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 2023:
- 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
-
AvaTrade's 1250+ leveraged CFD products span a range of asset classes including stocks, indices, commodities, bonds, crypto, and ETFs. You can speculate on rising and falling prices in the broker’s feature-rich web and mobile platforms with market-leading research tools.
-
Trade a large suite of 2100 CFDs with ultra-fast execution speeds and 24-hour trading. You can build a diverse portfolio with access to forex, indices, commodities, cryptos, stocks and ETFs. Retail traders also get negative balance protection and zero commissions.
-
Trade over 800 CFDs on popular indices, shares, forex, cryptos and commodities. Clients get premium liquidity and superior execution with servers in leading data centres. Eightcap also offers more choice than most competitors in terms of platforms with MT4, MT5 and TradingView.
-
Trade currencies, metals, energies, indices and cryptos with flexible leverage. 24/5 customer support is available to assist new clients while the MT4 platform comes with free tutorials and user guides.
-
Trade CFDs on Spreadex's diverse list of instruments with leverage up to 1:30 and highly competitive spreads. While this broker's USP is spread betting, the excellent trading terms and range of markets makes it an equally good choice for CFD trading.
-
Pepperstone is a fast and reliable CFD broker with 1250+ assets covering forex, commodities, shares, indices, and ETFs. CFDs can be traded on four leading platforms with a choice of accounts and base currencies. The broker boasts an impressive 99.94% fill rate with no requotes or dealing desk intervention.
-
Trade leveraged CFDs on thousands of global stocks as well as 13 global indices, 80+ forex pairs, and London gold and silver. Leverage is available in line with regulatory requirements.
-
Trade CFDs 24/5 on popular markets including forex, commodities, indices, stocks and bonds. IC Markets offers deep liquidity, raw spreads and high leverage.
-
Speculate on rising and falling prices with leveraged CFDs spanning popular markets, including currencies, equities and commodities. Traders get very low fees and high-quality market insights to support CFD trading.
-
CFDs are available on a breath of underlying assets, including stocks, indices, commodities, forex and cryptos. High leverage up to 1:500 is available alongside a 0.01 minimum lot size and award-winning software. For the tightest spreads from 0 pips, opt for the Premium account.
-
Go long and short on a range of popular financial markets with intuitive platforms and reliable execution. 99.76% of trades are executed in less than a second with an average speed of 0.02 seconds.
-
Trade a huge selection of CFDs with more than 12,000 assets and very high leverage up to 1:2000. Micro lot trading is also available with access to interbank liquidity providers for low fees.
-
LQDFX offers a modest collection of CFDs covering currencies, metals, stocks, indices, commodities and cryptos. Traders can go long or short with real-time quotes and a choice of live accounts to suit different trading strategies.
-
Trade leveraged CFDs on over 1000 assets with low-cost spreads. You can also take advantage of the broker's integrated signals to help you determine when to enter and exit positions.
-
IG offers an impressive suite of 17,000+ CFD instruments. Negative balance protection ensures accounts cannot drop below zero while custom price alerts and the IG Academy enhance the trading experience.
-
Trade CFDs on over 3,000 assets and enjoy rich market data through integrated TradingView charts. There is also comprehensive free learning tools via the eToro Academy, ideal for beginners. Fees are low and leverage is in line with regulatory requirements, helping to provide a secure trading environment.
-
Trade 5,000+ CFDs from a single account with no hidden fees and free live market data. The suite of markets is impressive vs alternatives, including access to shares, indices, commodities and bonds.
-
FxPro offers thousands of CFDs on forex, commodities, indices, shares and futures with 24/5 multilingual support. Traders also benefit from low latency datacentre co-location.
-
Plus500 offers commission-free CFDs on a huge range of markets, including currencies, stocks, indices and commodities. Traders can go long or short on popular assets with flexible leverage and no hidden charges. The WebTrader platform has been specifically designed for trading CFDs.
-
Trade CFDs on forex, metals, energies, shares, indices and cryptos with transparent prices. High leverage up to 1:500 is available and there are no account opening or deposit fees.
-
FXTM's CFD list includes forex, stocks, commodities and indices. The global entity also offers crypto CFDs. Leverage depends on jurisdiction, with rates up to 1:30 from its CySEC-regulated branch and a massive 1:2000 from its global entities.
-
Trade CFDs on hundreds of instruments including forex, equities, commodities, indices and cryptocurrencies with fixed or variable spreads and no commission charges. The CFD trading environment is intuitive and secure.
-
Access highly leveraged CFDs across forex, commodities, indices, stocks and bonds with 24/5 customer support. Build a diverse portfolio with hundreds of CFD assets.
-
CFDs are available on forex, stocks, indices and crypto assets, with support for MT4 and a VPS service allowing for 24/7 automated trading. NordFX offers very high leverage up to 1:1000 for the least volatile forex pairs, providing opportunities for experienced traders.
-
IQCent CFDs are available on forex, indices, commodities and cryptos with leverage variable by asset to a maximum of 1:500, which is higher than many alternatives. 24/7 customer support is also available to assist new users.
-
Markets.com offers an excellent variety of CFDs covering popular asset classes. Margin rates are competitive and the educational resources compare well to rivals and will appeal to beginners.
-
Trade CFDs with dynamic leverage on a multitude of markets, including forex, shares, indices and commodities. Raw spreads are available from 0 pips rivalling leading competitors.
-
Access CFDs spanning several key markets, with tight spreads and reasonable commissions at $6 per round turn. High leverage up to 1:500 is available alongside 24/7 support, plus rapid deposits and withdrawals.
-
Traders can speculate on 1000+ financial markets with high leverage up to 1:500. You can bet on rising and falling prices in currencies, commodities, indices, shares, and more without owning the underlying asset. With the comprehensive choice of CFD trading platforms, users can also switch between desktop, web and mobile for a seamless trading experience.
-
VT Markets offers CFDs on an extensive list of assets including stocks, ETFs, indices and commodities. Traders can access leverage up to 1:500 and trade with liquidity from top-tier providers. CFDs are available on a choice of reliable platforms, including MetaTrader.
-
Trade CFDs across four asset classes with leverage up to 1:1000. Beginners can also take advantage of the broker's useful technical analysis guides and CFD education, plus 24/7 in-platform support via live chat.
-
Traders can access CFDs across forex, indices, commodities and stocks. I was able to employ automated and scalping strategies in both MetaTrader platforms, and I think experienced CFD traders will appreciate the range of free trading tools on offer, including a custom price ticker.
-
FXTrading offers CFDs on a wide range of assets, including forex, stocks, commodities, indices and cryptocurrencies. Commodities include a selection of softs as well as metals and energies, and the eight indices offered include the US30, US500 and UK100. Flexible leverage is available with excellent risk management tools.
-
Trade CFDs across indices, metals and even IPOs with flexible account types and leverage up to 1:1000. You can choose between two excellent platforms with a range of technical indicators and fundamental analysis features.
-
ThinkMarkets offers CFDs on a good range of instruments, the most extensive being stocks and ETFs with 3500+ assets, as well as indices and commodities, amongst others. Leverage is available up to 1:30 in the EU and UK, while clients of the offshore branch can access up to 1:500 leverage.
-
M4Markets offers CFD trading on popular asset classes, including stocks, indices, currencies, commodities and cryptocurrencies. Leverage up to 1:5000 is available, which is among the highest of any broker we have evaluated.
-
SuperForex offers CFDs on a good range of assets, though it only really shines when it comes to forex, thanks to its very diverse list. On the other hand, the significant leverage available on most assets increases profit potential, though traders will need to watch out for spreads, which compare poorly to some competitors.
-
Access over 2,000 CFDs across diverse markets including indices, commodities and bonds. There is also premium daily analysis and strategy resources for savvy traders.
-
Videforex CFDs are available on forex, indices, cryptocurrencies and commodities with up to 1:500 leverage and tight spreads from near zero. CFDs incur a commission fee of 1%–2.5% and up to 5% for leveraged trades.
-
IronFX's asset list of 300+ instruments including forex, stocks, commodities and indices are traded via CFDs. Spreads are floating and vary by account type, and maximum leverage from 1:30 to 1:1000 is available depending on your account location.
-
Ingot Brokers offers CFD trading on 1000+ instruments including stocks, commodities and cryptocurrencies with floating spreads starting from zero and excellent execution via the MT4 and MT5 platforms. The broker also offers 24/5 customer support via live chat and email and takes strong security measures including KYC checks and segregated accounts.
-
Trade a range of CFD instruments on one of FXCM's multi-asset platforms with fast execution and zero/positive slippage. Daily market analysis can also be used to inform trading decisions.
-
Scope Markets clients can trade CFDs on a good selection of asset classes including forex, precious metals, energies, indices and global shares. The award-winning broker also offers a decent suite of educational materials and a YouTube channel to support aspiring traders.
-
Dukascopy offers highly leveraged CFDs with rates up to 1:200. A wide selection of asset classes are available, including currencies, equities, commodities, ETFs and cryptos. Spreads are also tight starting from 0.1 pips and traders get 24/7 support.
-
Trade CFDs on forex, stocks, indices, commodities and cryptos with high leverage up to 1:500 on the no-commission ClassiQ account. The raw spread account options have low commissions from $4 round-turn and offer lower maximum of leverage of 1:200 or 1:400, which is still competitive.
-
Trade 200+ CFDs with leverage up to 1:1000 on a powerful proprietary platform. Asset classes include stocks, forex and crypto with ECN execution. You can bet on rising and falling prices with leveraged CFDs.
-
Rock Global offers low-price CFDs on forex, shares, indices and commodities. The broker charges zero-commission trading on commodities and indices, and zero-spread, commission-only trading on shares. Leverage varies by instrument with 1:200 available on indices and 1:10 on blue-chip stocks.
-
ForexChief offers a competitive range of CFDs, encompassing crypto, indices, energies and metals. A clear pricing schedule is available to clients with no hidden charges. Traders can also access very high leverage up to 1:1000.
-
CFDs are available on popular asset classes with a competitive $1 minimum deposit. The broker offers very high, unrestricted leverage of 1:1000, which will amplify both profits and losses.
-
Trade CFDs on forex, indices, stocks, commodities and cryptocurrencies with leverage up to 1:3000. Swap-free trading is available, and all account types trade with competitive spreads and are commission-free except the Go Pro account, which charges a $7 round-turn commission.
-
Focus Option offers CFD trading through an intuitive mobile app, with 300+ tradeable instruments spanning forex, cryptocurrencies, commodities, shares and indices. Leverage ranges from 1:20 to 1:50 and spreads are variable, starting from 1 pip, with no commission.
-
Trade CFDs on forex, stocks, metals, energies, indices, cryptos and dollar futures. Sage FX offers tight spreads and high leverage on all instruments from 1:100 to 1:500.
-
Access thousands of CFDs with competitive pricing and leverage up to 1:500. A range of asset classes are available, including currencies, shares, indices, metals and commodities. CFDs can be traded on the market-leading MetaTrader platforms.
-
PU Prime offers CFD trading on hundreds of shares, as well as indices, commodities, bonds and cryptocurrencies. The leverage available varies by asset, and spreads also vary greatly between instruments and account types with the tightest near zero and the widest in the hundreds of pips. Stock, index, commodity and bond CFDs are traded on the leading MT4 platform.
-
Go long or short on over 170 CFDs with high leverage up to 1:500. The broker's social community is also a great place to pick up CFD strategy tips and trading ideas.
-
Errante customers can trade stocks, indices, commodities and cryptocurrencies with leveraged CFDs. The level of leverage available depends on regulatory oversight, with 1:30 the maximum allowed in the EU though this varies by asset.
-
World Forex's leveraged CFDs are available on a modest suite of 100+ instruments, including stocks, commodities and forex. Very high leverage up to 1:1000 is available for account balances up to $1000, with lower levels available to accounts with higher balances.
-
CFDs are available on hundreds of markets including forex, indices, shares and commodities. Traders can go long or short with reliable trading tools, excellent market research and transparent pricing.
-
Swissquote offers spot, forward and synthetic contracts on a breadth of markets, including stocks, indices, bonds and commodities. The pricing model is transparent with no hidden fees. Clients can diversify portfolios and hedge risk with low margin requirements.
-
Trade CFDs on forex, stocks, metals, energies, cryptos and indices with high leverage up to 1:1000 on major currency pairs, 1:200 on metals, 1:100 on indices, 1:33 on stocks and energies, and 1:5 on cryptocurrencies. The range of 200+ instruments is not the biggest on the market, but the variety of asset classes provides flexible trading options for most traders.
-
FP Markets' CFD trading covers a range of markets, including 10,000+ equities, indices, commodities, cryptocurrencies and ETFs. Spreads are tight and traders get fast execution speeds.
-
AdroFX offers a good suite of CFDs on stocks, cryptos, indices and commodities, with high leverage up to 1:500. CFD trading is done through the reliable MT4 platform, while a separate Allpips platform is available for copy trading.
-
Core Spreads offers CFD trading on 40 forex pairs plus 13 commodities, including metals and energies, and 13 global stock indices including the UK100 and US30. CFDs are traded through the MT4 platform with leverage up to 1:30 in line with UK regulations.
-
Anzo Capital clients can use MetaTrader 4 and MetaTrader 5 to trade CFDs on stocks, equity indices, crude oil and precious metals with competitive price levels.
-
HYCM traders can access CFDs on a range of stocks, indices, commodities and ETFs with floating spreads and maximum leverage varying by instrument. Clients also have a choice between two industry-leading platforms.
-
Global Prime offers CFD trading opportunities on 150+ global markets including forex, indices, commodities, cryptocurrencies and bonds. Spreads are tight with a raw ECN account available starting from zero.
-
Fortrade's list of leveraged CFDs covers a wide range of asset classes including forex, stocks, bonds, indices, commodities and cryptocurrencies. Traders can access leverage up to 1:30 and will trade with zero commission, fast execution and low latency on MetaTrader 4 or the bespoke platform.
-
Hantec Markets clients can access CFD trading on a very wide selection of currency pairs and stocks as well as commodities, bonds, indices and crypto assets. Spreads start from near zero and the trading platforms offered will suit trader of all experience levels. Leverage is capped at 1:30 for UK and EEA traders but rises to 1:1000 for clients of the offshore firm.
-
BlackBull Markets CFDs are offered on forex, stocks, indices, commodities and cryptos with tight spreads and high leverage. The ECN accounts offer fast execution and low slippage, and the broker provides traders with plenty of extra tools and features plus 24/7 customer support.
-
FXOpen offers CFDs on multiple assets including forex, stocks, commodities, indices, cryptocurrencies and ETFs. Leverage and spreads vary by instrument, with spreads starting from zero and fast order execution.
-
Libertex's list of CFDs covers a decent range of tradeable underlying assets, but there isn't much depth with only around 250 in total. Leverage up to 1:30 for retail clients is available in accordance with CySEC regulations, and traders can choose between three excellent trading platforms. Best of all are the tight spreads available on all markets and the zero commissions on investments in stocks.
-
Trade CFDs on forex, stocks, indices, commodities, ETFs, bonds and cryptocurrencies with variable leverage up to 1:30. The broker provides great value to traders with six free trades per day on US, UK and European stocks, tight spreads on forex and low commissions on ETFs.
-
Trade CFDs on a broad range of asset classes including forex, energies, precious metals, company shares, indices and cryptos. The excellent trade execution and opportunity to trade with direct market access pricing sets this broker apart from rivals.
-
Trade CFDs on forex, stocks, commodities and indices with tight spreads and leverage limited to the FCA-sanctioned maximum of 1:30. Infinox traders benefit from lightning-fast execution speeds and a choice between STP and ECN pricing, making this a flexible option for beginner and serious traders.
-
Trade CFDs on forex, indices, metals, oil and cryptocurrencies with high leverage up to 1:500 and competitive spreads, with the choice between zero commission or raw spreads.
-
Trade CFDs on 75+ instruments, including forex, energies, metals, and indices with variable leverage up to 1:500 on major pairs, 1:200 on minors and exotics and 1:100 on commodities and energies.
-
OspreyFX offers leveraged CFDs on forex, commodities, stocks, cryptos and indices. Deep liquidity is available from 50+ providers with a competitive ECN account that will suit active trading strategies, including scalping.
-
Trade a decent range of markets via CFDs, with commissions of $6 per lot. There is also a reasonable $10 minimum deposit and 24/7 customer support for new traders.
-
Trade all markets via CFDs, with retail leverage up to 1:30. With the RStocks Trader account, clients can access over 12,000 CFDs with algorithmic analysis tools and intuitive charts.
-
Trade flexible CFDs on forex, commodities, indices and cryptos with tight spreads, fast execution, micro-lot trading and leverage up to 1:500. There are also no restrictions on trading strategies.
-
EZ Invest offers leveraged CFDs on popular asset classes, including forex, stocks, indices and commodities. Execution speeds are decent but a large deposit is needed for the best pricing conditions.
-
Saxo Bank offers a secure and reliable way to trade 8,800+ CFDs spanning forex, stocks, indices, commodities, options and bonds. The broker's extra features include a trading academy, powerful charting and analytical tools and trading signals, helping it stand out from many alternatives.
-
Access a modest range of CFD instruments across key markets, including indices and commodities. Clients can trade directly from charts with high leverage up to 1:500 and customisable time intervals.
-
You can take positions on a range of popular trading markets including forex, stocks, energies and metals. Leverage is high at 1:500 and live spreads can be viewed in the web-accessible platform and app.
-
You can speculate on popular financial assets covering forex, commodities, indices, metals and bonds. You can get started with $0 minimum deposit, making the broker a good pick for beginners. There’s also a comprehensive range of technical analysis tools in the MT4 and OANDA Trade platforms.
-
Trade CFDs on 100+ instruments from popular asset classes. Leverage up to 1:200 is available on precious metals, while stocks, indices and energies can access 1:20 max leverage and 1:10 for commodities. On the negative side, the depth of assets is limited vs other CFD brokers.
-
With CFDs on 20+ Polish and 30+ US stocks, as well as energies and seven global stock indices covering US, UK, European, Australian and Japanese markets, Just2Trade offers a superb selection of global assets.
-
Trade commission-free CFDs on 3000+ instruments from forex, stock and commodities markets with volumes starting from 0.1 lots, a low minimum deposit of $10 and tight floating spreads. The selection of CFDs beats most competitors.
-
Trade CFDs on forex, commodities, indices and crypto assets. With spreads from 0 pips and generous incentives and bonus offers setting Vault Markets apart from competitors, this Namibian broker will appeal to aspiring traders.
-
Trade CFDs on forex, stocks, indices, energies and metals with fast execution and variable leverage. Spreads are tight and commission-free trading is available on some assets.
-
Trade CFDs on an array of assets with ultra-low spreads
-
Trade leveraged CFDs on thousands of instruments, including forex, equities, commodities, indices, bonds and futures. The selection of asset classes is decent, but the trading software, particularly the mobile app, lags behind competitors.
-
CMC Markets offers leveraged CFDs on an extensive list of 12,000+ instruments with transparent pricing, powerful trading software and ultra-fast execution speeds. Out-of-hours trading on CFD indices is also available, plus 24/5 award-winning customer support.
-
Trade leveraged CFDs in a range of financial markets.
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
-
AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for trading, alongside a comprehensive education center and multilingual customer support.
-
Trade Nation is a top FX and CFD broker regulated in multiple jurisdictions including the UK and Australia. The firm offers low-cost fixed and variable spreads on 1000+ assets with robust trading platforms and training materials. The Signal Centre can also be used for trade ideas.
-
City Index is an established and award-winning forex, CFD and spread betting broker with top-tier global regulation, including in the UK (FCA) and Australia (ASIC). With 30+ years in the industry, 13,500+ instruments and 24/5 customer support, City Index is a solid pick for aspiring traders.
-
FxPro is an award-winning forex, CFD and spread betting broker with over 2 million clients worldwide. The broker is regulated in 4 jurisdictions and offers 24/5 customer support, earning it a high trust and safety score. FxPro has also picked up more than 100 industry accolades for its competitive trading conditions, including fast execution and deep liquidity.
-
Markets.com is a respected broker, offering multi-asset trading opportunities through CFDs or spread betting (UK only). Established in 2008, the brand has an impressive 4.3 million registered customers and is overseen by trusted regulators, including the FCA, ASIC and CySEC. 79.1% of retail accounts lose money.
-
Founded in 2009, Vantage offers trading on 1000+ short-term CFD products to over 900,000 clients. You can trade Forex CFDs from 0.0 pips on the RAW account through TradingView, MT4 or MT5. Vantage is ASIC-regulated and client funds are segregated. Copy traders will also appreciate the range of social trading tools.
-
ThinkMarkets is a reputable CFD and forex broker with regulation from several top-tier bodies including the FCA and ASIC. Traders can use a bespoke platform, MT4 or MT5 to access a wide variety of assets including 3500+ stocks and ETFs, 46 forex pairs and over 20 cryptocurrencies. Fees are competitive, particularly for the ThinkZero account with spreads starting at zero.
-
Trade.com is a trustworthy online broker with a global presence. The broker offers 2,100+ CFDs in major markets, as well as futures, options and more. The broker offers best-in-class platforms and superior analysis tools for experienced traders. The broker is also regulated by top-tier authorities including the FCA and CySEC.
-
FXCM is a respected forex and CFD broker, established since 1999. The British-headquartered broker has won multiple awards and operates in various jurisdictions, including the UK and Australia. With zero commissions, over 400 assets, and a range of analysis tools, FXCM is a popular choice. The broker is also FCA regulated and authorized in Australia and South Africa.
-
ActivTrades is a UK-headquartered CFD and forex broker established in 2001. The brokerage is heavily regulated with licenses from the FCA, SCB, CSSF, BACEN & CVM and CMVM. Over 1000 CFDs are available spanning 7 asset classes. Over 93.60% of orders are executed at the requested price. ActivTraders also offers a selection of leading trading platforms, including MT4, MT5, TradingView and ActivTrader platforms.
-
Core Spreads is an FCA-licensed broker offering CFD and spread betting opportunities on a proprietary platform or MetaTrader 4. Traders can access more than 1000 instruments, including company shares, commodities, indices and forex. Spread bets have fixed spreads that start from 0.4 with no commission, while CFDs start from 1 pip plus a $1.50 charge per lot.
-
Admirals is an FCA- and ASIC-regulated broker with an excellent range of leveraged instruments, including forex, stocks, indices, ETFs, commodities, cryptos and more. The broker supports the MetaTrader 4, MetaTrader 5 and TradingCentral platforms. With both spread betting and CFDs available and thousands of instruments, this broker provides more flexibility than most rivals.
-
Pepperstone is a leading online broker with over 400,000 clients in more than 175 countries. The top-rated brokerage offers excellent market access, industry-leading platforms in MT4, MT5, TradingView and cTrader, plus low fees with no hidden charges. Pepperstone is also heavily regulated with a high trust score, holding licenses with reputable bodies, including the FCA, ASIC, DFSA, and CySEC.
-
Spreadex is an FCA-regulated broker that offers spread betting opportunities on an impressive 10,000+ CFD instruments including 60 forex pairs. Traders can also take short-term positions on sporting events. The brand has been around for over 20 years and has won multiple awards.
-
OANDA is an award-winning global broker, established in 1996. The hugely respected brand offers competitive trading accounts and serves clients from 196 countries. It has proven a popular option with both beginners and experienced traders thanks to its user-friendly and sophisticated web platform, no minimum deposit and premium currency products and services. The company is also overseen by reputable regulators, including the FCA, ASIC and CIRO.
-
IG is an award-winning broker that has an excellent reputation globally. The brand offers spread betting, CFD and forex trading across a comprehensive suite of markets. IG is also multi-regulated, provides a great trading app and has 50 years experience.
-
Capital.com offer CFDs on a range of markets with competitive spreads and zero commissions. The broker also offers the Investmate app, negative balance protection and leveraged trading.
-
CMC Markets is a trustworthy brand authorized by tier-one regulators including the FCA and ASIC. Advanced trading tools, excellent market research and low fees help the broker stand out from rivals. The no minimum deposit, free demo account and social trading service have also made CMC Markets popular with aspiring traders.
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
-
AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for trading, alongside a comprehensive education center and multilingual customer support.
-
Spreadex is an FCA-regulated broker that offers spread betting opportunities on an impressive 10,000+ CFD instruments including 60 forex pairs. Traders can also take short-term positions on sporting events. The brand has been around for over 20 years and has won multiple awards.
-
Interactive Brokers is a leading global brokerage that provides access to a comprehensive offering of stocks as well as forex, futures, metals, bonds and cryptos. The firm has over 40 years experience in the online trading industry and is heavily regulated by SEC, FCA, IIROC, and SFC. Day traders can use the proprietary Trader Workstation and can access powerful tools and data feeds as well as comprehensive educational resources.
-
Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they provide a huge range of trading markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.
-
IG is an award-winning broker that has an excellent reputation globally. The brand offers spread betting, CFD and forex trading across a comprehensive suite of markets. IG is also multi-regulated, provides a great trading app and has 50 years experience.
-
City Index is an established and award-winning forex, CFD and spread betting broker with top-tier global regulation, including in the UK (FCA) and Australia (ASIC). With 30+ years in the industry, 13,500+ instruments and 24/5 customer support, City Index is a solid pick for aspiring traders.
-
Plus500 is a leading brokerage, listed on the London Stock Exchange with 25+ million registered traders. The firm specializes in CFD trading on its intuitive, in-house platform and mobile app. Spreads are low and there are no deposit or withdrawal fees. Plus500 also has a high trust score with licenses from reputable regulators, including the FCA, ASIC and CySEC.
-
NinjaTrader is a US-headquartered and regulated brokerage that specializes in futures trading. There are three pricing plans to suit different needs and budgets, as well as ultra-low margins on popular contracts. The brand's award-winning charting software and trading platform also offers a high-degree of customization and superb technical analysis features.
-
Trade.com is a trustworthy online broker with a global presence. The broker offers 2,100+ CFDs in major markets, as well as futures, options and more. The broker offers best-in-class platforms and superior analysis tools for experienced traders. The broker is also regulated by top-tier authorities including the FCA and CySEC.
-
RockGlobal is a New Zealand based and regulated CFD broker. They offer competitive spreads from 0.1 pips and a large range of trading assets, trading platforms and educational services, with up to 1:500 leverage. Operating in a Tier 1 regulated environment, RockGlobal offers peace of mind and excellent customer support.
-
Firstrade is a US-headquartered discount broker-dealer with authorization from the SEC. The company is also a member of FINRA/SIPC. With welcome bonuses, powerful tools and apps, plus commission-free trading, Firstrade Securities is a popular online brokerage. It is also quick and easy to open a new account.
-
Swissquote is a Switzerland-based bank and broker that offers online trading and investing. The company has a high safety score and is listed on the Swiss stock exchange. The firm offers a huge range of products, from stocks, ETFs, bonds and futures to 400+ forex and CFD assets. Hundreds of thousands of traders have opened an account with the multi-regulated brokerage. Clients can get started in three easy steps while 24/7 customer support is available to assist new users.
-
FXPrimus is an award-winning CySEC-regulated brokerage offering CFD trading on 200+ instruments via the MetaTrader 4, MetaTrader 5 and cTrader platforms. The choice between a competitive commission-free account and two affordable raw spread options make this an accessible broker for anyone seeking forex, stocks, indices and commodities with high leverage.
-
StormGain is a comprehensive crypto platform that allows clients to trade digital currencies via an exchange, store them in a wallet, mine new tokens and access DeFi capabilities such as staking. Trading takes place through proprietary software, and clients can access trading signals and a suite of educational software. The platform also supports trading on 'tokenized assets' – smart contracts based on gold and silver price movements – and crypto options.
-
Libertex is a well-known broker, established in 2012. The regulated brand has served numerous clients and is regulated by the Cyprus Securities and Exchange Commission with license number 164/12. Libertex offers CFD trading on 250+ underlying assets, including through an innovative and user-friendly proprietary web trader platform. Choose between CFDs on forex, cryptocurrencies, commodities, stocks, indices and ETFs, which are available with tight spreads and low commissions.
-
Infinox is a UK-based and FCA-regulated broker that offers diverse trading products thanks to its STP and ECN account types and support for MetaTrader 4, MetaTrader 5 and a proprietary platform. Clients can also benefit from a free VPS that can support automated strategies and a social trading platform, catering to both beginner and seasoned traders.
-
DEGIRO is a Netherlands-headquartered broker with millions of users and authorization from leading regulators, including the BaFin and FCA. Clients can access global exchanges anytime, anywhere, and on any device. DEGIRO offers stock trading with exceptionally low fees and a huge range of markets. DEGIRO are not CFD brokers and do not offer CFDs.
-
Saxo is a multi-award-winning trading brokerage, investment firm and regulated bank. With a huge 72,000+ trading instruments, plus investment products and managed portfolios, clients have no shortage of opportunities. The trusted brand also offers transparent pricing and top-tier regulatory protection from 10+ agencies including FINMA, FCA & ASIC.
-
Zacks Trade is a FINRA-regulated US broker offering trading on stocks, ETFs, cryptocurrencies, bonds and more through a proprietary terminal. The broker is geared toward active traders and offers very affordable fees on most assets as well as an app and a vast amount of market data.
-
BinaryCent is an unregulated binary options broker that offers 24/7 trading on forex, cryptos and stocks with payouts up to 95%. Despite its lack of regulation, this broker takes client security seriously and stores client funds in European banks. The broker also offers CFDs with very high leverage up to 1:500.
-
Just2Trade is a reliable multi-regulated broker registered with FINRA, NFA and CySEC. The company has 155,000 clients from 130 countries and stands out for its huge suite of instruments and additional features, including a social network, robo advisors and a funded trader programme.
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.
FAQ
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, Kucoin and Binance are both crypto exchanges 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.