Binary Options Alternatives
Some binary options traders seek new trading solutions to avoid regulatory restrictions, while others are just looking to try new brokers and investing apps. Whatever your needs, there are plenty of binary options alternatives, ranging from leveraged CFDs on forex and cryptocurrency to spread betting on stocks. In fact, the derivatives trade is so large and diverse in the UK, that in 2019, data published by the Bank of England showed the country’s average daily turnover from derivatives as $3.67 trillion, higher than the USA, Hong Kong and Japan.
This guide will list the best alternatives to binary options products, with examples and information on how each trading solution works and can be used. Read on for more details on the top binary options alternatives in 2025:
- Contracts for Difference (CFDs)
- Spread betting
- Options
CFDs
A contract for difference, or CFD, is a derivative that allows UK investors to make leveraged bets on assets’ price movements. A CFD is essentially an agreement between a broker and investor where the ‘losing’ party agrees to pay the ‘winning’ party the difference in the value of an asset between when the contract is opened and when it closes.
One of the main attractions of a CFD trade is the use of leverage, which allows clients to trade on margin and multiply their profits.
For example, AstraZeneca (AZ.L) stock is currently valued at £10 (1,000 GBX) and historical data and analysis implies it is likely to increase soon. In response, you open a non-leveraged long CFD contract. After a week, AZ.L increases in value to £12 and you close the contract for a profit of £2. With 1:5 leverage, you would have increased the trade value by five times and therefore generated a profit of £10 (minus any fees).
Of course, leverage acts in both positive and negative directions. For instance, if AZ.L had decreased to £8, you would owe £10 to your broker, rather than £2.
In 2019, the FCA introduced restrictions on the maximum leverage that licensed brokers can offer to retail investors, limiting forex pairs to a maximum of 1:30, commodities and indices to 1:10, and stocks and shares to 1:5.
Why Trade CFDs As Alternatives To Binary Options?
- Trading on margin can greatly increase the potential profit per trade.
- Investors can use stop-loss orders to reduce the risk exposure of a trade.
- There are many FCA-licensed brokers to choose from, avoiding the need for offshore or unregulated brokers.
UK Brokers With CFDs
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In our recent assessment, Pepperstone remains a top-tier CFD broker, renowned for its speed and reliability. With execution times averaging 30ms and a remarkable 99.90% fill rate, traders benefit from a smooth experience free from requotes and dealing desk disruptions. Additionally, it offers extensive opportunities with access to more than 1,300 assets.
FTSE Spread GBPUSD Spread Leverage 1.0 0.4 1:30 (Retail), 1:500 (Pro) Stocks Spread FCA Regulated Platforms 0.02 Yes MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade, Quantower -
XTB provides an extensive range of CFDs, including forex, indices, commodities, stocks, ETFs, and cryptocurrencies, subject to location. EU and UK clients have leverage up to 1:30, whereas global users and pro traders can obtain up to 1:500. XTB excels in offering valuable resources and tutorials for short-term CFD trading strategies.
FTSE Spread GBPUSD Spread Leverage 1.8 1.4 1:30 Stocks Spread FCA Regulated Platforms 0.2% Yes xStation -
FXCC provides a modest selection of CFDs beside forex, including metals, energies, indices, and cryptos. Nevertheless, it distinguishes itself by offering high leverage of up to 1:500. This feature appeals to seasoned traders wishing to enhance their purchasing power while betting on market fluctuations.
FTSE Spread GBPUSD Spread Leverage Variable 1.0 1:500 Stocks Spread FCA Regulated Platforms NA No MT4, MT5 -
Trade over 2,250 CFDs anytime from Monday to Friday across key markets, including forex, commodities, indices, stocks, and bonds. IC Markets leverages deep liquidity and cutting-edge bridge technology to offer ideal trading conditions for scalpers, hedgers, and algorithmic traders.
FTSE Spread GBPUSD Spread Leverage 1.0 0.23 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global) Stocks Spread FCA Regulated Platforms 0.02 No MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade, Quantower -
The platform provides access to over 8,000 CFDs across stocks, indices, forex, and commodities. Suited for experienced traders, the TWS platform includes more than 100 order types and algorithms. It also delivers top-tier market data from trusted sources like Reuters and Dow Jones.
FTSE Spread GBPUSD Spread Leverage 0.005% (£1 Min) 0.08-0.20 bps x trade value 1:50 Stocks Spread FCA Regulated Platforms 0.003 Yes Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower -
IC Trading excels in CFD trading, offering more than 2,250 assets across popular markets such as forex, commodities, indices, stocks, and bonds. With advanced bridge technology and substantial liquidity, the broker ensures favourable conditions for traders seeking leveraged short-term opportunities.
FTSE Spread GBPUSD Spread Leverage 2.133 0.23 1:500 Stocks Spread FCA Regulated Platforms Variable No MT4, MT5, cTrader, AutoChartist, TradingCentral -
Eightcap provides an extensive selection of trading options with over 800 CFDs covering equities, indices, bonds, commodities, and digital currencies, subject to regional availability. Traders can access leverage ranging from 1:30 to 1:500. The platform is distinguished by its sophisticated tools, including an AI-powered economic calendar that tracks over 25 countries with filters for varying impact levels. Despite these strengths, Eightcap's selection of commodities, especially softs such as cotton and wheat, along with its range of precious metals and energy assets, remains limited and could benefit from further development.
FTSE Spread GBPUSD Spread Leverage 1.2 0.1 1:30 Stocks Spread FCA Regulated Platforms 0.03 (Apple Inc) Yes MT4, MT5, TradingView
Pepperstone
XTB
FXCC
IC Markets
Interactive Brokers
IC Trading
EightcapSafety Comparison
Compare how safe the Binary Options Alternatives are and what features they offer to protect traders.
| Broker | Trust Rating | FCA Regulated | Negative Balance Protection | Guaranteed Stop Loss | Segregated Accounts |
|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✘ | ✔ | |
| XTB | ✔ | ✔ | ✔ | ✔ | |
| FXCC | ✘ | ✔ | ✘ | ✔ | |
| IC Markets | ✘ | ✔ | ✘ | ✔ | |
| Interactive Brokers | ✔ | ✔ | ✘ | ✔ | |
| IC Trading | ✘ | ✘ | ✘ | ✔ | |
| Eightcap | ✔ | ✔ | ✘ | ✔ |
Payments Comparison
Compare which popular payment methods the Binary Options Alternatives support and whether they have trading accounts denominated in British Pounds (GBP).
| Broker | GBP Account | Debit Card | Credit Card | Neteller | Skrill | Apple Pay |
|---|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
| XTB | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| FXCC | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| IC Markets | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
| Interactive Brokers | ✔ | ✔ | ✘ | ✘ | ✘ | ✘ |
| IC Trading | ✔ | ✔ | ✔ | ✔ | ✘ | ✘ |
| Eightcap | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
Mobile Trading Comparison
How good are the Binary Options Alternatives at mobile trading using apps or other mobile interfaces.
| Broker | Mobile Apps | iOS Rating | Android Rating | Smart Watch App |
|---|---|---|---|---|
| Pepperstone | iOS & Android | ✘ | ||
| XTB | iOS & Android | ✔ | ||
| FXCC | iOS & Android | ✘ | ||
| IC Markets | iOS & Android | ✘ | ||
| Interactive Brokers | iOS & Android | ✔ | ||
| IC Trading | iOS & Android | ✘ | ||
| Eightcap | iOS & Android | ✘ |
Beginners Comparison
Are the Binary Options Alternatives good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?
| Broker | Demo Account | Minimum Deposit | Minimum Trade | Support Rating | Education Rating |
|---|---|---|---|---|---|
| Pepperstone | ✔ | $0 | 0.01 Lots | ||
| XTB | ✔ | $0 | 0.01 Lots | ||
| FXCC | ✔ | $0 | 0.01 Lots | ||
| IC Markets | ✔ | $200 | 0.01 Lots | ||
| Interactive Brokers | ✔ | $0 | $100 | ||
| IC Trading | ✔ | $200 | 0.01 Lots | ||
| Eightcap | ✔ | £100 | 0.01 Lots |
Advanced Trading Comparison
Do the Binary Options Alternatives offer features that allow for more advanced trading strategies?
| Broker | Automated Trading | Pro Account | Leverage | VPS | AI | Low Latency | Extended Hours |
|---|---|---|---|---|---|---|---|
| Pepperstone | Expert Advisors (EAs) on MetaTrader | ✔ | 1:30 (Retail), 1:500 (Pro) | ✔ | ✘ | ✔ | ✘ |
| XTB | - | ✔ | 1:30 | ✘ | ✘ | ✔ | ✘ |
| FXCC | Expert Advisors (EAs) on MetaTrader | ✘ | 1:500 | ✔ | ✘ | ✔ | ✘ |
| IC Markets | Expert Advisors (EAs) on MetaTrader, cBots on cTrader, Myfxbook AutoTrade | ✘ | 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global) | ✔ | ✘ | ✔ | ✘ |
| Interactive Brokers | Capitalise.ai, TWS API | ✘ | 1:50 | ✘ | ✔ | ✔ | ✔ |
| IC Trading | Expert Advisors (EAs) on MetaTrader, cBots on cTrader | ✘ | 1:500 | ✔ | ✘ | ✔ | ✘ |
| Eightcap | TradingView Bots | ✘ | 1:30 | ✔ | ✘ | ✔ | ✘ |
Detailed Rating Comparison
Use this heatmap to compare our detailed ratings for all of the Binary Options Alternatives.
| Broker | Trust | Platforms | Mobile | Assets | Fees | Accounts | Support | Research | Education |
|---|---|---|---|---|---|---|---|---|---|
| Pepperstone | |||||||||
| XTB | |||||||||
| FXCC | |||||||||
| IC Markets | |||||||||
| Interactive Brokers | |||||||||
| IC Trading | |||||||||
| Eightcap |
Our Take On Pepperstone
"Pepperstone is a premier trading platform, providing tight spreads, swift execution, and sophisticated charting tools for seasoned traders. Beginners benefit from no minimum deposit, comprehensive learning materials, and outstanding 24/7 support."Tobias Robinson
Reviewer
Pros
- The award-winning customer support can be accessed through phone, email, or live chat. During tests, response times have consistently been under 5 minutes.
- Pepperstone now offers spread betting via TradingView, delivering a streamlined and tax-efficient trading experience with sophisticated analytical tools.
- Pepperstone presents itself as an economical choice for traders, offering spreads as low as 0.0 in its Razor account. The Active Trader programme provides rebates up to 30% on indices and commodities, plus $3 per lot on forex.
Cons
- Pepperstone's demo accounts expire after 30 days, which may not provide sufficient time to explore various platforms and evaluate trading strategies.
- Although its market range has improved, its crypto offerings remain limited compared to brokers specialising in this sector, lacking real coin investment options.
- Pepperstone doesn't offer cTrader Copy, a favoured feature for copying trades found in the cTrader platform, which is available on other platforms such as IC Markets. However, Pepperstone has launched its own user-friendly copy trading app.
Our Take On XTB
"XTB excels for novice traders with its superb xStation platform, minimal trading costs, no required deposit, and outstanding educational resources, many of which are fully integrated into the platform."
Pros
- Setting up an XTB account is straightforward and fully online, requiring only a few minutes. This simplicity eases new traders into the world of trading.
- Top-notch customer support, available 24/5, includes a welcoming live chat with response times under two minutes during tests.
- XTB processes withdrawals swiftly, paying within 3 business days, subject to the method and amount.
Cons
- The research tools at XTB are commendable but have the potential to excel further. Enhancing them with access to top-tier third-party services like Autochartist, Trading Central, and TipRanks would significantly elevate their offering.
- It is frustrating that XTB products do not allow traders to modify the default leverage level. Manually adjusting leverage can greatly reduce risk in forex and CFD trading.
- XTB lacks a raw spread account, a feature increasingly offered by competitors such as Pepperstone. This omission might not satisfy traders seeking the most competitive spreads.
Our Take On FXCC
"FXCC remains a top choice for forex traders, offering over 70 currency pairs, very tight spreads from 0.0 pips in tests, and high leverage up to 1:500 with the ECN XL account."
Pros
- FXCC has introduced MT5, which in our evaluations, mirrored the trading conditions of MT4 by offering swift execution, improved charting, and market depth tools.
- There are no limitations on short-term trading techniques such as trading and scalping.
- FXCC is a trusted and licensed broker under the regulation of CySEC, a leading European authority ensuring excellent safeguarding standards.
Cons
- Unaware traders might face steep withdrawal fees, such as a notable $45 for bank transfers.
- While the MetaTrader suite excels in technical analysis, its outdated design detracts from the overall trading experience, particularly when contrasted with contemporary platforms such as TradingView.
- FXCC's exclusive MetaTrader platform is a limitation, especially when compared to more versatile options like AvaTrade, which offers five different platforms to cater to various trader needs.
Our Take On IC Markets
"IC Markets provides excellent pricing, swift execution, and easy deposits. With cutting-edge charting tools like TradingView and the Raw Trader Plus account, it continues to be a preferred option for intermediate and advanced traders."
Pros
- As a well-regulated and reputable broker, IC Markets focuses on client safety and transparency to provide a dependable global trading experience.
- IC Markets provides reliable 24/5 support, especially for account and funding queries, drawing from direct experience.
- IC Markets provides some of the industry's narrowest spreads, offering 0.0-pip spreads on major currency pairs. This makes it an extremely cost-effective choice for traders.
Cons
- Although there are four top-tier third-party platforms available, the absence of in-house software or a trading app tailored for novice traders is notable.
- Interest is not paid on idle cash, a feature gaining popularity with alternatives such as Interactive Brokers.
- IC Markets provides metals and cryptocurrencies for trading through CFDs, though the selection is narrower compared to brokers such as eToro. This limits opportunities for traders focused on these asset classes.
Our Take On Interactive Brokers
"Interactive Brokers ranks highly for seasoned traders due to its robust charting platforms, live data, and bespoke layouts via the new IBKR Desktop app. Its competitive pricing and sophisticated order choices appeal to traders, and its wide equity options are industry-leading."
Pros
- IBKR offers an economical environment for traders, featuring low commissions, narrow spreads, and a clear fee structure.
- A wide range of third-party research subscriptions, both free and paid, are available for traders. Additionally, by subscribing to Toggle AI, traders can receive commission rebates from IBKR.
- While initially targeting seasoned traders, IBKR has recently widened its appeal by eliminating its $10,000 minimum deposit requirement.
Cons
- IBKR offers a variety of research tools, but their inconsistent placement across trading platforms and the 'Account Management' webpage creates a confusing experience for users.
- You are limited to a single active session per account, meaning you cannot use both your desktop programme and mobile app at the same time. This restriction can occasionally lead to a frustrating experience for traders.
- Support can be sluggish and frustrating. Tests reveal that you may face challenges reaching customer service quickly, which could result in delays in issue resolution.
Our Take On IC Trading
"IC Trading offers an ideal environment, featuring top-tier execution speeds of around 40 milliseconds, extensive liquidity, and advanced charting tools, perfect for scalpers, traders, and algorithmic traders."
Christian Harris
Reviewer
Pros
- The streamlined digital account setup allows traders to commence trading swiftly, eliminating lengthy paperwork. Testing shows the process takes mere minutes.
- Trading Central and Autochartist provide valuable technical analysis and actionable ideas. These tools are readily available within the account area or on the cTrader platform.
- IC Trading offers top-tier spreads, with some major currency pairs like EUR/USD featuring spreads as low as 0.0 pips, making it an excellent choice for traders.
Cons
- The educational materials require significant enhancement unless accessed via the IC Markets website. This limitation is particularly disadvantageous for beginners seeking a thorough learning experience, especially when compared to industry leaders such as eToro.
- Customer support was inadequate during testing, with multiple live chat attempts going unanswered and emails ignored. This raises significant concerns regarding their capacity to manage urgent trading issues.
- Unlike IC Markets, IC Trading lacks support for social trading via the IC Social app or the ZuluTrade platform.
Our Take On Eightcap
"Eightcap excels for traders, offering diverse charting platforms, educational Labs, and AI tools. With over 120 crypto CFDs, it stands out in crypto trading and has won our 'Best Crypto Broker' award twice consecutively."
Pros
- In 2021, Eightcap enhanced its lineup, now providing an extensive range of cryptocurrency CFDs. It offers crypto/fiat and crypto/crypto pairs, along with crypto indices for comprehensive market exposure.
- With spreads starting at 0 pips, minimal commission charges, and leverage up to 1:500 for select clients, Eightcap delivers affordable and flexible trading opportunities. These conditions suit various strategies, such as trading and scalping.
- Eightcap excels with a suite of advanced trading tools, such as MT4 and MT5, and has recently joined the 100-million-user social trading network, TradingView.
Cons
- Despite the growing range of tools available, Eightcap lacks popular industry resources such as Autochartist and Trading Central. These provide advanced charting analytics, live news, and essential market insights for traders focused on short-term strategies.
- The demo account is available for 30 days, after which it requires a request for extension. This is less convenient than XM's offering, which provides an unlimited demo mode.
- Eightcap must enhance its range of over 800 instruments to rival top competitors like Blackbull Markets, which offers 26,000+ assets, especially improving its limited commodities selection.
Spread Betting
In spread betting, traders bet on the price movements of an underlying asset without actually owning it. As such, it bears some similarities to binary options, but with the advantage of being both FCA-regulated and tax-efficient in the UK. Leverage can also be used in spread betting.
A spread bet is essentially a bet on the movement of an asset’s price linked to the bid-ask spread, and as such securities with higher liquidity are more attractive as these tend to have tighter spreads.
Usually, spread bets are fee-free as brokers do not charge commission, but keep in mind that you are in a losing position when you initially open the contract. You need positive movement greater than the bid-ask spread to make a profit, or vice versa if you are short.
Why Start Spread Betting As Alternatives To Binary Options?
- Spread betting is a regulated activity in the UK and so there are several protective measures in place for retail investors. It also means that you can ensure you are trading with a reliable broker if they hold a genuine license with the FCA.
- There is no cap on the maximum profit from a single trade.
- It is possible to make good, sustained profits even with small deposits.
- Spread betting in the UK is tax-free, meaning you can keep more of your profits.
UK Brokers With Spread Betting
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Pepperstone provides a robust selection of over 1,200 spread betting instruments, including forex, indices, commodities, shares, and ETFs. Their spreads are highly competitive, beginning at 0.6 pips for EUR/USD, among the best we've encountered. Traders can access spread betting through MT4, MT5, cTrader, and TradingView, offering greater platform flexibility than many competitors.
Instruments Regulator Platforms CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto (only Pro clients), Spread Betting FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade, Quantower Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:500 (Pro) -
Spreadex distinguishes itself as a broker focusing on spread betting, providing access to over 10,000 instruments, comparable to leading firms such as IG. The platform offers comprehensive education on spread betting, including strategies, tips, and analysis. With intuitive TradingView charts and sophisticated order options, both novice and seasoned traders find excellent support.
Instruments Regulator Platforms Forex, CFDs, Indices, Commodities, Stocks, Crypto, Bonds, Interest Rates, ETFs, Options, Spread Betting FCA Spreadex Platform, TradingView, AutoChartist Min. Deposit Min. Trade Leverage £0 £0.01 1:30 -
Trade Nation provides numerous instruments through spread betting, but it falls short compared to leading options like CMC Markets with over 12,000 and Spreadex with more than 10,000. In our tests, the TN Trader platform stood out as an excellent choice for newcomers, largely due to its simple fixed-spread approach. However, the availability of only one platform for spread betting makes the broker less flexible than most rivals.
Instruments Regulator Platforms Forex, CFDs, Indices, Shares, Commodities, Futures, Bonds, Spread Betting, Cryptos (Bahamas Entity Only) FCA, ASIC, FSCA, SCB, FSA MT4 Min. Deposit Min. Trade Leverage $0 0.1 Lots 1:500 (entity dependent) -
IG provides spread betting on over 17,000 markets, encompassing currencies, indices, shares, and commodities—surpassing most competitors. Uniquely, traders can also place spread bets on IPOs, facilitating portfolio diversification for the seasoned. For the casual trader, IG features weekend market spread betting, a rare and valuable offering.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM, JFSA Web, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral, ProRealTime Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:222 (Pro) -
Vantage provides commission-free spread betting on forex, indices, and precious metals. With 15 indices, including the VIX and Bovespa, it appeals to seasoned equity traders. Notably, Vantage offers an unlimited demo account for ongoing strategy practice, a rarity among brokers.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Spread betting FCA, ASIC, FSCA, VFSC ProTrader, MT4, MT5, TradingView, DupliTrade Min. Deposit Min. Trade Leverage $50 0.01 Lots 1:30 -
Traders can engage with six asset categories via FxPro's bespoke trading platform, Edge. Although Edge is the sole platform offered for this purpose, it provides a robust trading interface. Users benefit from 50 technical indicators—surpassing the options available on MT4—as well as an economic calendar and price alerts. Customer service proved efficient during evaluations, promptly connecting us to an agent who adequately addressed our trading inquiries.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, Futures, Spread Betting FCA, CySEC, FSCA, SCB, FSA FxPro Edge, MT4, MT5, cTrader, AutoChartist, TradingCentral, DupliTrade, Quantower Min. Deposit Min. Trade Leverage $100 0.01 Lots 1:30 (Retail), 1:500 (Pro) -
UK traders benefit from competitive rates at FXCM, starting from £0.07 per point. Spread betting is accessible across all platforms, providing a flexible choice for novices. However, obtaining reliable assistance might be difficult. Our experience found customer support lacking, as the agent needed clarification on a simple spread betting question, which was frustrating.
Instruments Regulator Platforms Forex, Stock CFDs, Commodities CFDs, Crypto CFDs FCA, CySEC, ASIC, FSCA, BaFin, CIRO Trading Station, MT4, TradingView, Quantower Min. Deposit Min. Trade Leverage $50 Variable 1:400
Spreadex
Trade Nation
IG
Vantage FX
FXPro
FXCMSafety Comparison
Compare how safe the Binary Options Alternatives are and what features they offer to protect traders.
| Broker | Trust Rating | FCA Regulated | Negative Balance Protection | Guaranteed Stop Loss | Segregated Accounts |
|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✘ | ✔ | |
| Spreadex | ✔ | ✔ | ✘ | ✔ | |
| Trade Nation | ✔ | ✔ | ✘ | ✔ | |
| IG | ✔ | ✔ | ✔ | ✔ | |
| Vantage FX | ✔ | ✔ | ✘ | ✔ | |
| FXPro | ✔ | ✔ | ✘ | ✔ | |
| FXCM | ✔ | ✔ | ✘ | ✔ |
Payments Comparison
Compare which popular payment methods the Binary Options Alternatives support and whether they have trading accounts denominated in British Pounds (GBP).
| Broker | GBP Account | Debit Card | Credit Card | Neteller | Skrill | Apple Pay |
|---|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
| Spreadex | ✔ | ✔ | ✔ | ✘ | ✘ | ✘ |
| Trade Nation | ✔ | ✔ | ✔ | ✘ | ✔ | ✘ |
| IG | ✔ | ✔ | ✔ | ✘ | ✘ | ✘ |
| Vantage FX | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| FXPro | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
| FXCM | ✔ | ✔ | ✔ | ✘ | ✘ | ✔ |
Mobile Trading Comparison
How good are the Binary Options Alternatives at mobile trading using apps or other mobile interfaces.
| Broker | Mobile Apps | iOS Rating | Android Rating | Smart Watch App |
|---|---|---|---|---|
| Pepperstone | iOS & Android | ✘ | ||
| Spreadex | iOS & Android | ✘ | ||
| Trade Nation | iOS & Android | ✘ | ||
| IG | iOS & Android | ✔ | ||
| Vantage FX | iOS & Android | ✘ | ||
| FXPro | iOS & Android | ✘ | ||
| FXCM | iOS and Android | ✘ |
Beginners Comparison
Are the Binary Options Alternatives good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?
| Broker | Demo Account | Minimum Deposit | Minimum Trade | Support Rating | Education Rating |
|---|---|---|---|---|---|
| Pepperstone | ✔ | $0 | 0.01 Lots | ||
| Spreadex | ✘ | £0 | £0.01 | ||
| Trade Nation | ✔ | $0 | 0.1 Lots | ||
| IG | ✔ | $0 | 0.01 Lots | ||
| Vantage FX | ✔ | $50 | 0.01 Lots | ||
| FXPro | ✔ | $100 | 0.01 Lots | ||
| FXCM | ✔ | $50 | Variable |
Advanced Trading Comparison
Do the Binary Options Alternatives offer features that allow for more advanced trading strategies?
| Broker | Automated Trading | Pro Account | Leverage | VPS | AI | Low Latency | Extended Hours |
|---|---|---|---|---|---|---|---|
| Pepperstone | Expert Advisors (EAs) on MetaTrader | ✔ | 1:30 (Retail), 1:500 (Pro) | ✔ | ✘ | ✔ | ✘ |
| Spreadex | ✘ | ✔ | 1:30 | ✘ | ✘ | ✔ | ✔ |
| Trade Nation | Expert Advisors (EAs) on MetaTrader | ✘ | 1:500 (entity dependent) | ✘ | ✘ | ✘ | ✘ |
| IG | Expert Advisors (EAs) on MetaTrader, build your own on ProRealTime | ✔ | 1:30 (Retail), 1:222 (Pro) | ✔ | ✔ | ✔ | ✔ |
| Vantage FX | Myfxbook AutoTrade, Expert Advisors (EAs) on MetaTrader | ✘ | 1:30 | ✔ | ✘ | ✘ | ✘ |
| FXPro | Expert Advisors (EAs) on MetaTrader, cBots on cTrader | ✔ | 1:30 (Retail), 1:500 (Pro) | ✔ | ✔ | ✔ | ✘ |
| FXCM | - | ✘ | 1:400 | ✘ | ✔ | ✘ | ✘ |
Detailed Rating Comparison
Use this heatmap to compare our detailed ratings for all of the Binary Options Alternatives.
| Broker | Trust | Platforms | Mobile | Assets | Fees | Accounts | Support | Research | Education |
|---|---|---|---|---|---|---|---|---|---|
| Pepperstone | |||||||||
| Spreadex | |||||||||
| Trade Nation | |||||||||
| IG | |||||||||
| Vantage FX | |||||||||
| FXPro | |||||||||
| FXCM |
Our Take On Pepperstone
"Pepperstone is a premier trading platform, providing tight spreads, swift execution, and sophisticated charting tools for seasoned traders. Beginners benefit from no minimum deposit, comprehensive learning materials, and outstanding 24/7 support."Tobias Robinson
Reviewer
Pros
- In recent years, Pepperstone has significantly enhanced the deposit and withdrawal process. By 2025, clients can use Apple Pay and Google Pay, while 2024 saw the introduction of PIX and SPEI for customers in Brazil and Mexico.
- Pepperstone now offers spread betting via TradingView, delivering a streamlined and tax-efficient trading experience with sophisticated analytical tools.
- Pepperstone presents itself as an economical choice for traders, offering spreads as low as 0.0 in its Razor account. The Active Trader programme provides rebates up to 30% on indices and commodities, plus $3 per lot on forex.
Cons
- Although its market range has improved, its crypto offerings remain limited compared to brokers specialising in this sector, lacking real coin investment options.
- Pepperstone doesn't offer cTrader Copy, a favoured feature for copying trades found in the cTrader platform, which is available on other platforms such as IC Markets. However, Pepperstone has launched its own user-friendly copy trading app.
- Pepperstone's demo accounts expire after 30 days, which may not provide sufficient time to explore various platforms and evaluate trading strategies.
Our Take On Spreadex
"Spreadex attracts UK traders keen on spread betting in financial markets and traditional sports wagers. It offers low fees for short trades, and spread bet profits are tax-free. With a robust charting platform and no minimum deposit, it's easy to begin."
Pros
- Spreadex offers UK traders the chance to earn tax-free profits via spread betting.
- The broker provides a user-friendly custom charting platform and mobile application.
- There is a superb selection of instruments and trading vehicles for short-term traders.
Cons
- The proprietary terminal does not offer the detailed charting capabilities found in platforms such as MT4 and MT5.
- Third-party e-wallets are not permitted.
- Limited customer support may lead to delays in resolving issues.
Our Take On Trade Nation
"Trade Nation is ideal for novice traders seeking diverse markets on an easy-to-use platform. It offers no minimum deposit, complimentary funding options, and robust educational resources."
Pros
- Beginners benefit from a modest initial deposit.
- Global traders can use accounts in various currencies.
- Trade Nation, a highly regarded and well-regulated broker, was formerly known as Core Spreads.
Cons
- Reduced legal safeguards with an offshore entity.
Our Take On IG
"IG offers a complete package with an intuitive online platform, top-tier beginner education, advanced charting tools through its TradingView integration, real-time data, and swift execution for seasoned traders."
Pros
- As a seasoned broker, IG adheres to stringent regulatory standards across various regions, ensuring significant trust.
- The IG app provides an excellent mobile trading experience with an intuitive design, earning it the Runner Up position in our 'Best Trading App' award.
- The web-based platform supports traders at every level, offering advanced charting tools and real-time market data vital for trading. Additionally, IG now includes TradingView integration.
Cons
- In the UK and EU, negative balance protection is available. However, US clients lack account protection and guaranteed stop losses.
- Beginners may find IG's fees complicated, as they vary depending on the trades or services. This could cause confusion and unexpected costs.
- IG has ended its swap-free account, diminishing its attractiveness to Islamic traders.
Our Take On Vantage FX
"Vantage is an ideal choice for CFD traders looking for a well-regulated broker with access to the dependable MetaTrader platforms. With a swift sign-up process and a minimum deposit of $50, starting trading is simple and fast."
Pros
- Opening a live account is both straightforward and swift, requiring under 5 minutes to complete.
- Vantage addresses the needs of passive investors through user-friendly social trading on ZuluTrade and Myfxbook.
- With a minimal deposit requirement of just $50 and no funding fees, this broker stands out as an excellent option for novice traders.
Cons
- Regrettably, cryptocurrencies are accessible solely to clients in Australia.
- Based on tests, average execution speeds of 100ms to 250ms are slower compared to other options.
- It's unfortunate that some clients must register with the offshore firm, which provides reduced regulatory safeguards.
Our Take On FXPro
"FxPro is an excellent choice for traders, offering swift execution speeds under 12ms, reduced fees since 2022, and outstanding charting platforms like MT4, MT5, cTrader, and FxPro Edge."
Pros
- FxPro provides four dependable charting platforms, including the user-friendly FxPro Edge. It features more than 50 indicators, 7 types of charts, and 15 different timeframes.
- FxPro's Wallet is a notable feature enabling traders to securely manage their funds. It ensures additional protection and ease by separating unused funds from active trading accounts.
- FxPro uses a 'No Dealing Desk' (NDD) model for swift and transparent order execution, usually within 12 milliseconds, making it well-suited for short-term trading strategies.
Cons
- There are no passive investment options such as copy trading or interest on cash. While traders might not find these essential, competitors like eToro, which accommodate both active and passive investors, offer more extensive services.
- FxPro, with its $10M funded demo account and expanding Knowledge Hub, mainly caters to experienced traders. Beginners might find its account and fee structure challenging to understand.
- FxPro offers customer support five days a week around the clock, accessible via various platforms, and the service quality is reliable based on tests. However, the absence of weekend support can be a drawback for traders requiring help beyond standard market times.
Our Take On FXCM
"FXCM remains a leading choice for traders using automated strategies, offering four robust platforms, strategy backtesting, and algorithmic trading via APIs. It is also ideal for active traders, providing discounted spreads and minimal to zero commissions on popular assets."
Pros
- In addition to its four charting platforms, FXCM provides a superior selection of specialist software for seasoned traders, featuring QuantConnect, AgenaTrader, and Sierra Chart.
- Traders have access to premium tools such as a market scanner, forex signals, and research from the third-party site eFXPlus.
- FXCM has broadened its trading options by offering stock CFDs via MetaTrader 4.
Cons
- While FXCM primarily caters to seasoned traders, the absence of managed accounts is unfortunate.
- The live chat support is often sluggish and inconsistent when compared to leading competitors.
- There are no retail account options available for traders, and Cent/Micro account alternatives are also absent.
Standard Options
A standard options contract is a financial derivative that gives traders the right but not the obligation to buy an asset for a specified price at a predetermined time in the future. Unlike binary options, earnings are not fixed, so the potential returns are not known when you open the contract, but your losses will be limited to the price of the contract.
Traders can open a long position with a call option or go short with a put option. If you think, for example, that Unilever company stock (ULVR.L) currently valued at £40 will rise, you might open a call option allowing you to buy a certain number of shares at a future date for £42.50.
If on that date ULVR.L is at £45, you would have made £2.50 per share. A put option works in the opposite manner, with the trader betting the price will decrease.
Why Trade Standard Options As Alternatives To Binary Options?
- Profits are proportional to price movements, so there is potentially more upside than binary options.
- Losses are limited to the price of the contract, making options less risky than some binary options alternatives such as CFDs.
UK Brokers With Options Trading
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When we evaluated IBKR’s options platform, it impressed with low commissions starting at $0.25 per contract for high-volume traders, and there are no added spreads or platform fees. Access covers a wide range of global options markets with advanced tools. The Trader Workstation (TWS) interface can be intricate, demanding a learning curve for new traders. Real-time data access needs extra subscriptions.
Instruments Regulator Platforms Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower Min. Deposit Min. Trade Leverage $0 $100 1:50 -
In our IG platform test, trading impressed with tight spreads, starting at 0.1 points on major indices, swift execution, and an extensive variety covering thousands of global options. With low minimum trades, excellent regulation, and smooth mobile/web usability, it suits active, cost-conscious traders perfectly.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM, JFSA Web, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral, ProRealTime Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:222 (Pro) -
In our evaluation of easyMarkets, its options were straightforward and effective, perfect for novices. The platform provides vanilla options on forex with fixed spreads and no slippage, ensuring clear cost transparency. Regulated by CySEC and ASIC, it permits low deposits and trade sizes, yet lacks the diverse options found on some advanced platforms we've experienced.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, Crypto FSA easyMarkets App, Web Platform, MT4, MT5, TradingView, TradingCentral Min. Deposit Min. Trade Leverage $25 0.01 lots 1:2000 -
During our evaluation, Plus500 provided efficient trading through an intuitive platform with swift execution. Options are limited to CFD forex trades, with costs included in tight spreads. The lack of commissions, low minimum deposit requirement, and robust regulation ensure accessibility for casual and mobile-oriented traders.
Instruments Regulator Platforms CFDs on Forex, Stocks, Indices, Commodities, ETFs, Options FCA, ASIC, CySEC, DFSA, MAS, FSA, FSCA, FMA, EFSA WebTrader, App Min. Deposit Min. Trade Leverage $100 Variable 1:30 -
Spreadex's trading options stood out in our tests with a user-friendly platform offering tight forex-CFD spreads, beginning at around 0.6 points for EUR/USD and 0.9 points for GBP/USD, and swift one‑click execution. As a well-regulated broker, it requires no minimum deposits and allows micro-stakes starting at £0.01, ideal for new traders.
Instruments Regulator Platforms Forex, CFDs, Indices, Commodities, Stocks, Crypto, Bonds, Interest Rates, ETFs, Options, Spread Betting FCA Spreadex Platform, TradingView, AutoChartist Min. Deposit Min. Trade Leverage £0 £0.01 1:30 -
In our practical tests, NinjaTrader stood out with sophisticated charting, automated trading options, and low commissions from $0.09 per micro contract. The platform provides a free version with basic features and paid plans for advanced tools. Although offering robust tools for seasoned traders, newcomers might find the learning curve challenging.
Instruments Regulator Platforms Forex, Stocks, Options, Commodities, Futures, Crypto NFA, CFTC NinjaTrader Desktop, Web & Mobile, eSignal Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:50 -
In our evaluation, FOREX.com offered quick, dependable options execution with user-friendly tools on desktop and mobile. The platform covers numerous currency and index options, priced competitively at $0.50–$0.80 per contract. It is regulated in various jurisdictions and accommodates small trades and low deposits for versatile access.
Instruments Regulator Platforms Forex, CFDs, Stock CFDs, Indices, Commodities, Futures, Options, Crypto NFA, CFTC, CIRO, FCA, CYSEC, ASIC, SFC, FSA, MAS, CIMA WebTrader, Mobile, MT4, MT5, TradingView Min. Deposit Min. Trade Leverage $100 0.01 Lots 1:30
easyMarkets
Plus500
NinjaTrader
Forex.comSafety Comparison
Compare how safe the Binary Options Alternatives are and what features they offer to protect traders.
| Broker | Trust Rating | FCA Regulated | Negative Balance Protection | Guaranteed Stop Loss | Segregated Accounts |
|---|---|---|---|---|---|
| Interactive Brokers | ✔ | ✔ | ✘ | ✔ | |
| IG | ✔ | ✔ | ✔ | ✔ | |
| easyMarkets | ✘ | ✔ | ✔ | ✔ | |
| Plus500 | ✔ | ✔ | ✔ | ✔ | |
| Spreadex | ✔ | ✔ | ✘ | ✔ | |
| NinjaTrader | ✘ | ✘ | ✘ | ✘ | |
| Forex.com | ✔ | ✔ | ✘ | ✘ |
Payments Comparison
Compare which popular payment methods the Binary Options Alternatives support and whether they have trading accounts denominated in British Pounds (GBP).
| Broker | GBP Account | Debit Card | Credit Card | Neteller | Skrill | Apple Pay |
|---|---|---|---|---|---|---|
| Interactive Brokers | ✔ | ✔ | ✘ | ✘ | ✘ | ✘ |
| IG | ✔ | ✔ | ✔ | ✘ | ✘ | ✘ |
| easyMarkets | ✔ | ✔ | ✔ | ✘ | ✘ | ✘ |
| Plus500 | ✔ | ✔ | ✔ | ✘ | ✔ | ✔ |
| Spreadex | ✔ | ✔ | ✔ | ✘ | ✘ | ✘ |
| NinjaTrader | ✘ | ✔ | ✘ | ✘ | ✘ | ✘ |
| Forex.com | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
Mobile Trading Comparison
How good are the Binary Options Alternatives at mobile trading using apps or other mobile interfaces.
| Broker | Mobile Apps | iOS Rating | Android Rating | Smart Watch App |
|---|---|---|---|---|
| Interactive Brokers | iOS & Android | ✔ | ||
| IG | iOS & Android | ✔ | ||
| easyMarkets | iOS & Android | ✘ | ||
| Plus500 | iOS, Android & Windows | ✘ | ||
| Spreadex | iOS & Android | ✘ | ||
| NinjaTrader | iOS & Android | ✘ | ||
| Forex.com | iOS & Android | ✘ |
Beginners Comparison
Are the Binary Options Alternatives good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?
| Broker | Demo Account | Minimum Deposit | Minimum Trade | Support Rating | Education Rating |
|---|---|---|---|---|---|
| Interactive Brokers | ✔ | $0 | $100 | ||
| IG | ✔ | $0 | 0.01 Lots | ||
| easyMarkets | ✔ | $25 | 0.01 lots | ||
| Plus500 | ✔ | $100 | Variable | ||
| Spreadex | ✘ | £0 | £0.01 | ||
| NinjaTrader | ✔ | $0 | 0.01 Lots | ||
| Forex.com | ✔ | $100 | 0.01 Lots |
Advanced Trading Comparison
Do the Binary Options Alternatives offer features that allow for more advanced trading strategies?
| Broker | Automated Trading | Pro Account | Leverage | VPS | AI | Low Latency | Extended Hours |
|---|---|---|---|---|---|---|---|
| Interactive Brokers | Capitalise.ai, TWS API | ✘ | 1:50 | ✘ | ✔ | ✔ | ✔ |
| IG | Expert Advisors (EAs) on MetaTrader, build your own on ProRealTime | ✔ | 1:30 (Retail), 1:222 (Pro) | ✔ | ✔ | ✔ | ✔ |
| easyMarkets | Expert Advisors (EAs) on MetaTrader | ✘ | 1:2000 | ✘ | ✔ | ✘ | ✘ |
| Plus500 | ✘ | ✘ | 1:30 | ✘ | ✔ | ✘ | ✘ |
| Spreadex | ✘ | ✔ | 1:30 | ✘ | ✘ | ✔ | ✔ |
| NinjaTrader | NinjaScript or via Automated Trading Interface | ✘ | 1:50 | ✘ | ✘ | ✔ | ✘ |
| Forex.com | Expert Advisors (EAs) on MetaTrader | ✘ | 1:30 | ✔ | ✔ | ✔ | ✘ |
Detailed Rating Comparison
Use this heatmap to compare our detailed ratings for all of the Binary Options Alternatives.
| Broker | Trust | Platforms | Mobile | Assets | Fees | Accounts | Support | Research | Education |
|---|---|---|---|---|---|---|---|---|---|
| Interactive Brokers | |||||||||
| IG | |||||||||
| easyMarkets | |||||||||
| Plus500 | |||||||||
| Spreadex | |||||||||
| NinjaTrader | |||||||||
| Forex.com |
Our Take On Interactive Brokers
"Interactive Brokers ranks highly for seasoned traders due to its robust charting platforms, live data, and bespoke layouts via the new IBKR Desktop app. Its competitive pricing and sophisticated order choices appeal to traders, and its wide equity options are industry-leading."
Pros
- The new IBKR Desktop platform combines the top features of TWS with customised tools such as Option Lattice and MultiSort Screeners, providing an impressive trading experience for traders of all skill levels.
- IBKR consistently offers unparalleled access to global equities, with thousands of shares available across over 100 market centres in 24 countries, including the recently added Saudi Stock Exchange.
- IBKR is a highly respected brokerage, regulated by top-tier authorities, ensuring the integrity and security of your trading account.
Cons
- The learning curve for TWS is quite steep, making it tough for novice traders to navigate and grasp all its features. In contrast, Plus500's web platform is far more accessible for those new to trading.
- You are limited to a single active session per account, meaning you cannot use both your desktop programme and mobile app at the same time. This restriction can occasionally lead to a frustrating experience for traders.
- Support can be sluggish and frustrating. Tests reveal that you may face challenges reaching customer service quickly, which could result in delays in issue resolution.
Our Take On IG
"IG offers a complete package with an intuitive online platform, top-tier beginner education, advanced charting tools through its TradingView integration, real-time data, and swift execution for seasoned traders."
Pros
- As a seasoned broker, IG adheres to stringent regulatory standards across various regions, ensuring significant trust.
- The ProRealTime advanced charting platform remains free, provided traders meet modest monthly activity requirements.
- The web-based platform supports traders at every level, offering advanced charting tools and real-time market data vital for trading. Additionally, IG now includes TradingView integration.
Cons
- IG imposes a monthly inactivity fee of $12 after two years, discouraging occasional traders.
- Beginners may find IG's fees complicated, as they vary depending on the trades or services. This could cause confusion and unexpected costs.
- IG has ended its swap-free account, diminishing its attractiveness to Islamic traders.
Our Take On easyMarkets
"easyMarkets offers fixed spreads from 0.7 pips, ideal for new traders needing predictable costs. With a Bitcoin-based account available, it's also a top choice for crypto-focused traders wishing to trade, deposit, and withdraw in digital currencies."Christian Harris
Reviewer
Pros
- easyMarkets prioritises risk management by offering negative balance protection and guaranteed stop losses. In 2024, its dealCancellation feature on the Web Trader was improved to allow for cancellation periods of 1, 3, or 6 hours.
- While most brokers we've reviewed—over 90%—offer variable spreads, easyMarkets stands out by providing fixed spreads starting at 0.7 pips. Fixed spreads ensure predictability in trading costs, a major benefit for novices and those operating in volatile markets.
- With over 20 years of experience, multiple awards, and regulatory approval from respected bodies, easyMarkets remains a trusted broker for active traders.
Cons
- easyMarkets is lagging due to the absence of copy trading features found at industry leader eToro. These features are highly sought after by novices wishing to emulate strategies of seasoned traders.
- easyMarkets delivers solid educational resources tailored for beginners, though it doesn't quite meet the needs of seasoned traders. The Academy presents well-structured courses with interactive gamification, yet the content is somewhat superficial.
- easyMarkets lacks a zero-spread account, unlike Pepperstone, which may disadvantage traders and high-frequency traders needing low transaction costs.
Our Take On Plus500
"Plus500 provides a seamless experience for traders with its CFD platform, featuring a sleek design and interactive charting. However, its research tools are basic, fees are higher than the most economical brokers, and its educational resources could be improved."
Pros
- The broker provides commission-free trading across a variety of markets, reducing extra charges and attracting experienced traders.
- Plus500 has expanded its range of short-term trading instruments by adding VIX options, which feature increased volatility. Additionally, it has extended trading hours for seven stock CFDs.
- The customer support team consistently delivers reliable support around the clock through email, live chat, and WhatsApp.
Cons
- Algorithmic trading and scalping are not available, potentially deterring certain traders.
- The lack of social trading features prevents users from copying trades made by seasoned traders.
- Educational resources are not as extensive as leading brokers such as eToro, which affects beginners' ability to learn quickly.
Our Take On Spreadex
"Spreadex attracts UK traders keen on spread betting in financial markets and traditional sports wagers. It offers low fees for short trades, and spread bet profits are tax-free. With a robust charting platform and no minimum deposit, it's easy to begin."
Pros
- The broker provides a user-friendly custom charting platform and mobile application.
- A unique broker offering access to low market cap stocks on the AIM.
- Traders can place wagers on sporting events directly through their brokerage accounts.
Cons
- The proprietary terminal does not offer the detailed charting capabilities found in platforms such as MT4 and MT5.
- There is no support for expert advisors or trading bots.
- Third-party e-wallets are not permitted.
Our Take On NinjaTrader
"NinjaTrader caters to active futures traders seeking competitive fees and advanced analysis tools. The platform offers exceptional charting features, with numerous indicators and over ten chart types."
Pros
- NinjaTrader consistently provides advanced charting software for active traders, featuring customised technical indicators and tools.
- Low fees are provided, featuring £50 trading margins and commissions starting at £0.09 per micro contract.
- Traders receive complimentary platform access and can simulate trades indefinitely with the unlimited demo.
Cons
- Engaging in trading, aside from forex and futures, necessitates registering with affiliated brokers.
- The premium platform features incur an additional fee.
- Certain funding methods incur a withdrawal fee.
Our Take On Forex.com
"FOREX.com excels in serving traders of all levels, offering more than 80 currency pairs, spreads starting at 0.0 pips, and competitive commissions. Its robust charting platforms provide over 100 technical indicators and comprehensive research tools."
Pros
- With more than two decades of expertise, strong regulatory governance, and numerous accolades, including a second-place finish in our 'Best Forex Broker' awards, FOREX.com is globally renowned as a reliable trading platform.
- FOREX.com provides top-tier forex rates beginning at 0.0 pips, along with attractive cashback rebates up to 15% for dedicated traders.
- The in-house Web Trader remains a standout platform, excellently crafted for budding traders. It features a sleek design and offers more than 80 technical indicators for thorough market analysis.
Cons
- FOREX.com's MT4 platform provides around 600 instruments, a notable reduction compared to the more than 5,500 options on its other platforms.
- Funding choices are restricted when compared to top options such as IC Markets. Many popular e-wallets, including UnionPay and POLi, are noticeably absent.
- Demo accounts are typically limited to 90 days, hindering effective strategy testing.
Binary Options Explained
When considering alternatives to binary options, it is important to understand how binaries work so instruments can be compared against the merits and drawbacks of the popular all-or-nothing product.
A classic binary options trade hinges on the simple question of whether the price of an asset, such as the FTSE, will go up or down by the end of a pre-defined period. The trader and binary broker will agree on a starting “strike price” and a time period, and the trader will make their prediction.
If the trader wins, they will get their stake back and earn a profit, usually displayed as a percentage of the initial bet, for example 80%. If their prediction is wrong, they will lose their stake.
The most common types of binary options products include:
- High/Low: Predict if the expiry price will be above or below a given strike price. This is the most common type of contract, and virtually all binary options brokers will at least offer this product.
- In/Out: The trader must predict whether the security’s price ends up within or outside a given range at the contract’s expiration. They are also known as ‘boundary’ or ‘range’ binary options contracts.
- Touch/No-Touch: The trader predicts whether an asset’s value will reach a certain strike price before expiry. The touch contract is different from others as it is not the price at expiry that matters; as long as the strike price is touched at least once, you will be in the money. Similarly, a trader who takes out a no-touch contract will lose as soon as the asset’s price touches the strike price.
- Ladder: A ladder binary options contract consists of a series of high/low contracts with strike prices at equal distances apart and increasing returns. For example, strike prices of £2, £2.50 and £3 with returns of 50%, 60% and 70%, respectively. If at expiry, the asset is worth more than £2 but equal to or less than £2.50 then you receive a 50% return.
High/Low Binary Options Trade On Focus Option
Note, expiration times have a significant impact on binary options strategies and trading styles. For example, turbo binary options’ expiry times can be anything from a few seconds to a couple of minutes, and demand a completely different strategy to the longer-term contracts which may last weeks or even months.
Why Seek Alternatives To Binary Options
There are several reasons why binary options alternatives should be considered, especially for UK-based traders:
- Banned In The UK: The UK’s Financial Conduct Authority has banned local brokers from offering binary options to retail clients, so traders are forced to use either unregulated and/or offshore binary brokers which carry a greater risk due to the lack of protective measures.
- Fixed Returns: Typically, the percentage profit is 70–90% of the stake but this can vary depending on the broker, expiration time and asset. This is a very respectable profit, but some other derivatives such as CFDs and options offer a much higher upside if there are drastic price movements, particularly when leverage is involved.
- High Risk: Trading binary options can quickly lead to mounting losses after just a few trades that go wrong, since this is an all-or-nothing trade. The risk element is a key reason retail traders seek out binary options alternatives.
- Difficulty Of Achieving Sustained Profits: Combining high risk with fixed profits means that it is not easy to consistently generate returns. If the average profit percentage of each binary options trade is 75% and you stake the same amount every time, more than 57% of trades must end in-the-money to at least break even. This is not accounting for any fees.
- Risk Of Scams: Because UK investors must use unlicensed or foreign brokers, there is a higher risk of scams. In 2018, Action Fraud found that over £87,000 was lost to fraudulent binary options brokers every day.
- Halal Or Haram: Some view binary options as gambling, which is not in accordance with Sharia law. While there may not be a clear fatwa (Islamic ruling) on binary options, if you are unsure then it may be best to seek alternatives to binary options trading to stay on the safe side.
Final Thoughts On Binary Options Alternatives
Whatever your reason for branching out from trading binary options, there are many alternatives you could switch to. Whichever you choose, it is imperative, particularly for beginners, that you take the time to learn how the instrument works. Most brokers offer education on the types of trading products they offer as well as a free demo account where you can practice. Once you feel comfortable, log into a live account and start implementing your strategy, whether it is day trading, swing trading or anything in between.
FAQs
Which Alternatives To Binary Options Are Best For UK Investors?
UK investors and traders each have their own preferences and trading styles, so there is not one single best alternative to binary options. It is worthwhile looking at brokers that offer a variety of financial instruments so you can try them out for yourself.
For example, Coinbase is a crypto exchange with a small derivative offering while IG offers spread betting and CFDs on stocks, forex and commodities.
Use a demo account to practice trading the many alternatives to binary options to find what is best for you. It could even be worthwhile keeping an Excel spreadsheet or journal to note down what is good or bad about each.
What Trading Strategies Can I Use To Trade Binary Options Alternatives?
There are many different strategies you can adopt with binary options alternatives, for example, hedging, arbitrage, a candlestick strategy, a, line chart and Heiken Ashi. Most platforms such as MT4 and MT5 have several in-built indicators such as Keltner Channels which can be used to develop a strategy. TradingView also offers a DIY service through its Pine Script in addition to the many free signals where you can design your own indicators. These can be adapted to any market, be it forex or commodities.
Can I Use Expert Advisors With Binary Options Alternatives?
Many brokers which offer alternatives to binary options allow their clients to execute their strategy using a trading robot. MetaTrader’s MT4 and MT5 are high-quality platforms that allow clients to develop their own bots or use ones that have already been created. Alternatively, you may be able to find bots coded in Python on Github.
Note, it can be difficult to create your own automated system, so take the time to properly learn the process. There are many free courses and books online which explain trading concepts with clear definitions. You can also learn from experienced traders on chatrooms and forums such as Discord and Reddit.
Is Trading Binary Options The Same As Options?
No, standard options are different from binary options. The biggest difference between binary options vs regular options is how the returns work. Binary options have fixed returns and so you know your profit will be a percentage of your stake used to open the contract. For regular options, the buy or sell price is your chosen strike price and is not linked to the stake to open the contract. A key reason why regular options are popular alternatives to binary options is that they are more readily available around the world, as fewer countries have them on a blacklist for retail traders.
What Binary Options Alternatives Are Available In The UK?
All the alternatives to binary options discussed in this article can be traded by UK investors through FCA-regulated brokers. This includes CFDs, spread betting, and standard options.
Importantly, the top UK and international brokers offering binary options alternatives and trading solutions will offer user-friendly apps available to download on Android and iOS mobiles, plus Mac computers. Also, the best businesses will offer additional global trading opportunities, including via cash accounts and cards, Bitcoin, Ethereum and ETF trading, plus a selection of education and learning tools to give you a key investment edge. Secure platform logins is also a must, whether trading binary options or alternatives.