Binary options are emerging as one of the most used preferred types of trading. Many traders are leaving the traditional way of dealing in assets and are inclining towards a different form of trading called binary options trading.
What is Binary Options trading?
In binary options trading, the trader has to place their bets on the assets and choose whether the outcome will result in a rise in asset price or a decline in price.
Binary means “any of the two.” This suggests the whole concept of binary trading that either the outcome of your trade will be positive or negative. In the former situation, you will get the profits, and in the latter case, you will sustain the loss.
Working of Binary Options
The functionality of binary options is simple. You have to select any financial derivative offered by your broker and make a prediction. You have to judge whether the asset you chose will end up with a hike or reduction in prices after the expiration period.
After predicting it choose the trade options available. In most cases, the brokers use “call and put” or “high and low.” With the correct forecast, you will get returns and payouts, but for incorrect ones, you will lose all your investment.
Binary options are said to have a resemblance with the traditional form of trading contracts in terms of risks and the procedure of contract. However, there are some differences as well. Binary options provide more varieties of assets that are absent in ordinary trading.
Binary trading in the UK
The United Kingdom was one of the first countries to legalize financial betting, probably because it was the first to take a step towards industrialization and forex trading as well.
Prior to its ban in 2018, binary trading was legal and well regulated by the Gambling Commission. Later, Financial Conduct Authority (FCA) took over and prohibited the marketing of binary options to the retail traders except those who get the license from the said authority.
Selecting the right Binary Broker in the UK
As a trader from the United Kingdom, it is important to choose the ideal binary broker who fulfills all the regulations and the requirements of the authorities governing the binary options.
In this case, it is the Financial Conduct Authority (FCA) that asks for the brokerage firms to get a license before operating in the UK. Thus, the first thing is to check whether the broker is legally authorized or not.
Secondly, check for the brokers who provide high returns and payouts. More payoff pricing means that the profits will be higher.
The next thing to look out for is the features of the trading platform. Use the platform, which has advanced configurations and comprises a variety of trading tools. This helps in making a better prediction.
Top 3 Binary Options brokers for the traders from the United Kingdom
There are a plethora of binary brokers in the market, and choosing the right one which fits your needs and style is important. Moreover, they must be running a genuine trading business and not scams.
As a trader from the UK, you have to be very diligent while choosing the platform. As per the FCA’s guidelines, you can get penalized for trading financial derivatives with an unlicensed broker.
Conduct thorough research before getting into real trading. Check whether the brokers satisfy your needs or not. Having the right platform is essential for executing the trades.
Following are the best binary options brokers available for UK traders.
- Quotex.io
- Pocket Option
- Binarycent
Here, you will find a depth analysis of these brokers and their trading platform, payment methods, and all the additional features they carry.
#1 Quotex.io
Quotex.io is a binary broker that was launched in 2020. It is an offshore broker based in Seychelles under the company named Awesomo Ltd. This brokerage firm established its identity as one of the most reliable brokers in the market in less than a year.
Its popularity today has gained it lacs of certified users. The platform is highly recommended by many veteran users. Quotex.io offers many additional features like social trading and many market signals, which are beneficial for trading.
Regulation
The broker is regulated by International Financial Markets Regulatory Center (IFMRRC), which is an independent third-party body. Unlike many other brokers, it is not regulated by Financial Commission Authority, but for UK traders, the doors to Quotex’s platform are open.
About the company
The platform has highly skilled developers who have a practice of more than 10 years. They ensure the best platform features for its users. The combined experience of the whole of Quotex.io’s team is said to be 200 years.
The team has done a commendable job of developing a trading platform that provides a wide scope for the audience who wants to learn and hone their trading skills.
Platform and its features
The platform of this brokerage firm is very simple yet powerful. It has all the features needed to place a trade smoothly. The trading terminal is a web-based platform, meaning thereby that you don’t have to download it.
This straightforward and simple platform presents your data on different graphs. In addition, you can select the time frame from 5 seconds up to 24 hours. You can have full access to assets from the drop-down menu.
Quotex offers you more than 400 assets to trade-in. These assets can be grouped into the following classes:
- Currencies or forex pairs – 27 currency pairs.
- Commodities – more than 4 including gold, silver, crude oil, and other energy resources.
- Stocks – 15 major stocks
- Cryptocurrencies – includes Bitcoin, Litecoin, Zcash, and Ripple.
How to execute trades?
Placing trades is fast. Follow these simple steps and perform your trades easily.
- From the top left screen, select the assets you would like to trade-in.
- Set your expiration time.
- Add the amount you want to bet with.
- Make your prediction whether the asset will go up or down after the expiration of the time.
Payment methods
There is a wide range of deposit and withdrawal methods in Quotex.io. These methods include international as well as some local means. For deposit, the minimum value is $10 to start an account, whereas for performing a trade, you need only $1.
Some international methods available are:
- Visa
- MasterCard
- Skrill
- Neteller
- Perfect Money
- Cryptocurrencies
For UK traders, there is no need to pay an additional currency conversion fee since GBP is recognized by the platform. The withdrawal means are the same. The extracted amount will be made via the same method you used as a deposit source to maintain security.
Though it is not asked to verify yourself while withdrawing the funds, Quotex might require some documentation in order to release the withdrawal money in certain situations. Like when there is some suspicious activity or when you want to withdraw a large sum of money.
Additional features in Quotex
Here are some additional traits that are possessed by the platform.
- Mobile Application
Mobile trading makes it easy to perform trades without any hassle. They are convenient, and the small screens retain the same quality and design. The same case is with the mobile app of Quotex.
It makes monitoring of the market simple and execution of trades quickly.
- Account Types
With Quotex, you get to use 1 demo account and three different types of live accounts that depend on the availability of funds in your trading account.
- Demo Account
The demo account can be used for training purposes. It has a simulated $10,000 money which can be used for unlimited time.
- Standard Account
This account is the basic one that gets activated with a minimum deposit of $10.
- Pro Account
Accounts having $1000 become the pro. In this, you will get an extra 2% profit.
- VIP Account
For accounts having $5000 or more are classified as VIP. They will get a 4% hike in profits.
- Bonus
Upon registering yourself, you will get a 30% to 40% deposit bonus. Other than these, it also offers many other promotions and deals.
- Security
Hi-tech security is being maintained all the time, which ensures that your money and data are safe. Brokers cannot see or sell your information to a third party. The platform is not as safe as MT4 or MT5 platforms, but it has all the other mean to sustain user confidentiality.
- Support
The assistance can be pursued via emails, live chats, or submitting a ticket for support 24/7.
#2 Pocket Option
Pocket Option has maintained its existence since 2017 under the company named Gembell Ltd, which is located in the Marshall Islands. The brokers have gained a huge following with its emergence.
The broker uses MetaTrader 5 software (MT5) which maintains high security of your database and money. Pocket Option accepts international clients from all around the globe, including UK traders. Currently, the broker is used by traders from 95 countries.
Regulation
The broker has certified itself from the International Financial Market Relations Regulation Center (IFMRRC). Pocket Option is known for committing to Anti-Money Laundering Policies.
About the company
The company is headquartered in the Marshall Islands. The team consists of professionals who try to maintain the quality of the platform for its users. They claim to take clients’ feedbacks and incorporate that into their next project.
The terminal is updated on a regular basis to match the needs of the traders.
Platform
The platform of Pocket Option is extremely attractive and easy to use. It can be used on any device, from desktops to smartphones. The platform is web-based and has unique company-made software along with MT4 and MT5.
It has a wide range of chart options, indicators, tools, and different time frames. The platform is suitable for beginners as they can customize the platform as per their needs.
You can gain access to the previous data or transactional history from the side menu bar. The short expiration time this broker offer is 30 seconds. Everything required can be retrieved from the main screen only.
It offers more than 100 assets grouped into:
- Foreign Exchange
- Stocks
- Commodities
- Cryptocurrencies
You can choose any asset as per your comfort.
How to execute trades with Pocket Option?
The trading method is uncomplicated and effortless. Following are the guided steps to place your trades.
- Select your desired asset from the list provided.
- Check the market flow of that asset.
- Choose whether the price will rise or fall at the expiration.
- Add the termination time of the trade.
- Choose the amount you want to invest in that trade.
After entering it, you have to wait for the expiration of the trade. If you got the answer right, you would win it; if not, you will lose the investment.
Payment methods
For deposit, the minimum amount is $50, while the withdrawal amount is $10 only. The base currency Pocket Option offers right now is US Dollars; therefore, all the payments are made in USD.
The deposits are fast and immediate. In some cases, it might take 1-2 working days. For withdrawals, there is no limit and the time period is 24 hours. However, in case of technical issues, the extracting process could take 1-3 business days.
The easiest and international methods offered by Pocket Option for deposit and withdrawal are:
- Credit Cards including VISA, Maestro, Master Card.
- Cryptocurrencies like Bitcoin, Litecoin, Ripple.
- E-wallets like ADV cash, Perfect Money, Skrill, Coinbase
- Wire Transfers
Though the process of adding and extracting funds is free since the withdrawals are made in USD, the third party (e.g., banks) could charge a currency conversion fee.
Additional features
- Meta Trader Platform
The Meta Traders Platform is highly advanced software that is used in many renowned terminals. It allows the brokers to have a supple Application Program Interface (API) support system.
This permits the traders to have Telegram signals bot, trading tools, keyboards for trading, and robots incorporated into their terminal.
- Bonuses and Rewards
The broker offers many rewards from time to time. The most common bonus is the deposit bonus, where you will get 50% of your deposited amount. To avail of this bonus, no referral code is required.
Another bonus it offers is the no deposit bonus, where you will get some cashback without adding a single penny. For this offer, a certain referral code is needed. Other than these, the broker brings new promotions and deals on a regular basis.
- Social Trading
With social trading, you get the opportunity to track the trades and different approaches of the other trades. This is also known as the copy trading feature, where you can copy their trades and earn with their successful trades.
- Mobile Application
Pocket Option can be used on your smartphones as well. The mobile trading application is available for iOS and Android users.
- Support
The broker offers different interaction means for assistance purposes. They have contact information and emails given on their website. In addition to this, you can opt for live chat or fill in a contact form. They are available for your aid 24/7.
#3 Binary Cent
Like others, this Binary Cent is also a new broker in the market. This Vanuatu-located brokerage firm has been working since 2017 in the financial industry and is catering to the needs of binary trades from all around the globe.
The broker is making new fans every day with its extraordinary services and deals. This broker accepts traders from the United Kingdom as well as from the United States.
Following its name, the broker offers the trade executions starting from 10 cents only.
Regulation
Vanuatu Financial Services Commission (VFS) regulates the brokerage firm. The VFS functions under the parent company of Binary Cent.
About the company
BinaryCent works under the company named Finance Group Corp and is handled by another company called Cent Project Ltd. The company is formed by the collective efforts of some professional investors who carry years of trading experience.
They offer you a reliable platform to trade in. The company has launched Contract for Differences (CDFs) and Forex for its clients.
Platform
The platform is advanced and has all the required features. On the top of the display, you will see different tools and chart options. The price charts are fully customizable, and you can choose from candles or line graphs.
With Binary Cent, you can deal in the following five classes of assets:
- Stocks
- Commodities
- Indices
- Cryptocurrencies
- Forex
On the left side of the screen, you will get the market and trading pairs. The assets can be traded in different time scales ranging from short-term to long-term and even intraday.
The short-term trading or turbo strategy terminates between 1 minute to 30 minutes. The intraday lasts between 1 hour to 24 hours, and the long term lasts for one day to 30 days.
How to execute trades with BinaryCent?
BinaryCent offers a “call and puts” trade type. For a rise in price, choose “call,” and for reduction, opt for “put.”
To execute the trades-
- Go to the asset’s list and choose the one you want to trade in.
- Make your prediction.
- Set the termination time for the asset and add the amount.
After submitting, wait for the market to close and take your profit or loss in case of successful or failed trades, respectively.
Payment methods
Payment methods are available in numerous varieties. You can choose among the –
- Cryptocurrencies like Bitcoin, Ripple, Litecoin.
- Credits cards including VISA and Master Card.
- Neteller
- Web money
- Skill
- Perfect Money
- Wire Transfer
The minimum deposit in BinaryCent is $250, while the placing of trade commences from 10 cents. The withdrawals are fast, and with digital methods, they claim to process the amount within 1 hour.
Using credit cards might cost you 5% of the transaction fee.
Additional features
Types of Accounts
There are three different kinds of accounts.
- Bronze Account
The minimum amount required is $250, and you will get 1-hour withdrawal period coupled with features like a bonus of 20% or more on the first deposit.
- Silver Account
To qualify for a silver account, fund $1000 or more in your trading account. You will receive a 50% deposit bonus, master classes, and 3 risk-free trades.
- Gold Account
In order to maintain a gold account, add $3000. This will give you access to a 100% deposit bonus, 3 risk-free trades, a master class, and a personal manager who will handle your account.
On all three accounts, you will get facilities of live video chat support, demo account, 1-hour withdrawal period, and social trading option.
Mobile Trading
Binary cent has developed an app for its iOS and Android users. It can be downloaded from Apple Store and Google Play Store, respectively.
Trading Tournaments
BinaryCent conducts new and exciting tournaments every week in which more than 10 prizes are offered to the winners. Many contests are based on win rates and trading volume.
The prizes include cashback, bonuses, cash money, and smartphones.
Support
Support services are an important aspect of a trading community. Without proper assistance from the broker’s side, it can leave many issues unresolved, which will eventually drop their popularity.
BinaryCent has paid a fair share of attention to this aspect and has given many forms of commination aids. This includes-
- Web contact
- Calls
- Emails
- Live chat
You can reach them anytime, during any hour of the day, even on weekends.
Conclusion
Binary trading has evolved as one of the most used forms of passive earnings. With the advent of technologies and many resources, it now is possible to have contact with international brokers. They are easy and beneficial if used in a proper way.
Many countries have put a ban or restrictions on the use of binary options as there happen to be many cases of scams or fraud. Still, there are so many countries that have authorized binary trading, keeping in mind its popularity.
Binary Options are very strictly regulated in the United Kingdom. The offshore brokers are required to get a certification before providing their services there. This makes it extremely important to check the background of the brokerage firm and its company.
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