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Author: Shane McCormick
Money Manager
Shane McCormick

Day Trading Options

If you're looking to enter the trading markets, you could quickly cash in on high profits with day trading, also known as Contract for Difference (CFDs) trading. This type of investment gives you the ability to trade a wide range of asset classes within a single market day for a quick potential return on investment.

Day trading CFDs lets you trade on global markets and offers tax benefits making it a highly profitable opportunity. You can trade in a range of asset types including shares, commodities, cryptocurrencies and many more, plus it is straightforward, so traders of all levels can make money fast.

At Expert Investor, we can help you with your day trading ventures by giving you access to the top brokers so that you don't need to use up valuable time trawling the internet and researching. We have done the hard work and only recommend the best brokers in the market that offer an excellent trading experience.

Top Rated CFD Sites

#1 - Pepperstone: Best Overall

Pepperstone Logo
9.8
Superb
Bonus Up-to $2000 Assets 160+
Min. Trade $1 *Payout % 92.76%
Over 160+ assets to trade now
Global, multiple Tier 1 licences
Award-winning customer support
Same-day withdrawals with no fees
Basic platforms, no extras included
Few benefits to attract the pro’s
Deposit Methods
AMEX Klarna PaySafeCard Skrill
155 visited this site today
Pepperstone Review

Editors Summary

There are many reasons why Pepperstone is an excellent choice for Forex traders looking for a well-rounded experience. Their customer support is good, and they offer a selection of popular platforms. There is a free demo account complete with software to try before you buy. When trading with Pepperstone, you can be confident that with their FCA and ASICS licencing and regulation that your money is in safe hands.

#2 - XM: Best Free Demo

XM Logo
9.3
Excellent
Bonus Up-to $1600 Assets 200+
Min. Trade $1 *Payout % 91.48%
Over 200+ assets to trade now
Faultless record with top licensing
Perfect broker for new traders
Customer support in 24 languages
Bonuses are not withdrawable
Confusing choice of platforms
Deposit Methods
Klarna PayPal PaySafeCard MasterCard
81 visited this site today
XM Review

Editors Summary

XM seem to have the answers to all of your questions, perhaps even the ones you haven't thought of. They are considerate of new and experienced traders and work hard to cater to every trading need. They are licensed by CySEC, MiFID (EU regulators) and the FCA (UK Financial Conduct Authority). If you are looking for an informative, safe and technically advanced broker, then this is a wise choice.

#3 - IC Markets: Best Mobile App

IC Markets Logo
9.1
Very Good
Bonus Up-to $1000 Assets 170+
Min. Trade $1 *Payout % 89.72%
Over 170+ assets to trade now
Established broker, FSA and ASIC
Highly competitive ‘Raw’ accounts
24/7 high-end customer support
More suited for professional traders
Some mobile users report latency
Deposit Methods
AMEX PayPal PaySafeCard MasterCard
33 visited this site today
IC Markets Review

Editors Summary

There is much to like about this broker. While a wise choice for the more discerning trader, due to the selection of platforms, trading charts and tools, it is suitable for all. It could be viewed as busy and harder to use for the new trader because of the amount of information available.

Risk Warning / Ad Disclosure

Risk Warning: The products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never risk money that you cannot afford to lose.

Ad Disclosure: Some of the links that you will find on this website are advertisements for which we do receive financial gain for referring new customers.

What Are Binary Options?

Binary Options

Binary options are a very straightforward investment process, whereby you will receive a profit or loss based on whether or not the asset expires in a profit position and the option is a "yes or no" trade; hence it's name. When the option expires, the asset has to be on the right side of the price to make your profit.

Trading Basics

It really can be as simple as whether the trade price of XYZ asset will be above £22.50 on [xx] date at [xx] time of day. You will trade based on a 'yes' or a 'no' outcome and if you get it correct, you will receive a payout as per the agreement terms of the options contract. Big rewards are possible, so it's easy to see the appeal.

Asset Types

Asset types fall into four main categories: stocks (shares), currencies, commodities (gold, oil, or even coffee or grains) and indices (different markets such as FTSE, CAC, NASDAQ). What you want to trade in may or may not be available depending on the broker that you use, as some brokers only allow trading in particular assets.

The Markets

The binary options markets have evolved and where it was once an over the counter style instrument available only to wealthy investors, it is now and open trade to the public since the Securities and Exchange Commission changed this in 2007 allowing traders from all walks of life to participate.

Where there was once much less choice, options markets offer far more depth today and as we discussed in asset types, you can now trade in a much wider variety of financial assets.

Broker Services

The best brokers want you to come out with a profit, as if you are winning, they are winning. The top brokers will, therefore, give reliable advice on trading strategies and provide quality service to ensure that you are both enjoying and profiting from your ventures.

Many of the best brokers provide material including articles, educational videos and webinars as well as some tools such as automated bots for trading to give you the best chance of success.

Advantages And Risks

Todays Top Traders
Trader Broker Asset Profit

You may be feeling a little overwhelmed if you're new to day trading binary options and the world of trading overall, so it is always important to weigh up the risks. There are many trading methods, but two of the most popular are Forex trading and binary options.

The main benefit of day trading binary options over CFDs/Forex trading is that you know exactly how much you'll gain or lose as this is laid out in the contract. You will be contracted to win a certain set amount if your yes or no outcome is correct. With CFDs, there is no maximum profit or loss and you could potentially lose everything in a single day.

Binary options are also cheaper to start up. You simply open your account, deposit funds and trade a specific set amount every time with no commission payable or setup cost as the broker's cut is calculated and incorporated as a pre-agreed sum on the payout of every trade you win. Forex/CFDs differ as there are costs involved with spreads and commission, which can vary hugely depending on the broker.

If you're new to day trading, options carry less risk, they are less complicated to trade, they are lower in cost and offer quick potential returns. You can also take advantage of trading robots, which are a great way for beginners to get ahead.

Legalities And Regulation

Licensing is often high up on the list of priorities for many traders. You need to know when selecting your broker, that they are a genuine business and that your money is going to be safe. Binary options trading in the US for example, must use a platform that is regulated by the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).

On occasion brokers will use other regulatory agencies, however as most binary options trading occurs outside of the United States much of the market is unregulated. Brokers of binary options that are unregulated do not have to adhere to these specific standards, so there is a potential risk here of fraud committed by a broker.

Today, many brokers seek a license from the central regulators such as the British Financial Conduct Authority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySEC). This gives investors and traders more confidence and is a definite advantage. The essential points to remember are:

  • Binary options can be unregulated in some countries
  • Many brokers now seek regulation to provide security
  • Regulation is an advantage but not always crucial

For more information about the specific legalities and regulation in your country, head over to our country guide that is relevant to you. We would also suggest looking at our broker reviews as these will give you an in-depth guide about the brokers general performance as well as their licensing. We also only recommend reputable brokers with a proven background in safety and security.

The main benefit of day trading binary options over CFDs/Forex trading is that you know exactly how much you'll gain or lose as this is laid out in the contract.

How To Find A Broker

It can be challenging to know which broker to choose if you want to trade online, but that's where Expert Investor come in. Our job is to help you make the right choice and review every broker to provide you with the best binary options brokers, saving you doing all the hard work.

There are now more brokers than ever to choose from, so we give you information and advice so that you know the features to look for, give information on bonuses and demo accounts offered by brokers and show you the impact that good brokers have on your potential profits.

The fact that so much of the market is unregulated is a critical point in finding a broker, but it is essential to remember that regulation in relation to binary options is an advantage but is not necessary.

We rate and review various broker sites to help you make an informed decision and assist you in seeking out the most suitable and reliable broker for you. All of the brokers that we recommend are rated based on a variety of factors reviewed by our experts. You can rest assured that we have vetted many brokers to offer you only the best to give you the most enjoyable trading experience.

Our Review Rating System (More Info)

10% 10% 10% 15% 15% 20% 20% Pie Core
  • Account Types
  • Banking & Payouts
  • Bonuses & Promotions
  • Mobile Trading
  • Trade Types
  • Special Features
  • Customer Support
Expert Reviews

Frequently Asked Questions

FAQ

Is day trading options regulated and safe?

Binary options are often unregulated, but it is safer if you opt for a regulated company that is licensed. Licensed brokers are approved and therefore are more reliable.

Can I trade on my mobile or tablet device?

Yes - most brokers allow you to simply login online or via an app and trade but it does depend on the broker that you use as to whether they offer a trading app.

How do I make deposits and withdrawals?

Most brokers accept major cards and Paypal to deposit funds and withdrawals usually go back to the payment method you used to trade.

Is day trading options hard or confusing?

No, it's straightforward indeed. Have a read of our What are binary options sections to read all about how it works.

How do I start investing with real money?

Many brokers offer demo accounts to allow you to have a go without risking your funds and once you've deposited funds, you can start with real money. There is also sometimes a welcome bonus for joining that you can use to get started.

Top Rated CFD Site

#1 - Pepperstone: Best Overall

Pepperstone Logo
9.8
Superb
Bonus Up-to $2000 Assets 160+
Min. Trade $1 *Payout % 92.76%
Over 160+ assets to trade now
Global, multiple Tier 1 licences
Award-winning customer support
Same-day withdrawals with no fees
Basic platforms, no extras included
Few benefits to attract the pro’s
Deposit Methods
Visa AMEX MasterCard Neteller
153 visited this site today
Pepperstone Review
Risk Warning / Ad Disclosure

Risk Warning: The products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never risk money that you cannot afford to lose.

Ad Disclosure: Some of the links that you will find on this website are advertisements for which we do receive financial gain for referring new customers.

Meet The Author
Shane McCormick
Shane McCormick
Money Manager

Shane’s contributions to the site have proven incredibly popular, and he’s been with us since 2014. Having a background as a Money Manager for five different brokers, three of them household names, it’s clear that Shane has the substance to back up the knowledge he shares.

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