Trusted and regulated UK binary options brokers offer traders the opportunity to speculate on a wide range of underlying assets, either through a web-based trading platform or mobile application. Brokers operate in a range of different ways, some developing bespoke platforms, others using white label websites. Likewise, some are called ‘over the counter’ (OTC) brokers, while others do the exchange.
Our vetted comparison table below allows you to quickly scan the main points for any recommended, reputable broker. Our detailed expert reviews include in-depth analysis of the platform, deposit and withdrawal options, bonuses, demo accounts and even claims for a specific company – and give out ratings / ratings.
Finally, below the broker comparison table list, we explain how to compare online brokers – and why some factors may be more important to you than others. Therefore, you should have all the information you need right here, to make the best choice for you when looking for a safe binary broker.
British Brokers – Comparison and Review
How to find the best binary broker
Determining the best regulated binary options brokers depends entirely on the needs of the particular investor. ‘Top 5’ or even ‘Top 10’, may not contain a brand that suits your style. A trader needs to consider a variety of things when choosing a genuine top broker to join. This would include the type of asset, 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 with and sign up. We have also analyzed our most frequently asked questions and know that the following features are important when traders decide to choose a broker;
- What is the Minimum Deposit ?
- What is the minimum trade / minimum investment?
- Does the broker offer Demo Accounts?
- Is a broker offering a signal service?
- Do brokers offer trading through a mobile app?
- Is there a bonus for new trader accounts? (Terms and conditions are equally important)
- Which is the best binary trading platform?
- Who provides the best listings of assets and markets?
- Which broker has the largest expiration range?
- Who are regulated binary options brokers?
- What kind of options are available? (Touch, Ladder, Range, Pair, etc.)
- Software integration (eg brands using MT4 – MetaTrader 4 )
- Is a halal or Islamic account available?
- Do brokers offer easy withdrawals, early closing or flexible deposit and payment methods?
There is also information about promotions such as contests or contests with cash prizes, or technology.
Top 5 most popular binary options brokers in 2020
- Binary.com
- IQ Option
- OptionField
- RaceOption
- Ayrex
Regulated broker
Our broker reviews will be specific about which regulatory body is responsible for each broker. In the UK, the Financial Conduct Authority (FCA) has regulated 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 regulated by them. That is an important point if UK traders especially want the part of the mind that the FCA regulation offers.
Regulation gives traders a better idea if a broker is genuine and legit. In the US, the CFTC regulates the financial sector. Only Nadex and CBOE are officially licensed to offer binary trading. Trademarks regulated in Europe will not provide services to US traders. CySec is the main European regulator. They have recently taken control of several brands under their jurisdiction – cleaning a large part of the industry in the process. CySec regulated brokers are allowed to accept UK traders. The MiFID II directives mean that Cypriot licenses can be ‘passported’ to UK customers.
In Australia, ASIC (Australian Securities and Investments Commission) regulates financial institutions – including brokers. Their oversight is on a par with the FCA. Malta and the Isle of Man also license a number of binaries based on gaming licenses. These also provide a strong level of protection.
Binary Trading Demo Account
Sign up bonus and demo account are two elements designed to entice new account holders. Both are extremely effective at attracting beginners and new customers and it’s easy to see why.
The bonus is usually paid as a deposit, or sometimes once a set number of trades have been settled, with a set amount. In general, there are restrictions, or terms and conditions, that need to be met prior to withdrawal. It’s well worth the time to understand those terms before signing up. If the terms are unlikely to be met (e.g. first few weeks of trading volume) the bonus will lose any appeal and that broker may no longer be the best choice. There are also some terms that restrict even the initial deposit withdrawal – not just the bonuses. This is very rare – but highlights the need for testing.
The binary options demo account is a great way to get an introduction to binary options trading without risking any money. Investors looking for the long term can be sure that the broker is the right one for them once they are trading with real money. Practice or virtual accounts offer a lot of benefits. They also provide a great way for traders to directly compare brokers or back-test trading strategies.
Minimum Deposit
For investors who want to get involved with binary options for the first time, a cheap minimum deposit requirement may be of interest. Traders looking to risk only small amounts will find a broker with a smaller minimum deposit more suitable. Low deposit requirements start from £5 or £10. Higher minimum deposits reach £100 or £250. Higher deposits usually mean certain benefits, such as improved rates, bigger bonuses, or access to higher tier accounts like VIP or Platinum, etc.
All brokers will also have a minimum trade requirement (or minimum investment). These can vary significantly. There will be some investors for whom neither is a consideration and if so, these factors need not form part of their selection criteria. The minimum trade figure ranges from £1 to £25 – that’s a huge difference if a trader plans to trade regularly. Some of the newer companies offer crypto funding options – and the minimum trades are as little as $0.1 (or equivalent).
Both minimum trade and minimum deposit figures are displayed in the comparison list. We also list whether a company accepts Paypal or Skrill for deposits or withdrawals.
How do binary brokers make money?
How are brokers paid? That is a common question. Brokers make money in one of two main ways explained below – both are based on easy to understand profit models.
Here is a closer look at how binary options platforms differ from stockbrokers and where the money goes.
Here is an example – let’s say that the broker offers a contract on a specific asset. Of course, there will always be a choice between the Order contract and the Call option. On the binary model, the basic theoretical assumption is always that an equal number of trades will have one contract per position. Following that, the number of people who trade with money will be equal to the losers (in theory).
Potential Profits
With this in mind, here is an illustration of how an over-the-counter broker works:
For a contract on a specific asset, an 80% return is offered.
From its clients, the broker receives:
- £100 for put options
- £100 for call options contracts
- The broker withdraws from the contracts entered into by the losing traders (on expiry), a total of £100. For the winners, they have to return their stake and the profit won – ie £100, in addition to the £80 profit on the trades.
- From all trades the broker is left with a profit of £20.
Shop around: how brokers offer flexibility
Returns provided vary from platform to platform. Levels also tend to vary from asset to asset. A stable and stable platform with many users is good news from a trader’s point of view. That means that the broker is large enough to withstand a heavy loss without facing liquidity problems. It is also more likely to operate at, or fairly close to, the 50:50 binary pattern – where there is a wide parity in the number of clients taking positions on each side of the contract.
This gives a broker more time to offer attractive arrangements to clients. A successful platform has more scope for higher profitability – and thus grows its customer base. Some also refund a percentage of the losing trade (discount). These often give clients the ability to choose between reduced payouts on winning trades in exchange for a higher return on a losing position. All of this helps to provide traders with a welcome level of control over risk management.
Exchange broker
In the UK, a broker that trades binary over an exchange often offers additional forms of trading. For example, betting for difference or trading CFDs (Contracts for Difference). These forms of trading are treated differently to OTC binary platforms from a regulatory point of view. For example, ETX Capital and IG Index are fully regulated by the Financial Conduct Authority.
In terms of price, comparing an exchange platform with a pure OTC platform is difficult (since you are not comparing likes for likes). One way is to look at the margin ratio (the difference between the bid and ask prices). CMC for example has a margin of around 4% on the binary market – which helps make it highly competitive, reasonably priced.
Through one of two ways:
- As a partner, guaranteed “pass” through payment percentage.
- Through an spread or commission on an exchange trading model
No matter what type of platform you choose, transparency is key – and a reputable platform will always provide clear information about payout percentages so you can make an informed decision. For a quick breakdown of payout rates and more detailed information on the pros and cons of all the top platforms, check out our comparisons and reviews list.
Binary Payout
An important factor in finding the best binary trading account, is the payout percentage offered. This is not always a simple comparison. The payouts will vary depending on the underlying asset traded and the duration (expiration time) of the option. Also, payouts can move as the market dictates. So where one broker is initially the best price, things can then change.
The best an investor can hope for is to check the payouts for the types of trades they are most likely to do and get a feel for which company offers the best deals. the best account most often. Again, a demo account can help in this regard. All in all, exchange-traded options offer outstanding value.
Types of commerce
Traders need a binary options broker that offers what they need. So if you want to trade 60 second options or end of day options – 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 companies. As mentioned, expiration options are also different. 30 or 60 second turbo options may be popular, but they’re not listed everywhere. Similar pairs or weekend options may also be restricted to only a few brands.
The early closing of the trade can be another program stop. Or the ability to use software with free signals. Traders all over the world have huge requirements. When a broker operates in a certain part of the world, they can only offer deals that are popular in that region. A London broker can offer different products and assets to a person in Cyprus, India or Malaysia.
Managed accounts
Some brokers will offer managed accounts. Traders need to be careful in this area. There is a conflict of interest for an over-the-counter broker to operate a trader’s account. It is unlikely that a managed account will be operated in the best interest of the trader. If the trader makes money, the broker loses money. As a result, a broker’s employee or agent is more likely to help a broker than a trader – that’s their job!
For this reason, we do not recommend using a managed account – but some brokers offer them and in this case it will be covered in the review.
MetaTrader 4
Software integration can be key for some traders. When a trader prefers to use their own price analysis software or service, a broker that can integrate with that is crucial. The industry standard is MetaTrader 4 (Mt4) – a platform that allows advanced technical analysis, as well as execution of trades. The majority of brokers use MT4 and allow traders to trade with it.
Many brokers integrate with this service (and others) through a license or plugin. Top brokers will also add their own features to the platform – in theory, enhance it. So if a trader is looking for a company that can make trades through this platform, that is a huge benefit. Some brokers are also compatible with MT5 (MetaTrader 5) – but this latest version has yet to gain traction. Although those companies have adopted it, to some extent, future proof. That’s one more thing to consider when checking the comparison list to find the best supplier.
Find the best deals for you
As noted above, finding the best binary broker and trading platform is not always easy – but it is worth remembering that an investor can freely move between any real estate brokers. whenever they choose, so even if an account turns out to be less useful than expected, there’s no point in increasing the stick and finding a new trading company. Likewise, a trader can have multiple accounts and open trades at the broker with the best terms for that particular trade. A trader should not be tied.
In our website we provide a lot of information that can help in choosing the best options broker, here is a selection of articles that will help;
Frequently asked questions
Best broker for beginners?
The best brokers for beginners would be those that offer demo accounts. These accounts allow absolute beginners, and those new to binary options, to try out risk-free trading platforms.
The majority of brokers will offer this facility, as it gives them a chance to show off their background.
In most cases, a demo account will not require any deposit and a trader can open multiple accounts at various brokers. Each can be tried, and then the trader can decide which they prefer.
Another point for beginners is that they should probably focus less on bounties. This is because it is easy to fall into over-trading, or simply not make the best use of the bonus funds. More experienced traders are better placed to ensure any bonus fits their trading style and won’t affect the way they trade.
Better comparison factors for beginners might be:
- Minimum amount of transactions
- Easy to use platform
- Educational materials are available.
Which is the best trading platform?
Answering a question like which is the best trading platform? It is difficult, simply because trading platforms often follow the preferences of a particular trader. One user might prefer a simple layout, another might want a lot of information available at all times.
That said, the platforms differ in quality, both in terms of ease of use and features. In a very general way, brands also offer Contracts for Difference (apart from binary options) which offer more feature rich trading platforms. Similarly, brands have created their own platforms, which will provide services beyond the ‘white label’ using a platform provider like our SpotOption.
So like CMC and ETX Capital, all of which provide a very professional trading platform. MetaTrader integration is also more likely at these brokers. This difference in quality is simply a reflection of the maturity of binary options as a product and binary options catching up very quickly – while still offering something different. . IQ Option, for example, offers an extremely entertaining entertainment experience, illustrating the change in style that some brokers will offer.
How to avoid broker scam?
Our scams page provides a list of ways to determine if a broker is genuine and secure. We also provide a blacklist of brokerage services to stay away from. With new platforms set up quickly, it’s by no means an exhaustive list of brokers, but tips for spotting a scam should help most traders.
With so many honest and genuine brokers, there is little risk in using a cheap broker that has attracted so many complaints.
Low minimum deposit broker?
The number of binary options brokers offering a low minimum deposit is growing rapidly, reflecting the growing demand for a lower entry level from traders.
In the past, the minimum deposit was quite high, but now Binary.com, Ayrex and IQ Option all offer low minimum deposits of £10 or less. This shows real confidence from those brokers, that traders will like their trading platform and keep depositing more once they get familiar with the brand.
CMC Markets also offers a low minimum deposit, requiring only the deposit that matches the trade size traders want to place.
Who offers demo accounts?
In our demo account page, we explain the benefits of using a demo account and also show who offers them.
Most respected brands will offer a demo or practice account. In theory, it’s a great way for them to ‘show off’ their background. So those brokers that offer this type of account, obviously have faith in their platform and the technology that powers it.
Our comparison table clearly shows whether the broker offers a demo account or not. An in-depth review will inform the reader of the specifics of the account (if a deposit is required or if the account is time-limited, for example).
Bitcoin and Cryptocurrency
Cryptocurrencies are a booming field for brokers of all types. Bitcoin and Ethereum are currently the most popular, but there are already more than 15 different currencies. Whether you consider them a novelty, or the future of finance, brokers now make trading them easy.
With Bitcoin in particular, anyone who wants to invest or trade might have thought that the process was difficult. Recently, however, brokers are allowing traders to access these markets in a very simple way. Currencies can be traded directly, in much the same way as oil or gold. They can also be traded in currency pairs, with some brokers offering BTCUSD pairs. This can be traded just like any other forex pair.
Some brokers will accept bitcoin or other cryptocurrencies as a deposit method. So traders can deposit, transact with and get paid in Bitcoin, DASH, Litecoin or any other cryptocurrency. So whatever your views on this new craze, it is now very easy to take a position and take a profit. Read our guide to bitcoin trading.
