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 10 offer the best trading tournaments:
#1 - XM
Why We Chose XM
XM is a globally recognized forex and CFD broker with 10+ million clients in 190+ countries. Since 2009, this trusted broker has been known for its low fees on 1000+ instruments. XM is regulated by multiple financial bodies, including the ASIC and CySEC.
"XM is one of the best forex and CFD brokers we have tested. The flexible account types will suit a variety of short-term trading styles while the $5 minimum deposit and smooth sign-up process make it easy to start trading."
- DayTrading Review Team
- Instruments: Forex, Stock CFDs, Turbo Stocks, Indices, Commodities, Precious Metals, Energies, Shares, Crypto, Futures
- Regulator: ASIC, CySEC, DFSA, FSC, FSCA
- Platforms: MT4, MT5
- Minimum Deposit: $5
- Minimum Trade: 0.01 Lots
Pros
- XM continues to deliver diverse and multilingual educational materials and offers a useful live education schedule for its webinars and insights
- The broker offers premium research including market sentiment, fundamental insights and strategy builders
- XM is a hugely respected broker authorized by tier-one regulators
Cons
- There's $5 inactivity fee after only 3 months, though this won't affect active traders
- There is weak regulatory oversight through the global entity
- PayPal deposits are not supported
#2 - 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
- Instruments: Digital Options on Stocks, Indices, Forex, Commodities, Cryptos
- Platforms: Web Platform, Mobile App
- Minimum Deposit: $10
- Minimum Trade: $1
Pros
- Quotex maintains its position as an excellent choice for short-term binary trading with turbo contracts from 5 seconds
- The platform continues to delivers a superb trading environment with strong charting tools for technical traders
- Account funding is straightforward thanks to the wide range of payment methods, zero fees and intuitive cashier portal
Cons
- Customer support has been weak during tests with no live chat and slow response times
- Quotex trails industry leaders when it comes to education and market research
- Despite advertised payouts of up to 98%, testing shows average payouts trail best-in-class broker Pocket Option
#3 - 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
- Instruments: Binary Options, Currencies, Commodities, Stocks, Indices, Cryptos
- Regulator: MISA
- Platforms: Web, MT4, MT5
- Minimum Deposit: $50
- Minimum Trade: $1
Pros
- The MetaTrader platforms offer integrated analysis with helpful technical summaries for short-term traders
- The range of payment methods beats the majority of rivals, providing fast, secure and convenient deposits for traders in most countries
- Well-funded traders who deposit $1000+ can qualify for a 2%+ payout boost, more tradable assets and exclusive perks
Cons
- The maximum binary contract length of 4 hours is restrictive for longer-term trading strategies. Alternatives like Videforex offer binaries up to 1 month
- You need to deposit $1000 to access the extended list of 250+ assets, otherwise just 130+ assets are available
- Pocket Option offers a slimmed down iteration of the MT4 and MT5 that doesn't provide the full charting package for advanced traders
#4 - 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
- Instruments: Binary Options, CFDs, Forex, Indices, Commodities, Crypto
- Regulator: IFMRRC
- Platforms: Online Platform, TradingView
- Minimum Deposit: $250
- Minimum Trade: $0.01
- Leverage: 1:500
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
- The broker offers up to 98% payouts on binary options, which is more than alternatives like Pocket Option, only offering up to 92%
Cons
- The market analysis is very basic with limited technical summaries and insights from analysts
- There's no automated trading support for algo traders
- IQCent trails binary brokers like Quotex with its narrow investment offering of around 100 assets with no stocks
#5 - PrimeXBT
Why We Chose PrimeXBT
PrimeXBT is a multi-asset platform offering highly leveraged trading in forex, indices, commodities and cryptocurrencies. The company launched in 2018 and now has over 1 million users from more than 150 countries. With no minimum deposit, copy trading features and low commissions, the broker remains a popular option among crypto trading novices.
"PrimeXBT is good for beginners looking to trade crypto derivatives among traditional assets like forex and indices. There's also a proprietary copy trading solution for novices looking to learn from more experienced investors. With that said, the lack of regulation means traders will receive limited safeguards."
- DayTrading Review Team
- Instruments: CFDs, Cryptos, Forex, Indices, Commodities, Futures
- Platforms: Own
- Minimum Deposit: $0
- Minimum Trade: 0.01 Lots
- Leverage: 1:1000
Pros
- The broker’s platform and app offer advanced charting features, including 50+ technical indicators, a customizable layout and multiple order types including OCO
- There’s a range of additional trading opportunities on offer, including demo contests and a copy trading solution
- PrimeXBT offers low maker and taker fees coming in at 0.01% and 0.02%, respectively, for crypto futures contracts
Cons
- It’s a shame that there are no popular third-party platforms on offer such as MT4
- The total selection of 110+ assets is far fewer than top competitors, including OKX with 400+
- The lack of reputable regulatory oversight is a security concern, though this is common in the crypto trading industry
#6 - SuperForex
Why We Chose SuperForex
Established in 2013, SuperForex is an offshore CFD and forex broker offering highly leveraged trades on 400+ instruments via the popular MetaTrader 4 platform. The broker has gained clients in over 150 countries and is regulated by the Belize IFSC. With a range of STP/ECN account types, including swap-free, micro and zero spread, this broker continues to suit traders with different styles and setups. SuperForex also offers a range of welcome bonuses and trading contests.
"SuperForex will suit experienced traders looking for high leverage rates and premium membership packages. The broker also continues to stand out for its wide selection of beginner-friendly accounts, although the lack of top-tier regulation is a notable drawback."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Cryptos, Commodities
- Regulator: IFSC
- Platforms: MT4
- Minimum Deposit: $1
- Minimum Trade: 0.01 Lots
- Leverage: 1:2000
Pros
- Various accessible payment methods are supported, including crypto, with zero fees and fast processing times
- There’s a decent range of educational resources including video tutorials, guides and seminars
- The broker offers an impressive range of 12+ account base currencies covering multiple global regions
Cons
- The 0.5-pip minimum spreads in the standard ECN accounts are not as tight as some of the cheapest ECN brokers, such as Pepperstone
- The Belize IFSC is not considered a top-tier regulatory provider, so clients may receive fewer financial safeguards
#7 - IronFX
Why We Chose IronFX
IronFX is a multi-regulated forex and CFD broker founded in 2010. This award-winning firm offers 500+ markets to over 1.5 million clients across 180 countries. Traders can access various account types with competitive pricing on the MT4 platform, as well as 24/5 customer support in 30 languages.
"IronFX remains a good choice for experienced forex traders looking to trade with fixed or floating spreads. The range of 80+ currencies is more than many competitors and there are some excellent forex market research tools on offer."
- DayTrading Review Team
- Instruments: Forex, Indices, Shares, Futures, Commodities, Metals (all CFDs)
- Regulator: CySEC, FCA, FSCA, BMA / Bermuda
- Platforms: MT4, AutoChartist, TradingCentral
- Minimum Deposit: $100
- Minimum Trade: 0.01 Lots
- Leverage: 1:30 (FCA), 1:30 (CySEC), 1:500 (FSCA), 1:1000 (BM)
Pros
- Alongside MT4, the broker continues to offer several additional services, including copy trading, a VPS solution, and PAMM/MAM accounts
- IronFX is an established firm and is regulated by several reputable bodies, including the CySEC, FCA and FSCA
- Fixed and floating spread accounts are available, making IronFX a good choice for both beginners and experienced traders
Cons
- Commissions start from $13.50 per lot in the zero-spread accounts, nearly double the industry average
- It’s a shame that the broker doesn’t offer any additional software such as MT5 or TradingView to give experienced traders more choice
- Compared to the leading brokers, IronFX offers a relatively small selection of share CFDs
#8 - Videforex
Why We Chose 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.
"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%."
- DayTrading Review Team
- Instruments: Binary Options, CFDs, Forex, Indices, Commodities, Crypto
- Platforms: TradingView
- Minimum Deposit: $250
- Minimum Trade: $0.01
- Leverage: 1:500
Pros
- Videforex allows you to enter positions with just ¢0.01
- Traders can earn up to 98% payouts on 100+ assets with the broker’s binary options, which is in line with competing brands like IQCent
- The support times are fast and reliable based on tests - few brokers offer 24/7 multi-lingual video support
Cons
- US clients aren’t accepted due to legal restrictions
- The broker isn’t overseen by a trusted regulatory agency
- No MetaTrader 4 integration
#9 - JustMarkets
Why We Chose JustMarkets
JustMarkets is a multi-asset broker with both CySEC-regulated and offshore branches. Offering ultra-low spreads, copy-trading services, 170+ tradeable instruments and MetaTrader support, JustMarkets has a lot to offer both beginner and experienced traders.
"With some of the most affordable pricing in the game and access to the powerful MT4 and MT5 platforms, JustMarkets is a good choice for any investor."
- DayTrading Review Team
- Instruments: Forex, CFDs, indices, shares, commodities, cryptocurrencies, futures
- Regulator: CySEC, FSA, VFSC
- Platforms: MT4, MT5
- Minimum Deposit: $1
- Minimum Trade: 0.01 Lots
- Leverage: 1:3000
Pros
- Trustworthy and regulated by CySEC
- Fast order executions from 0.01 seconds
- MetaTrader 4 integration
Cons
- Limited availability with clients not accepted from the US, UK, Japan, Germany and other countries
- Non-forex asset list is light with just 65 stocks plus a handful of indices and commodities
#10 - TMGM
Why We Chose TMGM
TMGM is an ASIC-regulated forex and CFD broker with a vast range of tradeable assets covering forex, stock, index, crypto and commodity markets. The account types on offer provide a flexible choice between no commission or zero spreads, with competitive pricing all-round.
"TMGM is a great all-round choice thanks to its huge range of assets, diverse account types and platform choices, plus competitive pricing."
- DayTrading Review Team
- Instruments: CFDs, Stocks, Energies, Indices, Metals, Cryptos, Forex
- Regulator: ASIC, FMA, VFSC
- Platforms: MT4, MT5, TradingView, TradingCentral
- Minimum Deposit: $100
- Minimum Trade: 0.01 Lots
- Leverage: 1:500
Pros
- Free VPS for automated trading
- Good range of rewards and bonuses offered through a points-based loyalty system
- Accommodates new and time-poor traders with copy trading support from HUBx
Cons
- Shares are only available on the IRESS account, and not tradeable via MT4 and MT5
- $30 fee levied monthly on accounts which are inactive for 6 months or have a balance below $500
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 On Trading Tournaments
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.