Trusted and regulated UK binary options brokers offer traders the opportunity to speculate on a variety of underlying assets, via web-based trading platforms or mobile apps. Brokers work in different ways, some develop custom platforms, others use white label websites. Similarly, some are referred to as brokers ‘OTC’ (OTC), while others do an exchange.
Our comparison table below allows you to quickly scan the most important points for any recommended, reliable broker. Our detailed expert reviews cover an in-depth analysis of the platform, deposit and withdrawal options, bonuses, demo accounts and even complaints for a specific firm – giving each a ranking / rating.
Finally, under the list of broker comparison tables, we explain how to compare online brokers – and why some elements are more important to you than to someone else. So you should have all the information you need here to make the best choice for you when finding a safe broker.
Makelaars in die Verenigde Koninkryk – Vergelyking en resensies
How to find the best binary broker
Identifying the best regulated binary options broker depends entirely on the needs of the particular investor. A ‘Top 5’ or even ‘Top 10’ may not contain a single brand that fits your style. A trader has to consider a variety of things when choosing a real prime broker to join. This will include asset classes or market they want to invest in and the size of their average investment, to name but two.
Here at binaryoptions.co.uk we list all the useful facts that will help an individual choose which trading broker they want to open an account and sign up with. We have also analyzed our frequently asked questions and know that the following features are important when traders decide on a broker;
- What is the minimum deposit?
- What is the minimum trade / minimum investment?
- Does the broker offer a demo account?
- Does the broker offer a signals service?
- Does the broker offer trading via a mobile app?
- Is there a bonus available for new merchant accounts? (Terms and conditions are equally important)
- What is the best binary trading platform?
- Who offers the best asset listings and markets?
- Which broker has the largest range of expirations?
- Who are the regulated binary options brokers?
- What types of options are available? (Touch, learn, range, pairs, etc.)
- Software Integration (trademarks using for example MT4 – MetaTrader 4)
- Is there a halal or Islamic account available?
- Does the broker offer easy withdrawals, early closing or flexible deposit and payment methods?
Regulated brokers
Our broker reviews will be specific about which regulator is responsible for each broker. In the United Kingdom, the Financial Conduct Authority (FCA) already regulates a number of brands – not because they trade binary options, but because they also allow clients to trade Contracts for Difference or forex. Some binary options brokers have chosen to register with the FCA – but this is not the same as being regulated by them. This is a key point if UK traders in particular want the peace of mind that FCA regulation gives.
Regulation gives traders a better idea if a broker is genuine and legitimate. In the US, the CFTC regulates the financial sector. Only Nadex and CBOE are officially licensed to offer binary trading. Regulated brands in Europe will not offer any services to US merchants. CySec is the main European regulator. They have recently clamped down on some of the brands under their jurisdiction – cleaning up a large part of the industry in the process. CySec regulated brokers may accept UK traders. According to the MiFID II guidelines, a Cypriot license can be ‘passported’ for UK patients.
In Australia, ASIC (Australian Securities and Investing Commission) regulates financial institutions – including brokers. Their supervision is on a par with the FCA. Malta and the Isle of Man also have a license for some binary operators based on a gaming permit. It also offers a strong level of protection.
Demo accounts for binary trading
Sign-up bonuses and demo accounts are two factors designed to attract new account holders. Both are extremely effective at attracting startups and new customers, and it’s easy to see why.
Bonuses are usually paid as a deposit match, or sometimes once a set number of trades have been completed, for a set amount. There are usually restrictions, or conditions that must be met before the funds are available to be withdrawn. It’s worth studying the terms before signing up. If the conditions are likely not met (for example, a number of trades within the first few weeks), the bonus loses any appeal and the broker may no longer be the best choice. There are also some provisions that even limit the withdrawal of the initial deposit – not just bonus funds. This is fortunately rare – but stress the need to check.
Binary options demo accounts are a great way to get rid of binary options trading without risking any funds. Investors looking for longer term can ensure that the broker is the right one for them once they are trading for real money. Practice or virtual accounts offer many advantages. It also provides an excellent way for traders to compare brokers live or test trading strategies.
Minimum deposits
For investors who want to get involved in binary options for the first time, cheap minimum deposit requirements can be interesting. Traders who want to risk only small amounts will find a broker with a smaller minimum deposit more appropriate. Low deposit requirements start at £5 or £10. Higher minimum deposits reach £100 or £250. Higher deposits often mean certain benefits, such as improved rates, bigger bonuses or access to a higher level such as VIP or Platinum, etc.
All brokers also have a minimum trading requirement (or minimum investment). This can vary considerably. There will be some investors who do not consider either of these, and if so, these factors need not be part of their selection criteria. Minimum trades range from £1 to £25 – which is a very big difference if a trader plans to trade regularly. Some newer companies offer financing options for cryptocurrency – and a small trade of only $0.1 (or equivalent).
Both figures for minimum trading and minimum deposits are shown in the comparison list. We also mention whether a firm accepts Paypal or Skrill for deposits or withdrawals.
How do binary brokers make money?
How are brokers paid? This is a popular question. Brokers make money in one of the two main ways outlined below – both are based on profitable models that are easy to understand.
Here’s a close look at how binary options platforms differ from stockbrokers, and where the money goes.
Here’s an example – let’s say that the broker offers contracts on a specific asset. Of course, there is always the choice between a Put contract and a Call option. On the binary model, the basic theoretical assumption is always that an equal number of traders will enter into a contract on each position. It follows that the number of traders in the money is equal to the losers (in theory).
Potential profit
With that in mind, here’s an illustration of how a no-trade trader is used:
For a contract on a specific asset, a return of 80% is offered.
From its clients, the broker receives:
- £100 for Put Options contracts
- £100 for contracts on Call Options
- The broker pays in the contracts entered into by the losing traders (on expiry) of a total of £100. For the winners, it should return their stake and the profit won – ie £100, in addition to the £80 profit on the trades.
- From all transactions the broker has a profit of £20.
Look around: how brokers offer flexibility …
Returns offered vary from platform to platform. The level also tends to vary from asset to asset. A well-established and stable platform with many users is good news from a trader’s point of view. This means that the broker is big enough to withstand a hard loss without having a liquidity problem. It is also likely to work, or pretty close to the 50:50 binary model – where there is a wide parity in terms of the number of customers standing on each side of a contract.This gives a broker greater scope to offer attractive arrangements for clients. A successful platform has more room to offer higher returns – thereby growing its customer base. Some also return a percentage of lost trades (rebates). This often gives customers the opportunity to choose between reduced payouts on winning prizes in exchange for a higher payout on a losing position. All of this helps give traders a welcome measure of control in managing risk.
Exchange brokers
In the UK, a binary trading broker also generally offers additional forms of trading. For example spread or CFD (Contracts for difference). These forms of trading are treated differently on OTC binary platforms from a regulatory point of view. For example ETX Capital and IG Index are fully regulated by the Financial Conduct Authority.
With pricing, it’s hard to compare an exchange platform to a pure OTC platform (because you’re not comparing like-for-like). One way is to look at the margin (difference between buying and selling prices). For example, CMC has a margin of around 4% on binary markets – which helps make it very competitive and price-wise.
Regardless of the type of platform you choose, transparency is key – and a reliable platform will always provide clear information on payout rates so you can make informed decisions. Consult our comparison list and reviews for at-a-glance information on payout rates and more detailed information on the pros and cons of all the top platforms.
Binary payouts
The most important percentage in finding the best binary trading account is the payout percentage offered. It is not always a simple comparison. Payouts will depend on the underlying asset being traded, and the length (expiration time) of the option. In addition, the payouts can move as the market dictates. Where one broker was originally the best price, things can change later.
The best an investor can hope for is to check the payouts for the types of trades they are likely to work for, and get a feel for which firm offers the best terms. Again, demo accounts can help in this regard. In general, exchange-traded options offer excellent value.
Trade types
Traders need a binary options broker that delivers what they need. So if you want to trade 60 second options, or options at the end of the day, you need a broker that offers them. Not every broker offers the same type of trading. Ladder and touch options are not always available with all firms. As already mentioned, the choice of expiration also varies. 30 or 60 second turbo options are popular but not listed everywhere. Similarly, options in pairs or at the end of the week may be limited to only a few brands.
Early closing of trades can be another time to stop the show. Or the ability to use software with free signals. Merchants worldwide have very different requirements. Where a broker operates in a certain part of the world, they may only offer the popular trades in that region. A broker in London can offer different products and assets to one in Cyprus, India or Malaysia.
Managed accounts
Some brokers offer managed accounts. Traders should tread carefully in this area. There is a conflict of interest for a broker to operate a trader’s account. A managed account is unlikely to be operated in the best interest of the trader. If the trader makes money, the broker loses money. So an employee or agent of the broker is more likely to help the broker than the trader – that’s their job!
For this reason, we do not recommend using a managed account – but some brokers do offer it, and where this is the case, it will be mentioned in the review.
MetaTrader 4
Software integration may be most important for some merchants. Where a trader prefers to use their own software or service for price analysis, a broker that can integrate with it is extremely important. The industry standard is MetaTrader 4 (Mt4) – a platform that enables advanced technical analysis, as well as the execution of trades. The majority of brokers use MT4 and allow traders to trade with it.
Many brokers integrate with this service (and others) via a license or plugin. Leading brokers will also add their own features to the platform – in theory to improve it. So if a trader is looking for a firm that can execute trades via this platform, this is a huge advantage. Some brokers are also compatible with MT5 (MetaTrader 5) – but this latest version is not yet gaining traction. Although the businesses that have adopted it are somewhat future proof. This is one more thing to consider when you are researching the comparison list to find the best provider.
Find the best offer for you
As shown above, it is not always easy to find the best trading platform and a binary broker, but it is worth remembering that an investor is free to move between brokers whenever they choose, so even if an account turns out to be less useful than it used to be It is no problem to start a new tradeto get acceptance. Likewise, a trader can have multiple accounts and open trades with the broker with the best conditions for that particular trade. A trader should not be tied down.
Within our website we offer a wealth of information that can help in choosing the best options broker. Here are a variety of articles that will help;
Questions
Best brokers for beginners?
The best brokers for beginners are those that offer a demo account. These accounts allow absolute beginners and novices to binary options to try out the trading platforms risk-free.
The majority of brokers will offer this facility as it gives them a chance to demonstrate their platform.
In most cases, a demo account does not require any deposit, and a trader can open multiple accounts with different brokers. Each can be tried, and the trader can then decide which they prefer.
Another point for beginners is that they should probably focus less on bonuses. This is because it is easy to get overtraded, or simply not make the best use of the bonus funds. More experienced traders are better placed to ensure that any bonus fits their trading style, and it will not affect trading.
Better comparison factors for beginners might be:
- Minimum Trade Amounts
- Ease of use of the platform
- Educational materials available.
What is the best trading platform?
Answer a question like ‘ What is the best trading platform? ‘Is difficult, simply because trading platforms often come down to the preference of a particular trader. One user may prefer a simple layout, another wants a lot of information all the time.
That said, platforms do vary in quality, both in terms of ease of use and features. In very general terms, brands that also offer Contracts for Difference (in addition to binary options) offer more functional trading platforms. Similarly, brands that have created their own platforms will offer superior services than a ‘white label’ using a platform provider like SpotOption.
So people like CMC and ETX Capital a very professional trading platform. MetaTrader integration is also likely with these brokers. This difference in quality is simply a reflection of the maturity of binary options as a product, and binary brands are catching on very quickly – while still offering something different. For example, IQ Option provides a highly entertaining experience, illustrating the style change that some brokers will deliver.
How can I avoid scam brokers?
Our scams page lists ways to identify if a broker is genuine and safe. We also provide a blacklist of brokers of services to absolutely stay away from. With new platforms that can set up quickly, this is not a complete list of brokers, but the tips for spotting a scam should help most traders.
With so many honest and sincere brokers, it makes little sense to take the risk of using a cheap broker that has attracted many complaints.
Brokers with a low minimum deposit?
The number of binary options brokers offering a low minimum deposit is growing rapidly, reflecting an increasing demand for a lower entry level of traders.
Previously the minimum deposits were quite high, but now Binary.com, Ayrex and IQ Option all offer a low minimum deposit of £10 or less. It is a true belief of the brokers that traders like their trading platform and will make more deposits once they are familiar with the brand.
CMC Markets also offers a low minimum deposit, which only requires the deposit to match the trade size the traders wish to place.
Who offers demo accounts?
On our demo account page we explain the benefits of using a demo account and also show who provides it.
The majority of reputable brands offer a demo account, or practice account. In theory, this is an excellent way to ‘show off’ their platform. The brokers who offer this type of account therefore naturally believe in their platform and the technology that supports it.
Our comparison table clearly shows whether the broker provides a demo account or not. The in-depth overview will inform readers about the specific details of the account (if a deposit is required, or if the account is time-limited, for example).
Bitcoin and Cryptocurrency
Cryptocurrency is a booming area for brokers of all kinds. Bitcoin and Ethereum are currently the most popular, but there are already more than 15 different currencies. Whether you consider it a novelty, or the future of finance, brokers are now making it easy.
With Bitcoin in particular, anyone who wants to invest or trade would have thought that the process was difficult. However, brokers have recently been giving traders access to this market in a very simple way. The currencies can be traded directly in the same way as oil or gold. They can also be traded in a currency pair, with several brokers offering the BTCUSD pair. It can be traded just like any other forex pair.
Some brokers accept bitcoin or other cryptocurrency as a deposit method. Traders can therefore deposit, trade with and get paid in Bitcoin, DASH, Litecoin or any other crypto. However you look at this new craze, it is now very easy to take a stand and profit. Read our guide to trading bitcoin.
More comparisons
- Trade or over the counter? What type of broker will best suit a particular trading style?
- CFD Brokers Brokers offering CFDs in addition to binary options
- Best payouts for binary options Why is finding the best payout important and how to find the best payout for you?
- Binary Options Bonuses Why Terms and Conditions Are Crucial, and the Emphasis of Binary Options Brokers Allowing Traders to Decline Unsuitable Bonuses
Further reading