Unlike spot forex brokers that are extremely flexible with their minimum deposit condition, binary options brokers are still mostly composed by those with relatively high deposits. Despite that condition, a few of them has managed to offer low deposits that are affordable for new traders.

As compared with spot forex trading, binary options is relatively new to financial market players. If many forex brokers have been campaigning with minimum deposit as low as 1 USD for quite some time already, most binary options brokers are still firm with their high deposits. A common binary broker usually has minimum deposit no lower than 100 USD.

For newcomers, that kind of standard can be quite intimidating, especially if they want to stay careful and provident in their early steps of binary options trading. Not only for beginners, low deposit is also important for other traders, including the experienced ones. Why is that so?

Low deposit apparently serves as a solution for those who likes to open several accounts in some different brokers. Trading in new brokers should always be done with cautious manner no matter how good are their impressions. We may get informations about some brokers' qualities, but to prove them we need to have our own experience. To conduct that kind of experiment we certainly need to be careful with the deposit amount and what deposit methods the broker offers, as we don't want to lose a large sum of money just for trying new things out that may or may not be working for us.

So, where can we start looking for binary options brokers with low deposit if most of them are known to have high deposit? Even if it's still quite uncommon, there are indeed binary options brokers that offer low minimum deposit. Here are five examples of them:

 

Binary.com

Not only known for developing its own proprietary platform, Binary.com is also recognized as a friendly broker for beginners in binary options trading. How so? To begin with, the broker's platform provides various types of options, ranging from high/low to in/out. There is also specific part in the platform that allows you to set your own price target. Flexible trading environment is indeed one of Binary.com's advantage, but the broker also highlights the importance of providing newbies with affordable condition, particularly in the area of low initial deposit.

As a matter of fact, Binary.com adjusted its minimum deposit limit to only 5 USD, allowing every kind of traders, pro and newbies, to open binary options account with real minimum deposit. Compared with the prevailing deposit amount in other binary brokers, Binary.com's deposit surely offers a strikingly different condition. Also, you can place options with investment starting from 1 USD. This broker then wrapped up all those advantageous offers with the availability of free demo account, a facility that is still rare among binary options brokers.

In addition, funding and withdrawal methods are also comparatively more variable in this binary broker. You can choose wire transfer, credit card, e-payment choices that range from Skrill and WebMoney to FasaPay, to facilitate your deposit and withdrawal needs.

IMPORTANT UPDATE: As of May 2020, Binary.com has rebranded to Deriv

 

IQ Option

Founded in 2013, IQ Option has been thriving to provide the most affordable binary trading condition for beginners and alike. Apart from providing free demo account with 1,000 USD virtual balance, this binary broker allows you to register with deposit starting from only 10 USD. It is then balanced with the condition for minimum capital that reaches as low as 1 USD per position. Hence, new traders can both deposit and trade in small size for the purpose of minimizing trading risks.

Like any other binary broker, IQ Option has its own proprietary platform which is quite attractive. However, this broker has a downside; option types and asset choices are fairly limited. Still, IQ Option has considerable variation of payment methods, that include Wire Transfer, Credit Card, Skrill, WebMoney, and FasaPay.

 

Lion Binary Options

One of Hirose UK's main purpose to develop Lion Binary Options is to attract its existing customers' interest in trying binary options trading. The attempt proved successful as more and more new accounts created in Lion Binary Options has contributed to more than 50 percent of the company's turnover. The accomplishment may be helped by a specific feature created by Hirose UK in their MT4 that allows traders to transfer their balance to Lion Binary's platform.

Aside of that reason, low deposit may just be the other factor that attract new clients to Lion Binary Options. As a regulated binary options broker that is also owned by FCA-licensed company, Lion Binary's minimum deposit is unexpectedly set at 20 USD. It is also completed with free demo account and chance to place options with investment amount starting from only 1 USD per option. For payment methods, Lion Binary Options provides a quite various ion that consists of Wire Transfer, Credit Card, Skrill, and Neteller.

 

MarketsWorld

Another binary broker offering affordable initial deposit is MarketsWorld. Opening an account in this broker requires initial deposit starting from 10 USD. Similar with other brokers that have been mentioned before in this article, minimum investment is also set from 1 USD. One of MarketsWorld's distinctive feature is highlighted by its propietary platform. However, there is only one option type available in this broker's platform, which is the binary basic of high/low options.

In spite of limited option type, MarketsWorld is capable of offering traders' favorite but rare facility in binary options; free demo account. Besides, method choices for deposit and withdrawal in this broker vary from Wire Transfer, Credit Card, to e-payments like Neteller and UKash.

 

There is a certain understanding inferred from explanations above; all of the low deposit brokers are recognizably accommodative for new traders and users, not only in term of minimum deposit, but also minimum investment, demo account, and wide range of payment methods. Thus, it is quite safe to say that low deposit binary options brokers are generally beginner-friendly. To help you understand the aforementioned brokers' conditions, here is the comparison table:

Broker Minimum Deposit Minimum Trade Payment Methods Trading Platform Free Demo Account
binarycom

5 USD

 1 USD Wire transfer, Kartu kredit, OK Pay, FasaPay, Perfect Money, Skrill, Neteller, WebMoney, UKash, Paysafe, Qiwi Proprietary Yes
iq 10 USD 1 USD Wire transfer, Kartu kredit, Skrill, CashU, Neteller, WebMoney, Neteller, Poli Payments Proprietary Yes
lion 20 USD 1 USD Wire transfer, Kartu kredit, Transfer dari akun MT4, Skrill, Neteller, FasaPay Proprietary Yes
marketsworld 10 USD 1 USD Wire transfer, Kartu kredit, Neteller, Switch, Solo Proprietary Yes



Stay True To Trading Plan

At glance, low deposit appears to be full of advantages for newbies or traders who can't afford to lose big amount of money in binary options trading. Clearly, it also contributes a part in your effort to keep trading risks minimum. But there is a negative side that is sometimes overlooked by most traders; the risk of overtrading. It particularly affects those with big profit expectation, without realizing that small deposit means small returns.

Low deposit actually may increase to big profits, but only if you apply the right money management and have the patience, as it is almost impossible to expect small trading size to give high return immediately. Even if it does, there is no guarantee that you can continually earn the same big profit in the long run. Thus, manage your trading plan and stay true to it. Following your own plan is an effective way to minimize emotional interference, hence limiting the risk of overtrading.

 

Bottom Line

Opening binary options account is not necessarily expensive. Although still unusual, low deposit brokers for binary options do exist. Interestingly, low deposit is usually accompanied by other newbie-frendly conditions, like small minimum investment, free demo account, and various payment methods. One thing to pay attention to when you trade binary options with small deposit is, don't expect for big profits in a short time. Instead, make your own trading plan and stay true to it.