Binary Trading Basics Pdf

Binary options copy trading is a hands-off approach to investing that involves replicating the positions of other traders . But whilst often touted as a straightforward way to produce profits, wins aren’t guaranteed iq option binary options demo . Here, we explain how binary options copy trading works and we list the best brokers and software in 2024.

Introduction Binary Trading Basics Pdf

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Pocket Option - Pocket Option offers ultra-short-term binaries from 5 seconds on one of the simplest web platforms for beginners. Payouts rival alternatives at 90%+ while the ‘Double Up’ and ‘Rollover’ features provide further opportunities to profit. Considering the negatives, the suite of 130+ assets trails binary brokers like Quotex, which offer 400+.
Deriv.com - Deriv.com offers premium binary options on traditional and emerging financial markets with payouts up to 50,000 USD. Binaries are available 24/7, 365 days a year on a secure platform with responsive customer support.
IQCent - IQCent offers binary options with above-average payouts up to 98%. The broker supports an online platform with basic analysis tools but a wide range of timeframes, from 1 minute to 1 month, catering to short and long term trading strategies. Considering the negatives, there are no binaries on stocks.
Videforex - Videforex continues to offer binary options with 20% payouts on crypto and up to 98% on less volatile assets, beating many competitors. A wide range of contract lengths are also supported from 5 seconds up to 1 month. New users will appreciate the welcome deposit bonus.
RaceOption - RaceOption offers 100+ binaries with decent payouts up to 95% and ultra-fast expiries from 5 seconds. With a $250 minimum deposit, clients can enjoy free deposits, fast withdrawals and a range of trading bonuses.

#1 - Pocket Option

Why We Chose Pocket Option

Pocket Option offers ultra-short-term binaries from 5 seconds on one of the simplest web platforms for beginners . Payouts rival alternatives at 90%+ while the ‘Double Up’ and ‘Rollover’ features provide further opportunities to profit binary trading secrets . Considering the negatives, the suite of 130+ assets trails binary brokers like Quotex, which offer 400+.

"Pocket Option excels for its easy-to-use web platform which provides a best-in-class user experience for short-term binary traders. The $50 minimum deposit is also accessible for beginners while opening an account is really easy. Looking at the negatives, Pocket Option still trails alternatives in its market offering and regulatory credentials."
- DayTrading Review Team

Min Deposit: $50
Payout %: 92%
Expiry Times: 5 seconds - 4 hours
Bonus: 50% Deposit Bonus
Platforms: Web, MT4, MT5
Instruments: Forex, Crypto

About Pocket Option

Established in 2017, Pocket Option is a binary options broker offering high/low contracts on forex, stocks, indices, commodities and cryptocurrencies binary trading license . With over 100,000 active users and a global reach, the platform continues to prove popular with budding traders.

Pros

Extremely fast and smooth sign-up process that takes less than 2 minutes
The range of payment methods beats the majority of rivals, providing fast, secure and convenient deposits for traders in most countries
The web platform shines for its straightforward design and usability that will appeal to beginners looking to speculate on popular financial markets in a few clicks

Cons

The maximum binary contract length of 4 hours is restrictive for longer-term trading strategies. Alternatives like Videforex offer binaries up to 1 month
You need to deposit $1000 to access the extended list of 250+ assets, otherwise just 130+ assets are available
Despite offering competitive payouts up to 92%, binary brokers like IQCent offer higher returns up to 98% based on tests

#2 - Deriv.com

Why We Chose Deriv.com

Deriv.com offers premium binary options on traditional and emerging financial markets with payouts up to 50,000 USD. Binaries are available 24/7, 365 days a year on a secure platform with responsive customer support.

"Deriv.com will suit day traders looking to make fast-paced trades using CFDs and multipliers with high leverage up to 1:1000 ai binary options signals . The broker is also the industry leader in synthetic indices, which simulate real market movements and are available around the clock . " - DayTrading Review Team

Min Deposit: $5
Payout %: 100%
Expiry Times: 15 seconds to 365 days
Platforms: Deriv Trader, MT5
Instruments: CFD, Forex, Crypto

About Deriv.com

Deriv.com is a low cost, multi-asset broker with over 2.5 million global clients. With just a $5 minimum deposit, the firm offers CFDs and multipliers, alongside proprietary synthetic products which can't be found elsewhere. Deriv provides both its own in-house charting software and the hugely popular MetaTrader 5.

Pros

Deriv continues to offer fast and reliable 24/7 support and the WhatsApp service is particularly convenient
Beginners and experienced day traders can access a good range of 20+ technical indicators in Deriv Trader vs 30+ in MT5
There's a good range of fast deposit and withdrawal methods with zero payment fees and low minimum deposits

Cons

There's no loyalty program or rebate scheme for high volume traders
There are limited copy trading tools and analysis features compared to alternatives like IQ Cent
The range of 100+ assets trails some competitors such as Quotex which offers 400+

#3 - IQCent

Why We Chose IQCent

IQCent offers binary options with above-average payouts up to 98%. The broker supports an online platform with basic analysis tools but a wide range of timeframes, from 1 minute to 1 month, catering to short and long term trading strategies. Considering the negatives, there are no binaries on stocks.

"IQCent will appeal to day traders looking for a straightforward binary options and CFD trading platform with low fees, a range of accounts, and copy trading. Getting started takes less than 1 minute and a $250 deposit. "
- DayTrading Review Team

Min Deposit: $250
Payout %: 98%
Expiry Times: 5 seconds - 1 month
Bonus: 20% to 200% Deposit Bonus
Platforms: Online Platform, TradingView
Instruments: CFD, Forex, Crypto

About IQCent

IQCent is an offshore binary options and CFD broker based in the Marshall Islands. The brand continues to offer a range of unique account types with bonuses and perks, including payout boosts, TradeBacks and free rollovers. With 100+ assets, around-the-clock trading and 98% payouts, the firm is popular with aspiring short-term traders.

Pros

CFD trading fees are competitive based on tests, including 0.7 pips on major forex pairs such as EUR/USD
Keen traders can take part in trading contests with cash prizes
IQCent is one of the few binary options brokers that also offers a copy trading service for hands-off traders

Cons

There's no automated trading support for algo traders
The market analysis is very basic with limited technical summaries and insights from analysts
IQCent charges a punitive $10 monthly inactivity fee if you fail to place at least 1 trade per month

#4 - Videforex

Why We Chose Videforex

Videforex continues to offer binary options with 20% payouts on crypto and up to 98% on less volatile assets, beating many competitors. A wide range of contract lengths are also supported from 5 seconds up to 1 month. New users will appreciate the welcome deposit bonus.

"Newer traders will find a lot to enjoy about trading binary options on Videforex's easy-to-use proprietary platform, as well as the broker's copy trading solution. Payouts also remain higher than most alternatives climbing to 98%."
- DayTrading Review Team

Min Deposit: $250
Payout %: 98%
Expiry Times: 5 seconds - 1 month
Bonus: 20% to 200% Deposit Bonus
Platforms: TradingView
Instruments: CFD, Forex, Crypto

About Videforex

Launched in 2017, Videforex offers access to stock, index, crypto, forex and commodities markets via binary options and CFDs. The proprietary platform, mobile app and integrated copy trading are user-friendly and will suit new and casual traders, and the market analysis tools and trading contests provide good ways to improve your trading skills.

Pros

Videforex allows you to enter positions with just ¢0.01
The firm facilitates both day trading and binary options which is great for those looking to diversify their portfolios
Traders can earn up to 98% payouts on 100+ assets with the broker’s binary options, which is in line with competing brands like IQCent

Cons

No MetaTrader 4 integration
US clients aren’t accepted due to legal restrictions
The broker isn’t overseen by a trusted regulatory agency

#5 - RaceOption

Why We Chose RaceOption

RaceOption offers 100+ binaries with decent payouts up to 95% and ultra-fast expiries from 5 seconds. With a $250 minimum deposit, clients can enjoy free deposits, fast withdrawals and a range of trading bonuses.

"RaceOption will appeal to traders new to binary options looking for copy trading, contests and 24/7 customer support. Experienced traders will also appreciate the account-based perks and bonuses."
- DayTrading Review Team

Min Deposit: $250
Payout %: 95%
Expiry Times: 5 seconds - 30 days
Bonus: 20% - 200% Deposit Bonus
Platforms: TradingView
Instruments: CFD, Forex, Crypto

About RaceOption

RaceOption is a binary options broker operating from the Marshall Islands. With over 1,500 clients, the broker aims to offer fast funding, low fees and a secure trading environment. Traders can access over 100 binary options and CFDs, plus copy trading and weekly prizes.

Pros

Beginner-friendly copy trading opportunities in the broker's proprietary trading platform
Sign-up bonuses from 20%, plus weekly trading contests and prize giveaways
First 3 trades are risk-free in the Silver and Gold accounts, with only $1,000 required to be eligible

Cons

$250 minimum deposit is higher than other binary options brokers
Withdrawal thresholds apply
No free demo account

Binary Options Copy Trading Explained

How Binary Options Work

Binary options are a class of derivative instrument that let you speculate on financial markets by selecting from one of two possibilities. This is often likened to answering a “yes or no” question about whether the value of an asset will rise above or fall below what is known as the strike price. If you correctly predict the answer, you will earn a predetermined, percentage payout of your stake. If not, you will lose your entire investment. This leads to their other name, “all or nothing” options.

There are several popular contract options:

In/Out – Whether the asset’s value will be within two strike prices at the expiry time
High/Low – Whether the asset’s value will be greater or lower than the strike price at the expiry time
Touch/No Touch – Whether the asset’s value will reach a certain price at any point before the expiry time

How Copy Trading Works

Copy trading, a form of social trading, involves following and imitating other investors. This is often automated through dedicated copy trading tools within existing platforms. This means you can simply assign funds to copy other traders at the exact times they open or close positions.

With binary options copy trading, this process is available on software that supports the purchase of these derivative contracts. More specifically, if a trader you copy purchases a contract, your account will purchase the same contract at the same time, with the same strike price and expiry time.

Pocket Option copy trading

Supporting brokers generally allow you to search through a wide array of expert traders, with full histories of their options types, assets, strike prices and success rates. You may have reduced buying power and wish to stake less capital than the expert, so you can set a percentage or value limit to be used for copy trading.

Getting Started

Use this step-by-step guide to start trading:

Find a brokerage that facilitates binary options copy trading and create an account. Keep in mind that not all platforms offer binary options and not all brokers allow copy trading. See our list of supporting platforms.
Connect a payment method or pre-fund your account so you can copy the expert’s trades as soon as they purchase a contract.
Identify other clients and traders that you wish to copy. Often, brokers will have a leaderboard-style page on their website with details of different people to help you decide. We recommend that you do not copy just one trader as you would be solely dependent on their success. Following several traders will spread your risk.
Sit back and wait for positions to expire and check their outcomes.

Comparing Brokers

Price

One of the most important factors to consider when weighing up different copy trading binary options brokers is costs. These could be in the form of trading fees, subscription charges to access expert traders or lower percentage profits per trade.

Any fees can easily build up and quickly eat into profits. However, there can be a correlation between higher costs and greater quality. Therefore, you need to determine what you would be comfortable paying for the service.

Platforms

Software tools for binary options copy trading are less important than other forms of short-term speculation, such as CFD day trading. However, it is important to ensure that a broker’s trading platform is both effective and easy to use.

Ideally, the software should have an intuitive interface, provide you with all the required information on potential master traders and allow for easy contract purchase. Furthermore, if you plan to do any market analysis yourself, ensure that there are suitable technical indicators and graphical objects.

Videforex copy trading software

Customer Support

A broker’s support structure can have a large impact on your experience binary options copy trading. If you are having issues that interrupt your trading, any time lost means that you are, in effect, losing money.

Being able to access 24/7 support, either via live chat or over the phone, can help to solve problems quickly, so you can return to executing trades as soon as possible. Look out for contact methods that you prefer to use, such as email, alongside long office hours and language options.

Reviews

It is difficult to understand how a particular broker operates by only reading the website or looking at the app. You may, understandably, have questions over how trustworthy and reliable a platform may be. There are many websites, forums and binary options trading clubs online that can help with this.

The best ones will host plenty of discussions, where you can read about other traders’ opinions and experiences with particular platforms. See our list of the best binary options copy trading brokers with accompanying reviews.

Comparing Binary Options Copy Trading Experts

You need to evaluate the different expert traders available for copy trading. Master traders will have a direct impact on your success, so this is not a decision you should take lightly.

Profitability

One of the two key considerations is how successful they have been so far. While past performance is no guarantee of future performance, you probably want to avoid a trader who is out of the money in four of every five trades.

Experience

When deciding between expert traders, look at how many trades they have made and how long they have been going. You can place more confidence in experienced investors, assuming that they will understand binary options well enough to not make rash decisions that lead to large losses.

Risk

Before you start copy trading binary options, you should determine what level of risk you are comfortable with. While copying riskier expert traders may lead to greater profits, you can just as easily, lose your capital.

Pros

There are many benefits to binary options copy trading:

Simplicity
Saves time
Easy to understand
Earn as trader and copier
Learn from successful traders
Limited technical analysis required

Cons

There are also drawbacks to binary options copy trading:

Disconnect between you and your capital
Some experts charge high commissions
Assets limited in certain jurisdictions
Profits not guaranteed
Easy to overlook risks
Potential for scams

Final Thoughts

Binary options copy trading offers a hassle-free approach to financial speculation. The potential to lower risk by mirroring positions opened by experts is attractive, though you should not be fooled into thinking that this is always safe. You should research thoroughly to find the best expert traders possible and, even after selection, you should be proactive and continually review your trading activities.

FAQs

What Is Binary Options Copy Trading?

Binary options copy trading involves mimicking the positions taken by other clients on your platform. This can be done manually or automatically, assigning your full account capital or just a portion to copy the contract details purchased by expert traders. This means that if they purchase a high/low option at a certain price, your account will do the same, taking away the effort of manually analysing the markets.

Is Binary Options Copy Trading Legal?

Yes, copying the trades of binary options is legal and facilitated by some of the best brokers. However, the sale of binary options themselves is restricted in some regions.

How Do I Become An Expert Binary Options Trader?

Firstly, you need to be a trader that others will want to copy from. This means demonstrating that you know how to make consistently profitable trades. Once you are confident, you need to apply to your desired broker with a verified account. Ensure that you meet the platform’s criteria for expert traders. You will often need to provide a description to advertise yourself, including your chosen trading strategy and experience. Some software may let you set your own commission rates.

Where Can I Find Advice On Binary Options Copy Trading?

There is a plethora of trading communities and clubs online where you can discuss binary options copy trading. Forums such as Reddit and groups on social media websites are great ways to seek trading advice, regardless of how niche the topic you are searching for is.

What Stake Value Is Recommended For Copying Binary Options?

Usually, retail traders aim to only risk around 1% of their account, with a maximum of 3% if they accept higher risks. However, the best advice is to only trade with what you would be comfortable losing.

All contents on this site is for informational purposes only and does not constitute financial advice. Consult relevant financial professionals in your country of residence to get personalised advice before you make any trading or investing decisions. Daytrading.com may receive compensation from the brands or services mentioned on this website.

Risk Warning: Trading CFDs on leverage involves significant risk of loss to your capital.