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
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    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
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    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
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    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
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    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
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    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
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    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
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    AZAforex provides trading in binary options, featuring time-sensitive payouts that range from 30 seconds to 24 hours. More than 50 options are available, requiring a minimum investment of just $1, with potential returns of up to 90%.

    Min Deposit Payout % Expiry Times
    $1 90 30 seconds - 1 day
    Bonus MetaTrader 4 Markets
    - No CFD, Forex, Stocks, Crypto, Commodities
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    BinaryCent offers binary options trading across various markets via an intuitive in-house platform. With a minimum investment of just $0.10 per trade and potential returns of up to 95%, it caters to casual and low-capital traders, providing substantial profit opportunities.

    Min Deposit Payout % Expiry Times
    $250 95% 5 seconds - 30 days
    Bonus MetaTrader 4 Markets
    20% to 200% deposit bonus No CFD, Forex, Stocks, Crypto, Commodities
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    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.

    Min Deposit Payout % Expiry Times
    $1 100% 1 minute - 7 days
    Bonus MetaTrader 4 Markets
    - Yes CFD, Forex, Stocks, Crypto, Commodities

Safety Comparison

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

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

Payments Comparison

Compare which popular payment methods the Binary Options Money Management 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
Pocket Option
IQCent
Capitalcore
CloseOption
Videforex
Grand Capital
Raceoption
AZAforex
Binarycent
World Forex

Mobile Trading Comparison

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

Mobile Trading Comparison
Broker Mobile Apps iOS Rating Android Rating Smart Watch App
Pocket Option iOS & Android 4 4.2
IQCent iOS & Android 4.3 4.1
Capitalcore - 3 3
CloseOption iOS & Android 3.7 3.5
Videforex Android 4.1 4.4
Grand Capital 4.8 4.6
Raceoption iOS & Android 4 3.8
AZAforex iOS & Android 5 2.9
Binarycent iOS, Android 3 3
World Forex iOS, Android + Web Browser 1.3 1.3

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?

Beginners Comparison
Broker Demo Account Minimum Deposit Minimum Trade Support Rating Education Rating
Pocket Option $50 $1 3.3 3.5
IQCent $250 $0.01 2.5 2
Capitalcore $10 0.01 Lots 3.5 3.5
CloseOption $5 $1 3 2.5
Videforex $250 $0.01 4.2 1.8
Grand Capital $10 0.01 Lots 3.5 3.5
Raceoption $250 $0.01 4 0.8
AZAforex $1 0.0001 Lots 3.3 2.5
Binarycent $250 $0.01 3 2
World Forex $1 0.01 Lots 3.3 2.8

Advanced Trading Comparison

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

Advanced Trading Comparison
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
AZAforex - 1:1000
Binarycent Centobot for binary options 1:500
World Forex 1:1000

Detailed Rating Comparison

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

Detailed Rating Comparison
Broker Trust Platforms Mobile Assets Fees Accounts Support Research Education
Pocket Option 2 3.3 4.1 2.5 3.5 3.5 3.3 3 3.5
IQCent 2.5 3.8 4.2 2.6 4.3 3.3 2.5 3 2
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
Videforex 2.5 3.5 4.3 3.6 3.3 3 4.2 1.3 1.8
Grand Capital 2.8 3.8 4.7 3.9 2.5 3.9 3.5 3.5 3.5
Raceoption 2.5 3 3.9 3 2.8 3.3 4 0.8 0.8
AZAforex 2.5 2.3 4 2.8 2.5 3.5 3.3 2.5 2.5
Binarycent 2.8 3 3 3 2.5 2.8 3 1 2
World Forex 2.5 3.5 1.3 3 2.8 3.3 3.3 2.5 2.8

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.

Binary options money management excel download

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.