Binary Options Arbitrage

Binary options arbitrage is a trading strategy that aims to capitalise on price discrepancies within different markets. It is considered a relatively low-risk technique due to its simplicity and how both positions are covered. This guide will explain what binary options arbitrage is, the pros and cons, plus how to get started. We’ve also listed the best brokers below.

Top Binary Options Arbitrage Brokers

#1 - Pocket Option

Pocket Option offers short term binary options on a user-friendly platform with competitive payouts of 90%+. Over 130 assets are available with fee-free deposits and withdrawals. Joining bonuses are also available to new users.

We recommend Pocket Option for aspiring binary options traders looking for copy trading services and a low minimum investment.

- DayTrading Review Team
  • Min Deposit: $50
  • Payout %: 92%
  • Expiry Times: 5 seconds - 4 hours
  • Bonus: 50% Deposit Bonus
  • Platforms: MT5
  • Instruments: Forex, Crypto

Forex Trading

Binary and OTC options can be purchased on over 40 foreign exchange pairs. Typical payouts are also decent at 81% and users can trade forex binary options in just a couple of clicks.

Stocks Trading

Trade 30 of the most popular American multinational stocks including Microsoft and Google. Payouts on big brands come in at a decent 92% while indices are available up to 67%.

Crypto Trading

Pocket Option supports major cryptocurrencies on a beginner-friendly app. Over 10 leading cryptocurrencies are available with very high leverage up to 1:1000.

About Pocket Option

Founded in 2017, Pocket Option is a binary options broker offering up/down contracts on forex, stocks and cryptocurrencies. With over 100,000 active users and a global reach, the brand has proven popular with budding traders. Pocket Option also supports dozens of payment methods and has a low minimum trade of just $1.


  • 92% payouts on binaries
  • Copy trading
  • Welcome bonuses and coupon codes


  • Only one account type is available
  • No MT4 trading platform
  • The expiration time is limited on trades

#2 - IQCent

IQCent offers high/low binary options on popular financial markets. New traders can also claim a deposit welcome bonus.

  • Min Deposit: $50
  • Payout %: 95%
  • Expiry Times: 5 seconds - 30 days
  • Bonus: 20% to 200% Deposit Bonus
  • Platforms: TradingView
  • Instruments: CFD, Forex, Crypto

CFD Trading

Trade leveraged CFDs on popular markets including stocks and commodities.

Forex Trading

IQCent offers major, minor and exotic currency pairs with tight spreads.

Stocks Trading

IQCent offers trading on four German stocks alongside several established indices.

Crypto Trading

Trade popular crypto tokens via leveraged CFDs.

About IQCent

IQCent is an offshore binary options and CFD broker with 10+ payment methods and a $50 minimum deposit. Clients benefit from copy trading tools and in-depth market analysis.

#3 - CloseOption

CloseOption offers binary options on forex and cryptos with a low minimum deposit and joining gift.

  • Min Deposit: $5
  • Payout %: 95%
  • Expiry Times: 30 seconds - 1 month
  • Bonus: $10 Welcome Gift
  • Platforms: Own
  • Instruments: Forex, Crypto

Forex Trading

Trade binaries on popular currency pairs including EUR/USD.

Crypto Trading

Trade high/low binaries on major crypto-fiat currency pairs.

About CloseOption

CloseOption is a popular binary options broker with high payouts and joining bonuses.


  • Demo account
  • Low minimum deposit
  • Multiple payment methods


  • No copy trading
  • Weak regulatory oversight
  • Narrow range of investments

#4 - Videforex

Videforex offers beginner-friendly binary options on forex, cryptos, and commodities. New joiners can also claim a deposit welcome bonus.

  • Min Deposit: $250
  • Payout %: 98%
  • Expiry Times: 5 seconds - 1 month
  • Bonus: 20% to 200% Deposit Bonus
  • Platforms: TradingView
  • Instruments: CFD, Forex, Crypto

CFD Trading

A suite of CFDs are available across popular markets with high leverage.

Forex Trading

Videforex offers leveraged trading on major, minor and exotic currency pairs.

Stocks Trading

Videforex offers trading on major exchanges such as the FTSE.

Crypto Trading

Start trading on cryptos against fiat currencies and other alt coins.

About Videforex

Videforex accepts deposits in a range of cryptos and fiat currencies. Payouts reach 98% per trade.


  • Demo account
  • Copy trading
  • Full range of investments


  • Weak regulatory oversight
  • No MT4 integration

#5 - World Forex

Trade American and European digital contracts with high payouts up to 100%.

  • Min Deposit: $1
  • Payout %: 100%
  • Expiry Times: 1 minute - 7 days
  • Bonus: 100% Deposit Bonus
  • Platforms: MT4, MT5
  • Instruments: CFD, Forex, Crypto

CFD Trading

Speculate on 40+ share CFDs with high leverage and low fees.

Forex Trading

Take positions on a long list of forex pairs with tight spreads and low commissions.

Stocks Trading

Trade 40+ stock CFDs including big names like IBM and American Express.

Crypto Trading

Trade on 10 cryptos paired with the USD and EUR. Crypto only pairs are also available.

About World Forex

World Forex offers commission-free trading with a $1 minimum deposit and 1:1000 leverage. Digital contracts are also available, offering beginners a straightforward way to speculate on popular financial markets.


  • Demo Account
  • MT4 integration
  • Low minimum deposit


  • Weak regulation

What Is Binary Options Arbitrage?

Binary Options

Binary options allow you to trade based on two possible outcomes: yes or no. Traders predict the price movement of an asset, such as Tesla stock, and set an expiry time. The price at the expiry will determine whether the trader is ‘in the money’ or ‘out of the money’. Traders can choose from several styles of binary options, including high/low, touch/no-touch and boundary options.


Arbitrage involves executing simultaneous trades with the aim of benefiting from an asset’s price difference on two different exchanges.

An example of this would be if a company is listed on both the London Stock Exchange (LSE) and the New York Stock Exchange (NYSE) at prices of £5 and $8, respectively. If we assume the exchange rate of $1 = £0.74, there is a difference of £0.92 in value. To capitalise on this discrepancy, you would purchase shares on the LSE and immediately sell them on the NYSE, earning a profit of £0.92.

While this is a small amount, making regular and frequent trades with a greater volume can help to gain larger revenues. This basic example utilised stocks, however, arbitrage is a strategy you can use for many instruments including forex, cryptocurrencies, commodities and, importantly, binary options.

brokers that support binary options arbitrage

How It Works

Arbitrage with binary options involves making both a ‘call’ and a ‘put’ on the same asset. This means that upon expiration, one of your two positions will always be ‘in the money’. In order to make a net profit from this strategy, you will need to find a trade with a payout greater than 100%.

If you just make binary options trades where you earn a profit of $100, but you have invested $200 across the two positions, you will not yield any net profit. In fact, you will likely make a loss when you account for the fees. Because of this, you want to look for highly volatile assets that are more likely to have greater payouts for either option at different brokerages.

It can be difficult to find suitable opportunities for binary options arbitrage due to these specific conditions required. It is also important that when you make this trade that both positions expire at the same time, otherwise you are not completely covered. For example, if one position expires five minutes after the first, the asset’s price could fluctuate, such that neither is ‘in the money’.

Getting Started


Unlike arbitrage with other instruments, binary options do not require you to trade on separate exchanges where you may need to consider currency exchange rates. Rather, you are looking for irregularities across different brokers. For this, you will want to find two brokers where one offers greater returns for going high while the other offers better rewards for going low.

As these discrepancies are rare and often corrected quickly, it may be helpful to have an account with a number of brokers offering binary options, such as Pocket Option and Quotex. This will allow you to quickly take advantage of the opportunity before it is remedied.


When searching for assets with binary options arbitrage, it can be difficult to find potential trading opportunities that satisfy the specific criteria. You are essentially reliant on the market operating inefficiently, which is rare. To help identify these opportunities, you will need to monitor the news for announcements that could seriously impact an asset’s value.

binary options arbitrage platforms explained

Fortunately, impactful news is publicised outside a stock exchange’s trading hours, which can lead to wild speculation over an asset’s price at market opening. Binary options do not operate on any single centralised market and so it is possible to execute trades around the clock, meaning you can take advantage of this speculation.

There are also opportunities with assets that are linked together. A prime example of this is the inverse relationship between the Japanese Yen (JPY) and the price of oil. As Japan imports a lot of oil, JPY sometimes increases following a decrease in oil price. Connections such as these offer exciting binary options arbitrage trades, however, they are riskier as you are reliant on a correlation continuing.

Pros Of Binary Options Arbitrage

Traders looking to use binary options arbitrage techniques enjoy multiple benefits:

  • Fast-paced, dynamic trading experience
  • Potential to use algorithms to identify suitable assets
  • Lower risk strategy where any losses are covered as you are hedging your bets

Cons Of Binary Options Arbitrage

However, there are some notable drawbacks:

  • Trading fees can easily cut into profits and could lead to losses
  • Net profit can often be small due to the offsetting of the loss for the ‘losing’ side of the trade
  • You need to be fast to make a trade when you identify an opportunity, as market imperfections are quickly corrected

Final Word

Binary options arbitrage is a good strategy with potential for low-risk trades. Opportunities are rare, however, so you need to conduct plenty of research into how these trades work to learn what information you are seeking when identifying assets. Use our list of brokers to get started.


Yes, the binary options arbitrage strategy is legal. It is important to note, however, that binary options trading is not permitted in some countries. Check your local jurisdiction’s rules before trading.

What Is Arbitrage?

For binary options, arbitrage means you make trades covering both positions. For example, you make trades for an asset’s price being both inside and outside a price range at a given expiration time.

What Types Of Binary Options Are Available For Arbitrage?

You can use arbitrage on all types of binary options. This includes high/low trades, range/boundary, touch/no-touch and ladder trading. As such, arbitrage can be an appealing strategy for those who wish to diversify their options trades.

Can I Make Binary Options Trades In The USA?

The Commodity Futures Trading Commission (CFTC) says that US-based retail traders may execute binary options trades but they must use regulated exchanges. Make sure to thoroughly research your chosen brokers and check for correct licensing documents.

Can I Use Bots To Identify Binary Options Arbitrage Opportunities?

Yes, algorithms are a great aid for scouring the markets for arbitrage opportunities. It can be difficult to find arbitrage opportunities as they are so uncommon and so having a robot conduct the search on your behalf can speed up the process.