As I have already outlined several times, the world of binary betting is developing and changing very quickly, and whilst there are new companies entering the market all the time, there have already been several that have come and gone, and in some ways is reminiscent of the early days of spread betting. It is also important to realise that unlike spread betting, binary betting is NOT regulated by the Financial Services Authority at present, and therefore is not covered by the various regulations and financial schemes in the event of a company failing. Several of the current binary betting companies are based offshore, and most have a relatively short track record, so it pays to do your research before opening your account. Just like the forex market, you need to do your research carefully before going ahead and depositing your hard earned money, so let’s have a look at the current binary betting companies available.

NADEX

Whilst this company appears at first sight to be an American company, being  based in Chicago, it has in fact much closer links to the UK, as the company is owned by IG Group, so has the backing of a substantial group behind it! The company was originally known as Hedgestreet, and was acquired by the IG Group in 2009, when the name was changed to Nadex which stands for North American Derivatives Exchange. With the expertise of the IG Group behind it, the company offers a very broad and diverse range of products and markets for binary betting, and indeed has the widest portfolio of all the current companies operating in the binary market at present. All the usual markets are available such as indices, commodities, and forex, but in addition to offering the principle commodities such as the oil complex and precious metals, Nadex also provide a wide range of binary bets on the soft commodities, such as corn, soya, and coffee.

To practice your binary betting strategies, the company provide a full demo version of their trading platform which also includes starting capital of $25,000, to help you get started! From a trading perspective, the company provides a unique binary betting system  with all trades placed direct to the market, avoiding the need for any dealer or broker intervention as a result. Direct market access trading removes any possibilities of the company trading against its clients, a common accusation in the spread betting and forex markets, and in addition gives traders the option to see the depth of the market before opening positions. As you would expect from such a large group, the trading and analysis tools are excellent, and provided with  a full streaming news service for timing your market decisions.

It is also interesting to note that the company is regulated by the CFTC and with IG Group regulated by the FSA in London, the company is now breaking into the US markets, which until now had been limited for US traders. Indeed UK spread betting companies have always been unable to tap into the potentially lucrative US markets due to tight regulation on what does, or does not, constitute financial betting, so this may this company may the the first of many to offer binary betting opportunities for US based clients.

Tradesmarter

Tradesmarter is a relatively new binary betting company, based in Cyprus, but with a limited product portfolio at rpresent which will no doubt expand in the future. The company currently offers binary bets on a small number of forex pairs, a handful of UK anbd US stocks, and three commodities, oil, gold and paladium. As with Nadex, a demo platform is available which is browser based.

Optionbit

Another new company to the binary betting market, and like Tradesmarter are based in Cyprus. The product portfolio is wider than Tradesmarter and includes indices, along with forex, a mixture of US stocks and equities, and several of the major commodities which include copper, silver and oil along with gold.You can find all the details for Optionbit here.

So having looked at the dedicated binary betting companies, now let’s look at those spread betting companies in the UK who have added binary betting to their existing platforms.