Our IG Binary Options review favoured the online broker due to their:
- Trading platform, ideal for those on the go
- Wide range of markets offered
- Ability for traders to limit their risks
- Strong Customer Service
What Types Of Binary Markets Can You Trade With IG
a) Forex Trading Markets
IG is a leading forex broker so it’s only logical that they offer binary option trading on currency trading. In fact our IG Binary Options Review compared to CMC Markets and Saxo Capital Markets found that this area of their offering was their strongest with the widest range of markets and best access to liquidity pools. Below shows the major currency pairings offered and the binary types applicable for each currency trading pairing. These are available on the best forex trading platform discussed in our IG review.
There is the ability to trade with binaries across US crude oil, Gold and Silver. This is another key strength found in our IG Binary Options Review which isn’t featured with other brokers.
c) Market Sensitive Announcements
A really exciting feature is the ability to not just trade on US Jobless Claims and US Non-Farm Payrolls but other key market sensitive events. An example was the EU Referendum in July and even the next USA president.
The final area offered and another strength found in our IG Binary Options Review centres around market indices. This includes the Australia 200 with the ability to trade across range of trading options such as Ladder, Up/Down, One-Tough and Tunnel. Below shows the Digital 100s indices that can be traded. There are also forex, commodities and futures digital 100s that can be traded.
IG Binary Options Trading Platform
Our 2019 review found that IG had the best for trading platform. The platform has two components:
1) Web Based Platform
IG have created a new binary ladder option within their web based platform. The focus is to provide an interface to ensure traders make informed trades with the tools they need. This includes options such as trading directing from charts and the ability to view, open and close binary option positions easily.
Multiple positions can also be closed in one action through a new strike menu. Additionally, the ability to prepare trades before they become active is also now available.
Below shows an example of the web based platform including the streaming charts which allows traders to see positions relative to the underlying market movement. It also shows how long before the expiry times (to the second) and running profit or loss based as the markets move.
To trade using the web based trading platform you simply have to follow the three steps shown below.
The web based platform is also considered one of the best forex trading platforms for beginner forex traders. CFDs (including Australian shares) can also be traded within the forex platform.
2) Mobile Based Apps
Each of IG trading platform mobile apps as discussed in our comparison with Axitrader and Plus500 is designed to provide traders an excellent Binary trading experience. Our IG review vs IC Markets provided the apps the maximum score as it worked across all major table and mobile devices. This even includes windows phone and tablet devices which are available from the windows store.
Naturally, all apps are free to download and update regularly to maximise the trading experience. All apps are 256-bit SSL encryption secure and provide analysis, market data and even live prices without the requirement to log in.
What Is Binary Option Trading?
Binary option trading focuses on a question that results in a yes or no answer. An example could be “will an indices do ‘x’ before the binary expires? If this occurs prior to when expiry time, you win. Otherwise you lose.
Traders us a ladder when predicting if a market will increase or decrease by a set amount but are unsure of which direction. For example, “at expiry, will the market be lower or higher that a set level?”
This is similar to a ladder except you will determine if you predict the market will go up or down by a set level. For example, “at expiry, will the market be lower or higher a set level?”
3) One Touch
This pays out the trader if right at any moment of time before the end date. For example, “before expiry, will the market reach a specific price?”
This combines both the direction as well as the elvel that a trader prectics a market will finish at. For example, “before expiry, will the market close within a specified limited range?”
This focuses on volatility within period. For example, “before expiry, what will be the markets high and low point?”
This is similar to hi-lo except the trader believes the market will remain fat and won’t have much volatility. For example “before expiry, will the market stay within a pre-defined low and high”.
IG Review – What Real Trading Should Be All About
IG is a trading name of IG Markets Ltd, a company registered in England and Wales under number 04008957. The registered address is at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd is authorised and regulated by the Financial Conduct Authority under number 195355. In 1974 IG Index was first established, to enable clients to trade gold as an index rather than the commodity itself. The company became IG Group in 2000 and is now one of UK’s top 200 firms, listed on the FTSE 250.
Binary trading was introduced by IG in 2003 and as we know, it took other brokers 5 more years before they could offer the product so IG is already a bunch of steps ahead of others. In fact, it is not fair to compare IG with regular, mainstream binary options brokers because IG is in a league of its own. If you like to see smiling girls and hip guys welcoming you on the home page, limousines and 100% bonuses, risk free trades and “insured” trading, this is not the place for you. This is the real world, where trading involves risk, you don’t receive gifts from your broker and if you lose a trade – guess what – you lose money. Nobody will lie to you telling you will receive back money that you’ve lost in the market. What a joke…
So you won’t get any of the above, but what will you get? Well, for one thing, you are not trading against the house because IG actually passes on your order and they have no interest to steal your money. They make money from spreads and commissions. Oh and speaking of spreads… have you ever wondered why your regular broker doesn’t charge a spread? How do they make money? They bet against you. If you lose, they win and if you win, they will find a way to keep your money. But enough about others, let’s talk about IG: their binary options are not the “classic” ones. It still works in a binary way, but options are capped at 0 and 100. You win it, you get 100, you lose it you get zero. How much money 100 and 0 mean depends on the size of your trade but more on that in a separate article (maybe link here when it’s posted?). To open the trade you will have to pay a premium. If you win, your profit will be 100 minus the premium and if you lose, you lose the premium. Like I said, there will be another article that will explain with more detail how to trade options with IG.
If you are serious about trading – and I am not talking about just binary options – then you should choose a serious partner and IG is in my opinion that partner. They are a professional brokerage house and they’ve been doing their job since ’74. I wasn’t even born then so I can imagine they must know what they’re doing. It is not the best brokerage for a newbie but it is probably the best binary brokerage for a trader.
Is IG a Scam?
We like to be fair towards all the brokers we review (although some of them are not fair to traders) so we have this section on all our reviews. However, in this case it is almost useless because I don’t know how a brokerage with roots back in 1974 and regulated by the FCA can be a scam. But I could be wrong so I recommend you to personally review this broker before you invest. In case you’re based in the USA, choose NADEX.
Check out more Recommended Binary Options Brokers
People will always find something to complain even when it comes to the best broker and IG is no exception. They have quite a few complaints over the internet but most of these are about slippage and delayed entries, a fact which makes me believe that their Forex offerings are not as stellar. However, I couldn’t find any complaints regarding the binary options section of IG.
IG doesn’t offer first deposit bonuses, risk free trading and they won’t give you tickets to concerts if you deposit more money. As I said, this is the real world.
Their preferred way of sending money to you is by credit card (currently they can’t make payments to MasterCards issued outside the UK) and this usually takes about three days after processing the request. Wire transfers of more than 100 pounds are free (15 pound fee applies if you withdraw less than 100) and are made the same day. The same day! That’s something, isn’t it?
Charts, professionalism, same day withdrawals, hundreds of markets to trade on, binaries on bitcoin, extensive market insights from professional analysts, video market insights four (4) times a day (via IG Live) and they even offer a tool that allows you to keep a Trading Diary online. Compared to the classic binary options brokers, I think everything is an extra with IG.
User Friendly 14/20
The website is not very user friendly for the simple reason that it is very complex and has a ton of features so you will spend a lot of time going through all of them. The platform can be a bit difficult to get used to, but again this is because it offers a lot of features and this shouldn’t be regarded as a bad thing. More than 20 languages available.
Number of assets and expiry times 18/20
They offer literally hundreds of markets on which to trade on and even give you the possibility to trade Binary Specials, which means you can trade on the outcome of the US Non-Farm Payrolls and other major economic events (predict if the actual number will be above/below a certain number predetermined by them). The expiry times range from 5 minutes to monthly but you can also trade Sprint Markets, which is a fast form of binaries, similar to 60 seconds or Turbo Options. Sprint Markets expiry is limited to 60 seconds, 2 minutes and 5 minutes (and 20 minutes for some markets).
Commissions, Support and Effective return 18/20
There are no commissions for opening an account (which is normal for any broker) but you will pay an inactivity fee of 12 pounds on the first of each month for accounts that have been inactive for 2 years or more. Support is pretty straightforward and you will not get any cheap sales tactics like: “we have a special offer, just for you, just today” (note that some versions of the website do not offer live chat – depending on region). The effective return is based on market volatility, time before the option expires, distance between market price and strike price, trend and other factors. The price (premium) you have to pay for the option is of course known before you open the trade and the difference between that and 100 is your payout. Learn how to Trade Binary Options with IG – coming soon.
Deposit, Payment and Bonus 17/20
Deposits can be made via debit cards (UK Visa, Switch/Maestro, Solo, Electron cards, and Irish Laser cards. Non-UK debit cards are charged a 1.5% fee.) and credit cards (Visa and MasterCard – 1.5% fee) and wire transfers. IG does not accept payment cards where the holder is a US resident. As a special feature, clients can add funds via special iPhone and Android apps. Withdrawals are made via debit/credit cards (they do not make payments to MasterCard issued outside the UK) and wire transfers. IG does not offer a Bonus.
Website Extras 17/20
Considering the “Extras” section that you’ve read in the main part of this review, I believe IG markets definitely deserves 20 points out of 20. However for the typical binary options trader those extras might be hard to understand and adapt to.
Binary Options (known by IG as just ‘options’) are a high risk product based on the ‘double or nothing’ logical. It’s critical to fully understand the risks involved with options or other IG products such as forex trading. It’s also worth exploring the risk management tools that may be available through the broker.