Trading Digital Contracts
Intraday investors often aim to make a high volume of fast-paced trades to maximize potential profits, and trading digital contracts is an innovative financial instrument that can meet their needs. These derivatives pose a simple question – will the price of an asset go up or down over a specific timeframe? Whether the day trader bets the correct way or not, they will profit or lose an amount that is determined before the digital contract begins, meaning they can quickly move onto the next trade.
This guide will explain how trading digital contracts works with examples and outline tips for getting started. We also rank the top digital contract trading brokers in 2025, as well as provide guidance on how beginners can follow a strategy and design their own system for trading digital contracts.
Digital Contract Brokers
Here is a short overview of each broker's pros and cons
- Capitalcore - Capitalcore has expanded its suite of trading products, introducing binary options on forex, metals and crypto with payouts up to 95%. Geared towards short-term traders, contract lengths range from 1 minute to 1 hour. It’s a snap to place trades on the intuitive web platform, requiring just the click of the button – ‘Call’ if you think the price will rise and ‘Put’ if you think it will fall.
- 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.
- CloseOption - CloseOption offers binary options trading on 30+ fiat and digital currencies through an easy-to-use web-based platform. 15 contract timeframes are available from 30 seconds to 1 month, suiting both short-term and long-term traders. New users also get a joining gift.
- RaceOption - RaceOption offers 100+ binaries with decent payouts up to 95% and ultra-fast expiries from 5 seconds. With a $250 minimum deposit, clients can enjoy free deposits, fast withdrawals and a range of trading bonuses.
- AZAforex - AZAforex offers binary options trading with time-dependent payouts that can be taken out from 30 seconds to 1 day. Over 50 binary options are available with a $1 minimum stake and payouts up to 90%.
Capitalcore
"The major selling points of Capitalcore are its high leverage options up to 1:2000 and zero commission or swap fees. However, its weak regulatory oversight from the IFSA and non-existent education place it far behind the top brokers."
Christian Harris, Reviewer
Capitalcore Quick Facts
| Bonus Offer | 40% Deposit Bonus up to $2,500 |
|---|---|
| Minimum Deposit | $10 |
| Payout % | 95% |
| Expiry Times | 1 minute - 1 hour |
| Copy Trading | No |
| Platforms | WebTrader, Pro |
| Instruments | Forex, Metals, Stocks, Cryptos, Futures Indices, Binary Options |
| Account Currencies | USD |
Pros
- Capitalcore is one of the only brokers to charge zero swap fees, which may appeal to Islamic traders looking to comply with Islamic Finance.
- The Capitalcore platform provides comprehensive charting tools and a wide range of 150+ technical indicators, ideal for detailed market analysis.
- Unlike most brokers, Capitalcore offers an unlimited demo account that takes under 5 minutes to open.
Cons
- Platform support is limited to proprietary software, so there's no integration with the market-leading MetaTrader or cTrader, which offer built-in economic news and support automated trading.
- Capitalcore’s threadbare education and research seriously trail category leaders like IG, making it less suitable for aspiring traders.
- Capitalcore is not regulated by major financial authorities and has an unproven reputation, raising concerns about the safety of client funds.
IQCent
"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. "
Jemma Grist, Reviewer
IQCent Quick Facts
| Bonus Offer | 20% to 200% Deposit Bonus |
|---|---|
| Minimum Deposit | $250 |
| Payout % | 98% |
| Expiry Times | 5 seconds - 1 month |
| Copy Trading | Yes |
| Platforms | Online Platform, TradingView |
| Instruments | Binary Options, CFDs, Forex, Indices, Commodities, Crypto |
| Account Currencies | USD, EUR |
Pros
- The proprietary terminal offers TradingView-powered charts which deliver dozens of technical indicators and studies
- Keen traders can take part in trading contests with cash prizes
- CFD trading fees are competitive based on tests, including 0.7 pips on major forex pairs such as EUR/USD
Cons
- The broker is not overseen by a respected regulator, though this is common among binary options firms
- The market analysis is very basic with limited technical summaries and insights from analysts
- IQCent trails binary brokers like Quotex with its narrow investment offering of around 175 assets with limited stocks
Videforex
"Videforex will serve traders looking for a no-frills, easy-to-use platform to speculate on the direction of popular financial markets through binaries. With a sign-up process that takes a matter of minutes and a web-accessible platform, getting started is a breeze. "
Videforex Quick Facts
| Bonus Offer | 20% to 200% Deposit Bonus |
|---|---|
| Minimum Deposit | $250 |
| Payout % | 98% |
| Expiry Times | 5 seconds - 1 month |
| Copy Trading | Yes |
| Platforms | TradingView |
| Instruments | Binary Options, CFDs, Forex, Indices, Commodities, Crypto |
| Account Currencies | USD, EUR, GBP, AUD, RUB |
Pros
- Videforex is one of the few brokers with 24/7 multilingual video support, providing comprehensive assistance for active traders.
- Videforex regularly runs trading contests, offering practice opportunities and cash prizes to beginners and experienced traders, with position sizes from just ¢0.01.
- With the addition of over 60 new assets, Videforex now gives traders access to in-demand crypto (TON, ARB, PEPE, SHIB), top-performing tech stocks (Tesla, Meta, Nvidia, Amazon), and a more diverse FX portfolio (THB, ZAR, and MXN).
Cons
- Videforex lacks authorization from a trusted regulator, meaning traders may receive little to zero safeguards like segregated client accounts.
- The absence of any educational tools is a serious drawback for newer traders who can find blogs, videos and live trading sessions at category leaders.
- The client terminal needs improvements based on our latest tests, sporting sometimes slow and unresponsive widgets which could dampen the experience for day traders.
CloseOption
"CloseOption is a good pick for traders seeking a user-friendly binary options platform with high payouts and joining bonuses."
CloseOption Quick Facts
| Bonus Offer | $10 Welcome Gift |
|---|---|
| Minimum Deposit | $5 |
| Payout % | 95% |
| Expiry Times | 30 seconds - 1 month |
| Copy Trading | No |
| Platforms | Own |
| Instruments | Binary Options on Forex & Cryptos |
| Account Currencies | USD |
Pros
- CloseOption offers weekly trading tournaments with cash prizes
- Free demo account
- New traders can get started with a $5 minimum deposit
Cons
- Binary options are only available on fiat and digital currencies
- Clients need to deposit $50,000+ to qualify for the best payouts
- CloseOption is not regulated by a well-regarded trading authority
RaceOption
"RaceOption will appeal to investors looking for a feature-rich binary options trading experience with regular contests, account-based perks, and copy trading. The catch is its unregulated status, with little to zero investor protections available based on our investigations."
RaceOption Quick Facts
| Bonus Offer | 20% - 200% Deposit Bonus |
|---|---|
| Minimum Deposit | $250 |
| Payout % | 95% |
| Expiry Times | 5 seconds - 30 days |
| Copy Trading | Yes |
| Platforms | TradingView |
| Instruments | Binary Options, CFDs |
| Account Currencies | USD, EUR, GBP, AUD, RUB |
Pros
- RaceOption makes account funding a breeze with fee-free and near-instant deposits via bank cards and cryptos, plus guaranteed withdrawals processing within 1 hour.
- RaceOption is in the less than 1% of brokers that offers video chat, available 24/7 in multiple languages, although the knowledge of agents about trading and regulatory issues needs improvement from our direct experience.
- Payouts on popular underlying assets like EUR/USD can reach 95%, beating out most alternatives based on our evaluations, and increasing potential returns, while the first 3 trades are risk-free in Silver and Gold accounts.
Cons
- RaceOption is an unregulated, high-risk broker that doesn’t provide investor compensation or legal recourse options should you run into trading or withdrawal issues.
- RaceOption is one of the only brokers not to offer a demo account, which when considered alongside the absence of education, makes this broker a poor choice for beginners.
- While still affordable for many retail investors, the $250 minimum deposit raises the entry barrier, especially compared to Deriv and World Forex who are designed for budget traders.
AZAforex
"AZAforex is best suited to active traders looking to make all-or-nothing bets on global markets through binary options and those looking for high leverage up to 1:1000 in return for weak regulatory safeguards."
AZAforex Quick Facts
| Bonus Offer | 25% Crypto Deposit Bonus, 120% Loyalty Bonus, 30% Spread Rebate |
|---|---|
| Minimum Deposit | $1 |
| Payout % | 90 |
| Expiry Times | 30 seconds - 1 day |
| Copy Trading | No |
| Platforms | Mobius Trader 7 |
| Instruments | CFDs, Forex, Stocks, Indices, Commodities, Crypto, Binary Options |
| Account Currencies | USD, EUR, GBP, CAD, AUD, NZD, JPY, MYR, IDR, CHF, RUB, THB, VND, UAH, CNY |
Pros
- AZAforex provides high leverage of up to 1:1000, allowing for potentially greater returns with smaller capital. While this comes with increased risk, it's an attractive feature if you are an experienced trader looking for aggressive growth strategies.
- AZAforex supports a huge and growing variety of payment methods, including bank transfers, credit/debit cards, e-wallets, and cryptocurrencies, providing flexibility for funding and withdrawals. This variety accommodates traders from different regions and preferences.
- Few brokers offer binary options as part of their portfolio. Still, AZAforex includes them, allowing you to speculate on short-term price movements with fixed risk and reward up to 90%.
Cons
- While functional during testing, the Mobius Trader 7 platform is proprietary and not widely used by other brokers. This creates risks of potential price manipulation or discrepancies in market data, as there's no external verification like with MetaTrader or cTrader.
- AZAforex still operates without regulation from a recognized financial authority, which raises concerns about transparency, fund safety, and accountability. You may have no recourse in disputes, making it riskier than regulated brokers.
- AZAforex offers basic trading guides and a blog but lacks robust educational tools such as video tutorials, webinars, or interactive learning resources. This makes it less appealing for beginners who need comprehensive learning support. A lot of the content is outdated, too.
Digital Contracts Trading Basics Explained
Digital contracts are an innovation with a history of only a few years. They came to the fore after financial regulators in key trading jurisdictions placed tough restrictions on their predecessor, binary options.
Trading digital contracts works similarly to binary options, offering investors the chance to profit by speculating on the price movements of assets over a short time window – sometimes less than a minute. But while their predecessors have been restricted in the UK, parts of Europe and many other countries, digital contracts are legal to trade with reputable brokers.
Digital contracts can be based on a range of underlying assets, including stocks, commodities such as gold, FX and cryptocurrencies. Before the digital contract begins, the trader will determine whether they wish to take a long or short position, the value of the contract – essentially, how much money is being staked – and the contract’s duration.
If the trader’s bet comes good, they will earn a pre-determined profit regardless of how much the price has moved in their direction. This varies according to the broker and the type of contract, but basic digital contracts generally offer a payout slightly below the value of the contract.
For example, Quotex offers an 80% payout on some assets with their digital contracts. This means a trader who predicts a price increase correctly on a £1000 digital contract with this broker will make their stake back plus an £800 profit, whether the price has gone up by 0.5% or 5% when the contract expires.
This may seem like a counter-intuitive way of trading that is based more on luck than skill, but there are definite advantages for day traders, and many develop effective strategies to profit from them.
Importantly, you would usually need to hold onto classic derivatives like futures or options for a much longer period to turn a profit, and profits from shorter-term instruments such as CFDs can be limited when price movements are small. But with trading digital contracts, profits and potential losses are defined before the contract begins, and everything hinges on a simple yes/no question. This makes them a straightforward derivative that has the advantage of also being quick enough to complete a large volume of trades per day.
How To Start Trading Digital Contracts
The first step on your digital contracts trading journey is to find a suitable broker. Since digital contracts are a relatively new product, it is not always easy to find online brokers through a simple web search. However, some brokerages and exchanges that offered binary options before they were heavily regulated now deal in digital contracts trading.
How To Choose A Digital Contracts Broker
There are several important factors to take into account when you’re deciding which digital contracts broker to begin trading with:
- Regulation – Check whether the broker is regulated by any recognized body to be sure it is trustworthy. Some platforms have built a strong reputation despite being unregulated. But you should always do your due diligence and stay informed about each broker’s security features.
- Payouts – Digital contract brokers usually offer a payout of around 90% of the contract value, but this can differ according to the asset at stake. Shop around for brokers that offer trading on digital contracts with the best payouts.
- Fees – Different digital contract trading brokers have different fees. Some charge commission on each transaction and others will charge running administrative fees to keep your account open. Deposit and withdrawal fees can be particularly costly for day traders who have active digital contracts trading accounts.
- Underlying assets – This is important because day traders tend to have preferred assets to trade in. Choose a digital contracts broker that provides access to markets you are comfortable trading, for example, forex, stock, commodity, cryptocurrency or nft.
- Bonuses – Some digital contracts brokers provide excellent benefits, such as sign-up and deposit bonuses, that can boost your capital and offset other fees. Just make sure to check withdrawal terms and options before claiming a promotion.
- Trading platform – Make sure you choose a digital contracts broker that has a fast, responsive platform which you find easy to use. The best digital contract brokers offer beginner-friendly, web trader terminals. And importantly, quality is more important than quantity when it comes to trading apps and platforms.
- Good customer service – It is important to have quick access to support if there’s a problem with your account. The top digital contract brokers offer 24/7 support via live chat, social media channels, and email. Customer service representatives should be able to help with trading definitions, yield explanations, and provides guides on when a digital contract expires.
- Educational and training material – Some digital contracts brokers provide useful material that can help beginners to start quickly turning a profit from their desk. This can include webinars with crypto and blockchain products explained, strategy tips and automated trading tools. A particularly useful feature for novice traders is copy trading, whereby users can replicate the positions and strategies of proven investors.
Digital Contracts From Quotex
Quotex’s digital options offer traders a very similar experience to digital contracts with more or less the same terms related to the stake, profit margin and duration of a trade. Quotex’s popular website includes a proprietary browser-based trading platform that traders can use to access digital contracts on securities, forex pairs, commodities and indices.
The size of the payout depends on the asset traded, with a maximum payout of 98%. Traders can buy digital contracts for a variety of expiration periods, from 1 minute to 4 hours.
An advantage to Quotex is the easy-to-use website and app, available from Apple’s App Store and Google Play. Quotex also offers a demo account and has some excellent benefits, including a 30% deposit bonus, profit calculators and group user reviews online.
Tips For Trading Digital Contracts
Some market commentators consider trading digital contracts and similar products to be little more than gambling. Since the contracts expire in a short period of between seconds and hours, some of the factors a trader would normally consider while planning a trade are not as relevant.
However, many say it is possible to make a profit from trading digital contracts by developing a strategy and following a consistent system. For example, some traders wait until an asset’s price has been moving in one direction consistently for a certain period before betting the other way. The rationale for this is that, even if the market’s momentum is headed in one direction, it is very rare for the chart to display a completely consistent line of red or green bars.
This is just one very basic example of the broad range of strategies used by digital contracts day traders. Your system will ultimately depend on numerous factors, such as the asset you are trading and the expiration time of the contracts you trade.
For more information, you can also join a digital contracts trading forum and exchange strategies and ideas with other traders. In addition, there is a good deal of information available online about trading similar assets, so a studious trader can turn YouTube into a digital contracts trading academy.
But perhaps the most important advice for beginners is to join a digital contracts broker that offers a demo account. This allows you to develop your strategy on a variety of assets and expirations periods without putting any real money down. In other words, you will have free rein to test your theories and find the best combination of assets and expiration times for your personal investing style.
Final Word On Trading Digital Contracts
Digital contracts can be a profitable way to trade if you have the right mindset. While this is one of the fastest-paced financial products available to day traders, ironically it requires a deep amount of patience and discipline to consistently make money from. Some good digital contracts brokers can help you do that, including some that offer demo accounts and some platforms which offer innovative features related to the latest blockchain opportunity. Just remember to do your due diligence, research a good broker and take the time to develop a trading system before you start putting real money down.
Use our list of the best digital contract brokers to start trading.
FAQs
What Is Digital Contracts Trading?
Digital contracts are a fast-paced financial product that allows day traders to bet on the price movement of an asset over a short period that can be as low as seconds. Investors can use digital contracts to speculate on a range of underlying markets from stocks and shares to forex and cryptocurrencies.
How Does Digital Contracts Trading Work?
Digital contracts are one of the most straightforward products to trade because they depend on the simple question of whether an asset’s price will rise or fall in a given timeframe. For example, will the price of Bitcoin be above or below $20,000 in two hours? If the day trader guesses correctly, they will earn a predetermined payout, regardless of the size of the price movement. If they are incorrect, they lose their stake, but can quickly move on to the next trade.
Are Digital Contracts Safe To Trade?
As with any financial product, you are putting your money at risk. Meaning if the price movement goes against you, you will lose your stake. In the long run, you will lose money to brokers’ fees and other expenses unless you have a game plan that helps you consistently make winning bets.
As for security, there are some safe and reputable digital contract trading brokers out there, and your money and personal information should be relatively secure with these. Before you sign up to a broker, make sure you properly research it by checking whether it is regulated, which security measures it takes, and how existing users review it. Alternatively, we have ranked the top digital contract trading brokers.
Which Brokers Are Best For Trading Digital Contracts?
The best digital contracts broker for you depends on your personal requirements. Find a brokerage that offers both the assets you would like to trade, and the expiration times you are interested in, for example, one-minute contracts or 24-hour contracts. Also, ensure you are comfortable with the digital contracts broker’s trading platform, that it has a good reputation for security, and that its fees are reasonable and payouts competitive. We have compiled a list of the best digital contract brokers.
How Do I Make Money From Trading Digital Contracts?
You are never guaranteed to make money on any trade. What you can do is develop a strategy that helps you make enough trades that payoff to keep you in profit on average. This requires a careful plan, plenty of discipline, and the organization to keep records of your trades so you can adjust your strategy. This may not be easy, but most of the time, making money never is.
To give yourself the best chance of earning money in your digital contracts trades, sign up for a broker which offers a demo account and give yourself plenty of time to develop a strategy without putting any real money at risk.