DeFi Binary Options
The rise of decentralized finance, or DeFi, has led to one of the biggest shifts in modern investing, giving traders an opportunity to use a neutral financing system that operates on a peer-to-peer basis without an intermediary body like a bank. Now, with the introduction of DeFi binary options, traders have the chance to make money from one of the most straightforward derivatives without going through a traditional brokerage.
This user guide will explain how DeFi and binary options work together, the benefits of trading DeFi binary options, and tips on how to get started. We have also reviewed and ranked the best binary options brokers and apps that offer DeFi trading.
Top DeFi Binary Options Brokers
Here is a summary of why we recommend these brokers in March 2025:
- Capitalcore - Capitalcore allows traders to speculate on the price movements of just five cryptocurrencies through CFDs. Popular options like Bitcoin (BTC/USD), Ethereum (ETH/USD), and Litecoin (LTC/USD) are available. However, unlike competitors like eToro, you cannot purchase the underlying crypto directly.
- IQCent - IQCent offers 17 crypto pairs through its proprietary terminal, including Bitcoin, Ethereum and Litecoin. Leverage on crypto CFDs is capped at 1:10, whilst binary options payouts vary by token but remain competitive. OTC assets, for example, pay out up to 95%.
- CloseOption - CloseOption traders can access high/low binary options on five major cryptos all paired with USD. Payouts of 40% are available due to digital assets' high market volatility, which compares well with rivals.
- Videforex - Traders can speculate on crypto prices in pairs with USD and CNY through binary options and CFDs. The range of digital currencies is fairly narrow vs alternatives but major tokens like Bitcoin are available.
- Binarium - Trade binary options on three Bitcoin pairs – BTC/USD, BTC/GBP and BTC/EUR – with flexible contract lengths. Simply bet whether the price of the asset will rise or fall.
- Dukascopy - Dukascopy facilitates day trading on popular cryptos like Bitcoin against the US Dollar. You can go long or short with leverage up to 1:5. Unusually, clients of Dukascopy are also protected to the tune of CHF 100'000 in the event of brokerage insolvency.
Capitalcore
"The major selling points of Capitalcore are its high leverage options up to 1:2000 and zero commission or swap fees. However, its weak regulatory oversight from the IFSA and non-existent education place it far behind the top brokers."
Christian Harris, Reviewer
Capitalcore Quick Facts
| Bonus Offer | 40% Deposit Bonus up to $2,500 |
|---|---|
| Minimum Deposit | $10 |
| Payout % | 95% |
| Expiry Times | 1 minute - 1 hour |
| Copy Trading | No |
| Platforms | WebTrader, Pro |
| Instruments | Forex, Metals, Stocks, Cryptos, Futures Indices, Binary Options |
| Coins | BTC, ETH, BCH, XRP, LTC |
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | $45 |
| Crypto Lending | No |
| Crypto Staking | No |
| Regulator | IFSA |
| Account Currencies | USD |
Pros
- Capitalcore is one of the only brokers to charge zero swap fees, which may appeal to Islamic traders looking to comply with Islamic Finance.
- Unlike most brokers, Capitalcore offers an unlimited demo account that takes under 5 minutes to open.
- Capitalcore has added binary options trading on 30+ currency pairs, metals and crypto with one-click trading and payouts up to 95%.
Cons
- Platform support is limited to proprietary software, so there's no integration with the market-leading MetaTrader or cTrader, which offer built-in economic news and support automated trading.
- Capitalcore is not regulated by major financial authorities and has an unproven reputation, raising concerns about the safety of client funds.
- The web platform was inconsistent during testing, with occasional technical glitches that meant the trading platform wouldn’t load.
IQCent
"IQCent will appeal to day traders looking for a straightforward binary options and CFD trading platform with low fees, a range of accounts, and copy trading. Getting started takes less than 1 minute and a $250 deposit. "
Jemma Grist, Reviewer
IQCent Quick Facts
| Bonus Offer | 20% to 200% Deposit Bonus |
|---|---|
| Minimum Deposit | $250 |
| Payout % | 98% |
| Expiry Times | 5 seconds - 1 month |
| Copy Trading | Yes |
| Platforms | Online Platform, TradingView |
| Instruments | Binary Options, CFDs, Forex, Indices, Commodities, Crypto |
| Coins | BTC, ETH, LTC, ETC, DOGE, MATIC, QNT, SOL, XRP, USDT, XMR, BNB |
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | Variable |
| Crypto Lending | No |
| Crypto Staking | No |
| Regulator | IFMRRC |
| Account Currencies | USD, EUR |
Pros
- The proprietary terminal offers TradingView-powered charts which deliver dozens of technical indicators and studies
- The broker's 24/7 customer support is fast and reliable, responding within 1 minute during tests
- Keen traders can take part in trading contests with cash prizes
Cons
- There's no automated trading support for algo traders
- IQCent charges a punitive $10 monthly inactivity fee if you fail to place at least 1 trade per month
- The broker is not overseen by a respected regulator, though this is common among binary options firms
CloseOption
"CloseOption is a good pick for traders seeking a user-friendly binary options platform with high payouts and joining bonuses."
CloseOption Quick Facts
| Bonus Offer | $10 Welcome Gift |
|---|---|
| Minimum Deposit | $5 |
| Payout % | 95% |
| Expiry Times | 30 seconds - 1 month |
| Copy Trading | No |
| Platforms | Own |
| Instruments | Binary Options on Forex & Cryptos |
| Coins | BTC, BCH, ETH, LTC, XBT |
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | No fee - payouts approx. 40% (Copper) |
| Crypto Lending | No |
| Crypto Staking | No |
| Regulator | National Bank of Georgia |
| Account Currencies | USD |
Pros
- New traders can get started with a $5 minimum deposit
- Multiple global payment methods are available
- Free demo account
Cons
- Clients need to deposit $50,000+ to qualify for the best payouts
- Binary options are only available on fiat and digital currencies
- CloseOption is not regulated by a well-regarded trading authority
Videforex
"Videforex will serve traders looking for a no-frills, easy-to-use platform to speculate on the direction of popular financial markets through binaries. With a sign-up process that takes a matter of minutes and a web-accessible platform, getting started is a breeze. "
Videforex Quick Facts
| Bonus Offer | 20% to 200% Deposit Bonus |
|---|---|
| Minimum Deposit | $250 |
| Payout % | 98% |
| Expiry Times | 5 seconds - 1 month |
| Copy Trading | Yes |
| Platforms | TradingView |
| Instruments | Binary Options, CFDs, Forex, Indices, Commodities, Crypto |
| Coins | BTC, ETH, QUANT, UNI, SOL, BNB, DOGE, XRP, XMR, MATIC, USDT |
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | Floating |
| Crypto Lending | No |
| Crypto Staking | No |
| Account Currencies | USD, EUR, GBP, AUD, RUB |
Pros
- Traders can earn up to 98% payouts on 100+ assets with the broker’s binary options, bringing it in line with competitors like IQCent.
- Videforex is one of the few brokers with 24/7 multilingual video support, providing comprehensive assistance for active traders.
- Videforex regularly runs trading contests, offering practice opportunities and cash prizes to beginners and experienced traders, with position sizes from just ¢0.01.
Cons
- The absence of any educational tools is a serious drawback for newer traders who can find blogs, videos and live trading sessions at category leaders.
- The client terminal needs improvements based on our latest tests, sporting sometimes slow and unresponsive widgets which could dampen the experience for day traders.
- Videforex lacks authorization from a trusted regulator, meaning traders may receive little to zero safeguards like segregated client accounts.
Binarium
"Binarium has been designed with simplicity in mind, featuring a fast, fully digital sign-up process and an intuitive platform and app with 4 chart types and 12 indicators. With binaries spanning 5 minutes to 3 months, it caters to short- and medium-term traders."
Binarium Quick Facts
| Minimum Deposit | $5 |
|---|---|
| Payout % | 80% |
| Copy Trading | No |
| Platforms | Own |
| Instruments | Forex, Stocks, Cryptos |
| Coins | BTC |
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | N/A |
| Crypto Lending | No |
| Crypto Staking | No |
| Account Currencies | USD, EUR, AUD, RUB |
Pros
- Binarium has the best education centre we’ve seen amongst binary options brands, complete with information on core topics like trading basics and account options, plus professional video guides to using the platform.
- Binarium claims to segregate client funds with EU banks, meaning traders’ money should not be misused and providing an important layer of protection, which is especially relevant given its offshore status.
- The $10,000 demo account, deposit-doubling welcome bonus, smooth sign-up, and 24/7 support make for an attractive onboarding experience.
Cons
- Binarium has some way to go to match the investment offering of binary firms like Quotex, with a particularly weak selection of around 20 currencies and 3 cryptocurrencies.
- Payouts of up to 80% are on the low side of binary options platforms based on our evaluations, which may deter traders looking for the possible best returns, though you can get back up to 15% of losing trades.
- Despite being operational since 2012, Binarium is an unregulated broker with limited transparency on its website, raising safety concerns and potentially putting your capital at risk.
Dukascopy
"If you’re an experienced trader, Dukascopy provides the tools you need: JForex for algorithmic strategies, competitive spreads from 0.1 pips, leverage up to 1:200, and the peace of mind of using a Swiss-regulated bank and broker."
Dukascopy Quick Facts
| Bonus Offer | 10% Equity Bonus |
|---|---|
| Minimum Deposit | $100 |
| Payout % | 90% |
| Expiry Times | 3 minutes - 1 day |
| Copy Trading | No |
| Platforms | JForex, MT4, MT5 |
| Instruments | CFDs, Forex, Stocks, Indices, Commodities, Crypto, Bonds, Binary Options |
| Coins | ADA, AVE, BAT, BCH, BTC, CMP, DSH, ENJ, EOS, ETH, LNK, LTC, MAT, MKR, TRX, UNI, XLM, YFI |
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | 0.1 |
| Crypto Lending | No |
| Crypto Staking | No |
| Regulator | FINMA, JFSA, FCMC |
| Account Currencies | USD, EUR, GBP, CAD, AUD, NZD, JPY, ZAR, TRY, SEK, NOK, DKK, CHF, HKD, SGD, PLN, CZK, AED, SAR, HUF, MXN |
Pros
- Dukascopy features some of the best research we’ve seen, even a professional TV studio in Geneva covering financial news, market analysis, and daily insights from professionals.
- Dukascopy is regulated by the Swiss Financial Market Supervisory Authority (FINMA) as both a broker and a bank, ensuring top-tier financial security and adherence to strict standards.
- Dukascopy offers tight spreads starting from 0.1 pips, leverage up to 1:200 (depending on the jurisdiction), and volume-based commissions that reward high-frequency traders.
Cons
- Some account types, such as the MT4/MT5 accounts, require a higher minimum deposit of $1,000, which may not be ideal for traders with smaller budgets.
- Dukascopy's withdrawal fees are higher than most competitors we’ve tested, particularly for bank wire transfers, which may deter traders who require frequent access to their funds.
- While JForex is feature-rich, it has a steep learning curve, making it less suitable for beginner traders who might prefer simpler platforms.
DeFi Binary Options 101
DeFi binary options are a type of derivative that asks the trader a simple, yes/no question: Will a digital asset’s price rise or fall by the end of the contract? If the trader answers this question correctly, they will make money, if not, they will lose it. This makes binary options in DeFi straightforward to understand and use, hence their popularity with traders.
When a trader opens a DeFI binary options contract with an online broker or platform, they will choose the asset/token they wish to trade, the amount of money they wish to put down as a stake, and the contract’s expiry time. Finally, they will decide whether they are long on the asset, and predict that it will increase in value, or if they are short and think its price will fall.
The payout for binary options in DeFi varies among brokers and among different assets, but it is common to find trading platforms offering payouts equivalent to 90% of the contract price. This means that a successful trader with a $100 binary options contract will receive the $100 stake back plus $90 in profit. An unsuccessful trader loses their entire $100 stake.
Understanding DeFi
Decentralized finance, also known as DeFi, is a financial system that works through blockchain technology allowing for faster transactions and giving widespread access to financial products and instruments on a peer-to-peer basis without going through any middlemen.
Banks, brokerages and other financial institutions which are regulated by bodies such as the US regulator, the SEC, all exist in a system of centralized finance. The state-sanctioned regulatory bodies are responsible for making the rules by which these systems must abide. In centralized finance, the third party facilitates payment to a user but often charges some kind of fee for using the service, such as a credit card fee.
Decentralized finance, on the other hand, makes use of exchanges between peers and takes out the function of the intermediary body. This frees users from transaction fees and gives them a secure and fast way to transfer money using an internet connection. Therefore, centralized finance is no longer necessary because, in theory, anyone in the world can make a transaction using DeFi with increased control and anonymity.
DeFi use cases leverage the same blockchain technology brought to widespread attention by cryptocurrencies like Bitcoin. A blockchain is a secure ledger of transactions that can be verified by peers, not a third-party financial system. When two parties verify a transaction, the current block is encrypted and a new one is made with information about the previous one. By far the most commonly used blockchain for DeFi transactions is Ethereum. As a result, many of the top DeFi binary options brokers offer contracts on Ether.
DeFi Assets For Binary Options Trading
The assets available for DeFi binary options trading depend on the platform that you choose. Primarily, DeFi is used for trading digital currencies, so tokens like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Matic (MATIC), Uniswap (UNI), and Litecoin (LTC) are available. In addition, some brokers offer stablecoins like Tether (USDT), plus NFTs. Firms may also provide access to Play to Earn (P2E) services, which also use DeFi infrastructure.
It’s also worth pointing out that the best DeFi binary options brokers offer a wide range of tradable assets from digital assets to traditional stocks, commodities or forex.
Benefits Of DeFi Binary Options
Binary options in DeFi are easy to understand for beginner traders. Users simply need to decide if the price of BTC, for example, will rise or fall over a set period. Investors can also speculate on popular digital assets across a range of expiries, from 60-second turbos to binaries that span several days.
Another primary advantage of decentralized finance is that it offers lower fees than traditional banking solutions. The aim of DeFi is to utilize a peer-to-peer model to allow everyone to make transactions at a minimal cost, if any.
The transaction times are also faster using DeFi binary options platforms than many other payment solutions, which is an advantage to traders looking to deposit and withdraw funds via digital currencies instantly.
Getting Started With DeFi Binary Options
Find A Platform
When choosing where to trade DeFi binary options, there are a few top brokers that will give you the best experience. In many ways, this makes the process of choosing a platform easier than with traditional trading instruments – these brands stand out against the rest and therefore are the best options to choose from.
The top firms also offer automated bots on MT4, books, courses and calculators, strategy hacks, staking, definitions of key DeFi terms, and more. It is also worth checking the brand’s downloadable platform provides rich market data, free withdrawals, user-friendly graphs and indicators, plus the latest digital asset news and insights, along with trading ideas and signals.
Note, DeFi binary options brokers often don’t have strict KYC requirements at the sign-up and login stage.
Develop A Strategy
The next important step is to develop an OTC 1-minute or 5-minutes volume strategy, for example, for trading DeFi binary options. This particular aspect of DeFi binary options is, for the most part, the same as traditional binary options, so take the time to educate yourself and build a strategy that works for you.
We recommend practicing binary options strategies on a demo account before you use real funds to minimize potential losses.
How To Start
Getting started with DeFi binary options is simple. Begin by checking multiple websites for different DeFi exchanges and see what they offer and what kinds of contracts will be available to you in the USA, Australia or Germany, for example. Once you choose from a list of brokers, you can set up an account and enter your details.
Once signed up, you need to deposit funds, often in the Ethereum network’s native token Ether (ETH), and once this has been done you can begin buying binaries.
Ensure you have enough ETH or digital currency in your account to make trades and remember you need to have the entire stake available for each trade. Once this is done, you can begin trading DeFi binary options.
Tips For Trading DeFi Binaries
Below are some of our top tips for trading binary options in DeFi:
- Avoid scams and frauds by ensuring that you are using a trustworthy and reputable platform; this will help to keep your funds safe. You can check local regulations and requirements or look at a watchdog’s blacklist to steer clear of problem companies with insecure wallets or misleading no deposit bonuses.
- Never invest more than you can afford to lose, and always ensure that you are aware of the risks before you begin trading.
- Ensure you study the digital asset’s charts and historical performance before you open a contract, so that you have a better idea of how your trade will unfold without finding out when it’s too late.
- There is always risk involved in making investments, so ensure you make educated decisions based on an informed DeFi binary options trading strategy.
Are DeFi Binary Options Good Or Bad?
Binary options on DeFi are one of the most flexible trading choices out there and can bring large yields to switched-on traders. While trading derivatives on DeFi is still relatively new, it does pose advantages to traders such as faster transaction times and fewer intermediary fees.
The idea behind decentralized finance is to create a more secure environment for individuals and traders, but this doesn’t mean you shouldn’t be cautious – be wary of where you are placing your funds and always do your research beforehand. Use our list of the best DeFi binary options brokers and trading platforms to get started.
FAQs
What Are DeFi Binary Options?
DeFi binary options involve a contract between a trader and a broker in which a bet is placed on whether the price of a digital asset, such as Bitcoin, will rise or fall. Payouts typically range from 70% to 95%+. The top DeFi binary options websites offer opportunities on leading digital currencies by market cap, plus stablecoins.
Are DeFi Binary Options Only Available On Crypto?
While DeFi binary options are mostly known for trading on cryptocurrencies as underlying assets, the sector is growing all the time, and NFTs and Play-to-Earn (P2E) solutions may become available. Halal trading products are also available, along with binaries that can be used to hedge an index, for example.
Can You Make Money From DeFi Binary Options?
Yes, decentralized binary trading works on the same principles as standard trading. Therefore, you can make money from trading binary options in the same way, but often with reduced fees and faster transaction times. For crypto investors, DeFi binaries allow traders to finance and execute trades on digital assets using tokens like Bitcoin.
Are DeFi Binary Options Safe?
Trading DeFi binaries comes with the same security questions as traditional binary options trading, in that you need to ensure you are investing through a platform that is reliable and trustworthy. It is also important to use a tried and tested strategy, alongside an effective risk and money management system.