Forex Binary Options

For those who want to benefit from the high liquidity forex market but without the corresponding complexity, forex binary options could prove a worthwhile instrument. The foreign exchange market is a global, decentralised or over-the-counter (OTC) marketplace for the trading of currencies. By combining forex and binary options, the success of each trade relies on what a currency pair is worth relative to a strike price at a given time.

This guide will discuss how to trade forex binary options successfully, covering building a strategy, as well as the pros and cons. We also list the best forex binary options brokers in 2025.

Forex Binary Options Brokers

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    Videforex provides trading on more than 40 currency pairs with leveraged CFDs, starting spreads at 0.1 pips. Alternatively, traders may opt for binaries to predict price directions, with payouts up to 98%. The platform includes tools like technical analysis, economic calendars, and market news to aid FX trading decisions. In 2025, Videforex introduced new exotic pairs such as THB and MXN to enhance trading opportunities.

    Videforex provides binary options with competitive returns, offering 20% payouts on cryptocurrencies and up to 98% on more stable assets. This outperforms many rivals. Traders can choose contracts ranging from 5 seconds to 1 month. Additionally, new users benefit from a welcome deposit bonus.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    0.1 0.1 0.1
    Total Assets FCA Regulated Platforms
    40+ No TradingView
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    Capitalcore provides approximately 35 currency pairs, a small range next to CMC Markets' offering of over 300 pairs. Spreads are most favourable in the VIP account at 0.4 pips on EUR/USD. However, they increase to 1.5 pips in the Classic and Silver accounts, and the option for zero spreads is unavailable.

    Capitalcore has broadened its range of trading products by adding binary options for forex, metals, and cryptocurrencies, offering returns of up to 95%. Designed for short-term traders, contract durations vary from 1 minute to 1 hour. The user-friendly web platform makes trading simple; just click 'Call' if you predict a price increase or 'Put' for a decrease.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    0.5 0.4 0.5
    Total Assets FCA Regulated Platforms
    35+ No WebTrader, Pro
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    CloseOption provides binary options on over 25 forex pairs, covering major pairs like EUR/USD and some minors such as AUD/JPY. Currency-based payouts differ, with GBP/USD typically offering a reasonable return of 75%.

    CloseOption provides binary options trading on over 30 fiat and digital currencies via a user-friendly online platform. With 15 contract durations ranging from 30 seconds to 1 month, it caters to both short-term and long-term traders. New users receive a welcome bonus.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    No fee - payouts approx. 80% (Copper) No fee - payouts approx. 80% (Copper) No fee - payouts approx. 80% (Copper)
    Total Assets FCA Regulated Platforms
    20+ No Own
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    World Forex provides CFD and digital contract trading across 53 currency pairs, such as EUR/USD and GBP/EUR. Traders can access substantial leverage on CFDs, complemented by competitive spreads for select account types.

    World Forex provides binary options requiring just a choice of stake, price movement, and contract duration. Returns can reach up to 100% on American agreements and 85% on European ones, with the latter also offering a partial refund for traders exiting early.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    From 0.6 From 0.6 From 0.6
    Total Assets FCA Regulated Platforms
    53 No MT4, MT5
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    IQCent traders can engage with CFDs or binary options on more than 55 forex pairs, including new exotic options like MXN and HUF from 2025. CFD spreads begin at 0.3 pips, with binary options yielding up to 95%, outperforming competitors like Pocket Option, which offers forex payouts of only up to 81%.

    IQCent provides binary options featuring exceptional payouts up to 98%. The platform, albeit with basic analysis tools, accommodates various timeframes ranging from 1 minute to 1 month, supporting both short and long-term trading strategies. However, it is worth noting that stock binaries are unavailable.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    0.8 0.3 0.8
    Total Assets FCA Regulated Platforms
    55+ No Online Platform, TradingView
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    RaceOption provides over 25 major and minor currency pairs on a straightforward, web-based platform. It features more than 30 indicators and includes integrated copy trading options, allowing for an effortless investment strategy.

    RaceOption provides over 100 trading options with payouts reaching 95% and expiries starting from just 5 seconds. A minimum deposit of $250 allows clients to benefit from zero deposit fees, swift withdrawals, and an array of trading bonuses.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    Variable Variable Variable
    Total Assets FCA Regulated Platforms
    25+ No TradingView
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    You can trade binary and OTC options on over 40 currency pairs, or more than 55 pairs if you deposit £1,000 or more. Payouts typically reach a fair 81%, and with a minimum trade of just £1, this broker is ideal for novice traders. Additionally, the MT4 and MT5 platforms are available for those with more trading experience.

    Pocket Option provides ultra-short-term contracts, starting from just 5 seconds, on an intuitive platform ideal for novice traders. Payout rates exceed 90%, comparable with competitors, and the 'Double Up' and 'Rollover' functions enable additional earning possibilities. On the downside, its range of over 130 assets is less extensive than that of brokers such as Quotex, which offer more than 400 options.

    GBPUSD Spread EURUSD Spread GBPEUR Spread
    N/A N/A N/A
    Total Assets FCA Regulated Platforms
    55+ No Web, MT4, MT5

Safety Comparison

Compare how safe the Forex Binary Options are and what features they offer to protect traders.

Safety Comparison
Broker Trust Rating FCA Regulated Negative Balance Protection Guaranteed Stop Loss Segregated Accounts
Videforex 2.5
Capitalcore 3.3
CloseOption 2.8
World Forex 2.5
IQCent 2.5
Raceoption 2.5
Pocket Option 2

Payments Comparison

Compare which popular payment methods the Forex Binary Options support and whether they have trading accounts denominated in British Pounds (GBP).

Payments Comparison
Broker GBP Account Debit Card Credit Card Neteller Skrill Apple Pay
Videforex
Capitalcore
CloseOption
World Forex
IQCent
Raceoption
Pocket Option

Mobile Trading Comparison

How good are the Forex Binary Options at mobile trading using apps or other mobile interfaces.

Mobile Trading Comparison
Broker Mobile Apps iOS Rating Android Rating Smart Watch App
Videforex Android 4.1 4.4
Capitalcore Android, Webtrader 3 3
CloseOption iOS & Android 3.7 3.5
World Forex iOS, Android + Web Browser 1.3 1.3
IQCent iOS & Android 4.3 4.1
Raceoption iOS & Android 4 3.8
Pocket Option iOS & Android 4 4.2

Beginners Comparison

Are the Forex Binary Options good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?

Beginners Comparison
Broker Demo Account Minimum Deposit Minimum Trade Support Rating Education Rating
Videforex $250 $0.01 4.2 1.8
Capitalcore $10 0.01 Lots 3.5 3.5
CloseOption $5 $1 3 2.5
World Forex $1 0.01 Lots 3.3 2.8
IQCent $250 $0.01 2.5 2
Raceoption $250 $0.01 4 0.8
Pocket Option $50 $1 3.3 3.5

Advanced Trading Comparison

Do the Forex Binary Options offer features that allow for more advanced trading strategies?

Advanced Trading Comparison
Broker Automated Trading Pro Account Leverage VPS AI Low Latency Extended Hours
Videforex 1:500
Capitalcore - 1:2000
CloseOption - -
World Forex 1:1000
IQCent 1:500
Raceoption - 1:500
Pocket Option -

Detailed Rating Comparison

Use this heatmap to compare our detailed ratings for all of the Forex Binary Options.

Detailed Rating Comparison
Broker Trust Platforms Mobile Assets Fees Accounts Support Research Education
Videforex 2.5 3.5 4.3 3.6 3.3 3 4.2 1.3 1.8
Capitalcore 3.3 3.8 3 3.8 3 3.8 3.5 2.5 3.5
CloseOption 2.8 3 3.6 2.5 3 2.5 3 1.3 2.5
World Forex 2.5 3.5 1.3 3 2.8 3.3 3.3 2.5 2.8
IQCent 2.5 3.8 4.2 2.6 4.3 3.3 2.5 3 2
Raceoption 2.5 3 3.9 3 2.8 3.3 4 0.8 0.8
Pocket Option 2 3.3 4.1 2.5 3.5 3.5 3.3 3 3.5

Our Take On Videforex

"Videforex offers traders a straightforward, user-friendly platform to speculate on popular markets via binaries. The quick registration and web accessibility ensure an effortless start."

Pros

  • Traders can achieve up to 98% returns on over 100 assets through the broker's binary options, aligning with competitors such as IQCent.
  • Videforex is among the select brokers offering round-the-clock multilingual video support, ensuring thorough assistance for active traders.
  • Videforex frequently holds trading contests, providing both novice and seasoned traders with practice opportunities and cash prizes. Traders can participate with position sizes starting as low as 1 cent.

Cons

  • The lack of educational resources is a significant disadvantage for novice traders. In contrast, leading firms offer blogs, videos, and live trading sessions.
  • Videforex is not licensed by a reputable regulator, leaving traders with minimal or no protection, such as segregated client accounts.
  • Based on recent tests, the client terminal requires enhancements, as its widgets occasionally become slow and unresponsive, which could affect traders' experience.

Our Take On Capitalcore

"Capitalcore's main attractions are high leverage up to 1:2000 and no commission or swap fees. Nevertheless, weak regulation from the IFSA and a lack of educational resources leave it trailing behind top brokers."
Christian Harris
Christian Harris
Reviewer

Pros

  • The support team is available around the clock and, during testing, offered prompt and helpful responses within minutes.
  • Capitalcore stands out as a broker offering zero swap fees, appealing to traders adhering to Islamic Finance principles.
  • Unlike the majority of brokers, Capitalcore provides a limitless demo account, which can be set up in less than five minutes.

Cons

  • Platform support is restricted to proprietary software, lacking integration with popular platforms like MetaTrader or cTrader. These industry-leading solutions provide integrated economic news and facilitate automated trading.
  • Capitalcore lacks regulation from major financial authorities, casting doubt on its reputation and raising concerns over the safety of client funds.
  • During testing, the web platform proved unreliable due to sporadic technical issues, causing the trading platform to fail loading at times.

Our Take On CloseOption

"CloseOption is an excellent choice for traders looking for an intuitive binary options platform offering substantial returns and sign-up incentives."

Pros

  • Free practice account
  • The intuitive platform works seamlessly with nearly all web browsers.
  • CloseOption hosts weekly trading competitions, awarding cash prizes to traders.

Cons

  • CloseOption lacks regulation by a reputable financial authority.
  • Clients must deposit over $50,000 to be eligible for the highest returns.
  • Binary options are exclusively offered for both traditional currencies and cryptocurrencies.

Our Take On World Forex

"World Forex offers leveraged CFDs and digital contracts, making it an ideal broker for clients seeking flexible and profitable trading options. The copy trading service will also attract novice traders."

Pros

  • Low deposit of $1
  • Multiple account types with diverse pricing models
  • Educational content

Cons

  • Weak regulation
  • Withdrawal fees apply
  • No negative balance protection

Our Take On IQCent

"IQCent attracts traders seeking a simple binary options and CFD platform with minimal fees, multiple accounts, and copy trading. Begin in under a minute with a $250 deposit."

Pros

  • New traders with a modest budget can start trading with a minimal stake of just $0.01.
  • CFD trading fees are competitive, with major forex pairs like EUR/USD incurring costs from just 0.7 pips.
  • The broker provides payouts of up to 98% on binary options, surpassing alternatives such as Pocket Option, which offers a maximum of 92%.

Cons

  • The broker operates without oversight from a reputable regulator, which is typical for binary options companies.
  • IQCent lags behind binary brokers such as Quotex due to its limited investment range of approximately 175 assets, including few stocks.
  • The market analysis provides only fundamental details, offering limited technical summaries and insights from analysts.

Our Take On Raceoption

"RaceOption attracts traders with its feature-packed binary options platform, offering frequent contests, account benefits, and copy trading. However, its unregulated nature presents minimal to no investor protections, according to our research."

Pros

  • Returns on well-known assets such as EUR/USD can go up to 95%, outperforming many other options based on our analysis and boosting potential gains. Additionally, the initial three trades incur no risk in Silver and Gold accounts.
  • RaceOption is among the select few brokers providing 24/7 multilingual video chat. However, our interactions suggest that their agents require better understanding of trading and regulatory matters.
  • RaceOption simplifies account funding with no-fee, near-instant deposits through bank cards and cryptocurrencies. Withdrawals are processed within one hour, guaranteed.

Cons

  • RaceOption operates as an unregulated broker, offering high-risk trading with no investor compensation or legal remedies if trading or withdrawal problems arise.
  • The $250 minimum deposit, though still attainable for numerous retail investors, presents a higher entry barrier compared to platforms like Deriv and World Forex, which cater more to budget-conscious traders.
  • RaceOption, lacking both a demo account and educational resources, is not ideal for novice traders.

Our Take On Pocket Option

"Pocket Option stands out with its intuitive web platform, delivering an excellent user experience for short-term binary traders. A $50 minimum deposit makes it accessible for beginners, and account setup is straightforward. However, its market offerings and regulatory credentials lag behind competitors."

Pros

  • Pocket Option now offers an 'AI Trading' feature that evaluates signals, technical indicators, and trader insights to identify the best trade direction and expiration time. This provides a more automated trading experience.
  • Over the years, Pocket Option has won several annual awards from DayTrading.com, including the notable 'Best Binary Broker 2025' after enhancing its trading tools.
  • Traders with a deposit of over $1,000 may receive a 2% or higher payout increase, access to more assets, and enjoy exclusive benefits.

Cons

  • Although binary brokers such as IQCent provide returns reaching 98% based on evaluations, others typically offer competitive payouts up to 92%.
  • Pocket Option presents a streamlined version of MT4 and MT5, lacking the comprehensive charting tools that experienced traders seek.
  • To gain access to over 250 assets, a deposit of $1000 is required. Without this deposit, traders will only have access to a selection of 130 assets.

Forex Binary Options Trading Explained

Forex binary options are a type of fixed odds derivative contract in which you predict the value of a forex pair at an expiration time. The trader agrees to a contract provided by the broker with a predetermined reward if the contract ends in-the-money. Typically, the profit percentage is between 60-80% of the initial investment, however this will vary depending on the broker, the underlying asset, the strike price and the expiration time.

These are the several different types of forex binary options contracts:

  • High/Low – You predict whether the value of the pair will be higher than or lower than a strike price at expiration
  • Touch/No Touch – You predict if the value of the pair will reach or fall to a certain value before expiration
  • In/Out – Also known as boundary or range, you predict if the value of the pair value will be between or outside of a given range at expiry
  • Ladder – A series of equidistant price levels that each correlate to different payouts. For example, 50% at £2, 60% at £2.50 and 70% at £3. Akin to a series of combined high or low binary options.

Example

Now, let’s look at an example of a high/low forex binary option trade:

  • A broker is offering a 75% return on a binary options contract for a EUR/GBP forex pair with an expiration of four hours.
  • At 9 am, the pair is trading at 0.8459.
  • With a stake of £100, you open a call (high) binary option with a strike price of 0.8455.
  • At 1 pm, the pair is trading at approximately 0.84595, meaning the contract ends in-the-money. This is because, at expiration, the pair is valued greater than the strike price. Therefore, you receive a total return of £175 (£100 initial investment and £75 profit).
  • If instead, you had opened a put (low) with the same strike price, your position would end out-of-the-money and therefore you lose the entire investment.
Ultimate forex tools & binary options

EUR/GBP

Getting Started

Choosing A Broker

It can be a challenge to identify the best forex brokers who offer binary options. Before rushing in and making an investment, try to research several brokerages. To help make your selection, consider the following factors:

Customer Reviews

Since the Financial Conduct Authority (FCA) banned the sale of binary options for retail traders in 2019, no regulated brokers in the UK can offer them. Therefore, you cannot rely on licensing to ensure how trustworthy a broker is. Instead, you need to use customer reviews and ratings to determine if certain forex brokers offering binary options are genuine. Alternatively, you can look to see if they are licensed by an offshore regulator.

You can also find user reviews on websites like TrustPilot or at trading communities on social media forums such as Reddit, Facebook
and Discord. Be aware though that there may be some negative reviews from disgruntled traders who are disenchanted with their bad luck rather than having genuine complaints. Additionally, dubious brokers have been known to post fake positive reviews, so try to read plenty before committing to one.

Trading Platform

The investing platform will have a considerable bearing on your experience of trading forex binary options. It is important that you use a platform that has several indicators and trading tools which you can use for technical analysis. Look for high-quality, third-party platforms such as MetaTrader 4 or MetaTrader 5.

Certain forex binary options brokers also provide proprietary platforms. These should be well designed and make it easy to select different expiration times for forex pairs and customise price history charts with indicators, drawings and graph types. The platform should also show additional trade information for each forex binary option contract. Here, you should be able to see the maximum loss, the maximum possible profit, and the estimated probability for the contract to end in-the-money.

Demo Account

The best brokers for forex binary options will provide customers with a free demo account. This is a recommended aid when you first start trading binaries or you want to trial a new strategy. Paper trading accounts are a risk-free way to test the viability of your strategy with simulated funds. Once you are satisfied with the approach you are using, you can then move on to trading on a live account.

Mobile App

Forex binary options brokers with mobile apps allow you to trade on the go. These apps are ideal if you are away from your computer for extended periods of time. The best mobile applications will have the same or similar functionality as browser platforms or computer apps.

Alerts, Signals & Trading Robots

To further develop your forex binary options trading, you can implement alerts, live signals and trading robots. Alerts and signals tell you when there are currency pairs satisfying certain criteria, according to your strategy. These help to reduce the time that you dedicate to searching for trades worth making. You are automatically notified when there is a currency pair you might trade on. You can find high-quality, forex binary options signals both from free providers and from paid-for providers, for example, Ultimate Forex Tools.

Trading robots are algorithmic bots which you can program to carry out trading on your behalf. You input instructions for the bots to identify forex pairs which fulfil your requirements and execute the trade accordingly.

Choosing A Strategy

It is key that you have a well-structured forex strategy for binary options to boost your chances of achieving sustained profits. As most forex binary options contracts have profits which are less than 100% of the stake, having only 50% of contracts ending in-the-money will put you in the red. Therefore, more than half of your binary options contracts must expire in-the-money. For example, if you only open contracts with 80% payouts, you need at least 56% of your trades to end in-the-money in order to be profitable, not accounting for any brokerage fees.

The following are potential strategies that you could adopt:

Hedging

Hedging forex with binary options is a strategy to help reduce the magnitude of your losses. This strategy involves placing two trades on the same asset which both expire at the same time. One is a call, going high and the other is a put, going low (a call option gives the holder the right to buy a security and a put option gives the holder the right to sell a security).

These are set up such that the strike price for the call is lower than that of the put contract, meaning at least one of the two contracts will always end in-the-money. By doing this, you are in essence creating an in/out binary options contract.

Here’s an example of how it works:

  • A broker is offering 60% returns on a high/low binary options contract on GBP/JPY which expires in an hour. It is currently trading at 164.319.
  • With an initial investment of £30, you open a call contract with a strike price of 164.200. At expiry, the pair is valued at 164.168, meaning you lose the entire stake.
  • If you had also placed an additional put contract with a strike price of 164.400, then you would have lost a total of £12. This is because the put contract would return a profit of £18 and offset against the £30 lost in the call contract.

Scalping

Scalping is a strategy that aims to capitalise on short-term, bullish trends. Using indicators such as the moving average convergence/divergence (MACD), traders can open forex binary options with expirations as low as 60 seconds. The MACD indicator, as seen below, is made up of two lines: a signal line and a MACD line.

The blue signal line is used to demonstrate changes in momentum while the black MACD line is the difference between two moving averages. The bar chart underneath simply shows the difference between the two lines. When the bars are greater, there is divergence, which implies trends are likely to continue. When the bars are smaller, there is convergence, which implies that you are likely to see trend reversal or fluctuations.

forex & binary options top trading strategies - the bible

MACD

Fundamental

A fundamental forex binary options strategy does not rely on technical indicators like scalping. Rather, this strategy relies on news, announcements and reports about an industry or economy. These tend to look towards longer-term trades rather than binaries with expirations of a few minutes or hours.

Let’s look at an example of how current events can influence a fundamental strategy:

  • The Russian invasion of Ukraine in 2022 severely impacted the Russian Ruble.
  • At the beginning of February 2022, the USD/RUB pair was trading at 75.2 RUB, however on the 7th of March, soon after the invasion, the pair reached 138.2 RUB.

Benefits of Trading Forex Binary Options

  • Beginner-friendly
  • Returns are predetermined
  • A simple trading instrument
  • Available on major pairs and those with the GBP
  • Limited losses as there is no way to lose more than your stake

Risks of Trading Forex Binary Options

  • Retail traders must use unregulated or offshore brokers in the UK, due to a ban by the Financial Conduct Authority (FCA)
  • High risk due to their ‘all or nothing’ nature
  • Limited profits

Final Thoughts On Forex Binary Options

Trading the forex binary options market is a viable alternative for retail traders interested in speculating on worldwide currency pairs but with greater simplicity. Forex binary options have the potential for profitability but being a successful trader is not easy. You should take the time to research and test strategies with demo accounts to best prepare for live trading. Choosing the best forex binary options brokers is also worth taking seriously, so evaluate your options carefully before settling on a provider. See our list of recommended brands here.

FAQs

Is Binary Options Trading Easier Than Forex?

Binary options are generally simpler to trade than forex. However, this does not mean that you should be less disciplined when trading forex binary options. The best traders around the world will have their own forex binary options trading system and it is recommended that you set up and adopt your own.

Is Forex Binary Options Trading Legal?

Brokers regulated by the FCA cannot offer forex binary options trading to UK retail traders. However, it is not illegal for retail traders to execute forex binary options trades with unlicensed or offshore brokers.

Which Is Better Out Of Binary Options Vs Forex Trading?

Choosing binary options vs forex is dependent on your preferences as a trader. One of the greatest benefits of binary options over forex is the simplicity of making a prediction and the fixed profit of a contract. In comparison, you do not need such a high winning trade percentage with forex in order to be profitable.

Which Is More Profitable Out Of Forex And Binary Options?

Both forex and binary options trading can be profitable. While the potential profit per trade for forex can be greater, the maximum loss you can make on a binary options trade is limited. The debate of forex vs binary options will often come down to a trader’s style or desired strategy. For more advice on which suits you better, you can chat with other traders online on sites such as Reddit and Quora.

Where Can I Learn More About Binary Options In Forex?

There are many tutorials and help guides available online. Many brokers offer a free education section on their site, offering tips and tricks that you can incorporate into your binary options strategy for forex. Third-party websites can also prove useful. For example, the CLMForex PDF binary options guide. For a more thorough insight, you can sign up for training tutorials such as the Forex Binary Options Trading course, run by The Extra Money Academy.