Author: Jacob Bailey
Market Analyst
Jacob Bailey

Binary Options Contests

Trading Tournaments

Tournaments offer big cash prizes to be won and they don't all cost a fortune to enter either.

Trading contests are entered into with the goal of beating all of the other players and walking away with a cash prize. They run for varying lengths of time and can be a great way to test how good you really are against some of the best traders in the game. There are also many that are free to enter or have a low entry fee.

In this article, you will learn:

  • What a binary trading tournament is
  • The full requirements for taking part
  • Where to find safe and legit contests

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Risk Warning / Ad Disclosure

Risk Warning: The trading 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 trade 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 from referring new customers.

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Choosing a Tournament

Entering tournaments and contests carry just as much risk, if not more, as trading itself and caution should be taken when investing your money in binary options trading. Now you can't eradicate the risk completely but there are measures that you can take to ensure that you have a greater chance of success.

Use a Licensed Broker

Selecting a broker that is licensed and regulated will ensure that they are operating under appropriate guidelines. Any kind of investing whether it's for a contest or for normal options trading, should be undertaken with the right company. You don't want to end up choosing a broker that doesn't play by the rules and losing your money before you start.

Recognise Your Ability

You need to consider how good a trader you actually are. You may think you are really good but how well do you know those that you are going to be playing against? The chances are you don't and whilst you may choose your broker well, you can't choose your opponents. Don't go in too high too early with a false sense of security.

Know Your Own Limits

Consider that even when you are winning the low stake tournaments, that those who are investing larger sums do so because they can either afford to or because they are used to winning. Although tournaments have only been around for a few years there are those with plenty of experience under their belt that make a living from this.

Try a Demo Contest First

A demo contest is a great introduction into the world of contests and offers the chance to win free money. Yes, while you are competing with virtual cash, the rewards are real cash! You get some valuable binary options trading experience and you have a chance to win one of many cash prizes.

Once you have competed in a few demo or lower risk tournaments then you might want to consider looking for bigger challenges but be cautious and increase slowly so that you can learn from any mistakes you might make as you go.

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Why Use Tournaments

Not unlike a poker tournament, binary options tournaments are becoming increasingly popular. In short you choose a broker, pick the tournament you wish to participate in and enter to bid against others who are also competing for the cash prize or prizes that are on offer.

Now prizes may be a one off prize or a pool of funds with several cash prizes available. The higher the stake the bigger the returns and there are tournaments just like big money Vegas poker tournaments where the more serious traders like to play. Of course the bigger the tournament the bigger the prize. As with all types of binary options trading it is important to enter these tournaments with all of the facts available to you and the knowledge that, just like trading itself, you could lose your money.

Some brokers actually hold weekly trading contests that don't need to be entered, the criteria is that anyone trading with a minimum deposit of so much and a trading volume of x amount is automatically entered. At the end of the week the most successful trader wins a cash prize which is then deposited straight into their trading account. Whilst traders don't select to enter this contest it is a good way to see how you are ranking against other traders should you wish to get into tournaments further down the line. It is also a nice way to top up your options trading account.

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How to Enter a Contest

It is fairly straight forward to enter a binary options tournament that you are selecting to enter as opposed to an automatic entry to a broker's weekly contest. First of all you need to select the tournament for you. You may want to start off with a small entry or a free entry tournament which usually have prize funds of around $100. This will give you a chance to see how you fair against other traders and whether it is for you before you start committing to larger investments.

There are all sorts of tournaments available ranging from low prizes to some pretty serious cash sums. A good example of a tournament is one where there are a selection of prizes which could amount to a total prize fund of $1,000 dollars. In this case it may be split into the following:

  • 1st place - $500
  • 2nd place - $200
  • 3rd place - $100
  • 4th place - $50
  • 5th - 10th place - $25 each

As long as there are sufficient funds in your account (even if you are opening a new one) anyone can participate. Once you have decided to join the tournament you simply need to click the "join tournament" button. You then trade on the live account and watch how you are ranking against others in the contest. Be aware that you cannot enter a tournament with a demo account or if you don't have sufficient funds.

Tournaments are fairly new to the binary options arena, having become popular in 2014.

Selecting a Reliable Broker

If you haven't yet chosen your broker or you want to choose a new broker that offers tournaments because yours doesn't, then you have come to the right place. We have researched all of the brokers available and put together our reviews and recommendations based on the facts and our extensive knowledge. Our team are all experienced traders who know what they are looking for when it comes to a good broker so each one is vetted and investigated before we put our name to it.

Our tournament selection is based on a number of factors including a brokers regulation and licensing. We also look at ease of use of the platform both on desktop and mobile, how good their customer service is and what their incentives and bonuses are like. We then make our recommendations to you based on a good foundation and a confidence that we only offer the best.

The best brokers we recommend all have varying strengths and there isn't a one size fits all. We strongly recommend deciding what is important to you when researching your broker so that your decision can be based on the criteria that suits you. It may be that you want a straightforward trading experience or that you aren't so worried about that but you prefer a good bonus or reward structure. By selecting the right broker in the first instance your trading experience will be much more successful and enjoyable in the long run.

Risk Warning / Ad Disclosure

Risk Warning: The trading 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 trade 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 from referring new customers.

Frequently Asked Questions

Tournaments FAQ

Are binary options tournaments free to enter?

There are some that offer free entry and some that require a fee. For the larger contests you will be expected to pay. The free tournaments are a great way to experience a tournament.

How large are the prizes offered for winning?

It depends on the size and level of tournament. There are those with a first prize of $20,000 and there are those with a $1,000 cash pool that is split between the top participants.

Do big name brokers offer these contests?

Yes, America's largest broker actually holds a "World Championship Binary Options Tournament". Some brokers offer weekly contests that can be entered by default just by a trader's history.

Can new traders enter and compete together?

Yes, new traders can enter binary tournaments even if you have never traded on the site before. As long as you have sufficient funds in your account you will be able to enter the tournament.

How long does a binary options contest last?

Contests can last anything from an hour to a month. Some brokers offer a weekly contest that is simply available to anyone with a set amount in their account or a set turnover.

Meet The Author
Jacob Bailey
Jacob Bailey
Market Analyst

Jacob has been an author for Binary Options Expert since our launch in 2012. He has over 40 years’ experience in the financial sector and has held a variety of positions within financial services corporations and venture capitalist organisations. Learn more.

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