How to Start Trading Binary Options

This simple step-by-step guide will help you start trading binary options if you're still a beginner. Follow the instructions on this page and read our tips carefully, so that you can save your time, money, and nerves.

What This Guide Has to Offer

By following a few simple steps, you will be able to safely start trading binary options. In just 30 or 40 minutes, we'll guide you through the following:

  •  Calculating a deposit and investment amount in line with your budget
  •  Finding the best binary options broker that suits your needs
  •  Singing up with a broker and funding your account
  •  Learning to trade through a simple and effective strategy
  •  Providing you with the basics of risk management
  •  Supplying you with useful tools for future trading

Ready to start? We'll need only 30 or 40 minutes.

Calculate Your Deposit and Investment Amount

How much are you going to invest? Enter your initial deposit amount, and we will calculate your investment based on the risk management rules.

Progress: 10%

Expert's Tip

  • Start trading with an amount you are not afraid to lose. This will be your initial investment amount.
  • Follow the risk management rules from the start. This will ensure you won't blow up your account in terms of hours.
  • Do not trust scam brokers promising any 'magical systems' and guaranteeing profits at no risk. This is just scam that will result in a total loss of your account balance.

Calculate Your Deposit and Investment Amount

Select the currency of your deposit, specify the deposit amount, set your risk percentage, and you will get your investment amount.


USD
%
Moderate
USD
Calculate your investment amount based on your deposit

If you've figured out how much you want to deposit, but do not know what will be your investment amount per trade, follow these steps:

  • Specify your deposit currency
  • Enter your deposit amount
  • Select your risk appetite
  • Click the Calculate button
Calculate your deposit amount based on your investment

In case you know how much you will invest per trade, but cannot figure out the deposit amount you're comfortable with, follows these steps:

  • Specify your deposit currency
  • Select your risk appetite
  • Modify the deposit amount until you find your desirable investment amount
  • Click the Calculate button
What Is Risk Appetite

Your risk appetite percentage means how much you risk per trade in relation to your deposit. As per the golden money management rule, you should not risk more than 2% of your account balance per trade. We recommend you sticking to this rule at all times.



Click here to learn more about risk management

Open an Account with a Reliable Broker

Sign up and open a trading account with one of our recommended brokers. We've selected these brokers based on your initial deposit amount and your investment per trade.

Progress: 30%

Expert's Tip

  • Open an account only with a regulated broker operating in the market for a long time.
  • Always supply your up to date personal details and primary email address. This will allow you to avoid any future issues related to verifying your account.
  • Explore the broker's trading platform and sign up for any related webinars.

Choose a Broker to Open an Account with

These brokers have minimum deposit and investment amount that are in line with your financial needs.

Your Deposit

USD 1,000

Your Investment Amount

USD 20

Risk Percentage

2%

Risk Appetite

Moderate

Choose a Recommended* Broker to Open an Account


Broker Year Country Regulator Deposit Deal Demo Signals Link
2015 United Kingdom CROFR $100 $5
2016 Marshall Islands IFMRRC $50 $5
2014 Cyprus CROFR $10 $1
2014 Seychelles FINACOM $10 $1
1999 Malta MFSA $5 $0.5
* All brokers recommended on this website are regulated by financial authorities of the respective countries

FAQs

Why is regulation so important?

A regulated broker must be compliant with the highest industry standards. This means your funds will be protected under the law of the country your binary options broker is registered in. Furthermore, such brokers will be required to satisfy all liabilities to their traders in the event of default or in case of similar issues. Last but not least, if any such issues arise, you can contact the broker's regulator to resolve such issues.

Make Your Initial Deposit and Open a Demo Account

Fund your trading account and contact your broker to request a demo account. This will help you learn how the platform works.

Progress: 50%

Expert's Tip

  • Use your credit card as your deposit method, if that's an option. You will be withdrawing your earnings to this card later.
  • Once you've made a deposit, request a demo account. This is vital!
  • Verify your account by providing the required documents once you've made your initial deposit.

Please Note:

  • Use your credit card as your deposit method. This will allow you to avoid any future issues related to withdrawals.
  • Request a demo account once you've made your deposit. This will help you to explore the platform and test your trading strategy.
  • Make sure to verify your account in the first few days after making your deposit. You will not be able to withdraw your profits before you verify your account.
  • The broker may offer you a welcome bonus of 25% to 100% after you make your initial deposit. See the FAQs section to learn more about bonuses.
  • Ask your account manager to enroll you for all upcoming webinars. You must learn how to trade before you can invest with confidence.
  • Do not start trading until you've tested your strategy. Do not invest at random without confirming signals.

FAQs

Why do you recommend depositing via credit card?

This is important, as if you've got any issues or disputes with the broker, it will be so much easier to get your cash refunded in case you deposited via credit card than if you funded your account with an e-wallet, such as Skrill or Neteller.

Start Trading Using a Simple Strategy

MA+MACD is a simple and yet powerful strategy. Learn how it works and start trading with confidence. (Don't forget the risk management rules, though!)

Progress: 90%

4.1 How to Trade with the MA+MACD Strategy

Open Tradingview.com to start trading with the MA+MACD Strategy.


Open Tradingview.com >
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Select the asset you want to trade.

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Switch to 1 minute time frame.

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4.2 Setting up the Moving Average (MA) and MACD

Add the following technical indicators:

  • A MACD with default settings
  • Add a MA with a period of 15
  • Add a MA with a period of 7

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Here is how your chart will look like when you apply the indicators:

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4.3 How to Get Trading Signals Based on the MA+MACD Strategy

CALL Signal

  1. The MA's cross bottom up
  2. The MACD lines cross bottom-up.

Once you've got these signals, wait for the current candle to close and buy a CALL option.

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PUT Signal

  1. The MA's cross from top to bottom
  2. The MACD lines cross from top to bottom

Once you've got these signals, wait for the current candle to close and buy a PUT option.

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4.4 Assets, Option Types, and Expiry Times for MA+MACD

This strategy works well with volatile instruments, such as Forex currency pairs. Trade regular binary options with 10 or 15-minute expiry times. Make sure to download useful trading tools, such as the risk management rules and a PDF with your strategy and your trading plan.

Your Trading Plan

  • Assets: EUR/USD, other FX pairs
  • Option Type: Binary option
  • Expiry times: 10min, 15min
  • Investment amount: USD20
  • Risk Appetite: Moderate

10 Simple Rules for Successful Trading

  1. Explore the trading platform. Make a few trades on a demo account and remember what you do when you're trading.
  2. Start trading with a strategy on a demo account and make 10 to15 trades with the investment you've got in your trading plan.
  3. Don't stick to demo trading too much. Once you switch to a live account, it'll feel totally different.
  4. Make at least 50 trades using your strategy, following the trading signals strictly. Turn on your mind and turn off your emotions.
  5. Always control your risk appetite. The best risk per trade ratio is 2%. Don't risk too much; otherwise, you may blow up your account.
  6. If you've got a losing streak, re-calculate the size of your investment amount accordingly to keep it 2% of the remaining account balance. Use the risk management table for reference.
  7. Keep your trader's diary. Put down your thoughts on why you have entered a trade. Analyze your actions and results.
  8. Do not switch from one strategy to another too quickly. Master your skills with a single strategy, this will be more effective.
  9. If you're still having a losing streak, stop trading for a while and try to understand what you are doing wrong. Do not try to win all your losses back in one go!
  10. Do not look for 'magical' trading systems. They just don't exist. Do not use robots, leave this to professionals.

Download Your Trading Tools

5,800+
5,130+
4,570

May Your Investments Always Return Huge Profits!