Fixed Time Trading | Best Platforms & Strategies
Fixed time trading is a straightforward concept that involves predicting whether a price will rise or fall within an agreed time period. It can be applied to a variety of markets including forex, cryptos, stocks and indices, but can rapidly descend into gambling without a considered strategy. Applying research and technical analysis can give traders the edge they need to make fixed time trading profitable.
In this article, we cover the meaning of fixed time trading, followed by a guide on how to develop the best trading strategies. We’ll also cover how to select a broker and trading platform suitable for fixed time trading, what to trade, and technical analysis techniques.
Best Brokers for Fixed Time Trading
After reviewing over 400 brokers we have determined that these are the 5 best brokers for fixed time trading:
- 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.
- IQCent - IQCent offers binary options on forex, stocks, cryptocurrencies and commodities with high payouts up to 98%. The broker uses a proprietary platform with advanced analysis tools and traders can choose contract timeframes ranging from 5 seconds to months, appealing to both short and long term traders.
- Videforex - Videforex binary options are available from 20% payouts on crypto up to 98% payouts 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.
- AZAforex - AZAforex offers binary options with time-dependent payouts that can be taken out on any asset included as a CFD or spot instrument. Over 50 binary options are available with a $1 minimum stake and payouts up to 190%.
- 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.
#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
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.
Pros
- Clients accepted from over 95 countries
- MT5 iOS & Android app
- Multiple strategies supported
Cons
- No MT4 trading platform
- IFMRRC is not a reputable regulator
- Only one account type is available
#2 - IQCent
IQCent offers binary options on forex, stocks, cryptocurrencies and commodities with high payouts up to 98%. The broker uses a proprietary platform with advanced analysis tools and traders can choose contract timeframes ranging from 5 seconds to months, appealing to both short and long term traders.
"IQCent will appeal to newer traders who want a platform where they can trade both binary options and CFDs with copy trading support and regular contests."
- DayTrading Review Team
- Min Deposit: $250
- Payout %: 98%
- Expiry Times: 5 seconds - 30 days
- Bonus: 20% to 200% Deposit Bonus
- Platforms: TradingView
- Instruments: CFD, Forex, Crypto
About IQCent
IQCent is an offshore binary options and CFD broker based in the Marshall Islands with 10+ payment methods and a low $50 starting deposit. With 100+ assets, around the clock trading and high payouts the brand is popular with aspiring traders.
Pros
- Both CFDs and binary options tradeable through a single terminal
- Binary options with 98% payouts
- Copy trading service
Cons
- No MetaTrader 4 platform
- A short period before an inactivity fee is charged
- Not overseen by any highly respected regulator
#3 - Videforex
Videforex binary options are available from 20% payouts on crypto up to 98% payouts 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 are also higher than most alternatives climbing to 98%."
- DayTrading Review Team
- Min Deposit: $250
- Payout %: 98%
- Expiry Times: 5 seconds - 1 month
- Bonus: 20% to 200% Deposit Bonus
- Platforms: TradingView
- Instruments: CFD, Forex, Crypto
About Videforex
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
- Withdrawals are usually processed within one hour
- The firm facilitates day trading and binary options for global customers
- The support time are fast and reliable. Very few brokers offer 24/7 multi-lingual video support
Cons
- The broker isn’t overseen by a trusted regulatory agency
- US clients aren’t accepted due to legal restrictions
- No MetaTrader 4 integration
#4 - AZAforex
AZAforex offers binary options with time-dependent payouts that can be taken out on any asset included as a CFD or spot instrument. Over 50 binary options are available with a $1 minimum stake and payouts up to 190%.
"AZAforex is best for active forex traders looking for ECN pricing with high leverage up to 1:1000 and a sophisticated trading platform."
- DayTrading Review Team
- Min Deposit: $1
- Payout %: 190
- Platforms: Own
- Instruments: CFD, Forex, Crypto
About AZAforex
AZAforex is a multi-asset broker founded in 2016. The brand offers a sophisticated proprietary platform, ECN trading and 40+ deposit methods. The brokerage has 120,000+ registered customers with copy trading and a VPS.
Pros
- Range of crypto, e-wallet, credit/debit card and wire transfer options
- Copy trading and PAMM account
- Low minimum deposit of $1
Cons
- Limited educational content and resources
- Unregulated broker reduces its safety score
- Withdrawal fees for some payment methods
#5 - 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.
"RaceOption will appeal to traders new to binary options looking for copy trading, contests and 24/7 customer support. Experienced traders will also appreciate the account-based perks and bonuses."
- DayTrading Review Team
- Min Deposit: $250
- Payout %: 95%
- Expiry Times: 5 seconds - 30 days
- Bonus: 20% - 200% Deposit Bonus
- Platforms: TradingView
- Instruments: CFD, Forex, Crypto
About RaceOption
RaceOption is a binary options broker operating from the Marshall Islands. With over 1,500 clients, the broker aims to offer fast funding, low fees and a secure trading environment. Traders can access over 100 binary options and CFDs, plus copy trading and weekly prizes.
Pros
- High payouts on popular underlying assets up to 95%
- Free and instant deposits via bank cards and cryptos, plus guaranteed withdrawals processing within 1 hour
- Sign-up bonuses from 20%, plus weekly trading contests and prize giveaways
Cons
- Unregulated broker with lower safety score
- Withdrawal thresholds apply
- $250 minimum deposit is higher than other binary options brokers
What Is Fixed Time Trading?
Fixed time trading requires a prediction about whether the price of an asset will increase or decrease within a fixed period. It therefore falls under the definition of binary options, which involves choosing between two outcomes with a time expiry.
If the prediction is correct, the trader will receive the initial investment back plus a bonus. If not, the trader will lose the initial investment. Because the bonus is stated upfront, the potential outcomes are known before completing the trade, unlike other types of trading where profits and losses are variable.
Fixed time trading is a simple trading method that can offer high returns. However, the returns are defined by the broker, which means the odds change depending on the likelihood of a correct prediction. The odds are also stacked against the trader overall, meaning a winning trade will return a lower bonus than the potential loss.
For this reason, many people believe fixed time trading is gambling. However, this is not the case if applying analysis and research when making predictions.
How Fixed Time Trading Works
There are several steps to follow when carrying out fixed time trading:
1. Pick A Market
Fixed time trading can be applied to a range of markets including forex, stocks, indices, commodities and cryptocurrencies. Trading across these markets will help to diversify your portfolio and reduce your total risk exposure. However, no matter which market you choose, be aware that you will only be predicting the outcome of the trade and will not own the asset itself.
2. Select The Expiry Time
Expiry times can be anywhere from a minute to a few hours. Some brokers offer even longer-term trading than this, though it is rare. Longer-term fixed time trading is more likely to be influenced by fundamentals, such as company performance or economic news. For short-term trading, avoid trading around news announcements, when prices can become extremely volatile and hard to predict.
3. Choose The Investment Level
Always choose how much to invest based on a percentage of your overall capital. A general rule is to risk no more than 1% of your capital on a single trade.
4. Select The Price Direction
This will be based on your analysis of whether you predict the price will increase or decrease when entering the trade (strike price) to the time expiry.
5. Confirm
Once the trade is confirmed, it’s a waiting game to see if the prediction was correct. However, some brokers now offer the option to alter the trade after investment. This can include ending the trade early, extending the trade, or placing more money into the trade (for example if you become more confident that you will make a profit). The potential reward will be updated accordingly.
Choosing A Fixed Time Trading Broker
The first thing to establish when trading is which broker to use. Here we summarise the key elements to consider when searching for the best providers.
Platform
High-quality desktop platforms and mobile apps are essential when fixed time trading. They should have good technical analysis tools including charts and indicators, with intuitive interfaces that you can confidently navigate.
Profit Potential
Potential profits are set by the dealer and will therefore vary between brokers. Compare potential percentage returns as well as any fees to ensure they won’t wipe out your profits. Also check minimum deposit requirements to ensure they are appropriate for your investment level.
Demo Account
Check if the broker offers a demo account. This is a great way to practice fixed time trading using virtual funds, while getting familiar with the platform environment.
Fixed Time Trading Strategies
Fixed time trading shouldn’t be a gamble, so use technical analysis to make informed trading decisions. Here we cover some example strategies.
One of the simplest ways to carry out fixed time trading is to take advantage of short-term trends. For example, find an uptrend using candlesticks, then open an ‘up’ position. An uptrend occurs when each candlestick peak is higher than the previous peak, and each trough is higher than the previous trough.
For more in-depth analysis, use a technical indicator. The Directional Movement Indicator (DMI) is one of the best indicators for fixed time trading. This is because it can indicate the strength of a trend, suggesting whether it will be sustainable or not.
The DMI is formed of three lines:
- The Average Directional Index (ADX) – The ADX is used to quantify the strength of the trend, but is independent of the trend direction
- The DI+ Line – This is the positive directional movement line
- The DI- Line – This is the negative directional movement line
The signals to look for when fixed time trading are an ADX above 25. This indicates a very strong trend, but needs to be used in combination with the DI lines to determine whether the trend is upwards or downwards. It is recommended that ADX readings below 25 are avoided when fixed time trading.
Next, look at the DI+ and DI- lines. If the DI+ line rises above the DI- line, an uptrend is indicated.
Below, we highlight an example of a strong uptrend as indicated by the DI+ (blue line), DI- (black line) and ADX (red line), which is sitting above 25 the whole time.
Tips for Fixed Time Trading
Here we list some top tips for beginners looking to start fixed time trading:
- Invest only a small percentage of your capital per trade. As there is the potential to lose the entire investment in each trade, losses can accumulate quickly.
- Use longer-term time scales when starting fixed time trading. This will make the process less intense at first.
- Set trading limits and stick to them. This includes the number of trades per day and investment amount. This should be based on the amount you are willing to lose, assuming you predict all your trades incorrectly.
- Take advantage of online resources, courses and books to research the asset you are trading or if you simply want to know how to learn about fixed time trading.
- Check when news announcements are expected for the asset you are trading, including company reports and central bank updates. This will allow you to plan your strategy accordingly.
Is Fixed Time Trading Legal?
Fixed time trading is legal, though banned by regulatory authorities in some countries. For example, the ESMA in the EU and FCA in the UK ban fixed time trading for retail traders. Retail traders would be able to use an unregulated broker in these locations, but this comes with the limited protection of funds. A better option is to use a broker regulated outside the UK or EU, providing the regulator is reputable.
Similarly, fixed time trading brokers cannot be based in India according to SEBI, but Indians could participate in fixed time trading using a broker located outside of India.
Forex Trading Vs Fixed Time Trading
While forex trading and fixed time trading involve predicting the future price of an asset, forex trading does not have a set time period. This means the trader has the flexibility to sell at any point, which has the potential to be at any price. Forex prices are also partly based on market conditions whereas fixed time trading returns are defined by the broker.
Final Word On Fixed Time Trading
Fixed time trading is one of the easiest investing concepts to understand, but requires quality research and analysis to be executed successfully. Whilst it can result in large returns even in quiet markets, it also requires discipline to avoid losing large amounts of money in a short period.
FAQ
What Is Fixed Time Trading?
Fixed time trading is a method where traders predict whether a price will rise or fall within a set time period. If correct, the trader will receive their original investment back in addition to a percentage bonus. If not, the original investment is lost.
Is Fixed Time Trading Gambling?
Fixed time trading is not gambling if used in combination with appropriate research and analysis to guide trading decisions.
Is Fixed Time Trading Halal?
If the trade has been researched and analysed, it is arguably not gambling and therefore Halal. Consequently, it is up to the individual trader to decide whether they are taking a gamble and therefore if it is Halal. Consult your religious leader for further guidance.
Is Fixed Time Trading Legal?
Fixed time trading is legal, though some authorities ban it such as the SEBI in India and the FCA in the UK. Traders located in these countries can still participate in fixed time trading by using a broker regulated in other parts of the world.
What Is The Best Strategy for Fixed Time Trading?
There are numerous strategies that can enhance fixed time trading. The Directional Movement Indicator is a great example of technical analysis that can be used to forecast the strength and direction of a known trend.