Trusted and regulated UK binary options brokers offer traders the opportunity to speculate on a range of underlying assets via their web-based trading platform or mobile app. Brokers operate in different ways, some develop custom platforms, others use white label sites. Likewise, some are referred to as ‘over the counter’ (OTC) brokers, while others operate exchanges.
Our verified comparison table below allows you to quickly scan the key points of our recommended and reputable brokers. Detailed expert reviews include in-depth analysis of platforms, deposit and withdrawal options, bonuses, demo accounts and complaints about specific companies, giving each a ranking/rating.
Finally, below our list of broker comparison tables we explain how online brokers compare and why some factors are more important to you than others. So, you should have all the information you need here to make the best choice when looking for a safe binary broker.
UK Brokers – Compare & Review
How to find the best binary broker
Finding the best regulated binary options broker depends entirely on the specific investor’s needs. The ‘Top 5’ or ‘Top 10’ may not contain a single brand that fits your style. Traders should consider a variety of things when choosing a truly premier broker. This includes the asset class or market you wish to invest in and the average investment size.
binaryoptions.co.uk lists all useful information to help individuals open an account and choose the trading broker they want to sign up with. We have also analyzed the most frequently asked questions, and we know that the following features are important for traders when deciding on a broker:
- What is the minimum deposit?
- What is Minimum Trade / Minimum Investment?
- Does the broker offer demo accounts?
- Does your broker offer signaling services?
- Does the broker offer trading through a mobile app?
- Is there a bonus for new trader accounts? (Terms are equally important)
- What is the best binary trading platform?
- Who provides the best asset listings and markets?
- Which broker has the maximum expiry time range?
- Who is a Binary Options Broker?
- What types of options are available? (touch, ladder, range, pair, etc.)
- Software Integration (e.g. MT4 – brands using MetaTrader 4)
- Do you have a Halal or Muslim account?
- Does the broker offer easy withdrawals, early closures or flexible deposit and payment methods?
There is also information about promotions such as competitions or competitions with cash prizes or technology.
The Most Popular Binary Options Brokers of 2019
- Binary.com
- IQ Options
- Option field
- Race Options
- I Rex
Regulated Broker
Our broker review goes into detail about the regulatory body responsible for each broker. In the UK, the Financial Conduct Authority (FCA) already regulates several brands to allow their clients to trade for difference or forex rather than trading binary options. Some binary options brokers have chosen to register with the FCA, but this is not the same as being regulated. That’s a key point for UK traders especially if they want the heart of their hearts that FCA regulation offers.
Regulation gives traders a better idea if the broker is sincere and legit. In the United States, the CFTC regulates the financial sector. Only Nadex and CBOE are officially licensed to offer binary trading. European regulated brands do not serve US traders. CySec is a major European regulator. They’ve recently captured some brands under their jurisdiction – cleaning up much of the industry in the process. CySec regulated brokers can accept UK traders. The MiFID II guidelines mean you can ‘pass’ your Cypriot license to UK customers.
In Australia, the Australian Securities and Investing Commission (ASIC) regulates financial institutions, including brokers. Their supervision is on a par with FCA. Malta and the Isle of Man license some binary operators under their gaming permits. It also provides strong protection.
Binary Trading Demo Account
Signup bonuses and demo accounts are two things designed to entice new account holders. Both are very effective at attracting newbies and new customers, and it’s easy to see why.
Bonuses are usually paid as a deposit match for a set amount, or sometimes once a set number of trades have been settled. There are usually restrictions or conditions that must be met before funds can be withdrawn. It’s worth spending some time understanding these terms before signing up. If conditions are not met (e.g. trading volume within the first few weeks) the bonus will lose its appeal and that broker may no longer be the best choice. There are also conditions that limit the withdrawal of the initial deposit as well as the bonus funds. It’s thankfully rare, but it highlights the need to check.
A binary options demo account is a great way to start trading binary options without risking your funds. Long-term investors can be assured that the broker is the right broker for them if the investor trades real money. A practice or virtual account offers many advantages. It also provides a great way for traders to directly compare brokers or reverse testing strategies.
Minimum Deposit
A low minimum deposit requirement can be important for investors looking to get involved in binary options for the first time. Traders willing to risk only small amounts will find brokers with lower minimum deposits more suitable. Low deposit requirements start at £5 or £10. Higher minimum deposits reach $100 or $250. Higher deposits often mean certain benefits, such as increased interest rates, bonus bonuses, or access to premium accounts such as VIP or Platinum, etc.
All brokers have a minimum trading requirement (or minimum investment). These can vary greatly. There will be some investors who consider none of these things, and in those cases these factors need not form part of their selection criteria. Minimum trading figures range from £1 to £25, which is a very large difference if traders plan to trade frequently. Some startups offer cryptocurrency funding options, with transactions as low as $0.1 (or equivalent).
Both minimum transaction and minimum deposit figures are displayed in the comparison list. We also list whether the company accepts either PayPal or Skrill as deposits or withdrawals.
How do binary brokers make money?
How do brokers pay? This is a popular question. Brokers make their money in one of two main ways outlined below. Both are based on easy-to-understand revenue models.
Take a closer look at how binary options platforms differ from stock brokers and where your money goes.
Clients approaching an over-the-counter (OTC) binary options broker for the first time will have the following question in their mind: “Where are the commissions? ”.
The simple answer is that there is no one. OTC companies are commonly referred to as ‘brokers’, but this is not accurate. They do not arrange transactions or act as intermediaries. They are basically opponents to each customer’s position. As such, they do not charge any extra fees or commissions for your transactions. Instead, each customer essentially bets the house.
For example: Let’s say your broker offers you a contract for a specific asset. Of course, you can always choose between a put contract and a call option. In the binary model, the basic theoretical assumption is that there will always be the same number of traders entering into contracts on each position. The number of traders in the money is (in theory) equal to the losers.
Potential Benefits
With that in mind, here’s a picture of how OTC brokers operate.
For contracts on specific assets, returns of 80% are provided.
The broker receives from its clients:
- $100 on put option contract
- $100 for a call option contract
- Broker pays a total of $100 to contracts entered into by losing traders (on expiration). The winner must return their stake and £100 profit in addition to the £80 profit from the trade.
- On every trade the broker makes a profit of £20.
Shopping Around: How Brokers Offer Flexibility…
Returns offered vary by platform. Also, the level varies from asset to asset. A well-established and stable platform with a large number of users is good news from a trader’s point of view. This means that the broker is large enough to withstand huge losses without experiencing liquidity problems. It will also operate on a 50:50 binary model with wide parity in the number of clients taking positions on each side of the contract, or will be close to the 50:50 binary model.
This gives brokers greater leeway to offer attractive contracts to their clients. Successful platforms have a wider reach to deliver higher returns, and thus a larger customer base. Some also refund a percentage of your trading losses (rebates). This often gives clients the ability to choose the winning payout of their trade in exchange for a higher refund on the winning position. All of this gives traders welcome control over risk management.
Exchange Broker
In the UK, broker trading binaries through exchanges usually also offer additional forms of trading. For example spread betting or CFD (Contracts for Difference) trading. This form of trading is treated differently than OTC binary platforms from a regulatory point of view. For example, ETX Capital and IG Index are fully regulated by the Financial Conduct Authority.
It’s difficult to compare exchange platforms to pure OTC platforms in pricing (because I don’t like comparisons). One way is to look at the margin (the difference between the purchase price and the sale price). CMC, for example, has margins of around 4% on the binary market, which helps make it more competitive on pricing.
via one of two methods:
- As a transacting party, you guarantee ‘over-over’ through a payout percentage.
- via spreads or commissions in exchange trading models
No matter which type of platform you choose, transparency is important. Reputable platforms always provide clear information about their payout rates so you can make an informed decision. For more information on payouts and the pros and cons of all the top platforms, see our comparison list and reviews.
Binary Payouts
One of the key factors in finding the best binary trading account is the payout percentage offered. This isn’t always a straightforward comparison. The payout depends on the underlying asset being traded and the length (expiration time) of the option. Also, payouts can move as the market dictates. So where one broker originally had the highest price may change later.
The best investors can hope for is to check the payouts for the types of trades they are most likely to make and get a feel for which companies offer the best terms most often. A demo account can also help in this regard. In general, exchange traded options offer excellent value.
Transaction Type
Traders need a binary options broker that provides what they need. So, if you want to trade 60 second options or EOL options, you need a broker that offers options. Not all brokers offer the same type of trading. Not all companies have ladder and touch options available. As mentioned, the expiration choices also vary. 30- or 60-second turbo options might be popular, but they’re not listed everywhere. Similarly, pair or weekend options may be limited to some brands.
An early closure of a deal could be another show stopper. Alternatively, you can use software with free signals. Traders around the world have very different needs. If a broker operates in a specific region of the world, it may only offer popular deals in that region. Brokers in London can offer other commodities and assets from Cyprus, India or Malaysia.
managed account
Some brokers offer managed accounts. Traders should tread carefully in this area. It is a conflict of interest for counter-counter brokers to operate trader accounts. It is highly unlikely that a managed account can be operated for the benefit of a trader. When traders make money, brokers lose money. Therefore, the broker’s employees or agents are more likely to help the broker than the trader – that’s their job!
For this reason, we do not recommend using administrative accounts. However, some brokers offer them, in which case they are mentioned in our review.
MetaTrader 4
Software integration can be important for some traders. If traders prefer to use their own price analysis software or services, a broker that can integrate is essential. The industry standard is MetaTrader 4 (Mt4) – a platform that supports advanced technical analysis and trade execution. Most brokers use MT4 and can trade with traders.
Many brokers integrate with this and other services through licenses or plugins. Major brokers will also add their own features to the platform to theoretically improve it. So, if traders are looking for a company that can execute their trades through this platform, this is a huge advantage. Some brokers are also compatible with MT5 (MetaTrader 5), but this latest version has yet to catch on. Companies that adopt it are somewhat future proof. There is one more thing to consider when checking comparison lists to find the best provider.
Find the best deal for you
As above, finding the best trading platform and binary broker is not always easy. However, it is important to remember that investors are free to move between brokers whenever they wish. As expected, setting a stick and finding a new trading company isn’t a problem. Likewise, traders can have multiple accounts and open trades at the broker with the best conditions for those trades. Traders should not be tied down.
We provide a wealth of information within our website to help you choose the best option broker. Here’s an article to help you out.
Frequently Asked Questions
Best broker for beginners?
The best brokers for beginners are those that offer demo accounts. This account allows absolute beginners and users new to binary options to risk try out the trading platform.
Most brokers offer this feature as they give you the opportunity to demo their platform.
In most cases, demo accounts do not require a deposit andTraders can open multiple accounts with a variety of brokers. Each can be tried out and traders can decide which one they prefer.
Another thing for newbies is that they should probably focus below on bonuses. This is because it’s easy to get caught in over-trading or not making the most of your bonus funds. Experienced traders are advised to make sure that the bonus fits their trading style and does not affect the way they trade.
A better comparison factor for beginners is:
- Minimum transaction amount
- Ease of use of the platform
- Provides educational materials.
What is the best trading platform?
“ What is the best trading platform? Trading platforms are difficult because they often come down to a particular trader’s preferences. One user may prefer a simple layout while another always wants a lot of information.
In other words, the platform differs in quality in terms of ease of use and features. In very general terms, brands that offer options for difference (besides binary options) offer more feature-rich trading platforms. Similarly, brands that have created their own platforms are better served than ‘white labels’ using platform providers such as SpotOption.
Therefore, both CMC and ETX Capital provide very professional trading platforms. Even with these brokers, MetaTrader integration is more likely. This quality gap simply reflects the maturity of binary options as a product, and binary brands are catching up very quickly while still offering something different. For example, IQ Option offers a very entertaining experience that shows a change in style that some brokers will offer.
How to avoid scam brokers?
The scam page has a list of ways to identify whether a broker is genuine or safe. We also offer a broker blacklisting service to never stay away from. It’s not a complete list of brokers, as you can quickly set up a new platform, but our tips to spot scams are helpful for most traders.
With so many honest and genuine brokers out there, there is almost no risk of using a cheap broker that has caused a lot of complaints.
A broker with a low minimum deposit?
The number of binary options brokers offering the lowest deposits is growing rapidly, indicating a growing demand for low introductory levels from traders.
Previously, the minimum deposit was quite high, but now Binary.com, Ayrex and IQ Option all offer minimum deposits of £10 or less. This indicates the broker’s confidence that once traders like the trading platform and become familiar with the brand, they will deposit more.
CMC Markets also offers a minimum deposit, requiring traders to match their desired trade size.
Who offers demo accounts?
On our Demo Accounts page, we explain the benefits of using demo accounts, and also show the people who offer them.
Most of the respected brands offer demo accounts or practice accounts. In theory, it’s a good way to ‘show off’ your platform. So, brokers offering this type of account obviously trust the platform and the technology that supports it.
Our comparison table clearly shows whether a broker offers a demo account. An in-depth review informs the reader of the details of the account (if a deposit is required or if the account is time limited).
Bitcoin and Cryptocurrency
Cryptocurrency is a booming area for brokers of all types. Bitcoin and Ethereum are currently the most popular, but there are already over 15 currencies out there. Whether you consider them a novelty or the future of finance, brokers now make trading easy.
Especially in the case of Bitcoin, anyone who wants to invest or trade may have found the process difficult. However, recently brokers are offering traders access to this market in a very simple way. Currencies can be directly traded in a similar way to oil or gold. You can also trade in currency pairs with several brokers offering BTCUSD pairs. It can be traded just like any other forex pair.
Some brokers accept Bitcoin or other cryptocurrencies as a deposit method. Thus, traders can deposit, trade and pay in Bitcoin, DASH, Litecoin or other cryptocurrencies. So, whatever your views on this new craze, it is now very easy to gain entry and profit. Read our Bitcoin trading guide.
More comparisons
- Is the exchange traded? Which trading type is best for a particular trading style?
- CFD broker offering CFDs in addition to binary options
- Why the Best Binary Options Payouts Matter How to Find the Best Payouts You Can Find the Best Binary Payouts For You .
- Highlighting why binary options bonus trading conditions matter and why binary options brokers may allow traders to decline inappropriate bonuses
