Binary.com UK Review

Binary.com UK Review

Trade simulated markets 24/7 on SmartTrader and trade on MT5

  • SmartTrader WebTrader
  • 24/7 Trading
  • Volatility Indices
  • £0.35 minimum trade size
  • Rise/Fall
  • Lookbacks
  • Asians
  • £5 minimum deposit
Trade Volatility Indices 24/7 on SmartTrader •  Trade Cryptocurrency CFDs 24/7 on MT5 • Binary.com

Binary.com UK Review

Traders based in the UK can sign up for a Binary.com account. This review examines the features which are available to traders based in the UK. In short, the trader can trade simulated markets on Binary.com's SmartTrader platform and CFDs on other markets on a separate account, which can be opened when the trader signs up for SmartTrader.

How does the trader sign up ?

The trader simply enters their email in the sign up form. They are then taken to the SmartTrader platform where the trader can trade on a demo account. To trade on the live account, the trader needs to deposit a minimum of £5 (the trader can actually trade with this sum, as Binary.com allows for very small trade sizes). Binary.com SmartTrader trading is based around trade types, and the traders needs to be familiar with how they work before trying to trade them. The trader can switch back to the demo account at any time and practice trading, Binary.com Sign-Up.

SmartTrader is Binary.com's user friendly web trader which in the UK offers trading in Volatility Indices. Volatility Indices are Binary.com's propitiatory simulated markets which simulate different kinds of market conditions. Volatility Indices are based around simulated volatility. Volatility is a complex concept but in essence it measures the tendency of the market to move, with the caveat that more volatile markets can move up and down in unpredictable ways.

How are Volatility Indices generated ?

Volatility Indices use random numbers to simulate the behaviour of real markets. The random numbers are generated by a program and Binary.com says it has no way to predict or influence which numbers are generated.

How are Volatility Indices traded ?

Volatility Indices come in two types, Continuous Indices and Daily Reset Indices. The Continuous Indices are the Volatility 10 Index, the Volatility 25 Index, the Volatility 50 Index, the Volatility 75 Index and the Volatility 100 Index. Each increase in number indicates a tendency for greater volatility. Daily Reset Indices come in two types, the Bear Market Index and the Bull Market Index, which as the names suggest simulate Bear (falling) and Bull (rising) markets.

Volatility Indices are traded in different formats or trade types. Trade types create a way to trade a Volatility Index. There is a wide range of trade types available for Volatility Index trading in the UK.

What trade types are available ?

The trade types offered differ depending on whether the Index is a Continuous or a Daily Reset Index and each type may contain different variations on the type. The most trade types are offered for Continuous Indices.

For Continuous Indices the trade types are Up/Down (containing Rise/Fall and Higher/Lower), Touch/No Touch, In/Out (containing Ends Between/Ends Outside and Stays Between/Goes Outside), Asians, Digits (containing Matches/Differs, Even/Odd and Over/Under), Lookbacks (containing High-Close, Close-Low and High-Low), Reset Call/Reset Put, Call Spread/Put Spread and High/Low Ticks.

Daily Reset indices are available with Up/Down, Touch/No Touch, In/Out and Digits.

These formats are not inherently complicated (they are based on speculation on market direction, price barriers and the value of the market) but the best way for the trader to become familiar with them is to open an account, read the explanation of each trade type and then practice trades on the SmartTrader demo account which the trader can use upon singing up (and switch back to whenever they want), Binary.com. However, to give an example this review will look in more detail at Rise/Fall and Higher/Lower, the two trade types under Up/Down.

The Rise/Fall trade type - trade times from 1 tick to 1 year

Rise/Fall is offered for both Continuous and Daily Reset Indices and is a type of Up/Down trade. On SmartTrader, the trader chooses the Volatility Index in the box near the top left of the platform. The trader can choose a start time for the trade from now or a time over the next few days. The trader then sets a Duration (i.e. how long the trade will last from start to finish) or sets an End Time (this capacity to have a range of parameters is a feature of Binary.com and allows the trade to customise their trade).

The minimum duration for Rise/Fall is 1 tick (thus the trade will be over in around 1 second) and the maximum time is 1 year. 1 tick is the shortest duration, and other trade types can have a longer minimum duration. The trader then sets the stake, which is a minimum of £0.35 (hence why the trader can in fact trade with £5). If the trader wants to trade with larger sums, they can trade up to a maximum payout of £50,000.

The trader can then choose to tick a box which says: 'Allows equals' or leave in unticked. This box exists due to the way Rise/Fall works. To place a trade, the trade chooses either Higher or Lower. These boxes show the potential return on the trade if it is successful. Returns on Rise/Fall can exceed 100%. This means that the trader will receive the staked sum plus the percentage of the trade is successful. If the trade is not successful, the amount staked is lost.

If Higher is chosen, then the trader receives the payout if the exit spot is higher than the entry spot. If Lower is chosen, then the payout is received if the exit spot is lower then the entry spot.

But what is the exit and entry posts are the same ? This is where the 'Allows equals' box matters. If the trader leaves this unticked, then the trader will receive the stake back only if there are less than 2 ticks between entry and exit. If they tick it, then the trade can be higher than or equal to in the case of choosing Higher or lower then or equal to in the case of choosing Lower, to be successful.

Higher/Lower - adjustable barriers

The other trade type under Up/Down is Higher/Lower. This trade type has a minimum duration of 5 ticks. Higher/Lower sets a barrier (i.e. a value level) which the trader can adjust. In the case of Higher/Lower, the trader selects Higher or Lower. If Higher is selected, then the exit spot needs to be higher than the barrier. If Lower is selected, the exit spot needs to be lower than the barrier. If the exit spot and the barrier are equal, there is no payout.

A major difference between Rise/Fall and Higher/Lower, though they have some similarities, is the adjustable barrier (i.e. the trader can adjust the barrier offset). This can result in changes upwards or downwards in the payout rate. The maximum payout rate available on the system is 3900% (i.e. a multiple of 39 on the stake). However, the higher the payout rate, the less likely it is projected that the trade will be successful. The trader can also adjust the barrier to reduce the payout rate. Changing the duration of the trade can also alter the payout rate offered. The payout rate on this format can vary greatly, from much less than 100% to much greater.

Payout rates

As can be seen, the return or payout rate for successful trades varies depending on a number of factors, including trade type, barrier levels (if offered) and trade duration. While Rise/Fall can have payout rates of 100%+, other trade types can exceed 1000%. However the greater the potential payout rate, the harder the trade (i.e. the less likely is the expectation that it will be successful). Binary.com

The SmartTrader chart - charting analysis tools

Volatility Indices may be analysed like other markets and a chart is available on SmartTrader, by clicking on the 'Chart' tab. This offers time frames from 1 tick to 1 day, Line, Dot and Spline chart types, and a wide range of technical indicators, including chart recognition with candlestick patterns for a trader to use. If the trader wants to pull out these charts as a full page chart, they can use the WebTrader, which is available from the menu on SmartTrader (under the Trade tab).

What the chart means is that the trader can analyse any of these markets and make trading decisions based on this analysis, rather than simply choosing a direction. The analysis may and can be wrong but at least the trader has used a rationale for making a decision. Binary.com additionally provides SmartCharts, which are more elaborate charts, TradingView charts and an Economic Calendar, all available from the Resources tab on the main menu.

Are there more trading platforms ?

In the UK the trader can also use BinaryBot, which lets the trade build trading robots. These robots are built not by programming but by using a drag and drop 'jigsaw puzzle' building method. In the UK, traders may also use MetaTrader 5.

MetaTrader 5

MetaTrader 5 (MT5) is the successor online trading platform to MetaTrader 4 (MT4). This may be used as a web trader and as a download. There is no minimum deposit requirement for MT5 trading. The trader moves funds from their SmartTrader account to their MT5 account and back. There are restrictions on the MT5 accounts, covering such features as Volatility Indices and trade types. In essence the platform may be used to trade CFD markets. One available feature which may be of interest is the capacity to trade Cryptocurrency CFDs 24/7. To open an MT5 account the trader can first open the SmartTrader account and then apply to open a Financial Account.

Is Binary.com regulated ?

In the EU financial products are offered by Binary Investments (Europe) Ltd with address: W Business Centre, Level 3, Triq Dun Karm, Birkirkara, BKR 9033, Malta, licensed and regulated as a Category 3 Investment Services provider by the Malta Financial Services Authority with licence no. IS/70156.

In the Isle of Man and the UK, Volatility Indices are offered by Binary (IOM) Ltd with address: First Floor, Millennium House, Victoria Road, Douglas, IM2 4RW, Isle of Man, British Isles, licensed and regulated respectively by (1) the Gambling Supervision Commission in the Isle of Man (current licence issued on 31 August 2017) and by (2) the Gambling Commission in the UK with licence reference no: 39172.

As can be seen, trading on Volatility and other Synthetic Indices is classified as a gambling activity for UK traders. Remember that gambling can be addictive – please play responsibly. Traders can find further information at begambleaware.org. Accounts at Binary.com are for 18+ only.

Depositing and withdrawal

In the UK, the trader can deposit by Credit and Debit Cards, Bank Wire Deposit, Klarna, Skrill, Neteller, Rapid Transfer (powered by Skrill), Paysafecard and SEPA (powered by Skrill). To withdraw, the trader clicks on the Withdraw tab from the Cashier page and then clicks on a link in their email. They are then taken to a withdrawal page, where the methods available to them are displayed and they make a request which is then processed.

Summary

For UK traders, Binary.com offers the capacity to trade simulated markets 24/7 on a wide range of trade types, with maximum returns from 100%+ to 1000%+ and with very low minimum trade sizes and a low minimum deposit. Additionally traders may trade CFDs on MT5, including 24/7 trading of Cryptocurrency CFDs.

Why Binary.com ?

Traders who want to trade on a user friendly web trader can find Smart Trader at Binary.com. On this platform, traders can trade simulated market, with trade times as short as 1 tick. Additionally traders who want to trade CFDs on MetaTrader 5 (MT5) including 24/7 trading of Cryptocurrency CFDs can do so at Binary.com. Thus this broker offers a different take on trading, providing ways to trade which may not be supported at other brokers. Binary.com has a very low minimum deposit requirement, but also supports higher volume trading, thus smaller or larger volume traders may use this broker. Furthermore, on the user friendly SmartTrader platform, traders may switch between Live and Virtual (demo) accounts to practice trading and familiarise themselves with the trade types offered by Binary.com.

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