Contests And Tournaments
You can win big cash prizes in tournaments, and most of them won't cost you a fortune to enter.
The goal of entering trading contests is to beat all of the other contestants and walk away with a big cash prize. They run for varying lengths of time and can be a great way to test how good you perform against some of the best traders in the game. There are also many that are free to enter including contests from top brokers such as IQ Option, Olymp Trade and ExpertOption.
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
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, but there are measures that you can employ 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. Choose a trustworthy company when undertaking any investing whether it's into a contest or general options trading. 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 are. You may think you are terrific but how well do you know those that you are going to be playing? The chances are you don't, and while you may choose your broker well, you can't select 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 more substantial sums do so because they can either afford to or because they are frequently 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 an excellent introduction to the world of competitions 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 demos or lower risk tournaments, then you might want to consider looking for more significant challenges but be cautious and incrementally increase so that you can learn from any mistakes you might make as you go.
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.
Winnings 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 experienced traders like to compete. Of course the more significant 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 automatically enter you into weekly trading contests; the criteria is that anyone trading with a minimum deposit of so much and a trading volume of x amount qualifies. At the end of the week, the most successful trader wins a cash prize which is then deposited straight into their trading account. While traders don't select to enter this contest it is an excellent way to see how you are ranking against other traders should you wish to get into tournaments further down the line. It is also an incredibly good way to top up your options trading account.
How to Enter a Contest
It is relatively straight forward to enter a binary options tournament that you are selecting to register as opposed to automatic entry to a broker's weekly contest. First of all, you need to choose the tournament for you. You may want to start with a small entry or a free entry tournament which usually have prize funds of around $100. Beginning in a measured way gives you a chance to see how you fare against other traders and whether it is for you before you start committing to more substantial 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 is a selection of prizes which could amount to a total prize fund of 1,000 dollars. In this example it is divided into the following portions:
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 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 relatively 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.
We use factors including a brokers regulatory and licensing status to select tournaments for you. We also look at ease of use of the platform both on desktop and mobile, how excellent their customer service is and their offerings concerning incentives and bonuses. We then make our recommendations to you based on a good foundation and 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 before researching your broker so that you can select criteria that suits your needs and make an educated decision. It may be that you want a straightforward trading experience or that you aren't so worried about that, but you prefer an excellent 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.
Frequently Asked Questions
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 competition.
How large are the prizes offered for winning?
It depends on the size and level of the tournament. There are those with the first prize of $20,000, and there are those that split a $1,000 cash pool between the top participants.
Do big name brokers offer these contests?
Yes, America's largest broker 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 game that is available to anyone with a set amount in their account or a fixed turnover.
Jacob has been an author for us since our launch in 2012. He has over forty years’ experience in the financial sector and has held a variety of positions within financial services corporations and venture capitalist organisations.