Binary Options Copy Trading
Binary options copy trading is a hands-off approach to investing that involves replicating the positions of other traders. But whilst often touted as a straightforward way to produce profits, wins aren’t guaranteed. Here, we explain how binary options copy trading works and we list the best brokers and software in 2024.
Binary Options Copy Trading Brokers
- Pocket Option - Pocket Option offers ultra-short-term binaries from 5 seconds on one of the simplest web platforms for beginners. Payouts rival alternatives at 90%+ while the ‘Double Up’ and ‘Rollover’ features provide further opportunities to profit. Considering the negatives, the suite of 130+ assets trails binary brokers like Quotex, which offer 400+.
- Deriv.com - Deriv.com offers premium binary options on traditional and emerging financial markets with payouts up to 50,000 USD. Binaries are available 24/7, 365 days a year on a secure platform with responsive customer support.
- Grand Capital - Trade high-low binary options contracts on currencies, metals and cryptos with high payouts. Binaries offer a straightforward bet on the short-term direction of an asset.
- IQCent - IQCent offers binary options with above-average payouts up to 98%. The broker supports an online platform with basic analysis tools but a wide range of timeframes, from 1 minute to 1 month, catering to short and long term trading strategies. Considering the negatives, there are no binaries on stocks.
- Videforex - Videforex continues to offer binary options with 20% payouts on crypto and up to 98% on less volatile assets, beating many competitors. A wide range of contract lengths are also supported from 5 seconds up to 1 month. New users will appreciate the welcome deposit bonus.
#1 - Pocket Option
Why We Chose Pocket Option
Pocket Option offers ultra-short-term binaries from 5 seconds on one of the simplest web platforms for beginners. Payouts rival alternatives at 90%+ while the ‘Double Up’ and ‘Rollover’ features provide further opportunities to profit. Considering the negatives, the suite of 130+ assets trails binary brokers like Quotex, which offer 400+.
"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
- Minimum Deposit: $50
- Payout %: 92%
- Expiry Times: 5 seconds - 4 hours
- Bonus: 50% Deposit Bonus
- Copy Trading: Yes
- Platforms: Web, MT4, MT5
- Instruments: Stocks, Forex, Crypto
Pocket Option Copy Trading
Pocket Option hosts a user-friendly social trading service. Available in the platform, you can use the ‘Top Ranked Trades’ leaderboard, among others, to find traders to follow. The social trading solution is also available 24/7 and has active community chats. Tip: check the number of trades made and profit generated over several months rather than comparing providers over a few days.About 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.
Pros
- Well-funded traders who deposit $1000+ can qualify for a 2%+ payout boost, more tradable assets and exclusive perks
- Extremely fast and smooth sign-up process that takes less than 2 minutes
- The range of payment methods beats the majority of rivals, providing fast, secure and convenient deposits for traders in most countries
Cons
- The MISA is a weak regulator with limited investor protection for retail traders
- You need to deposit $1000 to access the extended list of 250+ assets, otherwise just 130+ assets are available
- The maximum binary contract length of 4 hours is restrictive for longer-term trading strategies. Alternatives like Videforex offer binaries up to 1 month
#2 - Deriv.com
Why We Chose Deriv.com
Deriv.com offers premium binary options on traditional and emerging financial markets with payouts up to 50,000 USD. Binaries are available 24/7, 365 days a year on a secure platform with responsive customer support.
"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
- Minimum Deposit: $5
- Payout %: 100%
- Expiry Times: 15 seconds to 365 days
- Copy Trading: Yes
- Platforms: Deriv Trader, MT5
- Instruments: Stocks, Forex, Crypto
Deriv.com Copy Trading
Deriv allows clients to replicate the positions of experienced traders through signals on DMT5. You can receive signals in real-time and decide whether to action trades in your own account. The best part is that the process of copying is fully automated, which is ideal for beginners seeking a hands-off approach.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
- Deriv bolstered its short-term trading opportunities in 2024 with accumulator options on simulated indices featuring up to 5% growth rates
- Beginners and experienced day traders can access a good range of 20+ technical indicators in Deriv Trader vs 30+ in MT5
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
#3 - Grand Capital
Why We Chose Grand Capital
Trade high-low binary options contracts on currencies, metals and cryptos with high payouts. Binaries offer a straightforward bet on the short-term direction of an asset.
"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
- Minimum Deposit: $10
- Payout %: 86%
- Expiry Times: 1 minute - 48 hours
- Bonus: 40% deposit bonus
- Copy Trading: Yes
- Platforms: MT4, MT5
- Instruments: Stocks, Forex, Crypto
Grand Capital Copy Trading
GC Invest allows clients to mirror the strategies of profitable traders with a $100 deposit. Commissions range from 0% to 70% and traders can track returns in real-time.About 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.
Pros
- High leverage up to 1:500
- GC Invest platform for copy trading
- Fast and easy account opening
Cons
- Limited regulatory oversight
- High spreads on some assets
- Basic education and market research
#4 - IQCent
Why We Chose IQCent
IQCent offers binary options with above-average payouts up to 98%. The broker supports an online platform with basic analysis tools but a wide range of timeframes, from 1 minute to 1 month, catering to short and long term trading strategies. Considering the negatives, there are no binaries on stocks.
"IQCent will appeal to day traders looking for a straightforward binary options and CFD trading platform with low fees, a range of accounts, and copy trading. Getting started takes less than 1 minute and a $250 deposit. "
- DayTrading Review Team
- Minimum Deposit: $250
- Payout %: 98%
- Expiry Times: 5 seconds - 1 month
- Bonus: 20% to 200% Deposit Bonus
- Copy Trading: Yes
- Platforms: Online Platform, TradingView
- Instruments: Forex, Crypto
IQCent Copy Trading
A copy trading service is pre-integrated into the broker’s web platform, where you can follow and replicate the trades of up to 10 established investors. Where it shines is its ease of use - you simply decide how much you want to invest and hit 'copy'. On the downside, the pool of master traders is narrow and you get limited data on past performance, making it less reliable.About IQCent
IQCent is an offshore binary options and CFD broker based in the Marshall Islands. The brand continues to offer a range of unique account types with bonuses and perks, including payout boosts, TradeBacks and free rollovers. With 100+ assets, around-the-clock trading and 98% payouts, the firm is popular with aspiring short-term traders.
Pros
- The broker's 24/7 customer support is fast and reliable, responding within 1 minute during tests
- There's an accessible $0.01 minimum stake for new day traders with a small budget
- Keen traders can take part in trading contests with cash prizes
Cons
- IQCent trails binary brokers like Quotex with its narrow investment offering of around 100 assets with no stocks
- IQCent charges a punitive $10 monthly inactivity fee if you fail to place at least 1 trade per month
- There's no automated trading support for algo traders
#5 - Videforex
Why We Chose Videforex
Videforex continues to offer binary options with 20% payouts on crypto and up to 98% on less volatile assets, beating many competitors. A wide range of contract lengths are also supported from 5 seconds up to 1 month. New users will appreciate the welcome deposit bonus.
"Newer traders will find a lot to enjoy about trading binary options on Videforex's easy-to-use proprietary platform, as well as the broker's copy trading solution. Payouts also remain higher than most alternatives climbing to 98%."
- DayTrading Review Team
- Minimum Deposit: $250
- Payout %: 98%
- Expiry Times: 5 seconds - 1 month
- Bonus: 20% to 200% Deposit Bonus
- Copy Trading: Yes
- Platforms: TradingView
- Instruments: Stocks, Forex, Crypto
Videforex Copy Trading
Videforex offers an integrated copy trading service where users can automatically or manually replicate the positions of other traders. Simply choose a trader and asset class and specify the investment amount.About Videforex
Launched in 2017, Videforex offers access to stock, index, crypto, forex and commodities markets via binary options and CFDs. The proprietary platform, mobile app and integrated copy trading are user-friendly and will suit new and casual traders, and the market analysis tools and trading contests provide good ways to improve your trading skills.
Pros
- Videforex regularly runs trading contests, offering great practice opportunities and cash prizes to beginners and experienced traders
- You can easily mirror the trades of experienced investors with low fees
- The support times are fast and reliable based on tests - few brokers offer 24/7 multi-lingual video support
Cons
- US clients aren’t accepted due to legal restrictions
- The broker isn’t overseen by a trusted regulatory agency
- No MetaTrader 4 integration
Binary Options Copy Trading Explained
How Binary Options Work
Binary options are a class of derivative instrument that let you speculate on financial markets by selecting from one of two possibilities. This is often likened to answering a “yes or no” question about whether the value of an asset will rise above or fall below what is known as the strike price. If you correctly predict the answer, you will earn a predetermined, percentage payout of your stake. If not, you will lose your entire investment. This leads to their other name, “all or nothing” options.
There are several popular contract options:
- In/Out – Whether the asset’s value will be within two strike prices at the expiry time
- High/Low – Whether the asset’s value will be greater or lower than the strike price at the expiry time
- Touch/No Touch – Whether the asset’s value will reach a certain price at any point before the expiry time
How Copy Trading Works
Copy trading, a form of social trading, involves following and imitating other investors. This is often automated through dedicated copy trading tools within existing platforms. This means you can simply assign funds to copy other traders at the exact times they open or close positions.
With binary options copy trading, this process is available on software that supports the purchase of these derivative contracts. More specifically, if a trader you copy purchases a contract, your account will purchase the same contract at the same time, with the same strike price and expiry time.
Supporting brokers generally allow you to search through a wide array of expert traders, with full histories of their options types, assets, strike prices and success rates. You may have reduced buying power and wish to stake less capital than the expert, so you can set a percentage or value limit to be used for copy trading.
Getting Started
Use this step-by-step guide to start trading:
- Find a brokerage that facilitates binary options copy trading and create an account. Keep in mind that not all platforms offer binary options and not all brokers allow copy trading. See our list of supporting platforms.
- Connect a payment method or pre-fund your account so you can copy the expert’s trades as soon as they purchase a contract.
- Identify other clients and traders that you wish to copy. Often, brokers will have a leaderboard-style page on their website with details of different people to help you decide. We recommend that you do not copy just one trader as you would be solely dependent on their success. Following several traders will spread your risk.
- Sit back and wait for positions to expire and check their outcomes.
Comparing Brokers
Price
One of the most important factors to consider when weighing up different copy trading binary options brokers is costs. These could be in the form of trading fees, subscription charges to access expert traders or lower percentage profits per trade.
Any fees can easily build up and quickly eat into profits. However, there can be a correlation between higher costs and greater quality. Therefore, you need to determine what you would be comfortable paying for the service.
Platforms
Software tools for binary options copy trading are less important than other forms of short-term speculation, such as CFD day trading. However, it is important to ensure that a broker’s trading platform is both effective and easy to use.
Ideally, the software should have an intuitive interface, provide you with all the required information on potential master traders and allow for easy contract purchase. Furthermore, if you plan to do any market analysis yourself, ensure that there are suitable technical indicators and graphical objects.
Customer Support
A broker’s support structure can have a large impact on your experience binary options copy trading. If you are having issues that interrupt your trading, any time lost means that you are, in effect, losing money.
Being able to access 24/7 support, either via live chat or over the phone, can help to solve problems quickly, so you can return to executing trades as soon as possible. Look out for contact methods that you prefer to use, such as email, alongside long office hours and language options.
Reviews
It is difficult to understand how a particular broker operates by only reading the website or looking at the app. You may, understandably, have questions over how trustworthy and reliable a platform may be. There are many websites, forums and binary options trading clubs online that can help with this.
The best ones will host plenty of discussions, where you can read about other traders’ opinions and experiences with particular platforms. See our list of the best binary options copy trading brokers with accompanying reviews.
Comparing Binary Options Copy Trading Experts
You need to evaluate the different expert traders available for copy trading. Master traders will have a direct impact on your success, so this is not a decision you should take lightly.
Profitability
One of the two key considerations is how successful they have been so far. While past performance is no guarantee of future performance, you probably want to avoid a trader who is out of the money in four of every five trades.
Experience
When deciding between expert traders, look at how many trades they have made and how long they have been going. You can place more confidence in experienced investors, assuming that they will understand binary options well enough to not make rash decisions that lead to large losses.
Risk
Before you start copy trading binary options, you should determine what level of risk you are comfortable with. While copying riskier expert traders may lead to greater profits, you can just as easily, lose your capital.
Pros
There are many benefits to binary options copy trading:
- Simplicity
- Saves time
- Easy to understand
- Earn as trader and copier
- Learn from successful traders
- Limited technical analysis required
Cons
There are also drawbacks to binary options copy trading:
- Disconnect between you and your capital
- Some experts charge high commissions
- Assets limited in certain jurisdictions
- Profits not guaranteed
- Easy to overlook risks
- Potential for scams
Final Thoughts
Binary options copy trading offers a hassle-free approach to financial speculation. The potential to lower risk by mirroring positions opened by experts is attractive, though you should not be fooled into thinking that this is always safe. You should research thoroughly to find the best expert traders possible and, even after selection, you should be proactive and continually review your trading activities.
FAQs
What Is Binary Options Copy Trading?
Binary options copy trading involves mimicking the positions taken by other clients on your platform. This can be done manually or automatically, assigning your full account capital or just a portion to copy the contract details purchased by expert traders. This means that if they purchase a high/low option at a certain price, your account will do the same, taking away the effort of manually analysing the markets.
Is Binary Options Copy Trading Legal?
Yes, copying the trades of binary options is legal and facilitated by some of the best brokers. However, the sale of binary options themselves is restricted in some regions.
How Do I Become An Expert Binary Options Trader?
Firstly, you need to be a trader that others will want to copy from. This means demonstrating that you know how to make consistently profitable trades. Once you are confident, you need to apply to your desired broker with a verified account. Ensure that you meet the platform’s criteria for expert traders. You will often need to provide a description to advertise yourself, including your chosen trading strategy and experience. Some software may let you set your own commission rates.
Where Can I Find Advice On Binary Options Copy Trading?
There is a plethora of trading communities and clubs online where you can discuss binary options copy trading. Forums such as Reddit and groups on social media websites are great ways to seek trading advice, regardless of how niche the topic you are searching for is.
What Stake Value Is Recommended For Copying Binary Options?
Usually, retail traders aim to only risk around 1% of their account, with a maximum of 3% if they accept higher risks. However, the best advice is to only trade with what you would be comfortable losing.