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 2023.
Binary Options Copy Trading Brokers
#1 - Pocket Option
Pocket Option offers short term binary options on a beginner-friendly platform with competitive payouts.
- Min Deposit: $50
- Payout %: 92%
- Expiry Times: 5 seconds - 4 hours
- Bonus: 50% Deposit Bonus
- Platforms: MT5
- Instruments: Forex, Crypto
Pocket Option Copy Trading
Pocket Option offers hassle-free copy trading. Simply choose from the broker's top ranked traders and mirror their positions in your own account.
Forex Trading
Binary and OTC options can be purchased on over 30 foreign exchange pairs.
Stocks Trading
Trade major company stocks and take positions on popular indices.
Crypto Trading
Pocket Option supports popular cryptocurrencies on a beginner-friendly app.
About Pocket Option
Pocket Option is a global binary options broker with a sleek proprietary trading platform and competitive range of assets.
Pros
- Multiple payment methods
- Demo account
- Copy trading
Cons
- Weak regulatory oversight
- No MT4 integration
#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
IQCent Copy Trading
Copy trading is offered within the proprietary WebTrader platform. Clients can follow and replicate the trades of established investors using real-time performance statistics.
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 - 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
Videforex Copy Trading
Videforex offers an integrated copy trading service where users can automatically or manually replicate the positions of other traders.
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.
Pros
- Full range of investments
- Copy trading
- Demo account
Cons
- No MT4 integration
- Weak regulatory oversight
#4 - 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
World Forex Copy Trading
Use copy trading signals on MT4 to replicate strategies in your own live account. No additional fees apply.
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.
Pros
- Full range of investments
- Low minimum deposit
- Multiple payment methods
Cons
- Weak regulation
#5 - RaceOption
RaceOption offers binary options on popular financial markets with payouts up to 95%. The broker also runs regular trading contests.
- Min Deposit: $250
- Payout %: 95%
- Expiry Times: 5 seconds - 30 days
- Bonus: 20% - 200% Deposit Bonus
- Platforms: TradingView
- Instruments: CFD, Forex, Crypto
RaceOption Copy Trading
Replicate the positions and strategies of multiple traders while leveraging the RaceOption leaderboard.
CFD Trading
Go long and short on popular financial markets via the RaceOption platform
Forex Trading
Trade major and minor currency pairs with competitive leverage rates
Stocks Trading
Trade more than 50 stocks and shares on US, UK and European markets.
Crypto Trading
Trade Bitcoin against the USD and CNY
About RaceOption
RaceOption is a binary options and CFD platform offering trading contests and prize giveaways.
#6 - BinaryCent
BinaryCent offers welcome deposit bonuses and high payouts up to 95%. Traders can get started with a straightforward joining form.
- Min Deposit: $250
- Payout %: 95%
- Expiry Times: 5 seconds - 30 days
- Bonus: 20% - 200% deposit bonus
- Platforms: Own
- Instruments: CFD, Forex, Crypto
BinaryCent Copy Trading
The copy trading tool is available for all account types, including the lowest - Bronze
CFD Trading
You can take positions on a range of popular trading markets
Forex Trading
You can trade forex on BinaryCent with leverage up to 1:500
Stocks Trading
Stocks and indices are available to trade on the BinaryCent platform
Crypto Trading
BinaryCent offers trading on a decent list of cryptocurrencies. The broker also accepts crypto deposits and withdrawals.
About BinaryCent
Deposit and trade with a Bitcoin funded account. BinaryCent offers binary options, FX and CFD trading. 1:500 leverage is also available.
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.
FAQ
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.