes, forex pairs, and commodities are all available.

You can choose from two option types:

  • Vanilla options
  • Barrier options

68% of retail CFD accounts lose money

IG Smart Portfolio

IG Smart Portfolio is available only in the UK. IG Smart Portfolios are iShares ETF portfolios managed by BlackRock. This is basically a robo-advisory service, e.g. automatically managed low-cost portfolios.

If you prefer to buy shares in IPOs, you can do it with IG. An IPO is an initial public offering, or stock market launch, where a company’s shares are sold to the general public for the first time.

There are two ways to participate in IPOs at IG:

  • IPO Grey Market – this allows you to open long/short positions before the IPO happens
  • After IPO – this allows you to place orders after the IPO happens

Turbo24

IG also offers an innovative product, called Turbo24. Currently, it is available for clients in France, Germany, Spain, Italy, Netherlands, Sweden and Norway.

Turbo24s are exchange-traded products that can be traded 24/5.

When you place an order, you have to enter a knock-out level, which is the price level where your position will be liquidated. Selecting the knock-out level works like selecting your leverage because you have to fund your position up to the knock-out level. If you choose a lower knock-out level, you’ll use higher leverage, while a higher knock-out level means lower leverage.

Visit turbo24 trading

68% of retail CFD accounts lose money

Compare Binary Options Trading Accounts and Brokers

Binary options offer a trading style that combines high potential return on investment with simplicity and a quick learning curve. To help you understand whether binary options trading is the right investing tool for you, this article explains the basics of binary options, their advantages and disadvantages. We list top UK binary brokers and review each broker in detail. Use a demo account if you want to trade for free without risking any real money.

Binary Options Brokers List

When reviewing a binary options broker, the team has looked at the following items: software, customer support, deposit methods, available assets, withdrawal time, licensing and security. Based on the reviews our editor team has created top list. Furthermore, for more information about each brand, kindly have a look at the in-depth reviews for each brand.

How to Find the Best Binary Broker

Identifying the best UK binary options broker will depend entirely on the needs of the specific investor. When selecting a regulated broker, an investor needs to consider a whole range of things, including the asset class, or market, they want to invest in and the size of their average investment, to name but two.

We have collated all the useful facts that will help an individual to select which trading broker they would like to open an account with. We have also checked our most frequently asked questions, and know that the following features are important when traders are deciding on a broker;

  1. What is the Minimum Deposit?
  2. What is the Minimum trade?
  3. Does the broker offer a Demo Account?
  4. Does the broker offer a Signals service?
  5. Does the broker provide trading via a Mobile app?
  6. Is there a Bonus available for new trader accounts? (Terms and conditions are equally important)
  7. Who has the best binary Trading Platform?
  8. Which broker has the best Asset lists and markets?
  9. Which broker has the largest range of Expiry times?
  10. Who are the Regulated binary options brokers?
  11. What types of options are available? (Touch, Ladder, Range, Pairs etc)
  12. Software Integration (MetaTrader 4 or 5 for example)
  13. Which Deposit options are available?
  14. How quick are Withdrawals, and which method can be used?

We try and answer as many of these questions as possible in our broker summary table, but we cover them in much more depth within each review.

Regulated Brokers

For example, regulation is a key issue. Our comparison table will show if a broker is regulated, and our broker reviews will be specific about which regulator is responsible. In the UK, the Financial Conduct Authority (FCA) regulate a number of brands already – not because they trade binary options – but because they also allow clients to trade Contracts for Difference. Some binary options brokers have chosen to register with the FCA – but this is not the same as being regulated by them. It is a key point if UK traders in particular want the piece of mind that FCA regulation gives.

Bonuses

Bonuses are generally paid as a deposit match, or sometimes once a set number of trades have been settled, for a set amount. Either way, there are generally restrictions, or terms and conditions that need to be met before the funds are available to be withdrawn.

It is worth spending some time understanding those terms before signing up. If the terms are not likely to be met (for example a volume of trades within the first few weeks) then the bonus loses any appeal and that broker may no longer be the best choice. There are also some terms which restrict even the the withdrawal of the initial deposit – not just bonus funds. These are thankfully rare – but highlight the need for checking.

Minimum Deposits

For those investors looking to get involved with binary options for the first time, minimum deposit requirements may be of interest. Some looking purely to experiment, and only risk small amounts, will find a broker with a smaller minimum deposit restriction more appropriate. Likewise, all brokers will have a minimum trade requirement too.

These can vary significantly. There will be some investors for whom neither of these are a consideration and if so, these factors do not need to form part of their selection criteria. Minimum trade figures range from £1 to £25 – which is a very sizeable difference if a trader plans to trade frequently. Our comparison tables highlight the trade sizes for every broker, so these can be compared easily.

Demo Accounts

Most binary options traders offer free demo accounts that provide the same functionality as a regular trading account but allow you to trade for free with play money instead of real money. In this risk-free environment, you can make as many trades as you want and learn the basic of binary options trading. When you know what you are doing, you switch to real money trading and turn a profit from the start.

By allowing traders to make many trades per day in a risk-free environment, binary options offer the ideal environment to learn how the market works. Even if you find out that binary options are not the right investment tool for you or plan eventually to trade stocks anyway, you can immensely profit from starting your trading career with a binary options demo account. There is no better boot camp to learn how the market works. In a few weeks, you can learn more about yourself, the market, and your talents than with other types of investments in a few years.

What Are Binary Options?

Binary options are a new form of investing. The name binary options implies the most important characteristic of the asset: the result is binary. You are either paid a fixed payout when you are correct, or lose the entire investment when you are wrong. It is a high risk / high reward form of investment. With binary options, you make a prediction about the price movement of an asset.

  • If your prediction comes true, you win your option and get a predefined payout.
  • If your prediction is wrong, you lose your option and the money you invested in it.

The system is similar to sports betting. In sports betting, too, you make a prediction, and if the prediction comes true, you get a predefined payout. If the prediction is wrong, you lose your investment. The only difference is that the basis for sports bets is sports events – which are difficult to predict.

Binary options are based on financial assets such as stocks, indices, currencies, and commodities, which makes predictions easier. Just like sports bets, binary options offer a wealth of possible predictions.

Over time, binary options brokers have developed many different binary options types that allow you to make different predictions about the market. Each of these binary options types is defined by three all-important values:

  1. The payout. They payout defines the profit that you make if your prediction is true. If you get a payout of 90 percent, for example, you would make a profit of £90 on an investment of £100. You know the payout you can get before you invest. Your broker constantly updates the options it offers and the payouts you would get if you invest in them.
  2. The expiry. The expiry defines when your broker measures whether your prediction came true or not. With an expiry of one hour, for example, your broker will compare your prediction to the actual market movements in exactly one hour. The special characteristic of binary options is that they use very short expiries of only a few minutes to a few hours.
  3. The target price. The target price defines the price to which your prediction is compared. Some option types use the current market price as the target price, some define the target price based on the expiry you use (longer expiries will lead to target prices that are further from the current market price), and some allow you to use the target price.

The most popular binary options types are:

  1. High/low options. High/low options are the classic binary options type. You predict whether the market will trade above or below the current market price when your option expires. If you are right, you get a payout of 70 to 85 percent. Expiries range from 5 minutes to a few hours.
  2. One touch options. One touch options define a target price, and if the market reaches the target price, you win the option. They are also referred to as “Touch / No Touch” as it is also possible to open a trade hoping the target price will not be reached (or ‘touched’).
    In contrast to high/low option, the market does not have to remain at the target price level. You already win your option if the market touches the target price for a split second. Most brokers offer one touch options as a standard version with a target price close to the current market price and a payout similar to high/low options and a high-yield version with a faraway target price and a payout of up to 300 percent.
    Touch options do not have to wait until expiry before they settle. If the touch price is reached, the trade ends immediately, paying out on ‘touch’ trades, and closing ‘no touch’ trades as a loss.
  3. Short term options. Short term options cover any expiry of less than 5 minutes. The most popular are 60-second options. Some brokers also label them turbo options. They work just like high/low options but use shorter expiries of only 30 seconds to 240 or 300 seconds. Their payouts are similar to high/low options, too.
  4. Long-term options. Long-term options are high/low options with of expiries of a few days to weeks, months, and even years. If you like to make long-term predictions with binary options, long-term options are the ideal tool for you. Popular longer term expiries are ‘end of day’ (which expire when the markets for that asset close) and ‘end of week’. The exact expiry time will be clearly stated, but when trading assets like foreign exchange, there is no central market – so it is worth checking what the broker considers as ‘close of business’ for end of day, or end of week trades.
  5. Boundary options. Boundary options define a price channel around the current market price. When the market leaves this price channel (goes above or below the high and low limits), you win your option. Boundary options are the only binary options type that uses two target prices, both equal in distance from the current market price, one above it and one below it. Just like one touch options, most brokers offer boundary options in a normal and a high-yield version, with the high-yield version being ideal for strong movements. Boundary options are also the only binary options type you can win without predicting the market’s direction – a strong movement is enough, regardless of its direction.
    Boundaries can also be used in flat markets, where traders can predict the prices remain within the boundary range. These trades offer the choice of backing “In” or “Out” as opposed to the high and low of standard binaries.
  6. Ladder options. Ladder options define five or six target prices. For each of these target prices, you can predict whether the market will trade above or below it once your option expires. Ladder options allow both for the highest payouts and the safest predictions, depending on how you use them.
    When you predict that the market will trade above a target price that is far above than the current market price, you can get a payout of up to 1,500 percent – but you also need to find a very strong movement. When you predict that the market will trade below a target price that is far above the current market price, you are making a very safe prediction – but you only get a payout of around 20 percent.
    Each ‘rung’ of the ladder behaves just like a standard High/Low option – but the target price is further away. They offer traders a good way to exploit volatile markets.

With this wealth of available option types and trading styles, binary options offer every trader the right tool to trade the financial markets. You can execute every type of strategy that you want, and you make any prediction.

From high-risk to low-risk, from short-term-to long-term, whichever trading style suits your character best, binary options have the right trade type for you.

A History Of Binary Options

The basic idea of binary options is not that new. It has its origins in classical options. For decades, professional traders used to invest in future contracts with fixed expiration dates that predicted whether an asset would trade above or below a certain price.

Unfortunately, these futures were complicated – and also generally not available to retail investors. It took newcomers months and years to just master the basic terminology, and the way was paved with many expensive rookie mistakes. Many people lacked the time and the money to go on such a long journey.

Binary options were developed to help these traders. Binary options still allow you to predict the price for which an asset will trade at a specific time, but they do so in a simple way.

  • Simple platforms. Instead of having to work through complex lists of assets containing complex values, binary options brokers offer simple trading platforms that everyone can use. You can even download these platforms as apps to your mobile phone. Learning them requires little more time than learning a new mobile game.
  • Quick risk/reward calculations. The price worth of a classic futures contract depends on many complicated factors – remaining time, current market price in relation to strike price, etc. For newcomers, it is almost impossible correctly to understand and predict the development of these prices. Binary options have simplified the pricing. They tell you in advance which payout you can get if you win your trade. Knowing what you sign up for will make it easier for you to predict whether this is a trade you should make.
  • Unmatched profitability. Binary options allow you to make a profit of 75 to 90 percent within a few minutes, some binary options types even offer you payouts of up to 1,500 percent. When you buy and sell a stock over the same period of time, you will make around 0.01 percent of profit – in the best case.
    By enabling traders to make large profits with small movements, binary options enable you to make shorter trades. Shorter trades mean more trades, and more trades with a higher profitability per trade mean more profits. The new thing about binary options is the simplicity, the clarity, and profitability that make it easy for newcomers to learn the trading style.

Binary options are so popular because they combine three of the most important aspects of trading: simplicity, no fees, and a quick learning curve. Let’s take a closer look at each of these advantages:

Advantage 1: Simplicity

We have already touched on this point a few times, but we can’t stress it enough. If you like to keep things simple, you should give binary options a try. Sophisticated simplicity is generally considered the holy grail of financial investing. By keeping things simple, you reduce mistakes and increase the number of trades you can make, which in turn increases your earnings potential. Binary options can help many traders achieve this goal.

Advantage 2: No Fees / Trading Costs

When you trade a binary option, there are no fees. When you win an option with a payout of 75 percent and an investment of £100, you get a total return of £175 and make a profit of £75. There is no hidden money drain, and you always know exactly what you signed up for. This simplicity is a great help to traders, especially to newcomers. You can be completely sure that all the money you make will end up in your account, and that there will be no surprises. With stocks and other classic assets, however, you might find that the fees will eat up all your profit. This advantage especially benefits traders with little money. When you get started with £100, you can still effectively trade binary options. With stocks, where you would pay at least £10 per trade in broker fees, this would be much more difficult. Every trade would eat up 10 percent of your account balance in fees – hardly a profitable setup.

Advantage 3: Quick Learning Curve

Most of us have at some point tried to trade stocks. But how far did we come? Would you say that you really know what you are doing? Despite many years of experience, most stock traders still guess which stock will rise and which will fall. These problems are only natural because stocks have a few major disadvantages that make mastering their trading difficult. Luckily, binary options offer a much better, quicker learning curve.

Binary options allow you to make more trades. The only way to learn how to invest is by doing it. With stocks and other conventional assets, it often takes months or years before you know whether you made a good or a bad investment. Over the course of a year, stock traders might only make two or three trades. With so few lessons, it is impossible to learn. Binary options use expiries of a few minutes to a few hours, which is why binary options traders can easily make 10 or more trades a day. With so much feedback, you learn much faster and more easily.

What Else Do I Have To Know?

One of the most important aspects of binary options that new traders overlook is that binary options are solely between you and your broker. This means, there is no market on which binary options are traded and to which your broker helps you to get access. Your broker directly creates its binary options and offers them to you.

  • With stocks, for example, there is a central stock market. A stock broker helps you access this market. When you buy a stock, the price you pay depends on the price that the market dictates. Different brokers might vary slightly in the fees they apply, but you will pay the same price for a stock, regardless of which broker you use.
  • There is no central binary options market. Each binary options broker creates its own binary options, payouts, and expiries. This is why different brokers will offer different expiries, payouts, and binary options types. Even when you make the exact same prediction with three different brokers, you are likely to get three different payouts.
    While some brokers do offer openly traded binary markets – the broker has created these – it is not a public market.

This difference is why finding the right broker is much more important with binary options than with stocks. Stock traders who know what they are doing can make money with any broker, but for binary options traders, picking the right broker might be the difference between turning a profit and losing money.

To help you find the right broker, we have reviewed all binary options brokers and created a top list. Take a look at the list and pick the broker that suits your style. Remember that demo accounts give you the chance to try them all out and decide what works for you personally.

How To Get Started With Binary Options

To get started with binary options, here’s what you have to do

  1. Find the right broker. To start your career, you need a broker. Brokers also provide you with the demo account that you need to learn trading binary options risk-free, so finding a broker you like is your first step. Take a look at our top list, compare and review the broker you like best.
  2. Open a demo account. Once you have found the right broker, open a demo account. Some brokers offer demo accounts as stand-alone accounts, which means that you can sign up directly for the demo. Other brokers offer their demos as features of their regular accounts, which means that you have to register for a regular account and then use the demo. Both options work, but those that offer a demo account with ‘no strings’ clearly have more confidence in their platform.
  3. Find the right strategy. To make money with binary options, you need a solid strategy. Random investing is the number one reason why people lose money. Your strategy defines when you invest, how much you invest, and how you monitor your success.
  4. Perfect your strategy with your demo account. Try your strategy with your demo and trade as long as you need until you can guarantee that you will make a profit by the end of the month. As long as you keep losing money, try new strategies and different improvements until you find what works for you.
  5. Switch to real money trading. Once you know that your strategy works, it is time to trade for real. Switch to real-money trading, and you should be able to get good results from the start.

Conclusion

Binary options offer a trading style that combines high potential with simplicity and a quick learning curve. For newcomers, binary options are a great way of learning the basic ways in which the market operates, and if you use a demo account, you can get your crash course completely risk-free. To become a successful binary options trader, the most important step you can take right now is choosing the right broker for your career. Take a look at our top list, and you will get a great start.

Although binary options have existed for some time, they were not commonly known until a few years ago, and were often part of a more complex ‘exotic’ trade. However, after the global crash of 2008, many investors wanted a simpler way to trade. In 2008, the American Stock Exchange opened the way for exchange-traded European options (trades which either return cash or nothing at a set expiry date). This new trading format paved the way for a whole wave of binary options online trading sites.

5 Tips for Successful Binary Trading

Binary options trading has become one of the most popular methods of trading financial assets for profit. Its easy trading style and accessibility to investors without large amounts of capital have allowed it to very quickly come to the forefront of the online investing world. However, even though it is a very simple method of executing trades, there is still a great deal of analysis and strategy involved in trading for the highest possible return rate. Here are 5 easy to implement tips and strategies for trading binary options successfully.

Specialize in a Handful of Assets

This piece of advice is most relevant in the beginning of a binary options trader’s career. Some binary brokers offer dozens or even hundreds of assets that may be traded as binary options. While this diversity plays well to more experienced traders, it is best for those who are just starting out to focus on just 4 or 5 assets. This is because every asset will have its own set of trends and factors that affect its value. Learning a few assets inside and out will allow traders to be more profitable than trying to trade every asset immediately. Of course, it is beneficial to branch out once you have become good at trading your selected assets, but it is best to start off with just a few.

Keep up to Date on Market News

While binary options do not involve the actual ownership of an asset, they are affected by the real world marketplace just as much as traditional assets. For this reason, it is important that binary options traders keep abreast of current financial news and events. For example, an astute trader seeing a potential for the euro to weaken against the dollar when the Federal Reserve raises interest rates can use that information to trade the EUR/USD currency pair profitably in that time frame. Knowing what the market is doing and why is critical to success in any trading medium.

Keep Your Trades Low

This may seem counterintuitive when it comes to making larger profits, but keeping your trade amounts low will help you to manage your risk level, resulting in less loss on options that finish out of the money. No trader, no matter how experienced, can trade to finish in the money 100% of the time. With that said, it is important to make sure that no one loss can seriously impact the amount of capital available in your trading account. A good rule of thumb is never to risk more than 10% of your capital investment on any single trade.

Learn to Trade Turbo Binary Options

Many binary brokers now offer what are commonly referred to as turbo binary options. These are options with expiry times between 60 seconds and five minutes. Analysing price trends in such a small time window is, of course, much more difficult than finding long term trends. However, traders who are willing to learn the analytical techniques that apply to turbo options stand to make substantially greater profits by doing so. The reason is that trading in short expiry windows allows a much greater volume of trades to be placed in a given time frame. For example, if a trader is executing turbo trades times at five minutes, he or she can execute six trades for every one that would be executed using a 30 minute expiry time. Traders who successfully trade turbo options can therefore greatly increase their returns in a given time frame.

Take Advantage of the Resources Your Broker Offers

Nearly all binary brokers provide a good deal of free market analysis, learning resources and even trading recommendations to their customers. Many binary traders are missing out on these valuable resources by overlooking them, instead using the broker’s website only to execute trades. This is a mistake, as binary brokers employ highly experienced traders to do their educational analysis. In additional to weekly or daily analysis and tips, many brokers offer periodic webinars or other learning events designed to help traders learn and become more successful. Take advantage of free education whenever it is available.

Glossary

When first learning about trading binary options, it is easy to be confused by the terminology that is sometimes employed. Like most specific areas of finance, there are terms found in regards to binary options that are not commonly used anywhere else. To help those who are trying to learn their way around the world of binary options trading, here is a list of some of the more common pieces of binary jargon and what they mean.

Binary Option: A type of trade that involves predicting whether the value of a given asset will go up or down. This type of trade, which has only two possible outcomes, is the basis of binary trading.

Call Option: A call option is essentially a prediction that the value of a particular asset will go up. When a trader believes that the value of an asset will increase, a call option is placed that will profit the trader if and only if the value of the asset does, in fact, increase.

Put Option: A put option is the exact opposite of a call option. It is the choice that is selected in binary options trading if the trader believes that the value of the asset in question is likely to decrease rather than increase.

Expiry Time: The expiry time of a binary option trade is the amount of time that will pass before the trade is completed and profit or loss is determined. Different brokers will have different options available for expiry times, but as a general rule they will range between five minutes and 24 hours. The expiry time is selected by the trader at the time that a trade is placed.

Open Position: Any binary options trade that has not yet reached its expiry time. An open position is a trade that is active.

Broker: A binary options broker is any company or website that provides a platform on which binary options trades may be executed. Different brokers will offer different platforms and options for traders.

In the Money: A binary options trade that finishes in the money is one that, at the time of expiry, has moved according to the trader’s prediction. When an option finishes in the money, a trader makes a return on his or her investment.

Out of the Money: The opposite of a trade that finishes in the money. A trade which finishes out of the money is one that moves against the prediction made by the trader by the time of expiry. When a trade finishes out of the money, the trader will lose part or all of the money that he or she has invested.

Turbo Binary Options: Turbo binary options, sometimes referred to simply as turbo options, are binary options with extremely short expiry times. These options will have an expiry time ranging from 60 seconds to five minutes. They are preferred by some binary traders as a way to execute more trades in a given space of time, but are also more difficult to predict according to the analysis of larger trends.

Underlying Asset: An underlying asset is any individual asset that may be traded as a binary option. Underlying assets fall under different asset categories such as commodities, stocks, indices and Forex. For example, the AUD/JPY currency pair is an underlying asset of the Forex market.

Social Trading: Social trading is a type of trading that relies on the wisdom of the crowd to make trading decisions. It is not unique to binary options, but is widely used by some binary options brokers. Social trading also commonly offers traders the option of automatically copying the trades of already successful individual traders.

Hedging: A trading strategy that involves playing off two opposing positions on a binary trade that are calculated to ensure a profit in the case of either outcome. This strategy is used to reduce risk and to turn small profits on trades that otherwise would result in a complete loss.

One Touch Option: Like turbo options, one touch options are a specialized type of binary options. One touch options require the value of an asset to reach a selected point at least once before the hour of expiry. So long as this occurs, the trade finishes in the money. Much like turbo options, not all binary brokers offer one touch options to their traders.

These are the major and common terms that are used in binary options trading. There are, of course,others which are used less frequently, but this list will help those new to the binary options world get a grasp of what is being said and taught to them. If you are looking for a binary options brokers, then we advice you take look at our list of regulated binary options brokers.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Good for Beginners!
    Free Education + Free Demo Account!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Only For Experienced Traders!

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