Binary Options Alternatives

While binary options are a simple and potentially lucrative form of trading, some investors will want to expand their trading repertoire to include alternative instruments. This guide explores the best alternatives to binary options, from CFDs to spread betting and futures. We also explain how these trading instruments compare to binary options, unpacking their respective merits and drawbacks. Read on for a list of the best binary options alternatives.

Best Alternatives To Binary Options Brokers

  1. AvaTrade - AvaTrade's 1250+ leveraged CFD products span a wide range of asset classes including stocks, indices, commodities, bonds, crypto, and ETFs. You can speculate on underlying assets in the broker’s feature-rich web and mobile platforms with market-leading research tools to help discover opportunities.
  2. Deriv.com - You can trade CFDs on popular markets, including the broker's exclusive synthetic indices which are available 24/7. There are plenty of charting tools available for technical traders, including over 20 indicators in the Deriv Trader platform. New users can also open an account and start trading CFDs instantly.
  3. Pepperstone - Pepperstone maintains its position as one of the fastest and most dependable CFD brokers during our latest round of testing. With execution speeds averaging around 30ms and an outstanding fill rate of 99.90%, the broker ensures a seamless trading experience without requotes or dealing desk interference. It also provides ample trading opportunities across over 1,300 assets.
  4. XM - Day traders can speculate on leveraged CFDs with zero commissions, spanning popular markets including currencies, equities and commodities. Additionally, the MetaTrader platforms collectively offer dozens of advanced technical indicators built for short-term strategies.
  5. IC Markets - You gain access to over 2,250 CFDs, available for trading 24/5 across popular markets such as forex, commodities, indices, stocks, and bonds. Utilizing deep liquidity and advanced bridge technology, IC Markets ensures optimal conditions for scalpers, hedgers, and algo traders alike.

Binary Options Alternatives Comparison

Binary Options Alternatives Comparison
Broker CFD Leverage Minimum Deposit Minimum Trade Regulators Visit
AvaTrade logo
1:30 (Retail) 1:400 (Pro) - 0.01 Lots ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM Visit
Deriv.com logo
1:1000 $5 0.01 Lots MFSA, LFSA, VFSC, BFSC Visit
Pepperstone logo
1:30 (Retail), 1:500 (Pro) $0 0.01 Lots FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB Visit
XM logo
- $5 0.01 Lots ASIC, CySEC, DFSA, FSC, FSCA Visit
IC Markets logo
1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global) $200 0.01 Lots ASIC, CySEC, FSA Visit
Eightcap logo
- $100 0.01 Lots ASIC, FCA, xCySEC, SCB Visit
LiteForex Europe logo
1:30 $50 0.01 Lots CySEC Visit
CityIndex logo
1:30 (Retail), 1:50 (Accredited Investor), 1:200 (Sophisticated Investor), 1:300 (Wholesale Investor), 1:400 (Professional Trader). Varies with jurisdiction. $0 0.01 Lots ASIC, FCA, MAS Visit
DNA Markets logo
- $100 0.01 Lots ASIC Visit
FOREX.com logo
1:200 (Retail), 1:500 (Pro) $100 0.01 Lots NFA, CFTC, CIRO, FCA, CYSEC, ASIC, SFC, FSA, MAS, CIMA Visit
eToro logo
- $50 $10 FCA, ASIC, CySEC, FSA, FSRA, MFSA Visit
RoboForex logo
1:2000 $10 0.01 Lots IFSC Visit
InstaForex logo
- - - - Visit
Exness logo
1:2000 $10 0.01 Lots FSA, CySEC, FCA, FSCA, FSC, CBCS Visit
LQDFX logo
1:1000 $20 0.01 Lots - Visit

#1 - AvaTrade

Why We Chose AvaTrade

AvaTrade's 1250+ leveraged CFD products span a wide range of asset classes including stocks, indices, commodities, bonds, crypto, and ETFs. You can speculate on underlying assets in the broker’s feature-rich web and mobile platforms with market-leading research tools to help discover opportunities.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team
  • FTSE Spread: 0.5
  • GBPUSD Spread: 1.5
  • Stocks Spread: 0.13
  • Leverage: 1:30 (Retail) 1:400 (Pro)
  • Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
  • Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade

About AvaTrade

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 day trading, alongside a comprehensive education center and multilingual customer support.

Pros

  • Day traders can access stable spreads and zero commissions with no hidden fees
  • Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools
  • AvaTrade is a heavily regulated and trustworthy broker with licenses from the ASIC, CySEC and more

Cons

  • There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders
  • There is no ECN account with raw spreads
  • A high $2000 minimum investment is required to use DupliTrade, which will be out of reach for many beginners

#2 - Deriv.com

Why We Chose Deriv.com

You can trade CFDs on popular markets, including the broker's exclusive synthetic indices which are available 24/7. There are plenty of charting tools available for technical traders, including over 20 indicators in the Deriv Trader platform. New users can also open an account and start trading CFDs instantly.

"Deriv.com will suit day traders looking to make fast-paced trades using CFDs and multipliers with high leverage up to 1:1000. The broker is also the industry leader in synthetic indices, which simulate real market movements and are available around the clock. "

- DayTrading Review Team
  • FTSE Spread: 0.5
  • GBPUSD Spread: 0.5
  • Stocks Spread: 0.07
  • Leverage: 1:1000
  • Regulator: MFSA, LFSA, VFSC, BFSC
  • Platforms: Deriv Trader, MT5

About Deriv.com

Deriv.com is a low cost, multi-asset broker with over 2.5 million global clients. With just a $5 minimum deposit, the firm offers CFDs, multipliers and more recently accumulators, alongside proprietary synthetic products which can't be found elsewhere. Deriv provides both its own in-house charting software and the hugely popular MetaTrader 5.

Pros

  • Beginners and experienced day traders can access a good range of 20+ technical indicators in Deriv Trader vs 30+ in MT5
  • The free demo account is ideal for practicing short-term trading strategies and no registration is required
  • The low $5 minimum initial deposit suits those on a lower budget

Cons

  • There are limited copy trading tools and analysis features compared to alternatives like IQ Cent
  • There's no loyalty program or rebate scheme for high volume traders
  • The range of 100+ assets trails some competitors such as Quotex which offers 400+

#3 - Pepperstone

Why We Chose Pepperstone

Pepperstone maintains its position as one of the fastest and most dependable CFD brokers during our latest round of testing. With execution speeds averaging around 30ms and an outstanding fill rate of 99.90%, the broker ensures a seamless trading experience without requotes or dealing desk interference. It also provides ample trading opportunities across over 1,300 assets.

"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."

- DayTrading Review Team
  • FTSE Spread: 1.0
  • GBPUSD Spread: 0.4
  • Stocks Spread: 0.02
  • Leverage: 1:30 (Retail), 1:500 (Pro)
  • Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
  • Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade

About Pepperstone

Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.

Pros

  • There’s support for a range of industry-leading charting platforms including MT4, MT5, TradingView, and cTrader, catering to various short-term trading styles, including algo trading.
  • Pepperstone emerges as a low-cost broker, especially for serious day traders with spreads from 0.0 in the Razor account and rebates of 25%+ through the Active Trader program.
  • Pepperstone boasts impressive execution speeds, averaging around 30ms, facilitating fast order processing and execution that’s ideal for day trading.

Cons

  • There’s no simplified proprietary trading platform, nor are there any social trading features, which could be a disadvantage if you are new to day trading.
  • Pepperstone’s demo accounts are active for only 30 days, which may not be not long enough to familiarize yourself with the different platforms and test trading strategies.
  • Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers such as eToro, with no option to invest in real coins.

#4 - XM

Why We Chose XM

Day traders can speculate on leveraged CFDs with zero commissions, spanning popular markets including currencies, equities and commodities. Additionally, the MetaTrader platforms collectively offer dozens of advanced technical indicators built for short-term strategies.

"XM is one of the best forex and CFD brokers we have tested. The flexible account types will suit a variety of short-term trading styles while the $5 minimum deposit and smooth sign-up process make it easy to start trading."

- DayTrading Review Team
  • FTSE Spread: 1.5 pts
  • GBPUSD Spread: 1.9
  • Stocks Spread: 0.002
  • Regulator: ASIC, CySEC, DFSA, FSC, FSCA
  • Platforms: MT4, MT5

About XM

XM is a globally recognized forex and CFD broker with 10+ million clients in 190+ countries. Since 2009, this trusted broker has been known for its low fees on 1000+ instruments. XM is regulated by multiple financial bodies, including the ASIC and CySEC.

Pros

  • XM continues to deliver diverse and multilingual educational materials and offers a useful live education schedule for its webinars and insights
  • Accessible trading accounts with a $5 minimum deposit and fast account opening
  • Transparent and low fees with spreads from 0.0 pips that will help protect day trading profit margins

Cons

  • PayPal deposits are not supported
  • There is weak regulatory oversight through the global entity
  • There's $5 inactivity fee after only 3 months, though this won't affect active traders

#5 - IC Markets

Why We Chose IC Markets

You gain access to over 2,250 CFDs, available for trading 24/5 across popular markets such as forex, commodities, indices, stocks, and bonds. Utilizing deep liquidity and advanced bridge technology, IC Markets ensures optimal conditions for scalpers, hedgers, and algo traders alike.

"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."

- DayTrading Review Team
  • FTSE Spread: 1.0
  • GBPUSD Spread: 0.23
  • Stocks Spread: 0.02
  • Leverage: 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)
  • Regulator: ASIC, CySEC, FSA
  • Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade

About IC Markets

IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.

Pros

  • With ultra-fast execution speeds averaging 35 milliseconds and deep liquidity, IC Markets provides an optimal trading environment for scalpers, hedgers, and algorithmic traders.
  • IC Markets offers fast and dependable 24/5 support based on firsthand experience, particularly when it comes to accounts and funding issues.
  • You have access to over 2,250 CFDs across various markets, including forex, commodities, indices, stocks, bonds, and cryptocurrencies, allowing for diversified trading strategies.

Cons

  • Interest isn't paid on unused cash, an increasingly popular feature found at alternatives like Interactive Brokers.
  • The breadth and depth of tutorials, webinars and educational resources still need work, trailing alternatives like CMC Markets and reducing its suitability for beginners.
  • There are fees for certain withdrawal methods, including a $20 wire charge, which can eat into profits, especially for frequent withdrawals.

Binary Options Explained

The simple definition is that binary options are a simplified type of speculation where traders make straightforward price predictions about an asset over a set period. With the most basic contracts, investors need only predict if an asset’s price will be higher or lower than its current value after the contract expires. For example, will Twitter’s share price be higher or lower than $40 in six hours?

Binary options are similar to sports or event gambling in that users stake money for a fixed-odds return. Payouts on traditional binary options can reach 95%, while a losing trade will see the investor lose their initial stake.

Types Of Binary Options

Traders worldwide can use this investment vehicle to make price predictions on a wide range of markets. However, there are significant regional differences between European-style binary options and the alternatives for US residents.

Before diving into the alternatives to binary options, here is a brief overview of the differences between the USA and European-style instruments:

European Binary Options

European or traditional binary options allow investors to stake funds on the price movement of an asset in exchange for a fixed payout if their prediction is correct. However, some binary options brokers offer alternative variants for different trading strategies:

US-Style Binary Options

US-style binary options, also sometimes referred to as fixed-return options, differ because they are exchange-traded rather than sold over-the-counter (OTC) by individual brokers. This gives investors more flexibility to exit positions early and provides traders with additional security.

All US-style binary options offer a set payout of $100 per contract, with investors profiting from the difference between the price paid for a contract and the set final value.

Brokers often make their money from commissions for buying, selling and settling winning trades, similar to some of our binary options alternatives.

Markets

Binary options offer access to an excellent range of markets. However, it is worth noting that none of these assets are owned during the trade. Binary options are simply derivatives with which to speculate on price movements.

Here are some of the markets that binary options traders typically have access to:

Note, not all of the binary options alternatives listed below offer such wide market access.

Best binary options alternatives
Trading Binary Options On Focus Option

Pros Of Binary Options

Here are some of the reasons that binary options are popular with global investors:

Cons Of Binary Options

Here are some examples of why traders may prefer alternatives to binary options:

Binary Options Brokers

#1 - Pocket Option

Why We Chose Pocket Option

Established in 2017, Pocket Option is a binary options broker offering high/low contracts on forex, stocks, indices, commodities and cryptocurrencies. With over 100,000 active users and a global reach, the platform continues to prove popular with budding traders.

"Pocket Option excels for its easy-to-use web platform which provides a best-in-class user experience for short-term binary traders. The $50 minimum deposit is also accessible for beginners while opening an account is really easy. Looking at the negatives, Pocket Option still trails alternatives in its market offering and regulatory credentials."

- DayTrading Review Team
  • Instruments: Binary Options, Currencies, Commodities, Stocks, Indices, Cryptos
  • Regulator: MISA
  • Platforms: Web, MT4, MT5
  • Minimum Deposit: $50
  • Minimum Trade: $1

Pros

  • The range of payment methods beats the majority of rivals, providing fast, secure and convenient deposits for traders in most countries
  • The MetaTrader platforms offer integrated analysis with helpful technical summaries for short-term traders
  • The web platform shines for its straightforward design and usability that will appeal to beginners looking to speculate on popular financial markets in a few clicks

Cons

  • Despite offering competitive payouts up to 92%, binary brokers like IQCent offer higher returns up to 98% based on tests
  • The maximum binary contract length of 4 hours is restrictive for longer-term trading strategies. Alternatives like Videforex offer binaries up to 1 month
  • Pocket Option offers a slimmed down iteration of the MT4 and MT5 that doesn't provide the full charting package for advanced traders

#2 - Quotex

Why We Chose Quotex

Quotex has been a top binary options broker since 2019, offering over 400 binaries across currencies, commodities, stocks, and crypto. With contracts spanning 5 seconds to 4 hours, short-term traders enjoy flexibility while payouts that exceed 95%, offer high potential returns. Continuously adapting to trader demands, Quotex provides a user-friendly platform for trading binaries.

"Quotex is best for making short-term trades on popular markets. The payouts up to 98% are above average and enhancements to the platform have ensured it's easy to use for beginners. That said, the lack of regulatory oversight, limited education and weak support are key drawbacks."

- DayTrading Review Team
  • Instruments: Digital Options on Stocks, Indices, Forex, Commodities, Cryptos
  • Platforms: Web Platform, Mobile App
  • Minimum Deposit: $10
  • Minimum Trade: $1

Pros

  • The $10 starting deposit and $1 minimum stake make Quotex.io accessible to beginners
  • Quotex maintains its position as an excellent choice for short-term binary trading with turbo contracts from 5 seconds
  • The platform continues to delivers a superb trading environment with strong charting tools for technical traders

Cons

  • Customer support has been weak during tests with no live chat and slow response times
  • There is no copy trading, which could support new traders looking to learn from experienced investors
  • Quotex trails industry leaders when it comes to education and market research

#3 - Deriv.com

Why We Chose Deriv.com

Deriv.com is a low cost, multi-asset broker with over 2.5 million global clients. With just a $5 minimum deposit, the firm offers CFDs, multipliers and more recently accumulators, alongside proprietary synthetic products which can't be found elsewhere. Deriv provides both its own in-house charting software and the hugely popular MetaTrader 5.

"Deriv.com will suit day traders looking to make fast-paced trades using CFDs and multipliers with high leverage up to 1:1000. The broker is also the industry leader in synthetic indices, which simulate real market movements and are available around the clock. "

- DayTrading Review Team
  • Instruments: CFDs, Multipliers, Forex, Stocks, Indices, Commodities
  • Regulator: MFSA, LFSA, VFSC, BFSC
  • Platforms: Deriv Trader, MT5
  • Minimum Deposit: $5
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:1000

Pros

  • There's a good range of fast deposit and withdrawal methods with zero payment fees and low minimum deposits
  • Traders can use multipliers between 1 and 30, with take profit, stop loss and deal cancellation parameters
  • Deriv bolstered its short-term trading opportunities in 2024 with accumulator options on simulated indices featuring up to 5% growth rates

Cons

  • There are limited copy trading tools and analysis features compared to alternatives like IQ Cent
  • The range of 100+ assets trails some competitors such as Quotex which offers 400+
  • There's no loyalty program or rebate scheme for high volume traders

#4 - IQ Option

Why We Chose IQ Option

IQ Option is a trusted broker with multi-asset trading on its user-friendly proprietary platform. The broker provides trading on forex, stocks, cryptos, indices, commodities and ETFs with competitive fees and a good suite of extra features and educational content. You can also open an account with just $10.

"IQ Option is a good broker for beginners with a slick platform and low minimum investment. New users can also open an account in three easy steps."

- DayTrading Review Team
  • Instruments: CFD, Forex, Crypto, Stocks, Digital Options
  • Platforms: Own
  • Minimum Deposit: $10
  • Minimum Trade: 0.001 Lots
  • Leverage: 1:500

Pros

  • Excellent range of payment methods
  • Access to IQ Option community
  • Reliable 24/7 multilingual support

Cons

  • No MetaTrader 4 integration
  • €10 inactivity fee after 90 days

#5 - Grand Capital

Why We Chose Grand Capital

Grand Capital is a MetaTrader broker with welcome bonuses, trading competitions and an intuitive copy trading service. Several account types and 400+ assets provide trading opportunities for various types of investors and strategies. New users can also open an account and start trading in a matter of minutes.

"Grand Capital is a good broker for traders familiar with MetaTrader plus passive investors interested in copy trading and LAMM solutions. On the downside, the broker's regulatory credentials lag behind competitors."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Indices, Shares, Energies, Metals, Cryptocurrencies, Binary Options
  • Regulator: FinaCom
  • Platforms: MT4, MT5
  • Minimum Deposit: $10
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:500

Pros

  • Six accounts to suit different trading styles and strategies
  • Accessible minimum deposit starting from $10
  • Micro account for beginners

Cons

  • Basic education and market research
  • Limited regulatory oversight
  • High spreads on some assets

Alternatives To Binary Options

Many alternative instruments offer solutions if binary options do not fulfil your trading needs. While this list is not exhaustive, some examples of the most popular and valuable binary options alternatives are:

Binary Options Alternative 1: CFDs

Our first binary options alternative is contracts for difference, or CFDs. CFDs are hugely popular trading instruments for forex and commodity markets. Similarly to binary options, investors have no ownership of an underlying asset and only trade on its market price.

Unfortunately for American investors, CFDs are heavily restricted in the US. However, in this article, there are other binary options alternatives listed that are available in the US.

Markets

This binary options alternative boasts a more comprehensive selection of markets, partly due to the many more brokers offering CFDs than binary options.

Using CFDs, traders can speculate on major, minor and exotic forex pairs, indices, stocks, ETFs, commodities, cryptos, bonds and interest rates markets.

Complexity

CFDs are slightly more complex than binary options despite being governed by the same principles of going either long or short on an asset. However, investors need not be experts to open a CFD trade.

The positive side of this added complexity, traders have more order types to choose from to create more precise positions.

Profit & Loss Potential

CFD trading promises the potential for far greater payouts through leverage. Some global CFD brokers offer leverage of 1:500 or even higher.

However, with greater potential for reward comes greater risk. Losses are not capped and can quickly wipe out significant capital when trading using high leverage. Our excerpts advise investors to use tools like a stop loss or trailing stop to minimize losses on CFDs.

Fees & Commissions

CFDs can be a cost-effective way of trading versus some of the other binary options alternatives outlined below. Typical broker fees are competitive and charged either through commission or are contained within the spread of a product.

However, customers should ensure that their broker has no hidden charges such as inactivity, deposit, withdrawal or platform fees.

Safety & Regulation

Regarding safety, CFDs rank higher than binary options due to a higher proportion of brokers being regulated.

However, this is not to say that fraudulent CFD brokers do not exist. For maximum protection, prospective clients should favour brokers regulated by a reputable body such as the FCA or ASIC.

Strategies

CFDs may have the least strategies available of all the binary options alternatives in this guide. Investors must ultimately pick between going long or short on an asset. While hedging is possible, other instruments are better suited to this strategy.

CFD Brokers

  1. AvaTrade - AvaTrade's 1250+ leveraged CFD products span a wide range of asset classes including stocks, indices, commodities, bonds, crypto, and ETFs. You can speculate on underlying assets in the broker’s feature-rich web and mobile platforms with market-leading research tools to help discover opportunities.
  2. Deriv.com - You can trade CFDs on popular markets, including the broker's exclusive synthetic indices which are available 24/7. There are plenty of charting tools available for technical traders, including over 20 indicators in the Deriv Trader platform. New users can also open an account and start trading CFDs instantly.
  3. Pepperstone - Pepperstone maintains its position as one of the fastest and most dependable CFD brokers during our latest round of testing. With execution speeds averaging around 30ms and an outstanding fill rate of 99.90%, the broker ensures a seamless trading experience without requotes or dealing desk interference. It also provides ample trading opportunities across over 1,300 assets.
  4. XM - Day traders can speculate on leveraged CFDs with zero commissions, spanning popular markets including currencies, equities and commodities. Additionally, the MetaTrader platforms collectively offer dozens of advanced technical indicators built for short-term strategies.
  5. IC Markets - You gain access to over 2,250 CFDs, available for trading 24/5 across popular markets such as forex, commodities, indices, stocks, and bonds. Utilizing deep liquidity and advanced bridge technology, IC Markets ensures optimal conditions for scalpers, hedgers, and algo traders alike.

Binary Options Alternatives Comparison

Binary Options Alternatives Comparison
Broker CFD Leverage Minimum Deposit Minimum Trade Regulators Visit
AvaTrade logo
1:30 (Retail) 1:400 (Pro) - 0.01 Lots ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM Visit
Deriv.com logo
1:1000 $5 0.01 Lots MFSA, LFSA, VFSC, BFSC Visit
Pepperstone logo
1:30 (Retail), 1:500 (Pro) $0 0.01 Lots FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB Visit
XM logo
- $5 0.01 Lots ASIC, CySEC, DFSA, FSC, FSCA Visit
IC Markets logo
1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global) $200 0.01 Lots ASIC, CySEC, FSA Visit
Eightcap logo
- $100 0.01 Lots ASIC, FCA, xCySEC, SCB Visit
LiteForex Europe logo
1:30 $50 0.01 Lots CySEC Visit
CityIndex logo
1:30 (Retail), 1:50 (Accredited Investor), 1:200 (Sophisticated Investor), 1:300 (Wholesale Investor), 1:400 (Professional Trader). Varies with jurisdiction. $0 0.01 Lots ASIC, FCA, MAS Visit
DNA Markets logo
- $100 0.01 Lots ASIC Visit
FOREX.com logo
1:200 (Retail), 1:500 (Pro) $100 0.01 Lots NFA, CFTC, CIRO, FCA, CYSEC, ASIC, SFC, FSA, MAS, CIMA Visit
eToro logo
- $50 $10 FCA, ASIC, CySEC, FSA, FSRA, MFSA Visit
RoboForex logo
1:2000 $10 0.01 Lots IFSC Visit
InstaForex logo
- - - - Visit
Exness logo
1:2000 $10 0.01 Lots FSA, CySEC, FCA, FSCA, FSC, CBCS Visit
LQDFX logo
1:1000 $20 0.01 Lots - Visit

#1 - AvaTrade

Why We Chose AvaTrade

AvaTrade's 1250+ leveraged CFD products span a wide range of asset classes including stocks, indices, commodities, bonds, crypto, and ETFs. You can speculate on underlying assets in the broker’s feature-rich web and mobile platforms with market-leading research tools to help discover opportunities.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team
  • FTSE Spread: 0.5
  • GBPUSD Spread: 1.5
  • Stocks Spread: 0.13
  • Leverage: 1:30 (Retail) 1:400 (Pro)
  • Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
  • Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade

About AvaTrade

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 day trading, alongside a comprehensive education center and multilingual customer support.

Pros

  • There's a great range of fee-free deposit methods, including bank wire, credit cards and popular e-wallets like Skrill
  • The broker’s unique risk management tool, AvaProtect, protects against losses up to $1 million and is easy to activate in the platform
  • The broker offers reliable 24/5 multilingual customer support with fast response times during testing

Cons

  • It’s a shame that there are no rebate schemes for serious traders looking for additional perks - CMC Markets would be a better choice here
  • There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders
  • A high $2000 minimum investment is required to use DupliTrade, which will be out of reach for many beginners

#2 - Deriv.com

Why We Chose Deriv.com

You can trade CFDs on popular markets, including the broker's exclusive synthetic indices which are available 24/7. There are plenty of charting tools available for technical traders, including over 20 indicators in the Deriv Trader platform. New users can also open an account and start trading CFDs instantly.

"Deriv.com will suit day traders looking to make fast-paced trades using CFDs and multipliers with high leverage up to 1:1000. The broker is also the industry leader in synthetic indices, which simulate real market movements and are available around the clock. "

- DayTrading Review Team
  • FTSE Spread: 0.5
  • GBPUSD Spread: 0.5
  • Stocks Spread: 0.07
  • Leverage: 1:1000
  • Regulator: MFSA, LFSA, VFSC, BFSC
  • Platforms: Deriv Trader, MT5

About Deriv.com

Deriv.com is a low cost, multi-asset broker with over 2.5 million global clients. With just a $5 minimum deposit, the firm offers CFDs, multipliers and more recently accumulators, alongside proprietary synthetic products which can't be found elsewhere. Deriv provides both its own in-house charting software and the hugely popular MetaTrader 5.

Pros

  • There's a good range of fast deposit and withdrawal methods with zero payment fees and low minimum deposits
  • Beginners and experienced day traders can access a good range of 20+ technical indicators in Deriv Trader vs 30+ in MT5
  • Traders can use multipliers between 1 and 30, with take profit, stop loss and deal cancellation parameters

Cons

  • There are limited copy trading tools and analysis features compared to alternatives like IQ Cent
  • There's no loyalty program or rebate scheme for high volume traders
  • The range of 100+ assets trails some competitors such as Quotex which offers 400+

#3 - Pepperstone

Why We Chose Pepperstone

Pepperstone maintains its position as one of the fastest and most dependable CFD brokers during our latest round of testing. With execution speeds averaging around 30ms and an outstanding fill rate of 99.90%, the broker ensures a seamless trading experience without requotes or dealing desk interference. It also provides ample trading opportunities across over 1,300 assets.

"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."

- DayTrading Review Team
  • FTSE Spread: 1.0
  • GBPUSD Spread: 0.4
  • Stocks Spread: 0.02
  • Leverage: 1:30 (Retail), 1:500 (Pro)
  • Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
  • Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade

About Pepperstone

Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.

Pros

  • Pepperstone emerges as a low-cost broker, especially for serious day traders with spreads from 0.0 in the Razor account and rebates of 25%+ through the Active Trader program.
  • Pepperstone boasts impressive execution speeds, averaging around 30ms, facilitating fast order processing and execution that’s ideal for day trading.
  • Now offering spread betting through TradingView, Pepperstone provides a seamless, tax-efficient trading experience with advanced analysis tools.

Cons

  • Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers such as eToro, with no option to invest in real coins.
  • There’s no simplified proprietary trading platform, nor are there any social trading features, which could be a disadvantage if you are new to day trading.
  • Pepperstone does not support cTrader Copy, a popular copy trading feature built into the excellent cTrader platform and available at alternatives like IC Markets.

#4 - XM

Why We Chose XM

Day traders can speculate on leveraged CFDs with zero commissions, spanning popular markets including currencies, equities and commodities. Additionally, the MetaTrader platforms collectively offer dozens of advanced technical indicators built for short-term strategies.

"XM is one of the best forex and CFD brokers we have tested. The flexible account types will suit a variety of short-term trading styles while the $5 minimum deposit and smooth sign-up process make it easy to start trading."

- DayTrading Review Team
  • FTSE Spread: 1.5 pts
  • GBPUSD Spread: 1.9
  • Stocks Spread: 0.002
  • Regulator: ASIC, CySEC, DFSA, FSC, FSCA
  • Platforms: MT4, MT5

About XM

XM is a globally recognized forex and CFD broker with 10+ million clients in 190+ countries. Since 2009, this trusted broker has been known for its low fees on 1000+ instruments. XM is regulated by multiple financial bodies, including the ASIC and CySEC.

Pros

  • The broker offers premium research including market sentiment, fundamental insights and strategy builders
  • Powerful MT4 and MT5 platforms are available with 60+ and 80+ technical charting tools
  • Accessible trading accounts with a $5 minimum deposit and fast account opening

Cons

  • PayPal deposits are not supported
  • There is weak regulatory oversight through the global entity
  • There's $5 inactivity fee after only 3 months, though this won't affect active traders

#5 - IC Markets

Why We Chose IC Markets

You gain access to over 2,250 CFDs, available for trading 24/5 across popular markets such as forex, commodities, indices, stocks, and bonds. Utilizing deep liquidity and advanced bridge technology, IC Markets ensures optimal conditions for scalpers, hedgers, and algo traders alike.

"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."

- DayTrading Review Team
  • FTSE Spread: 1.0
  • GBPUSD Spread: 0.23
  • Stocks Spread: 0.02
  • Leverage: 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)
  • Regulator: ASIC, CySEC, FSA
  • Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade

About IC Markets

IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.

Pros

  • IC Markets offers fast and dependable 24/5 support based on firsthand experience, particularly when it comes to accounts and funding issues.
  • As a tightly regulated and widely respected broker, IC Markets prioritizes client security and transparency, helping to ensure a reliable trading experience globally.
  • IC Markets offers among the tightest spreads in the industry, with 0.0-pip spreads on major currency pairs, making it especially cost-effective for day traders.

Cons

  • The breadth and depth of tutorials, webinars and educational resources still need work, trailing alternatives like CMC Markets and reducing its suitability for beginners.
  • While IC Markets offers a selection of metals and cryptos for trading via CFDs, the range is not as extensive as brokers like eToro, limiting opportunities for traders interested in these asset classes.
  • Despite four industry-leading third-party platforms, there is no proprietary software or trading app built with new traders in mind.

Binary Options Alternative 2: Vanilla Options

Vanilla options are a popular derivative due to their high payouts and ability to cash settle. This also makes them one of the best alternatives to binary options.

Markets

Options are a primarily US-focussed instrument for making predictions about single stocks. Also available are indices and some commodities.

Complexity

Understanding regular options is more complex vs learning binary options. Contract prices are determined by a set of complex variables referred to as the Greeks, and investors need to be equipped with knowledge of financial concepts such as implied volatility and hedge ratios.

Profit & Loss Potential

Unlike binary options, there are no limits on the profit investors can make with a successful options trade. Options contracts also contain high innate leverage, with one contract based on 100 units of an asset.

However, with this potential for high rewards comes unlimited risk.

Fees & Commissions

Several brokers specialize in low-cost options trading– shop around to find competitive fees and commissions.

Safety & Regulation

Vanilla options are a highly regulated instrument versus some of the other binary options alternatives listed in this guide. When trading with a trusted broker, investors can trade this binary options alternative with confidence.

Strategies

Investors can choose to write options contracts or purchase them from an exchange as speculative assets or for hedging existing trades. Options spreads can be used to profit from various trading metrics such as volatility or direction.

Traders can also sell covered calls to lock in smaller but safer profits consistently– a strategy available with binary options.

Vanilla Options Brokers

#1 - AvaTrade

Why We Chose AvaTrade

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 day trading, alongside a comprehensive education center and multilingual customer support.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting
  • Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
  • Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (Retail) 1:400 (Pro)

Pros

  • Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools
  • There's a great range of fee-free deposit methods, including bank wire, credit cards and popular e-wallets like Skrill
  • The broker’s unique risk management tool, AvaProtect, protects against losses up to $1 million and is easy to activate in the platform

Cons

  • There is no ECN account with raw spreads
  • It’s a shame that there are no rebate schemes for serious traders looking for additional perks - CMC Markets would be a better choice here
  • There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders

#2 - Deriv.com

Why We Chose Deriv.com

Deriv.com is a low cost, multi-asset broker with over 2.5 million global clients. With just a $5 minimum deposit, the firm offers CFDs, multipliers and more recently accumulators, alongside proprietary synthetic products which can't be found elsewhere. Deriv provides both its own in-house charting software and the hugely popular MetaTrader 5.

"Deriv.com will suit day traders looking to make fast-paced trades using CFDs and multipliers with high leverage up to 1:1000. The broker is also the industry leader in synthetic indices, which simulate real market movements and are available around the clock. "

- DayTrading Review Team
  • Instruments: CFDs, Multipliers, Forex, Stocks, Indices, Commodities
  • Regulator: MFSA, LFSA, VFSC, BFSC
  • Platforms: Deriv Trader, MT5
  • Minimum Deposit: $5
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:1000

Pros

  • Beginners and experienced day traders can access a good range of 20+ technical indicators in Deriv Trader vs 30+ in MT5
  • There's a good range of fast deposit and withdrawal methods with zero payment fees and low minimum deposits
  • Deriv bolstered its short-term trading opportunities in 2024 with accumulator options on simulated indices featuring up to 5% growth rates

Cons

  • There's no loyalty program or rebate scheme for high volume traders
  • There are limited copy trading tools and analysis features compared to alternatives like IQ Cent
  • The range of 100+ assets trails some competitors such as Quotex which offers 400+

#3 - CityIndex

Why We Chose CityIndex

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.

"City Index is best for new and intermediate traders looking for a wide selection of assets on user-friendly platforms."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Cryptos, Options, Commodities, Bonds
  • Regulator: ASIC, FCA, MAS
  • Platforms: MT4, TradingView, TradingCentral
  • Minimum Deposit: $0
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (Retail), 1:50 (Accredited Investor), 1:200 (Sophisticated Investor), 1:300 (Wholesale Investor), 1:400 (Professional Trader). Varies with jurisdiction.

Pros

  • No minimum deposit to get started
  • Excellent reputation with over 1 million account holders and tier-one regulatory oversight
  • Extended hours trading on 70+ popular shares including Amazon and Tesla

Cons

  • Cryptocurrency trading not available in all locations
  • No Islamic account for Muslim traders
  • $15 monthly inactivity fee

#4 - FOREX.com

Why We Chose FOREX.com

Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.

"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Cryptos, Futures, Options, Commodities
  • Regulator: NFA, CFTC, CIRO, FCA, CYSEC, ASIC, SFC, FSA, MAS, CIMA
  • Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
  • Minimum Deposit: $100
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:200 (Retail), 1:500 (Pro)

Pros

  • With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.
  • The in-house Web Trader continues to shine as one of the best-designed platforms for aspiring day traders with a slick design and over 80 technical indicators for market analysis.
  • Alongside a choice of leading platforms, FOREX.com offers a superb suite of supplementary tools including Trading Central research, SMART Signals pattern scanner, trading signals, and strategy builders.

Cons

  • Demo accounts are frustratingly time-limited to 90 days, which doesn’t give you enough time to test day trading strategies effectively.
  • FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.
  • There’s no negative balance protection for US clients, so you may find yourself owing more money than your initial deposit into your account.

#5 - Plus500

Why We Chose Plus500

Established in 2008 and headquartered in Israel, Plus500 is a prominent brokerage that boasts over 25 million registered traders in over 50 countries. Specializing in CFD trading, the company offers an intuitive, proprietary platform and mobile app. It maintains competitive spreads and does not charge commissions or deposit or withdrawal fees. Plus500 also continues to shine as one of the most trusted brokers with licenses from reputable regulators, including the FCA, ASIC and CySEC.

"Plus500 offers a super-clean experience for traders with a CFD trading platform that sports a modern design and dynamic charting. That said, the broker’s research tools are limited, fees trail the cheapest brokers, and there’s room for enhancement in its educational resources."

- DayTrading Review Team
  • Instruments: CFDs on Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto
  • Regulator: FCA, ASIC, CySEC, DFSA, MAS, FSA, FSCA, FMA, EFSA
  • Platforms: WebTrader, App
  • Minimum Deposit: $100
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30

Pros

  • The customer support team continue to provide reliable 24/7 support via email, live chat and WhatsApp
  • The broker offers commission-free trading on a diverse range of markets, minimizing additional fees while appealing to established traders
  • Plus500 provides a specialized WebTrader platform designed explicitly for CFD trading, offering a clean and uncluttered interface

Cons

  • Plus500’s lack of support for MetaTrader or cTrader charting tools might be a deal breaker for advanced day traders looking for familiarity
  • Compared to some competitors, especially IG, Plus500’s research and analysis tools are limited
  • Educational resources are limited compared to best-in-class brokers like eToro, impacting the learning curve for beginners

Binary Options Alternative 3: Futures

Futures are one of the most unique alternatives to binary options and forex trading. These are agreements to buy or sell an asset for a set price at a specific time. These derivatives were primarily used within the commodities industry as a hedge against future price fluctuations but are now a well-used financial instrument for many markets.

This type of trading involves the delivery of physical assets at expiry. It is exchange-traded rather than sold over-the-counter (OTC). Futures contracts are primarily associated with US markets, but EU and UK investors can still get involved.

Markets

While futures were first used on commodity markets such as cattle, wheat and orange juice, this instrument has expanded to cover assets like equities and cryptocurrencies.

Complexity

Futures are a fairly complex product compared to binary options. Though, with a thorough education, these contracts offer far greater strategic potential and can form a vital element of an expert investor’s trading arsenal.

Profit & Loss Potential

Futures contracts typically involve 1,000 units of a specific asset, and most futures brokers offer the opportunity to trade on margin for enhanced trading leverage. This gives investors the chance to make significant trading profits or losses.

It is with mentioning that futures can also be utilized to hedge against spot instruments to reduce risk.

Fees & Commissions

Fees for futures contracts can be higher than other instruments and binary options alternatives. However, traders will often receive a fee discount for high-volume trading or creating high-capital accounts.

Holding positions overnight will also come with swap fees, so this binary options alternative is best utilized for day trading or short-term swing trading.

Safety & Regulation

As with many binary options alternatives for US citizens, American futures contracts are regulated by the CTFC. Combined with the exchange-traded nature of futures contracts, this instrument is one of the safest to trade vs binary options.

Strategies

Regarding strategy, most traders will not hold futures contracts until expiry but look to resell their positions before the contract is automatically closed out. This is to avoid having to take delivery of the physical asset, such as barrels of oil.

Futures pricing can swing dramatically based on news and events, so acting quickly to any upcoming market changes will pay dividends with this instrument.

Futures Brokers

#1 - XM

Why We Chose XM

XM is a globally recognized forex and CFD broker with 10+ million clients in 190+ countries. Since 2009, this trusted broker has been known for its low fees on 1000+ instruments. XM is regulated by multiple financial bodies, including the ASIC and CySEC.

"XM is one of the best forex and CFD brokers we have tested. The flexible account types will suit a variety of short-term trading styles while the $5 minimum deposit and smooth sign-up process make it easy to start trading."

- DayTrading Review Team
  • Instruments: Forex, Stock CFDs, Turbo Stocks, Indices, Commodities, Precious Metals, Energies, Shares, Crypto, Futures
  • Regulator: ASIC, CySEC, DFSA, FSC, FSCA
  • Platforms: MT4, MT5
  • Minimum Deposit: $5
  • Minimum Trade: 0.01 Lots

Pros

  • 1000+ instruments are available, including recently added thematic indices, providing exposure to emerging industries
  • Accessible trading accounts with a $5 minimum deposit and fast account opening
  • Powerful MT4 and MT5 platforms are available with 60+ and 80+ technical charting tools

Cons

  • There's $5 inactivity fee after only 3 months, though this won't affect active traders
  • PayPal deposits are not supported
  • There is weak regulatory oversight through the global entity

#2 - IC Markets

Why We Chose IC Markets

IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.

"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto
  • Regulator: ASIC, CySEC, FSA
  • Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade
  • Minimum Deposit: $200
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)

Pros

  • You have access to over 2,250 CFDs across various markets, including forex, commodities, indices, stocks, bonds, and cryptocurrencies, allowing for diversified trading strategies.
  • With ultra-fast execution speeds averaging 35 milliseconds and deep liquidity, IC Markets provides an optimal trading environment for scalpers, hedgers, and algorithmic traders.
  • As a tightly regulated and widely respected broker, IC Markets prioritizes client security and transparency, helping to ensure a reliable trading experience globally.

Cons

  • Interest isn't paid on unused cash, an increasingly popular feature found at alternatives like Interactive Brokers.
  • Despite four industry-leading third-party platforms, there is no proprietary software or trading app built with new traders in mind.
  • The breadth and depth of tutorials, webinars and educational resources still need work, trailing alternatives like CMC Markets and reducing its suitability for beginners.

#3 - FOREX.com

Why We Chose FOREX.com

Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.

"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Cryptos, Futures, Options, Commodities
  • Regulator: NFA, CFTC, CIRO, FCA, CYSEC, ASIC, SFC, FSA, MAS, CIMA
  • Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
  • Minimum Deposit: $100
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:200 (Retail), 1:500 (Pro)

Pros

  • FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.
  • Alongside a choice of leading platforms, FOREX.com offers a superb suite of supplementary tools including Trading Central research, SMART Signals pattern scanner, trading signals, and strategy builders.
  • With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.

Cons

  • There’s no negative balance protection for US clients, so you may find yourself owing more money than your initial deposit into your account.
  • Demo accounts are frustratingly time-limited to 90 days, which doesn’t give you enough time to test day trading strategies effectively.
  • FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.

#4 - eToro

Why We Chose eToro

eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 76% of retail accounts lose money.

"eToro's social trading platform leads the pack with a terrific user experience and active community chat that can help beginners find opportunities. There are also competitive fees on thousands of CFDs and real stocks, plus excellent rewards for experienced strategy providers."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, ETFs, Cryptos, Futures, Commodities, Bonds
  • Regulator: FCA, ASIC, CySEC, FSA, FSRA, MFSA
  • Platforms: eToro Web, CopyTrader, TradingCentral
  • Minimum Deposit: $50
  • Minimum Trade: $10

Pros

  • eToro is a world-renowned brand with top-tier global regulation and a 25M+ user community
  • There's a comprehensive online training academy with accessible resources, from bitesize articles to comprehensive courses
  • The web platform and mobile app perform better in user reviews and app rankings than top competitors, including AvaTrade

Cons

  • Traders will face currency conversion fees for account denominations other than USD
  • There are limited contact methods aside from the in-platform live chat
  • There are no guaranteed stop loss orders which would be a useful risk management feature for beginners

#5 - RoboForex

Why We Chose RoboForex

RoboForex is an online broker, established in 2009 and registered with the IFSC in Belize. Traders can choose from five accounts (Prime, ECN, R StocksTrader, ProCent, Pro) catering to different needs with trades from 0.01 lots and spreads from 0 pips. RoboForex has also enhanced its offering over the years, adding CFD instruments and launching its stock trading platform, plus the CopyFX system.

"RoboForex is great if you want a vast range of 12,000+ day trading markets with ECN accounts, powerful charting and loyalty promotions. It also stands out for stock traders with its user-friendly R StocksTrader platform, featuring 3,000+ shares, fees from $0.01 and sophisticated watchlists."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures
  • Regulator: IFSC
  • Platforms: R StocksTrader, MT4, MT5, TradingView
  • Minimum Deposit: $10
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:2000

Pros

  • RoboForex is known for its tight spreads starting from 0 pips and low minimum deposits from $10, making it accessible to those on a budget. The ability to trade with micro lots further lowers the barrier to entry for new traders.
  • The broker offers two commission-free withdrawals each month in the Free Funds Withdrawal program, helping day traders to minimize transaction costs.
  • The broker offers leverage up to 1:2000 for certain account types, which is among the highest in the industry. This high leverage allows day traders to maximize their trading potential, albeit with a corresponding increase in risk.

Cons

  • Despite 15+ years in the industry and registering with the Financial Commission, RoboForex is authorized by one ‘Red-Tier’ regulator – the IFSC in Belize, lowering the level of regulatory protections for traders.
  • Despite offering a range of platforms, RoboForex still doesn't support the increasingly popular cTrader. This might deter traders who prefer this specific platform for their day trading activities and is available at firms like Fusion Markets.
  • RoboForex now restricts base currency options to USD and EUR. This limitation may inconvenience day traders preferring to manage their accounts in other currencies, while potentially leading to conversion fees.

Binary Options Alternative 4: Spread Betting

One of the top instruments in our binary options alternatives examples is spread betting. Spread betting works similarly to CFD trading but comes with tax advantages in some regions as it is classed as gambling rather than trading.

Markets

As there are fewer spread betting brokers than CFD providers, there will be a smaller range of assets to choose from. However, spread betting speculation is still available for forex, indices, commodities, stocks and crypto markets.

Complexity

Spread betting is a reasonably straightforward instrument. However, expert traders can add complexity using order tools such as stop losses, take profit levels and automated trading bots.

Profit & Loss Potential

As with CFDs, traders can access significant leverage to multiply potential profits and losses when spread betting.

However, these levels are still likely lower than the high leverage available through international CFD brokers. This is because most spread betting providers are EU or UK-based and therefore have to comply with ESMA regulations limiting maximum margin.

Fees & Commissions

Fees and commissions are low with this alternative to binary options but will vary from broker to broker.

Safety & Regulation

Spread betting tends to be safer than CFDs and binary options due to the EU regulation of most brokers. In addition, as a more obscure field, fewer fraudulent providers are out there.

Strategies

As with CFDs, the range of strategies available is relatively limited. This binary options alternative is best suited to strong, short-term directional price movements, with significant profits available for successful speculation.

Spread Betting Brokers

#1 - AvaTrade

Why We Chose AvaTrade

AvaTrade continues to offer spread betting for UK traders via the MT5 platform, with zero tax on profits. There are no extra currency conversion fees on any asset and leverage is available up to 1:30. You can also practice in the free demo account.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting
  • Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
  • Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (Retail) 1:400 (Pro)

About AvaTrade

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 day trading, alongside a comprehensive education center and multilingual customer support.

Pros

  • There's a great range of fee-free deposit methods, including bank wire, credit cards and popular e-wallets like Skrill
  • The broker offers reliable 24/5 multilingual customer support with fast response times during testing
  • Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools

Cons

  • Traders from the US are not accepted
  • There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders
  • A high $2000 minimum investment is required to use DupliTrade, which will be out of reach for many beginners

#2 - Pepperstone

Why We Chose Pepperstone

Pepperstone extends financial spread betting services to both retail and professional traders, enabling you to speculate on forex, indices, shares, and more. Additionally, Pepperstone offers comprehensive training resources if you are new to spread betting, helping to facilitate your journey into this tax-efficient form of trading. Pepperstone also now offers spread betting on TradingView, making it one of a handful of brokers that provide this service.

"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto, Spread Betting
  • Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
  • Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
  • Minimum Deposit: $0
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (Retail), 1:500 (Pro)

About Pepperstone

Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.

Pros

  • Pepperstone boasts impressive execution speeds, averaging around 30ms, facilitating fast order processing and execution that’s ideal for day trading.
  • There’s support for a range of industry-leading charting platforms including MT4, MT5, TradingView, and cTrader, catering to various short-term trading styles, including algo trading.
  • Pepperstone emerges as a low-cost broker, especially for serious day traders with spreads from 0.0 in the Razor account and rebates of 25%+ through the Active Trader program.

Cons

  • Pepperstone’s demo accounts are active for only 30 days, which may not be not long enough to familiarize yourself with the different platforms and test trading strategies.
  • Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers such as eToro, with no option to invest in real coins.
  • Pepperstone does not support cTrader Copy, a popular copy trading feature built into the excellent cTrader platform and available at alternatives like IC Markets.

#3 - CityIndex

Why We Chose CityIndex

Spread bet on thousands of global markets with no commissions and tight, fixed spreads.

"City Index is best for new and intermediate traders looking for a wide selection of assets on user-friendly platforms."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Cryptos, Options, Commodities, Bonds
  • Regulator: ASIC, FCA, MAS
  • Platforms: MT4, TradingView, TradingCentral
  • Minimum Deposit: $0
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (Retail), 1:50 (Accredited Investor), 1:200 (Sophisticated Investor), 1:300 (Wholesale Investor), 1:400 (Professional Trader). Varies with jurisdiction.

About CityIndex

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.

Pros

  • Extended hours trading on 70+ popular shares including Amazon and Tesla
  • No minimum deposit to get started
  • Industry-leading platforms including MT4, plus access to cutting-edge third-party tools like TradingView

Cons

  • $15 monthly inactivity fee
  • No Islamic account for Muslim traders
  • Cryptocurrency trading not available in all locations

#4 - Spreadex

Why We Chose Spreadex

Trade on thousands of financial markets with a bet size from £0.01 and the best margin rates in the industry. Spread bets are tax free in the UK, and Spreadex traders can access the markets via three slick proprietary trading platforms.

"Spreadex will appeal to UK day traders who are interested in both spread betting on financial markets and placing traditional bets on sports events. Fees are low on short trades and profits are tax-free on spread bets. There's also a powerful proprietary charting platform, plus £0 minimum deposit required to get started. "

- DayTrading Review Team
  • Instruments: Forex, CFDs, Indices, Commodities, Stocks, Crypto, Bonds, Interest Rates, ETFs, Options, Spread Betting
  • Regulator: FCA
  • Platforms: Spreadex Platform, TradingView
  • Minimum Deposit: £0
  • Minimum Trade: £0.01
  • Leverage: 1:30

About Spreadex

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.

Pros

  • The broker offers an easy-to-use proprietary charting platform and mobile app
  • There's an excellent range of instruments and trading vehicles for short-term traders
  • There's a good selection of signals, analysis tools and risk management tools, including guaranteed stops

Cons

  • There's no support for expert advisors or other trading bots
  • The limited customer service can make it time-consuming to troubleshoot problems
  • The proprietary terminal lacks comprehensive charting features of platforms like MT4 and MT5

#5 - Trade Nation

Why We Chose Trade Nation

Trade Nation offers competitive spread betting conditions and transparent fees on hundreds of assets. On the proprietary platform, spread betters also enjoy a user-friendly and customisable interface.

"Trade Nation is a good choice for newer traders looking for a wide range of financial markets on a user-friendly platform. There is no minimum deposit, free funding options and strong education."

- DayTrading Review Team
  • Instruments: Forex, CFDs, Indices, Shares, Commodities, Futures, Bonds, Cryptos (Bahamas Entity Only)
  • Regulator: FCA, ASIC, FSCA, SCB, FSA
  • Platforms: MT4
  • Minimum Deposit: $0
  • Minimum Trade: 0.1 Lots
  • Leverage: 1:500 (entity dependent)

About Trade Nation

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.

Pros

  • A choice of trading platforms and apps, including MT4, make the brand a good fit for savvy traders
  • Full range of investments via leveraged CFDs for long and short opportunities
  • Trade Nation is a multi-regulated and respected broker that previously operated as Core Spreads

Cons

  • Fewer legal protections with offshore entity

Binary Options Alternative 5: Stock Trading

Stock trading is the most simple and common form of trading and one of the most popular alternatives to binary options. Investors can purchase single stocks, ETFs or mutual funds containing hand-picked segments of specific sectors or global markets.

Markets

The best stock trading brokers will offer thousands of stocks from many international regions, with equities from the USA, EU and UK reasonably standard for all. Some brokers will support mutual fund investing, while others may focus solely on single stocks and ETFs for day trading.

Complexity

Suitable for beginners up to experts, stock trading offers opportunities for day trading, swing trading, long-term investing or earning profit from dividends. This can be as simple as buying a stock and holding it for an extended period to as complex as setting up an automated dividend portfolio targeting the biggest yielding companies in a region.

Profit & Loss Potential

While margin trading is possible through some brokers, most stock trading is done on cash accounts. As a result, stock trading does not typically offer as much profit potential as derivative assets such as binary options, CFDs or vanilla options.

Fees & Commissions

Of all the binary options alternatives available, stock trading has the most variance in its fees. Some brokers allow free investing, while others charge commissions per stock or a dealing fee per trade.

In addition, some more traditional brokers, specifically international companies, will charge account fees. To offset these, many regions, including the USA and UK, offer tax-advantaged stock accounts that investors can use for retirement or general savings.

Safety & Regulation

There is no shortage of highly regulated brokers when making a stock trading investment. Regional regulators also protect the equities themselves for additional peace of mind. This is a key benefit over some of the other binary options alternatives explored below, including crypto exchanges.

Strategies

One of the greatest strengths of stock investing is the flexibility afforded for trading. Traders can hold positions for an unrestricted period, going long or short on an asset.

With this binary options alternative, investors can target high dividend-yield stocks to be paid an income from holding equities. Or, traders can set up bots to buy and sell based on preset parameters. Investors can even hedge spot stocks with futures positions to reduce risk.

Stock Brokers

  1. AvaTrade - AvaTrade offers hundreds of shares on leading exchanges including the NYSE and FTSE. You can take positions on leading tech firms like Tesla, Apple and Microsoft with no restrictions and 24/5 support. There is also an above-average selection of 45+ indices and 60+ ETFs.
  2. RoboForex - RoboForex provides one of the broadest selections of real equities and stock CFDs spanning the US and 14 regional European markets, including direct access to the NASDAQ. It’s also one of the few brokers to offer a dedicated platform for stock trading, sporting leverage up to 1:20 and a robot builder that enables traders to automate and backtest stock trading strategies.
  3. InstaForex - There are hundreds of major global shares and indices available. You can also trade IPO shares and ETFs in the MT4 platform, depending on jurisdiction. You can expect a reasonable commission on US shares, plus a range of analysis features to help you stay ahead of stock market news.
  4. FOREX.com - FOREX.com provides access to a wide array of US, EU, and UK stock CFDs, featuring spreads as narrow as 1 point. This enables you to speculate on established household names and emerging IPOs, fostering ample opportunities for diversification within stock portfolios. US stocks are accessible from as low as 1.8 cents per share.
  5. XM - You can trade hundreds of shares in major markets, including the US, UK, Europe and Asia. Commissions are as low as $1 per transaction while fractional shares reduce the entry barrier for beginners. There's also a dedicated stock market analysis section on the broker's website.

#1 - AvaTrade

Why We Chose AvaTrade

AvaTrade offers hundreds of shares on leading exchanges including the NYSE and FTSE. You can take positions on leading tech firms like Tesla, Apple and Microsoft with no restrictions and 24/5 support. There is also an above-average selection of 45+ indices and 60+ ETFs.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team
  • Demo Account: Yes
  • Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
  • Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
  • Automation: Yes
  • Bonus: None

About AvaTrade

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 day trading, alongside a comprehensive education center and multilingual customer support.

Pros

  • The broker offers reliable 24/5 multilingual customer support with fast response times during testing
  • The broker’s unique risk management tool, AvaProtect, protects against losses up to $1 million and is easy to activate in the platform
  • AvaTrade is a heavily regulated and trustworthy broker with licenses from the ASIC, CySEC and more

Cons

  • Traders from the US are not accepted
  • There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders
  • There is no ECN account with raw spreads

#2 - RoboForex

Why We Chose RoboForex

RoboForex provides one of the broadest selections of real equities and stock CFDs spanning the US and 14 regional European markets, including direct access to the NASDAQ. It’s also one of the few brokers to offer a dedicated platform for stock trading, sporting leverage up to 1:20 and a robot builder that enables traders to automate and backtest stock trading strategies.

"RoboForex is great if you want a vast range of 12,000+ day trading markets with ECN accounts, powerful charting and loyalty promotions. It also stands out for stock traders with its user-friendly R StocksTrader platform, featuring 3,000+ shares, fees from $0.01 and sophisticated watchlists."

- DayTrading Review Team
  • Demo Account: Yes
  • Regulator: IFSC
  • Platforms: R StocksTrader, MT4, MT5, TradingView
  • Minimum Deposit: $10
  • Automation: Yes
  • Bonus: $30 No Deposit Bonus

About RoboForex

RoboForex is an online broker, established in 2009 and registered with the IFSC in Belize. Traders can choose from five accounts (Prime, ECN, R StocksTrader, ProCent, Pro) catering to different needs with trades from 0.01 lots and spreads from 0 pips. RoboForex has also enhanced its offering over the years, adding CFD instruments and launching its stock trading platform, plus the CopyFX system.

Pros

  • The R Stocks Trader platform rivals leading solutions like MT4, with netting and hedging capabilities, comprehensive backtesting, Level II pricing, and a flexible workspace.
  • The broker offers two commission-free withdrawals each month in the Free Funds Withdrawal program, helping day traders to minimize transaction costs.
  • RoboForex offers over 12,000 instruments, providing more short-term trading opportunities than the vast majority of online brokers, with forex, stocks, indices, ETFs, commodities, and futures.

Cons

  • RoboForex now restricts base currency options to USD and EUR. This limitation may inconvenience day traders preferring to manage their accounts in other currencies, while potentially leading to conversion fees.
  • RoboForex provides a variety of account types, which, while offering flexibility, can be overwhelming for newer traders trying to choose the most suitable option for their trading style. Alternatives, notably eToro, provide a smoother entry into online trading with one retail account.
  • While RoboForex offers competitive spreads, some of its account types come with high trading commissions up to $20 per lot, trailing the cheapest brokers, such as IC Markets.

#3 - InstaForex

Why We Chose InstaForex

There are hundreds of major global shares and indices available. You can also trade IPO shares and ETFs in the MT4 platform, depending on jurisdiction. You can expect a reasonable commission on US shares, plus a range of analysis features to help you stay ahead of stock market news.

"InstaForex maintains its position as a top forex broker, with more currency products than most rivals. The tight spreads and low minimum deposits make it accessible to all experience levels, especially those familiar with the MT4 and MT5 platforms."

- DayTrading Review Team
  • Demo Account: Yes
  • Platforms: MT4, MT5
  • Automation: Yes
  • Bonus: Choose between: Club Bonus, 30 %, 55 % and 100 % bonuses

About InstaForex

InstaForex is a forex and CFD broker founded in 2007. The broker offers diverse market coverage to over 7 million clients, spanning traditional assets like currencies and shares, as well as other interesting opportunities such as IPOs. Traders can also access copy trading services, PAMM accounts and investment opportunities. InstaForex is regulated by the BVI FSC.

Pros

  • InstaForex has a strong industry reputation, with a 15+ year history and serving over 7 million clients
  • There’s a copy trading service available with just a $10 minimum deposit, allowing clients to become both followers and providers
  • The broker is a particularly good pick for serious forex traders, with over 100 currency pairs, tight spreads from 0.0 pips and a market-leading selection of curated forex market resources

Cons

  • The broker’s global branch offers weaker regulation via the offshore jurisdiction of the British Virgin Islands, which means non-EU traders will receive limited safeguards
  • The broker’s website and client cabinet feel outdated and difficult to navigate for newcomers
  • Market coverage and account conditions vary significantly between the global and EU entities - for example, only 300+ instruments are available for global clients, whilst European traders can access 2500+

#4 - FOREX.com

Why We Chose FOREX.com

FOREX.com provides access to a wide array of US, EU, and UK stock CFDs, featuring spreads as narrow as 1 point. This enables you to speculate on established household names and emerging IPOs, fostering ample opportunities for diversification within stock portfolios. US stocks are accessible from as low as 1.8 cents per share.

"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."

- DayTrading Review Team
  • Demo Account: Yes
  • Regulator: NFA, CFTC, CIRO, FCA, CYSEC, ASIC, SFC, FSA, MAS, CIMA
  • Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
  • Minimum Deposit: $100
  • Automation: Yes
  • Bonus: None

About FOREX.com

Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.

Pros

  • There’s a wealth of educational resources including tutorials, webinars, and a stacked YouTube channel to help you get educated in the financial markets.
  • With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.
  • FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.

Cons

  • Demo accounts are frustratingly time-limited to 90 days, which doesn’t give you enough time to test day trading strategies effectively.
  • Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.
  • FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.

#5 - XM

Why We Chose XM

You can trade hundreds of shares in major markets, including the US, UK, Europe and Asia. Commissions are as low as $1 per transaction while fractional shares reduce the entry barrier for beginners. There's also a dedicated stock market analysis section on the broker's website.

"XM is one of the best forex and CFD brokers we have tested. The flexible account types will suit a variety of short-term trading styles while the $5 minimum deposit and smooth sign-up process make it easy to start trading."

- DayTrading Review Team
  • Demo Account: Yes
  • Regulator: ASIC, CySEC, DFSA, FSC, FSCA
  • Platforms: MT4, MT5
  • Minimum Deposit: $5
  • Automation: Yes
  • Bonus: $30 No Deposit Bonus When You Register A Real Account

About XM

XM is a globally recognized forex and CFD broker with 10+ million clients in 190+ countries. Since 2009, this trusted broker has been known for its low fees on 1000+ instruments. XM is regulated by multiple financial bodies, including the ASIC and CySEC.

Pros

  • XM is a hugely respected broker authorized by tier-one regulators
  • 1000+ instruments are available, including recently added thematic indices, providing exposure to emerging industries
  • Transparent and low fees with spreads from 0.0 pips that will help protect day trading profit margins

Cons

  • There's $5 inactivity fee after only 3 months, though this won't affect active traders
  • There is weak regulatory oversight through the global entity
  • PayPal deposits are not supported

Binary Options Alternative 6: Cryptocurrency

The newest market on this list, cryptocurrency products can be traded as derivatives through binary options, CFDs or spread betting. However, the asset class has far more utility to investors.

Markets

There are more and more crypto tokens being created at all times, with thousands of coins and projects in existence. While not all of these are legitimate, more cautious investors can stick to more well-known coins such as Bitcoin and Ethereum for greater peace of mind.

Complexity

Similarly to stock investing, cryptocurrency trading can be as simple or complex as a trader desires. Investors can buy and hold crypto tokens, stake them for interest or utilize bots on sites such as Pionex for round-the-clock automated trading.

Profit & Loss Potential

The crypto markets are notoriously volatile and have seen some meteoric price rises and falls in their brief history. Investors should be prepared for these conditions or even a complete collapse of a coin like Terra in 2022.

Fees & Commissions

Many exchanges offer very low, competitive fees on this binary options alternative. These are usually displayed in the form of maker and taker fees, often shown as a percentage.

Safety & Regulation

Crypto is almost entirely unregulated and scams are rife within the broker space and the coins themselves. As a result, more cautious investors may wish to avoid this binary options alternative or track selected crypto markets using a more secure ETF.

Strategies

Traders can buy and hold tokens long-term or take advantage of the volatile crypto markets to day trade.

Advanced strategies such as spot/futures arbitrage are available for major tokens such as BTC and ETH and can yield solid and low-risk returns.

Similarly to dividend investing, traders can stake crypto tokens for a fixed reward, with some providers offering upwards of 10% annual returns for this strategy.

Crypto Brokers

#1 - AvaTrade

Why We Chose AvaTrade

Regulated in five continents, AvaTrade offers a secure way to access crypto markets. There's a great range of digital currencies including Bitcoin, Ethereum and Ripple, plus a crypto index. You can access competitive crypto spreads in the broker's wide choice of platforms as well as 1:2 leverage.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team
  • Coins: BCH, BTC, BTG, ETH, LTC, XRP, EOS, DASH
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: BTC <1%, ETH 2%
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
  • Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM

About AvaTrade

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 day trading, alongside a comprehensive education center and multilingual customer support.

Pros

  • Day traders can access stable spreads and zero commissions with no hidden fees
  • There's a great range of fee-free deposit methods, including bank wire, credit cards and popular e-wallets like Skrill
  • Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools

Cons

  • There is no ECN account with raw spreads
  • Traders from the US are not accepted
  • There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders

#2 - eToro

Why We Chose eToro

eToro leads the way in cryptocurrency trading, offering competitive spreads and a fixed 1% commission, plus their own wallet service. The broker offers a vast list of 95+ tokens which is continually being updated. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more

"eToro's social trading platform leads the pack with a terrific user experience and active community chat that can help beginners find opportunities. There are also competitive fees on thousands of CFDs and real stocks, plus excellent rewards for experienced strategy providers."

- DayTrading Review Team
  • Coins: BTC, ETH, BCH, XRP, DASH, LTC, ETC, API3, CRO, SKL, IMX, ADA, MIOTA, XLM, EOS, NEO, TRX, ZEC, BNB, XTZ, DOT, MKR, COMP, LINK, UNI, YFI, DOGE, AAVE, FIL, ALGO, ATOM, MANA, APE, LRC, ENJ, BICO, BAT, BNT, OGN, MATIC and many more
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: BTC 1%
  • Crypto Lending: No
  • Crypto Staking: Yes
  • Platforms: eToro Web, CopyTrader, TradingCentral
  • Minimum Deposit: $50
  • Regulator: FCA, ASIC, CySEC, FSA, FSRA, MFSA

About eToro

eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 76% of retail accounts lose money.

Pros

  • The web platform and mobile app perform better in user reviews and app rankings than top competitors, including AvaTrade
  • Top copy traders can receive annual payments up to 1.5% of assets under copy in the broker's Popular Investor Program
  • There's a comprehensive online training academy with accessible resources, from bitesize articles to comprehensive courses

Cons

  • There are no guaranteed stop loss orders which would be a useful risk management feature for beginners
  • The lack of additional charting platforms like MT4 will reduce the appeal for seasoned day traders accustomed to using third-party software
  • There are limited contact methods aside from the in-platform live chat

#3 - OANDA US

Why We Chose OANDA US

You can speculate on the world’s biggest cryptos by market cap. Commissions are lower than many peers starting at 0.25%. Through the broker’s partnership with Paxos, clients can spot trade cryptocurrencies on the itBit exchange through the OANDA native platform.

"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."

- DayTrading Review Team
  • Coins: BTC, ETH, LTC, BCH, PAXG, LINK, UNI, AAVE
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: $100
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: OANDA Trade, MT4, TradingView, AutoChartist
  • Minimum Deposit: $0
  • Regulator: NFA, CFTC

About OANDA US

OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available for short-term traders, alongside flexible contract sizes and automated trade executions.

Pros

  • Seasoned day traders can access industry-leading tools, including an MT4 premium upgrade and advanced charting provided by MotiveWave
  • The broker's API facilitates access to 25 years of deep historical data and rates from 200+ currencies
  • The broker offers a transparent pricing structure with no hidden charges

Cons

  • It's a shame that customer support is not available on weekends
  • There's only a small range of payment methods available, with no e-wallets supported
  • The range of day trading markets is limited to forex and cryptos only

#4 - Eightcap

Why We Chose Eightcap

Eightcap’s crypto offering is best-in-class with 250+ crypto derivatives, surpassing that of almost every alternative. Testing also reveals Bitcoin spreads of 12 pips, coming in lower than most competitors, while it offers real-time trading ideas through the Crypto Crusher market scanner. Add in convenient deposits and withdrawals in digital currencies, and Eightcap offers the complete package for serious crypto traders.

"Eightcap delivers in every area for day traders with a growing selection of charting platforms and AI-powered tools. Now sporting 250+ crypto CFDs and the Crypto Crusher market scanner, it's also become a stand-out choice for crypto trading, winning our 'Best Crypto Broker' award two years in a row."

- DayTrading Review Team
  • Coins: BTC, ETH, LTC, BCH, XRP, XMR, DSH, EOS, XLM, ADA, TRX, DOGE, BNB, DOT, MATIC, VET, AXS, NEO, SOL, UNI, AAVE, KSM, THETA, CAKE, SUSHI, ATOM, XTZ, SNX, COMP, FLOW, EGLD, PUNDIX, RAY, ZIL, QTUM, BAND, OMG, FIDA, BADGER, NEAR and many more
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: $12 (BTC)
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: MT4, MT5, TradingView
  • Minimum Deposit: $100
  • Regulator: ASIC, FCA, xCySEC, SCB

Pros

  • After bolstering its roster in 2021, Eightcap offers one of the most extensive selections of cryptocurrency CFDs in the market, with crypto/fiat pairs, crypto/crypto pairs, plus crypto indices for broader exposure to the market.
  • Eightcap stands out with a selection of powerful trading tools, including MT4 and MT5, the innovative algorithmic trading platform Capitalise.ai, and more recently the 50-million strong social trading network TradingView.
  • With tight spreads from 0 pips, low commission fees, and high leverage up to 1:500 for certain clients, Eightcap provides cost-effective and flexible trading conditions that can accommodate an array of strategies, including day trading and scalping.

Cons

  • Despite a useful library of educational guides and e-books, Eightcap still trails IG’s comprehensive toolkit for aspiring traders with its dedicated IG Academy app and 18 course categories.
  • In spite of an increasing variety of tools, Eightcap doesn't offer industry favorites like Autochartist or Trading Central, which offer cutting-edge charting analytics, live news, and market insights for short-term traders.
  • Eightcap needs to continue bolstering its suite of instruments to match category leaders like Blackbull Markets with its 26,000+ assets, featuring a particularly weak selection of commodities.

#5 - Uphold

Why We Chose Uphold

You can buy and sell 250+ crypto assets with fiat currencies or in crypto pairs using the straightforward mobile app or through Uphold's browser-based account homepage. This is significantly more than many rivals. You can also earn up to 16% APY by staking one or more out of 32 valid tokens, or send tokens to an external wallet.

"Uphold remains a top choice for crypto investors looking for a one-stop-shop solution to accessing the markets. There are over 250 tokens to buy, sell and trade through flexible platform options."

- DayTrading Review Team
  • Coins: BTC, BTCO, AAVE, ALCX, DYDX, INH, XYO, API3, GHST, LSK, AUDIO, GLMR, NMR, CAKE, GODS, REQ, CHR, TRB, DAO, ROOK, XRP, ETH, BAT, ADA, ALGO, ATOM, AVAX, AXS, BCH, BAL, BTG, CSPR, COMP, CRV, DASH, DCR, DGB, DOGE, DOT, EGLD and many more
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: Up to 1.5%
  • Crypto Lending: No
  • Crypto Staking: Yes
  • Platforms: Desktop Platform, Mobile App
  • Minimum Deposit: $0

About Uphold

Uphold is a digital asset platform offering a range of services, from crypto trading and staking to payment cards that provides rewards and easy multi-currency payments. The company was established in 2015 and has enabled $4+ billion in transactions. Uphold is now active in 180+ countries and deals in 200+ crypto and fiat currencies.

Pros

  • The proprietary app is extremely easy to use with a slick design and navigation
  • Uphold is 100% reserved which helps to protect client funds
  • Crypto staking is available on 30+ tokens with above-average rates up to 16%

Cons

  • The charting analysis features on the platform trail specialist exchanges
  • There is a 2.49% fee if you want to use debit or credit cards
  • Uphold operates with limited regulatory oversight

Binary Options Alternatives: Further Considerations

Now you have discovered some of the popular alternatives to binary options, here is some additional information to consider to help you get started trading with one of these instruments.

Brokerages

When looking at binary options alternatives, choosing a brokerage is an essential step for safe and low-cost trading. Here are some general qualities to look out for to find the best brokers:

Education

The most straightforward binary options strategy is applicable for many of the alternatives in this article, which is going long or short on an asset. However, a more thorough education is required to gain an edge when using instruments such as standard options, stock trading and futures.

There are many trading courses, videos and guides on how to get started trading each of these binary options alternatives. We found that trading using a demo account is invaluable for traders new to a specific market or instrument.

Regional Considerations

While all these instruments trade on global markets, some binary options alternatives have regional restrictions. For example, CFDs are banned for Canadian and US residents and crypto derivatives are restricted for investors in the UK.

Additionally, binary options are classed as gambling in some jurisdictions, such as the UK. Therefore, they have tax advantages over other forms of trading. The rules on binary options and their alternatives will be different for other regions too, such as Australia, Korea, India, Germany, Canada and for US citizens.

Ensure you understand your local trading tax rules before getting started.

Final Word On Binary Options Alternatives

Investors that either cannot or do not want to trade using binary options are spoilt for choice in their alternatives. Trading methods such as CFDs and spread betting offer similar types of speculation but with key differences such as uncapped losses and gains. Traders can also draw upon instruments such as futures and vanilla options for more advanced investing in a more secure and regulated space.

FAQs

Which Alternatives To Binary Options Suit Day Trading?

Some of the most popular alternatives to binary options for day trading are stock trading, CFDs and spread betting. These formats allow investors to capitalize on intra-day price movements, often with high leverage.

Which Binary Options Alternatives Are Halal?

Whether an instrument is halal or haram can depend on the specific trading strategy or the account used. For example, Muslim CFD traders can open special Islamic accounts to comply with their religious principles, while crypto staking is more of a grey area.

Are Alternatives To Binary Options Good Or Bad?

There are several benefits and disadvantages to alternative trading methods to binary options. Almost all binary options alternatives benefit from greater regulatory oversight, security, and payout potential. However, binary options are simple and have capped losses to prevent investors from losing more than they stake.

Are Binary Options The Same As Options?

Binary options are less complex than traditional options but offer lower potential rewards for a successful trade. When comparing binary options vs regular options, these methods suit different market conditions and trader profiles.

Do Binary Options Alternatives Come With Demo Accounts?

Demo accounts are key for traders wanting to learn new markets or instruments. They are commonly offered to investors when trading CFDs, stocks or binary options. However, they may be harder to come by for alternatives such as futures and cryptos.