Fixed Time Trading

Author

Jemma Grist

Jemma is an investment writer located in the UK. She covers forex, stocks, and cryptocurrency markets, providing detailed research and in-depth analysis on different brokers and investment trends in the UK and further afield.

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Editor

James Barra

James is a UK-based writer and investor with consultancy experience at some of Britain's largest financial organisations. James authors, edits and fact-checks content for a row of investing websites.

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Updated

Jul 19, 2024

Fixed time trading (FTT) involves speculating whether the price of an asset will rise or fall over a period. You get a payout if your prediction is correct and lose your stake if you’re wrong.

It’s a straightforward short-term trading product, allowing you to trade a range of asset classes, from stocks and forex to commodities and cryptocurrencies without owning the underlying asset.

Note fixed time trading share similarities with binary options and the Financial Conduct Authority (FCA) have expressed “concerns about the inherent risks of these products.”

Methodology

To find the best trading platforms, we:

Choosing A Broker

There are several factors to consider when choosing a broker:

• Trust – Given that you will struggle to find a UK-regulated broker with fixed time trading, it’s essential to consider the firm’s reputation and years in the industry. A trustworthy broker can help protect you from scams, which are unfortunately prevalent in the industry. Dukascopy, for example, is a reputable company, established in 1998 and regulated in the European Union.
• Payouts – Payouts can vary depending on the broker, with up to 98% offered at brands like IQ Cent and Videforex. That said, payouts can vary depending on market conditions and asset class. Cryptos, for example, are highly volatile and typically have lower payouts. It’s also worth checking the minimum deposit since these can vary significantly, from just £5 at Pocket Option to £250 at IQCent.
• Expiry Times – Consider whether you want to place trades over a short or longer horizon. Many brokers, such as CloseOption and Pocket Option offer ultra-short time frames, starting from just 5 to 30 seconds.
• Platform – Look for a user-friendly, reliable platform with a range of tools for technical analysis. A demo account is the best way to test out the platform and practice strategies. Pocket Option, for example, offers an easily accessible demo mode with full access to the platform’s charting package.

Pocket Option – Web Platform

What Is Fixed Time Trading?

Fixed time trades are similar to binary options in that they allow you to predict whether an asset’s price will go up or down within a predetermined period.

Alongside the timeframe, potential profits and losses are also agreed upfront, based on two possible outcomes:

You can see a fixed time trade in action below where I predicted the price of GBP/USD would decline over 5 minutes.

With a $100 stake, my trading platform offered me a 73% return for a correct prediction, which would give me $173 in total ($100 stake + $73 profit).

On this occasion, I was right and my balance was credited with my returns. If I had been incorrect, I would have lost $100.

Jemma Grist

Author

Is Fixed Time Trading Legal In The UK?

The Financial Conduct Authority (FCA) restricted the sale of binary options in 2019 due to the risks of trading such products and the ‘poor conduct of the firms selling them’.

While the FCA has not called out fixed time trading as part of the ban, given they share similar characteristics, the FCA may take a similar stance on these products.

British traders can still access FTT through overseas, weakly regulated firms, but this may mean forfeiting important safeguards.

Notably, you won’t have access to up to £85,000 protection through the Financial Services Compensation Scheme (FSCS) should your brokerage become insolvent.

Tutorial

To open a fixed time trade, there are three steps to follow:

1. Choose an asset – Available markets vary by broker but typically include forex like GBP/USD, commodities like oil, stocks like British American Tobacco and indices like the FTSE 100.
2. Set your parameters – Set your expiry time, typically between 5 seconds and several weeks. You will also need to decide how much to invest, bearing in mind that you can lose the whole value if your prediction is wrong.
3. Make your prediction – Decide whether you think the price will go up or down when the trade expires and confirm your trade. At expiry, you will be notified of your potential profit or loss.

Bottom Line

Fixed time trading is a straightforward way to speculate on the financial markets. With fixed parameters, it’s a popular short-term trading strategy.

However, it’s not without risks. The FCA takes a dim view on these types of trading products and you could lose all the money you invest.

To get started, sign up with a top-rated fixed time trading broker.

FAQ

Article Sources

FCA Bans Binary Options 2019 – Financial Conduct Authority