Trading Tournaments
Trading tournaments are an increasingly popular way for traders to test themselves and win prizes. In these tournaments, entrants compete using demo accounts to see who can make the most profit, usually for free funds deposited into a live trading account.
Many brokers promote their platforms with elaborate and expensive tournaments: some of the biggest trading tournament prizes are worth over one million USD. In this article, we will explore how trading tournaments work, their advantages and some of the key factors to look out for.
Top Brokers With Trading Tournaments
We have tested hundreds of brokers and these 6 offer the best trading tournaments:
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1
Pocket Option50% Deposit Bonus
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$50$1MISABinary Options, Currencies, Commodities, Stocks, Indices, CryptosWeb, MT4, MT5Wire Transfer, Credit Card, Bitcoin Payments, Volet, Perfect Money, Visa, Mastercard, Debit Card, WebMoney, FasaPay, Ethereum Payments, Maestro, JetonCashUSD -
2
IQCent20% to 200% Deposit Bonus
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$250$0.011:500IFMRRCBinary Options, CFDs, Forex, Indices, Commodities, CryptoOnline Platform, TradingViewCredit Card, Debit Card, Wire Transfer, Bitcoin Payments, Ethereum Payments, Visa, MastercardUSD, EUR -
3
Videforex20% to 200% Deposit Bonus
$250$0.011:500Binary Options, CFDs, Forex, Indices, Commodities, CryptoTradingViewSkrill, Perfect Money, Bitcoin Payments, Neteller, Credit Card, Visa, Mastercard, Ethereum PaymentsUSD, EUR, GBP, AUD, RUB -
4
BinaryCent20% - 200% deposit bonus
$250$0.011:500VFSCCFDs, Forex, Stocks, Cryptos, Options, CommoditiesOwnVisa, Mastercard, Debit Card, Credit Card, Skrill, WebMoney, Neteller, Bitcoin Payments, Wire Transfer, Perfect Money, Ethereum PaymentsUSD -
5
World Forex100% Deposit Bonus
$10.01 Lots1:1000SVGFSAForex, CFD Stocks, Metals, Energies, Cryptos, Digital ContractsMT4, MT5Wire Transfer, Debit Card, Credit Card, Visa, Mastercard, Google Wallet, Apple Pay, Perfect Money, Bitcoin Payments, VoletUSD, EUR, RUB -
6
RaceOption20% - 200% Deposit Bonus
$250$0.011:500Binary Options, CFDsTradingViewCredit Card, Debit Card, Bitcoin Payments, Neteller, Skrill, Perfect Money, Mastercard, Visa, Ethereum PaymentsUSD, EUR, GBP, AUD, RUB
This is why we think these brokers are the best in this category:
- 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.
- 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.
- 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.
- BinaryCent - BinaryCent is an unregulated binary options broker that offers 24/7 trading on forex, cryptos and stocks with payouts up to 95%. Despite its lack of regulation, this broker takes client security seriously and stores client funds in European banks. The broker also offers CFDs with very high leverage up to 1:500.
- World Forex - World Forex is an offshore broker registered in St Vincent and the Grenadines, offering 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.
- 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.
Pocket Option
"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."
Pocket Option Quick Facts
| Bonus Offer | 50% Deposit Bonus |
|---|---|
| Demo Account | Yes |
| Instruments | Binary Options, Currencies, Commodities, Stocks, Indices, Cryptos |
| Regulator | MISA |
| Platforms | Web, MT4, MT5 |
| Minimum Deposit | $50 |
| Minimum Trade | $1 |
| Account Currencies | USD |
Pros
- The web platform shines for its straightforward design and usability that will appeal to beginners looking to speculate on popular financial markets in a few clicks
- The range of payment methods beats the majority of rivals, providing fast, secure and convenient deposits for traders in most countries
- Extremely fast and smooth sign-up process that takes less than 2 minutes
Cons
- 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
- Despite offering competitive payouts up to 92%, binary brokers like IQCent offer higher returns up to 98% based on tests
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. "
IQCent Quick Facts
| Bonus Offer | 20% to 200% Deposit Bonus |
|---|---|
| Demo Account | Yes |
| Instruments | Binary Options, CFDs, Forex, Indices, Commodities, Crypto |
| Regulator | IFMRRC |
| Platforms | Online Platform, TradingView |
| Minimum Deposit | $250 |
| Minimum Trade | $0.01 |
| Leverage | 1:500 |
| Account Currencies | USD, EUR |
Pros
- The proprietary terminal offers TradingView-powered charts which deliver dozens of technical indicators and studies
- IQCent is one of the few binary options brokers that also offers a copy trading service for hands-off traders
- CFD trading fees are competitive based on tests, including 0.7 pips on major forex pairs such as EUR/USD
Cons
- The market analysis is very basic with limited technical summaries and insights from analysts
- The broker is not overseen by a respected regulator, though this is common among binary options firms
- IQCent charges a punitive $10 monthly inactivity fee if you fail to place at least 1 trade per month
Videforex
"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%."
Videforex Quick Facts
| Bonus Offer | 20% to 200% Deposit Bonus |
|---|---|
| Demo Account | Yes |
| Instruments | Binary Options, CFDs, Forex, Indices, Commodities, Crypto |
| Platforms | TradingView |
| Minimum Deposit | $250 |
| Minimum Trade | $0.01 |
| Leverage | 1:500 |
| Account Currencies | USD, EUR, GBP, AUD, RUB |
Pros
- Videforex allows you to enter positions with just ¢0.01
- Videforex regularly runs trading contests, offering great practice opportunities and cash prizes to beginners and experienced traders
- The firm facilitates both day trading and binary options which is great for those looking to diversify their portfolios
Cons
- US clients aren’t accepted due to legal restrictions
- The broker isn’t overseen by a trusted regulatory agency
- No MetaTrader 4 integration
BinaryCent
"Traders who want a reliable binary options broker with a streamlined platform and high payouts should try out BinaryCent."
Tobias Robinson, Reviewer
BinaryCent Quick Facts
| Bonus Offer | 20% - 200% deposit bonus |
|---|---|
| Demo Account | Yes |
| Instruments | CFDs, Forex, Stocks, Cryptos, Options, Commodities |
| Regulator | VFSC |
| Platforms | Own |
| Minimum Deposit | $250 |
| Minimum Trade | $0.01 |
| Leverage | 1:500 |
| Account Currencies | USD |
Pros
- Simple and straightforward proprietary platform for binary options trading
- Accepts a wide range of funding methods, including cryptos and e-wallets
- Trade binary contracts from $0.10 allowing trading opportunities for all budgets
Cons
- The $250 minimum deposit is higher than most binary options brokers
- Not overseen by any reputable regulator, raising risks and reducing customer protections
- Not available to traders based in the US
World Forex
"World Forex provides both highly leveraged CFDs and digital contracts, making this a good broker for clients who want flexible and rewarding ways to trade. The copy trading service will also appeal to newer traders."
World Forex Quick Facts
| Bonus Offer | 100% Deposit Bonus |
|---|---|
| Demo Account | Yes |
| Instruments | Forex, CFD Stocks, Metals, Energies, Cryptos, Digital Contracts |
| Regulator | SVGFSA |
| Platforms | MT4, MT5 |
| Minimum Deposit | $1 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:1000 |
| Account Currencies | USD, EUR, RUB |
Pros
- Low deposit of $1
- Educational content
- Copy trading solution
Cons
- Weak regulation
- Withdrawal fees apply
- No negative balance protection
RaceOption
"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."
RaceOption Quick Facts
| Bonus Offer | 20% - 200% Deposit Bonus |
|---|---|
| Demo Account | Yes |
| Instruments | Binary Options, CFDs |
| Platforms | TradingView |
| Minimum Deposit | $250 |
| Minimum Trade | $0.01 |
| Leverage | 1:500 |
| Account Currencies | USD, EUR, GBP, AUD, RUB |
Pros
- First 3 trades are risk-free in the Silver and Gold accounts, with only $1,000 required to be eligible
- Free and instant deposits via bank cards and cryptos, plus guaranteed withdrawals processing within 1 hour
- High payouts on popular underlying assets up to 95%
Cons
- Withdrawal thresholds apply
- Limited educational resources
- Unregulated broker with lower safety score
How Trading Tournaments Work
A trading tournament is a competition held amongst traders to see who can make the most money through demo trading. Online platforms and brokers organise tournaments both to attract new customers and retain old ones. Typically, competitors are given an equal amount of virtual credit to invest how they see fit (for instance $10,000), with the most profitable trader after a set period being declared the winner.
Tournament lengths can range from one day up to one month. Some platforms, like FXOpen or the World Cup Trading Championships, offer a cash prize to the most profitable trader in a calendar year. It is up to the tournament organiser to decide which assets can be traded, with binary options being one of the most common. Forex and crypto trading tournaments, are quite popular.
Some trading tournament platforms operate a ‘league’ system, whereby traders compete against others with similar experience levels and abilities. These types of tournaments are well suited to novice traders and those looking to hone their abilities as they are more accessible. On the other hand, some competitions allow players to compete as part of a team, offering entrants another way to develop their trading skills.
Trading tournaments are often free to enter, though some may require a fee. Some tournaments are known as ‘real cash competitions’, where contestants trade with their own money. There are also free competitions, which involve paper trading accounts to keep a level playing field, though these generally have smaller prize pools. Both free and paid tournaments often have a ‘rebuy’ option, which allows traders to reload their account balance by depositing the original amount again.
Pros Of Trading Tournaments
Chance To Win Prizes
Trading tournament winners are rewarded with a share of the prize pool. Other highly-placed entrants usually also receive some of the winnings (for example, the 10 most successful entrants). Paid tournaments, which may only cost a few dollars to enter, can have very large prize pools. Often, these contain more than just cash as trading platforms compete for attention. For instance, early in 2021 FBS set the record for the biggest trading tournament prize with a prize pool worth $1.2 million, featuring a Mercedes-Benz, 1kg bar of gold and $300,000 in cash. The size of the potential winnings is generally linked to the initial stake and the number of entrants. Free trading tournaments may reward winners with non-withdrawable trading capital, though some have (smaller) cash prizes.
Many sites run daily trading tournaments with smaller prize pools in addition to high-stakes competitions. For example, the popular binary options site IQ Option runs daily trading competitions with prizes as large as $1,000, as well as big competitions with prizes of up to $100,000.
As a precaution, it is well worth checking the terms and conditions of each trading tournament to see exactly how the prize money is distributed. For instance, winnings may need to be held in an account for a set amount of time before they can be withdrawn. Sometimes, the prize money takes the form of account credit, which can be re-invested but not cashed out.
Practise
Trading tournaments offer both beginners and experienced traders a chance to refine their trading skills. Participants usually have access to a large amount of virtual cash, allowing traders to invest more capital than they ordinarily would. Tournaments also allow entrants to experiment with riskier trades, which can often be a recipe for success. This high-risk style of trading can also be a good way to get a feel for the market. The relatively low entry fees of many tournaments make them a low-stakes environment for performing risky trades.
Platforms that offer a league-based structure, such as OlympTrade, are good for helping traders of all abilities to improve. When players are divided into leagues, beginner traders have a greater chance of being successful. This allows them to build confidence and learn strategies in a less competitive environment. Experienced traders, on the other hand, can stretch themselves by competing against similarly skilled opponents.
Connecting With Other Traders
Trading tournaments can be a chance to learn from other traders. Studying the strategies of winning competitors is a great way to improve your skills. Many clients also relish the opportunity to connect and discuss tactics. Team tournaments also encourage collaborative trading, which can help to develop trading acumen.
What To Look For In Platforms That Offer Trading Tournaments
Prize Value
Trading tournaments have a diverse range of winnings, from daily competitions with prize pools of around $1,000 to million-dollar one-off events. Daily competitions are usually cheaper to enter, costing only a few dollars. Large competitions, on the other hand, may require a deposit of up $100. They are also likely to feature far more competitors.
Some platforms offer in-house benefits to winning competitors. For instance, successful entrants may win trading capital that can be re-invested but not withdrawn. On some sites, like Pocket Option, traders can unlock achievements by participating in tournaments, which are used to buy trading advantages in the market.
Fees
Trading tournaments can be divided into free and paid competitions. The entry fees for paid tournaments vary, often linked to the prize pool available and the duration of the tournament. As a general rule of thumb, daily tournaments with winnings of a few thousand USD usually have low entry fees. Large, longer-running tournaments often require entry fees in the tens of dollars but will likely feature bigger prizes. On the other hand, some tournaments are free to enter, though these may require you to make a minimum deposit into an account with the platform to take part, so check the terms and conditions first.
Many trading tournaments come with a ‘rebuy’ option, allowing entrants to reset their account balance for a fee. Traders should exercise caution when using rebuys and take care not to invest more than they can afford.
Format & Assets
Trading tournaments can take many different forms. One factor to consider is the length of the tournament, which can last from a day up to a year. Longer contests, lasting for more than a month, may require entrants to invest significantly more cash. In addition, some trading platforms organise competitors into leagues comprising traders of similar abilities. Other platforms run team competitions, allowing groups of traders to work collaboratively.
Many trading tournaments provide entrants with an equal amount of virtual capital to invest. This format is more common in daily tournaments. Alternatively, some sites simply distribute prizes to the most profitable traders on their platform in a given period (usually longer than a month). These types of tournaments are usually run as a promotion and the prizes on offer can be huge.
The range of assets available to trade varies from tournament to tournament. Some of the most popular formats include forex, binary options (like the popular IQ Option) and cryptocurrency trading tournaments. Many competitions allow you to trade in the full range of assets available on the platform, which may include traditional instruments like stocks, futures, commodities and shares.
Regulatory Status
All prospective trading tournament participants should be cautious when signing up for trading tournaments with a new platform. To protect your money, always choose a reputable broker or tournament organiser. It is important to check where the company is registered and how long it has been operating. Firms that have been trading for less than a year or two may require more research. In addition, if a firm is registered offshore, it may be subject to lightweight regulation, meaning that you might not be covered legally if something goes wrong. Finally, it is worth reading online reviews of the company to weed out potential scams.
Final Word
Trading tournaments can be a good opportunity for both budding and veteran traders to develop their skills, meet other investors and trial new tactics, assets and brokers. There are both free and paid competitions run regularly, though the latter will usually offer larger prize pools, sometimes exceeding £1 million. As always, you should be careful not to spend more than you can afford during trading tournaments, especially on rebuys. Nonetheless, trading tournaments can be a fun and rewarding way to trade.
FAQs
Can I Take Part In Free Trading Tournaments?
Yes, several online platforms run free trading tournaments. These sometimes have cash prizes but contestants may also win in-house benefits like free capital or trading advantages. Free trading tournaments are a low-stakes way of getting experience in the market.
What Are The Biggest Trading Tournament Prizes?
Some trading tournaments have featured prize pools worth over one million USD, including one massive tournament run recently by FBS. The prizes keep growing in value, so keep an eye out!
How Long Do Trading Tournaments Last?
Trading tournaments can last anywhere from one day up to a year.
Are There Forex Trading Tournaments?
Several platforms and brokers run regular forex trading tournaments. Other popular tournament assets include CFDs, binary options and cryptocurrencies.
Are Trading Tournaments Good For Beginners?
Trading tournaments, particularly free or low-fee competitions, can be well suited to novice traders. Tournaments can be a good place to pick up strategies, meet other traders and experiment.