Is Binary Options Auto Trading Really Making Any Difference -Binoption

Best Binary Options Brokers: 2020 Ranking
  • Binarium
    Binarium

    Best Choice! The leader in our ranking!
    Perfect for beginners!
    Free Demo Acc + Free Trading Education!

  • Binomo
    Binomo

    Good choice for experienced traders!

Contents

Welcome To
Autobinaryrobots.com!

Your Home of Automated and Profitable Binary Options Robots.

Over the years, a lot of changes have occurred in the trading world which have helped make everything much easier for institutions and individual investors. It seems that binary options are always evolving. The introduction of innovations are frequently being presented to traders, such as automatic binary options trading, where robots are the ones that are actually conducting the trading while the trader gets to lay back and enjoy the profits.

Top Rated Binary Options Robots

Robot

Average
Win Rate

Beginner
Friendly

SOFTWARE
WIN RATE
Beginner
Friendly
Super Simple Bot
BinaryRobot365
Option Robot
Binary Option Robot
Binary Auto Trader

What Exactly Is Automated
Binary Options Trading?

For those of you who are not fully aware, automated binary options trading (also referred to as algorithmic trading) is what is binary options autotradingthe use of platforms, which are of electronic nature, in order to enter trading orders with an algorithm. This type of platform is able to execute pre-programmed trading instructions whose variables might include initiation of an order by a robot that is controlled by human, price, or timing. Automated binary option trading is utilized a lot, to divide large trades into several smaller trades to be able to manage market risk and impact, by mutual funds, pension funds, investment banks, and other institutional traders. You can also check the latest news on Cryptocurrency Investments, Crypto/Bitcoin Scams and Forex Reviews.

Automated Binary Options Robot

If we take a look at the most popular tools that have been presented on the market for binary options in the last couple of years, the trading robot definitely stands tall. The robot trading in binary options is a new trading tool that has become very successful on the market. This tool serves both for Forex and for the purchase and sales of shares.

Automatic Trades

After it was obvious that the binary trading’s popularity would not fade, a lot people decided to apply the principles of algorithmic trading to binary options, because of this, binary options robots were established. They act like software programs that place automatic trades on behalf of traders.

Simple To Utilize

The way it works is pretty simple. You download the robot you want, and according to the requirement you set, it will execute trades on your behalf. The requirements you specify will be paired with binary trading signals and market insight that are built into the software.

Fully Adjustable

The robots we recommend only execute a trade if it believes there will be a turn that is based on the technical data that is built into the system’s algorithm. Even though they are robots, you can manually adjust them, as they are human intervention proofed. The robot only starts to trade binary options on its own once the parameters have been established and
the program has been launched.

Auto Binary Robots

AutoBinaryRobots.com has the best selection of binary option robot auto trading software programs that are currently being the talk of the town for the numerous of positive reviews and 5-star ratings that they have received ever since they were introduced on the market. We are always on the lookout to bringing you the best binary options robots recommendations so that all of your investments can have positive outcomes. The robots that we recommend are considered breakthroughs on the market for binary options. For an advanced trader, one of the biggest benefits of these robots is that they can eliminate or significantly reduce the amount of time needed to perform technical analysis. When it comes to new binary options traders that have not yet mastered the task of adequately reading graphs and charts, binary option robot auto trading softwares can help them a lot.

There is no doubt that the market offers many investment opportunities, but in order to receive a good return on the capital you opt to invest, you must know how to invest adequately and maintain control of operations. A successful investor devotes many hours to their investments. It is best to hunt for the best opportunities and even anticipate events that can incur in losses.

Analyze the Market Every Chance You Get

The Goal Should Be to Win at All Times on the Market

Not Enough Time to Be on Top of the Market? No Problem!

Just Specify Parameters

It Will Act According to Your Wishes

  • Easiness when customizing the desired configuration
  • One of the strengths of these robots is that they can work for you, you just have to configure so that they can make the appropriate transactions at all times. (There are some investors who have stated that these robots are so easy to use that even a teenager would have no problem conducting investments on it that would result in positive outcomes.)
  • The software can be fully programmed.
  • Operates 24 hours without interruption
  • A robot never stops and can be programmed to trade in the foreign exchange market.

Possible Downfall The perfect setting does not exist, according to market conditions and investor needs, the robot must be customized with specific parameters to act in a certain way. The standard configuration does not fit all circumstances. Therefore, a robot will always need human hand for reconfigurations. From Time to Time, Check Up on Your Robot There are a lot of investors who believe that a binary options robot is like a human and knows what is best for the investor; although this is somewhat true because it does work in your favor, not against you, investors still have to check how everything is going. Unfortunately, we are still not living in the year 2150. Maybe then, if you make it, we will have a binary options auto trading software that will be able to automatically adjust itself by reading your mind by simply using some form of telepathy. Okay, I know we are going overboard with this comment, but you get the idea. A robot needs you to check up on him from time to time.

Popularity of Robotic Binary
Options Trading Is Still on the Rise

Automated trading in binary options has been growing in popularity during this year and many traders want to know binary options robot popularityhow to compare different alternatives. If you are learning about automated binary options trading, the simplest definition is that it is an trading style that uses algorithms to execute binary options. Auto-trading systems use algorithms to look for trends in the behavior of a financial asset, including significant events and historical fluctuations. Once the binary options robot recognizes a pattern and identifies that the event is likely to occur again under similar conditions, it runs executes the trade without the need for human intervention.

Take Advantage Now

A lot of the robots that we recommend are pioneers in automated binary options trading. The algorithm automatically take advantage of binary options autotrading softwares analyzes the markets platform to determine the direction of change for you to identify the best way to make an investment. The systems of these robots tell the traders what underlying assets are better to select in future investments. Besides promising big profits, the platforms are easy to use and some of them allow users to open a free account to start investing immediately. Free registration may change in the future, so if you are thinking of opening your account at one of these platforms, it is best to register early to take advantage of this feature.

Top Rated Binary Options Robots

Robot

Average
Win Rate

Beginner
Friendly

SOFTWARE
WIN RATE
Beginner
Friendly
Super Simple Bot
BinaryRobot365
Option Robot
Binary Option Robot
Binary Auto Trader
Robots Have Been Tested

All the robots that we mention on autobinaryrobots.com have been tested so that you don’t waste your time on automated binary options trading robots that are not worth your precious time. The fees of the robots vary (majority of them are free anyway) but that doesn’t mean that some are better than others. The only difference among them is their features, but a lot of them do what they were designed to do, which is to make you profit and thus help you become successful in your own right on the market.

Best Binary Options Brokers: 2020 Ranking
  • Binarium
    Binarium

    Best Choice! The leader in our ranking!
    Perfect for beginners!
    Free Demo Acc + Free Trading Education!

  • Binomo
    Binomo

    Good choice for experienced traders!

First Class Operation

Countless of individuals from around the globe have already put these binary options robots to the test and have been pleased with the results that they have attained from utilizing them. They have been so pleased that they have kept on using them and have referred them to their friends who are also investing on the market. These binary options robots have not only been utilized by individuals investors, but they have also been utilized by institutions. They are as first class as it gets.

Designed By Experts in the Market Field

The binary options robots mentioned on autobinaryrobots.com were carefully designed by experts in the market field who know everything that there is to know on how to be successful in a short period of time on the market. These experts know that time is very valuable, so they made sure to design software that gets straight to the point and that is very easy to utilize.

Easy Operating Structures

There are a couple of robots that are out there that have received mixed reviews and ratings due to their lack of features and for their difficult operating structure. The binary option robot auto trading software programs that we recommend are currently on the best-selling lists due to their easy structure, which helps those individuals who are new in the market field succeed in great measure, and for the features that just make the whole trading experience much more pleasant.

Determine the Parameters

The unique tning aoout the robots that we recommend is the different features that they contain. They have language options (recognizing the growth of investment in binary options around the world). The platform of these robots offer investors a wide range of assets across the global market. Since the robots are running the investment on your part based on historical data in the algorithm, the platform helps users to invest in assets that they would not choose without this information. The robots are accessible 24 hours a day so you can invest where it’s most convenient for you. All you have to do is determine the parameters for the robot and it will execute the trade on your behalf.

Improving Profitability Can Easily Be a Piece of Cake

The robots on this online site provide an excellent framework for investing in automatic binary options, it provides investors with a simple and efficient system while offering a wide range of global assets, so that investors can improve their profitability using this type of software auto-trading.

Being a Newbie Doesn’t Mean You Have to Walk Your Way

  • Up minis day and age. technology is ai full speed. You literally don’i nave co walk yourself up on me ladder little by little anymore, not even when it comes to investing on the market You can get down 10 business at one shot with any of the binary options auto-trading softwares mentioned on our site. A Binary Options Robot Can Increase Your Self-Confidence ll can definitely be a little intimidating to invest on the market for the very first time, as you are new to everything and aren’i quite sure if you are conducting the proper steps, no matter if you are receiving advice from people who are or who have invested in the past on the market, it is just something thai you won’t feel 100% confident in until you try it, except if you opt to have the help ofa automated binary options robot. Let Yourself Be Guided from A to Z Yes, a binary option robot can make everything much more easier, even if you are a newbie in the game, as it can guide you from A to Z if you choose one that is credible, such as the ones that autobinaryrobots.com recommends. Nobody’s Success Is Based on Pure Luck if you think it is pure luck that there are some individuals who are able to trade successfully while others don’t seem to reach step one on the ladder, this is completely false, it is all about the tools that they opt to utilize. Nobody has time to sit in front ofa screen all day. If you meet somebody who is successful trading on the market, you can rest assured that that person has the help ofa binary option robot. Success doesn’t come out of nowhere. Thankfully, nowadays, success on the market can come easily thanks to the technology that has come our way.As the months go by. binary options auto-trading softwares keep becoming more innovative.
  • This means that just because you purchase a binary options robot that is the one that you should always utilize. Go ahead and use it for a couple of months and really take full advantage of it, but never forget to keep visiting autobinaryrobots.com for new robot integrations, as we are always on the lookout for anything new that is occurring with binary robots on the market. Don’t Be a Conformist Conforming long-term with the robot that you have is the perfect recipe for failure just like everything else in this life. You always have to be aware of the robots that are out there in order to better your trading as much as possible. Don’t Waste Your time The number one goal of autobinaryrobots.com is to keep you well-aware of the robots that can make a grand difference in your life. We don’t waste time in recommending robots that will more than likely fail you in performance. The Hard Work Has Been Done for You We are becoming well-known on the Internet forgoing the extra mile so that visitors like you don’t have to. Ad: Scamwarning.xyz. With Auto Binary Robots, you don’t have to spend hours researching about which robots are worth your time of the day. We have done the hard work for you. Get the Facts Everything that we state about each automated binary options robot is based on facts. You see. we are not like other online robot sites that based their recommendations on just opinions; we really get to the root of every robot that has been recently introduced so that we can describe, in detail, its function, lump start on the Market We at Auto Binary Robots want to see you succeed with the robots we recommend. Anyone you choose can really help you jump-start on the market.

Are You an Expert?

Just like if you were a novice, as an expert, you can. too. benefit greatly from any of these robots. Since they are the latest and the best right now, they can help you with your winning streak on the market. Give Robots a Shot if You Haven’t Done So Already If you are an expert, it means that you have been doing what you’re doing for a couple of years now. If you have never utilized a robot and have become successful due to really being aware of everything that is happening on the market 24/7, it is time to change that, like NOW! No Binary Options Robot Is Made Equal Even though these robots conduct the same function, they are not made equal. They vary from each other. We invite you to analyze their details so that you can make the adequate choice that goes hand in hand to your current status. Valforex Reviews. Try More than One Binary Options Robot Since you are already an expert and have a lot of experience under your belt, we suggest that you try more than one robot. If you have already tried binary options robots in the past and have been dissatisfied with their performance, you can rest assured that you won’t go through that experience ever again, with any robot you choose from this online site. Being an Expert Has its Pros Being expert can really come in handy when you are going to configure the program, as you don’t have to waste anytime reading a guide if you want to really make very detailed specifications. This can definitely make you enjoy automated binary options trading even more than before.

5 Tips to Trade Binary Options

5 tips to invest in binary options Worldwide, investors have embraced the simplicity and potential profits that involves in investing in binary options. Whether you have been doing binary investments since they began in 2008 or you area novice investor, it is always good to learn more tips on how to get the most out of your investments. Binary investments offer high profit potential for the most successful investors are those individuals who are committed to continually learn about ways to improve their investment strategy binary. Human Intervention Is No Longer Required Many investors have started using automatic binary softwares to help them with their strategy binary options and to improve their performance over time. Automatic investment in binary options involve the use of binary software investments to execute the investments. These systems use algorithms that look for patterns in the behavior of a financial asset. Once the robot recognizes and identifies a pattern that is likely to happen again, runs an investment without the need for human intervention. To give investors a greater chance of investing successfully bring these 5 tips to read to learn more about ways to maximize a successful outcome of investment:

Tip # 1: Monitor the markets on a regular basis

If you really want to be a successful trader in binary options, you need to take the time to learn more about chosen markets and financial assets. The markets are constantly changing and financial news and information are always available online, which helps traders identify trends for their investments. This will help them identify the best binary options signals for their investments. Even if an investor uses an automatic software to trade binary options, it remains important to monitor the markets so you can adjust the software with the best parameters.

Tip # 4: Determine parameters Auto-trading

When an investor starts using an automated system, he/she needs to determine the parameters for the system, such as the selection of financial assets, time, and price, investors should analyze how they apply their knowledge of the markets when they are adjusting these parameters, as this could help the robot to look for trends for that particular asset. Determining the parameters can help investors maintain an element of control and can help maximize the return on their investments.

Tip # 2: Identify the best binary signals

As traders learn more about the markets, they begin to notice trends in the values of financial assets. For example, a trader might notice that the value of X seems to change in value after the announcement of the unemployment rate in the U.S. Traders can use this binary options signal to help them make investments. Similarly, the use of a system of automatic investment can help an investor to see signs. Since an auto-trading system uses sophisticated algorithms, the system checks a wide range of historical data to help the robot to determine whether to execute a trade.

Tip # 5: Monitor and adjust settings accordingly

Although investors are using automated software binary options, they should monitor the success of each investment. This way you can learn if the parameter determined is giving you the best opportunity to improve investment results. If you are not achieving sufficient results with the software, you can adjust the parameters, including different assets in which to invest. There is great flexibility with automatic binary investments. Investors may make changes to these settings at any time, including what assets they would like to invest and preferences for time expired. When investors begin to invest in options through any of the robots that we recommend, it is important to consider these five tips, investors can benefit from larger profits and have many more opportunities for successful investments when they opt to utilize any of the binary option robots that we recommend.

Every binary option robot that we mention has been carefully hand-picked. You can rest assured that only the best robots are put on the table. The binary options robots that are currently available on this online site are being utilized by numerous of people around the globe. There are some individuals who like to hop from one robot to another every couple of months. That is fine. You can certainly do that that if you want, it is always a good idea to get a taste of all the features that are available out there.

Tip # 3: Learn from past investments

The goal of the investment is to profit binary consistently over time, it is important for investors to learn about investments that results in profit, as well as loss, if the investor is able to learn the techniques that have allowed profit improvement, he/she should apply the same techniques in future investments. Similarly, if a technique does not lead to a successful result, investors should try to understand what happened in order to prevent another downfall in future investments. Even if you use a system of automatic investments, investors should continue to use this advice so they can learn the results of their investments. The more information you gather, the better your chances of successful long-term investments will be.

The growing popularity of autotrading

“Many traders worldwide are learning more about the different ways they can invest in binary options. In recent years, the autotrading (or automatic binary options trading) has become very popular with investors and thus many people have opened accounts to use the software for automated trades in binary options that are on autobinaryrobots.com. Since starting in 2008. trading in binary options seem to be evolving all the time and are showing traders new technologies to improve the efficiency and accuracy of their tradess. Automated binary options trading are another example of innovation in this industry and it helps traders to find ways that can improve their trading practices, which in turn improve their investment results.”

A Quick Flashback

As previously mentioned, trading with automatic binary option systems involves the use of electronic platforms to run the trades. These systems use algorithms that look for patterns in the behavior of a financial asset, including time and significant events. Once the binary options robot recognizes and identifies a pattern that is likely to happen again, it executes the trade without the need for human intervention. A trader willing to make use of automated binary options trading, first sets the parameters for the robot, including financial assets in which to invest. Most robots take these custom requirements and compared them with market trends. This helps the robot to know when to run a trade.

Progression Has Taken Place

When auto-trading system began on the market, they were used by large institutional investors while shares were bought and sold in traditional markets. Because institutional investors were handling a large number of mutual funds and needed to win a substantial amount of the investments made during the day, they found out that automatic systems could help them maximize their efficiency. The automatic system also helped them to find more trends as they were able to introduce a lot of historical data on an algorithm that could be manually reviewed by a stock market investor. These robots were developed in a software package for the investment firm and were not available online. As the growing popularity of online investments grew in record numbers, automatic online platforms were developed but only used mainly for forex trading. Thankfully, nowadays, it doesn’t matter who you are, as anybody can take advantage of automated binary options trading robots, no matter the size of their investment portfolio, (Ad: Hair Cheap) which is why more and more people are opting to try them. Anybody can now take advantage of it and get a piece of the pie that not many years ago was only shared among a few. When binary options trading launched in 2008, it immediately attracted many traders because of its simplistic design and its ability to help them gain profitable returns while managing the risk. As binary trading grew in popularity around the world, automatic systems began appearing in binary options and now many traders use them to run their live broker accounts.

Popularity

Lately, binary options traders keep talking about auto-trading and how it is helping to improve their broker account results. For traders who already have some experience, the use of an automatic system allows them to use the built-in algorithm to achieve higher returns by autotrading the signals. For investors who have just begun to trade in binary options, the use of an automated trading platforms can help them identify trends that would be missed by monitoring markets by analyzing binary options trading charts and graphs. In this case, these novice traders can take the information they learn to monitor markets and attach themselves to the trades that the automatic system is running. This can help them learn about the market faster and increase their effectiveness. Using auto-trading systems and robots are becoming the newest and popular trend in the world of binary options trading.

The Advantages of Automated Binary Options Trading

First of all, investments in automatic binary options are growing in popularity because they nelp traders in a lot of different aspects, including in their market analysis. The algorithm of the system can identify trends that are not so obvious to traders when reviewing charts or other information required for an asset investment. By using the automatic system, traders can learn about the trends of financial assets using more sophisticated and advanced investment techniques, making it easier for them at all times. Additionally, using an automated binary options system allows investors to gain a detailed understanding of their times in trades. Because the trade will be executed by the robot, based on the analysis of the system, it will establish the best time to run the investment so that investors can achieve the best profitable results. The fact that the investors determine the parameters before using the system means that traders still have some control over how the trades are run and can add their own knowledge of the markets.

Binary Options Robots: A Convenient
Way to Invest at All Times

Traders have begun to use a automated binary systems in recent years for the simple fact that it is more convenient. Before automated binary robots were available, a trader could only execute a call or put option when he was in front of his computer or during business hours. Now with automatic binary options robots, the investor can determine the parameters in advance and the robot executes the call or put option on their behalf. This allows the trader to expand their opportunities in order to implement various binary options strategies beyond the time that is physically available to run the trades. For these reasons, binary option robot auto trading softwares can give you great opportunities to improve your earnings over time. Contrary to popular belief, this type of software is not boring at all. You can really have a very fun and educational time learning from its function. You’ll get the basics of its function right away, but you will notice how extensive its job is once you realize that is getting everything done for you, which really comes in handy if you are busy the entire day.

Binary Options Day Trading in Russia 2020

Binary options trading hinges on a simple question – will the underlying asset be above or below a certain price at a specified time? If so, you can make substantial profits with one of the most straightforward financial instruments to trade. But what exactly are binary options, and what are their benefits and drawbacks? This page will answer those questions, as well as detailing how to start day trading binary options, including strategies, tips, and regional differences to be aware of. Use the broker top list to compare the best binary brokers for day trading in Russia 2020.

Binary Brokers in Russia

What Are Binary Options?

Firstly, let’s have a look at how it all works. Put simply, binary options are a derivative that can be traded on any instrument or market. They appeal because they are straightforward. You know precisely how much you could win, or lose before you make the trade. No complex maths and calculator is required. This is why they are also known as ‘all or nothing’ trades.

If you anticipate news announcements, quarterly reviews, or global trends, then you may be able to make an accurate determination as to whether the price is going to increase or decline at a certain point in the future, turning a profit.

There is a whole host of derivatives to choose between. You can trade binary options on commodity value, such as aluminium and crude oil. You can opt for a stock price, such as Amazon and Facebook. There are foreign exchange rate options, including all the major and minor pairs. Even cryptocurrencies such as Bitcoin, Ethereum, and Litecoin are on the menu.

A Brief History

If you want to start trading binary options full-time, a detailed understanding of their origins will help. Binary or ‘digital’ options have been around for decades. Originally though, it was only large institutions and the fabulously wealthy that had access. However, 2008 saw the US Securities and Exchange Commission open the floodgates by allowing binary options to be traded through an exchange.

The internet and technology have since given the whole world access to these ‘digital’ options. As it stands, with low barriers to entry for savvy day traders and a simple to understand preposition, the demand for these digital trades will only increase.

Option Types

There are a number of different option types to choose from. The most popular types are listed in the brief glossary below.

  • Up/Down (High/Low) – The most simple and prevalent binary option. Will the price be higher or lower than the current price when the expiry time comes?
  • In/Out (Range or Boundary) – A ‘high’ and ‘low’ figure will be set. You are then making a determination as to whether the price will finish within or outside of these boundaries.
  • Touch/No Touch – Levels will be set that are either higher or lower than the current price. You then enter a position as to whether the price will ‘touch’ these levels between the time of trade and expiry. Payout will come as soon as the touch takes place.
  • Ladder – These are similar to up/down trades. However, instead of using the current price, the ladder will have pre-determined levels that are staggered up or down. These normally demand a substantial price move. The flip side of this is returns will frequently exceed 100%. Although it is worth noting, both sides of a trade are not always available.

Binary options

Expiry Times

Another important component of binary options is expiry times. This is when the trade will end and the point that determines whether you have won or lost. These times can range from 30 seconds and 1 minute (turbos) to a full day (end of day), and even up to a whole year.

As an intraday trader though, you will be more concerned with trading 5 and 30-minute binary options. Opt for binaries with 1 minute expiry times though and you have the ability to make a high number of trades in a single day.

Despite the somewhat negative reputation, the reality is binary options are legal. The majority of companies operate fairly. Opinions have been split because there are some out there that operate scams.

Regulation in certain regions has meant binaries have been withdrawn from the retail market. In the EU for example. But professional traders can still use them. In regions such as India and Australia, binary are legal – but traders should make sure they use a reputable broker, and read our section below on avoiding scams.

Scams & Frauds

The binary reputation has suffered from dishonest marketing and cybercrime. Too many unregulated brokers promise quick cash, whilst operating frauds. Regulators are on the case and this concern should soon be alleviated.

Binaries themselves are perfectly legitimate, but steer clear of ‘instant money’ promises, brokers that cold call, and celebrity endorsements, plus any claims that you can ‘start trading binary options for free’.

So it isn’t a question good or bad, it’s simply a question of being alert to the dangers and knowing what to look out for. If you’re unsure about a broker, ask the question in a live trading room to check they’re properly regulated.

Binary Options Vs CFD Trading

Although in some ways similar, there remain some crucial differences between binary options and CFDs. With CFDs, you have potentially unlimited risk. If the price of the asset moves significantly, the value of the trade can grow very large, very quickly – for better or worse.

Whereas binary options work slightly differently. Whilst you are still investing without owning the asset in question, the gain and loss rate is fixed. With a call option, it doesn’t matter if the price rockets, you retain the same percentage as if it rose by just a couple of pips.

Likewise, if the price sinks to zero, you’ll only lose what you put in. So, to define the difference – with binary options you get fixed risk.

Having said that, just as if it was binary options versus forex trading, you are restrained in your profit potential.

Why Trade Binary Options?

If you want to profit trading binary options, you need to first understand both their pros and cons. You need to make sure binary options will suit your trading style, risk tolerance, and capital requirements.

Advantages

There is a whole host of attractive benefits to trading with binary options. The greatest advantages have been outlined below.

  • Simplicity – Because you are making a determination on only one factor, direction, your bet is straightforward. The price can only go up or down. You also don’t need to concern yourself with when the trade will end, the expiry time takes care of that. Whereas in other markets, you may need a system to limit your losses, such as a stop-loss.
  • Fixed risk – Trade stocks, gold, and crude oil and you’ve got a vast number of factors to contend with, from slippage and margin to news events and price re-quotes. With binaries, your risk is kept to a minimum with far fewer parameters.
  • Trade control – Because you know what you may make or lose before you enter the trade, you have greater control from the start. Trade in stocks, for example, and you have no guarantee that your trade will make the entry price.
  • Profit potential – Compared to other trading, the returns in binaries are extremely attractive. Some brokerages promise payouts of up to 90% on a single trade. If you’re looking to make simple trades with large profit potential, binaries could well be worth a look in.
  • Choice – Rather than being constrained to a specific market, e.g. cryptocurrency or stocks, binary options gift traders the opportunity to trade instruments across virtually all markets, allowing you start currency, indices, and bonds trading if you so wish.
  • Accessibility –In the binary options game, it’s always the best trading hours somewhere on the globe. So, you can login at night, or on the weekends and join the groups of avid traders attempting to turn daily profits. Real-time charts are available for every market so if you’ve got the time you can invest 24 hours a day.

Risks

Whilst there are plenty of reasons to delve into trading on binary options, there remain several downsides worth highlighting:

  • Reduced trading odds – Whilst you can benefit from trades that offer in excess of 80% payouts, these are often when the expiry date is some time away from the trade date. If the odds of your binary trade succeeding are extremely high you may have to make do with reduced payout odds.
  • Limited trading tools – Whilst most brokerages offer advanced charting and analysis capabilities, trading tools for binary traders often fall short of the mark. Fortunately, there are other online sources for these graphs and tools, plus brokers are working swiftly to increase their offerings.
  • Price of losing – Your odds are tilted in favour of losing trades. Approximately for every 70% profit, the corresponding loss of the same trade would result in an 85% loss. This means you need a win percentage of at least 55% to break-even.
  • Risk management – Unlike other markets, brokers often set a trading floor, with minimum accounts a trader needs to enter the market. This means losing capital can happen with ease. Whilst a stocks broker may permit you to open an account with $250, trading micro-lots, most binary brokers won’t allow $50 trades. So, even with $250 in your account, just five trades that don’t go your way could see you sink into the red.

Binary Trading via Mobile App

How Does Trading Binary Options Work?

Trading binary options for beginners is straightforward. Simply follow the steps outlined below.

Step 1 – Find a broker

This is one of the most important decisions you will make. You need a broker that meets all your requirements and who will enhance your trade performance. But with so many options out there, how do you know what to look for?

If you’re high-frequency binary trading each day, the commission fees and costs will quickly rack up. You want to maximise your profits so look for brokers with a competitive and transparent fee structure, and remember, different asset classes pay out different amounts.

Deposit

One point worth investigating is rules around minimum deposits. Whilst some brokers will offer binary options trading with no minimum deposit, many will expect a deposit of close to $50, and some $100. A broker offering low minimum deposits is ideal if you’re strapped for cash. Trading binary with JC and GCI are good choices if you’re looking for low deposits.

Asset-Specific

Some brokers will specialise in certain assets. If you’re set on crude oil, it may be worth finding a broker that’s geared towards those binaries. You may benefit from relevant news feeds and the most prudent option choices available. Trading binary stocks with 212, for example, is ideal for those interested in stocks.

Regulation

With scams out there it’s important you check your broker is properly regulated by the relevant financial body, e.g. FCA, CySec, CFTC. Trading with 247 Binary Options, IQ option, and Binary.com are all safe bets.

Platform

Binary options platforms are your gateway to the market and where you’ll spend many hours a day. There are now many online trading platforms, so, make sure it’s easy to use and offers all the charts, patterns and tools you need to make smart and accurate trade decisions. For example, will you be trading binary options with candlesticks or more obscure charts?

Both Keystone and Nadex offer strong binary options trading platforms, as does MT4. Before you buy, conduct a thorough trading platform comparison and check reviews.

Reliability

Any problem could cost you time, and as an intraday trader, time can cost you serious cash. So, check the broker offers reliable support. Some brokers will offer 24/7 customer support through calls, live chat, and in a number of languages. Binary options trading with Etrade and 24 Option are smart moves if you want top quality support.

Trading apps

A growing number of people use mobile devices and tablets to enhance their trading experience. However, software for trading binary options varies hugely. So, it’s worth checking whether your broker offers cross-platform capabilities. Also, check the charting tools you need will work on your iOS or Android device. Binary options trading with IQ Option, for example, offers fantastic trading apps.

Extras

Many brokers will sweeten the deal with some useful add-ons. Some may offer free trading plans, courses, and lessons. So, find out first if they offer free courses online to enhance your trading performance. Some brokers will also offer free binary trading trials so you can try before you buy.

You could also benefit from trading bonuses, tips, the best strategy and trading signals reviews, plus free, practice demo accounts. Not to mention some brokers allow for binary options trading using Paypal. However, don’t be put off by no binary options trading deposit bonus, these can be a sign of potential scams.

Demo accounts

For newbies, getting to grips with a demo account first is a sensible idea. Funded with simulated money, you can try numerous assets and options. It’s the perfect place to make mistakes and learn before you put real capital on the line. In addition, you’ll find most free binary options demo accounts require no deposit, so you can start practicing whilst you save that initial capital.

There is no universal best broker, it truly depends on your individual needs. Some brokers offer minimum trades of just a couple of pounds, whilst others require hundreds or even thousands. The solution – do your homework first.

For more guidance on making the right choice, see our brokers page.

Step 2 – Choose An Instrument/Market

You can trade binaries in pretty much everything, including stocks, forex, indices, and commodities. You can bet on anything from the price of natural gas, to the stock price of Google. Opt for an asset you have a good understanding of, that offers promising returns.

Step 3 – Decide On An Expiry Time

As a short-term trader, you’ll probably be more interested in 30 seconds, 1 minute and end of day expiry times. You need to balance binary options trading volume with price movement. Whilst the more trades you make means greater profit potential, it’s better to make fewer and more accurate trades. Also, find a time that compliments your trading style.

Step 4 – Decide On Size

In the binary options game, size does matter. The greater your investment the greater the possible profit. On the flip side, remember the entirety of your investment is on the line. You need an effective money management system that will enable you to make sufficient trades whilst still protecting you from blowing all your capital.

Step 5 – Choose An Option

You will have any number of the options outlined above to choose from. Think carefully about how confident you are in your determination. Consider factors that will jeopardise your investment, and select an option that gives you the best chance of succeeding. Don’t automatically select a ladder trade because you want huge returns, consider which options are the relatively safe bets.

Once you’ve made that decision, check and confirm your trade. Then you can sit back and wait for the trade payout.

Demo Video

Below is a video explaining how to trade binary options on the platform of a leading provider:

Strategies

Binary trading strategies will differ from trade to trade. What may work for a ladder option in forex, may prove useless in a range option on gold. Having said that, there are two reasons you must have a strategy.

Firstly, a strategy prevents emotions interfering in trade decisions. Fear, greed, and ambition can all lead to errors. A strategy allows you to focus on the maths and data.

Secondly, a strategy allows you to repeat profitable trade decisions. Once you’ve found out how and why that binary option worked, you can replicate it to create consistent profits.

Building A Strategy

There are two crucial elements to your binary options trading method, creating a signal, and deciding how much to trade. The second is essentially money management. How do you go about determining these two steps then?

Step 1 – Creating A Signal

The signal will tell you in which direction the price is going to go, allowing you to make a prediction ahead of time. The two main ways to create signals are to use technical analysis, and the news.

Charts, Patterns & Indicators

If you can identify patterns in your charts, you may be able to predict future price movements. They rest on the idea that ‘history repeats itself’. You can start trading binary options using Heiken-ashi, other candlesticks, and line charts. Armed with charts and patterns, successful traders will build a strategy around their findings.

You can then build indicators into your strategy, telling you when to make a binary option, and which binary option you should go for. These technical tools can prove invaluable, so make sure your broker offers the features available to conduct thorough market analysis.

One of the great things about trading binary is you can use any number of your normal indicators, patterns, and tools to help predict future binary options movements. So, you can start trading with/using:

  • Support and resistance levels
  • Price action
  • Stochastic oscillators
  • MACD indicators
  • Trends
  • Babypips
  • Mirrors
  • Options close to expiry

For more detailed guidance, see our charts and patterns pages.

You can trade binary options without technical indicators and rely on the news. The benefit of the news is that it’s relatively straightforward to understand and use. You’ll need to look for company announcements, such as the release of financial reports. Alternatively, look for more global news that could impact an entire market, such as a move away from fossil fuels. Small announcements can send prices rocketing or plummeting.

If you can stay in the know you can trade your binary options before the rest of the market catches on. To do that you’ll need to be tuned into a range of news sources. You can browse online and have the TV or radio on in the background. Some of the most useful news sources in terms of trading information are:

  • Yahoo Finance
  • CNBC
  • Business Insider
  • Bloomberg
  • Financial Times

Step 2 – How Much You Should Trade

If you’re just starting off it’s often best to keep things simple. Trading the same amount on each trade until you find your feet is sensible. Below are 3 binary options trading strategies for both beginners and experienced traders.

Martingale Strategy

Binary options using the martingale trading strategy aim to recover losses as quickly as possible. To do this you’d trade larger amounts of money in the trades following a loss. So, you’d set an amount that you trade each time, say $250. However, if you lose on that $250, you’d bet $500 on the next trade. If the trade wins, you’ll already be back in the black, rather than being stuck around the break-even mark.

The problem with this strategy is that if you go on a losing streak you can lose a serious amount of capital in a short space of time. So, only use this strategy if you’ve got a relatively accurate means of making trade decisions. If you’re still in the trial and error stage, consider a different approach.

Percentage Strategy

A percentage based system is popular amongst both binary options traders and other traders. The idea is you specify a percentage you’re willing to risk. Between 1-2% is common. So, if you’ve got $10,000 in your account, and your risk value was 2%, you could trade $200 on a single trade.

If you have a greater risk tolerance and consistent results you may want to increase that risk margin to 5%. The benefit of this system is that you should never lose more than you can afford. This makes it an ideal approach to take if you’re new to trading on binary options.

Straddle Strategy

This example is best employed during periods of high volatility and just before the break of important news announcements. This technique can be utilised by traders of all experience levels. It gives you the capability to avoid the call and put option selection, and instead allows putting both on a specified instrument.

You aim to utilise put when the value of the instrument has risen, yet you think that it’s going to decrease soon. Once the descent has begun, place a call option on it, anticipating it to bounce back swiftly. You can also do it in the reverse direction. Simply place a call on the assets prices low and put on the rising asset value.

This significantly increases the chance of at least one of the trade options producing a profitable result. If you’re in a volatile market, this simple system could you see turn handsome profits. This works well as a binary options trading 60 seconds strategy, and will also cover expiry times of up to one day.

Bots & Algorithmic Trading

Once you have honed a strategy that turns you consistent profits, you may want to consider using an automated system to apply it. These robots usually rely on signals and algorithms that can be pre-programmed.

The bots then do all the leg work, trading options on your behalf. The plus side is they can make far more trades than you can do manually, increasing your potential profit margin. They can also trade across different assets and markets.

It’s worth investigating your brokers offering when it comes to auto trading and checking for robot reviews. Many allow you to build a program with relative ease. You can use your own entry points that rely on Bollinger bands, RSI/MFI patterns, and moving averages.

However, even when you’ve got your system up and running, you can’t go into trading binary options on autopilot, you need to stay tuned in. If any mistakes take place, you need to be there to remedy the problem. Technical crashes and unpredictable market changes can all cause issues, so stay vigilant.

Timing

Many binary option strategies pdfs fail to sufficiently consider time variables. Certain strategies will perform better with specific time options. You may want to look specifically for a 5-minute binary options strategy. Alternatively, trading 15-minute binary options may better suit your needs. So, whichever strategy above you opt for, ensure you take time into account.

Summing Up Strategy

Trading binary options with success rests on finding a strategy that compliments your trading style. So, consider the instrument you’re going to be trading. Then, employ an effective money management system and use charts and patterns to create telling indicators. Also, utilise news announcements to your advantage.

If you’re trying a new fence, gap, hedging, or any other binary strategy for the first time, why not try it on a trading practice account first? This will allow you to address any issues before you invest your own money.

For more detailed guidance, see our strategies page.

Education

Binary options trading 101; immerse yourself in educational resources. As Benjamin Franklin asserted, ‘an investment in knowledge pays the best interest’. The top traders never stop learning. The markets change and you need to change along with them.

To do that, utilise some of the resources detailed below.

  • Books & eBooks – There is a whole host of books and ebooks out there that can impart invaluable information on day trading binary options. You can benefit from the binary options trading knowledge of experts with decades of experience. The good thing about a book it is allows you to learn at a pace that suits you. One book that has made binary options trading easy is ‘Trading Binary For Dummies’, by Joe Duarte.
  • Video tutorials & seminars – Engaging and easy to follow. There are numerous online video tutorials out there that can walk you through making a trade. With seminars, you’ll also be able to have questions answered and the binary options trading basics explained, plus some brokers offer weekly seminars to keep you up to date with market developments.
  • PDFs & instruction guides – These will give you a clear breakdown of steps that you can follow and apply. The best part is you can find plenty online that are totally free and easy to download, whether you’re using Android, Windows, or iOS. The trading binary options ‘Abe Cofnas’ pdf is particularly popular.
  • Forums & chat rooms – This is the perfect place to brainstorm ideas with binary options gurus. You can benefit from recommendations and learn in real-time whilst investing in your binary options. You can also swap live chart screen grabs to get a feel for other binary methods and tactics.
  • Newsletters & blogs – These are brilliant for keeping up to date with upcoming developments that may affect your markets. Plus, you could hear about binary options competitions (yes, they really do exist).
  • Copy trading – This is when social trading networks/platforms are combined with binary trading tools. You can follow experienced traders, analyse their strategies, and then replicate their trades. Check out copy trading reviews before you sign up.

All of the above will play a key part in your binary options trading training. Free trading videos and examples will help give you an edge over the rest of the market, so utilise them as much as possible.

Trading Journal

There currently exists no binary options university. So, explanations as to why that option didn’t work can be hard to come by. Keeping a journal with all your binary option trading results in could solve that issue. A detailed record of each trade, date, and price will help you hone your strategy and increase future profits.

Whether you keep it an excel document or you use tailor-made software, it could well help you avoid future dangers. As an added bonus, it can make filling in tax returns at the end of the year considerably easier. A journal is one of the best-kept secrets in binary options, so now you know, use one.

Psychology

Trading binary options successfully isn’t just about having the right strategy. If you can’t control your emotions you will make costly mistakes. As Robert Arnott stated, ‘what is comfortable is rarely profitable’. When the pressure kicks in, fear and greed can distract you from the numbers.

You need to accept that losses are part of trading and stick to your strategy anyway. If it’s based on accurate maths and careful technical analysis then you have to keep your faith. As soon as you start acting inconsistently your profits will suffer.

Regional Differences

Regulation

As the popularity of binary options grows across the world, regulatory bodies are rushing to instill order. That means where you trade and the markets you break into can all be governed by different rules and limitations.

If you’re day trading binary options in the UK, for example, you will require a license from the UK gambling commission. If you opt for a broker regulated by the Financial Conduct Authority (FCA), you’ll be guaranteed an extra level of protection. Beware some brokerages register with the FCA, but this is not the same as regulation.

Brexit has brought with it complications to trading regulations. The MiFID II guidelines were set to be implemented across Europe enforcing rules around binaries, however, the UK may not now implement the guidelines. This means the UK is no longer under pressure from Europe to reclassify binaries as financial instruments.

Binary options trading for US citizens is limited by a choice of just two brokers. Nadex and CBOE are the only two licensed options. Fortunately, they are both huge firms offering competitive prices and a range of different assets to trade binaries on.

Rest Of World

In Australia, the Australian Securities and Investments Commission (ASIC) runs the show. If you’re interested in brokers based in Cyprus and Israel, then check they are regulated by CySec. In Dubai and the rest of the UAE, binary options are regulated by the Dubai International Financial Centre (DIFC).

You can also start day trading binary options in Canada, India, Pakistan, South Africa, Malaysia, Kenya, New Zealand, Nigeria, Vietnam, Indonesia, and the Philippines. Each has their own regulatory bodies and different requirements.

So, if you want protection, ensure you do your research before you sign up for a binary broker on the other side of the world.

Taxes

Another important regional distinction comes in the form of taxes. Some countries consider binary options as a form of gambling, such as the UK. This comes with notable benefits. The HMRC will not charge you any taxes on profits made through binary options. However, in the future binaries may fall under the umbrella of financial derivatives and incur tax obligations.

Having said that, if day trading binaries are your only form of income and you consider yourself a full-time trader, then you may be liable to pay income tax. Whilst you are probably still exempt, it is worth seeking clarification.

Outside the UK, tax regulation differs hugely. Binary options in Japan and Germany come with vastly different tax obligations, for example. So, before you start trading seek advice to ascertain whether you’ll be exempt from tax. If not, will you pay income tax, capital gains tax, business tax, and/or any other form of tax?

For more detailed information, see our taxes page.

Can Trading Binary Options Make You Rich?

Although exciting and dynamic, to make a living trading binary options you’ll need to use this page and other sources as guides. Can trading binary options make you rich then? Done correctly, yes it can. There is no question of binary options potential profitably, this is evidenced by numerous millionaires. To get there though, you’ll need the right broker, an effective strategy, and you’ll need to invest in your trading education, by utilising the resources outlined above.

Further Reading

Yes, but regional regulation varies.

In India and Australia for example, binary options are legal.

In the US, binaries are available via Nadex, and perfectly legal.

In the EU, binaries have been withdrawn for retail investors, but it is still possible to trade binary options legally, by professional traders. Certain criteria need to be met in order to be classed as ‘professional’.

Can you trade at weekends?

Yes. There are two ways to trade at weekends. Firstly, forex markets are still open in some parts of the world during the “weekend” in other parts. Binaries can be traded on forex during these times.

There are also ‘synthetic’ markets with some brokers (such as binary.com) but traders should note there is no underlying market with these options. They are ‘virtual’ markets created solely to cater for traders looking to trade anything at all. They are not for sophisticated traders.

Are binary options banned in Europe?

Binary options have been withdrawn for retail traders by the European regulator, ESMA. Brokers not regulated in Europe may still offer binaries to EU clients.

It is also possible for EU traders to nominate themselves as professional traders. This waives their rights to regulatory protection, and means binaries are free to be used again.

Some synthetic markets can also be traded by EU traders, and while the product works exactly as a binary options, they are referred to slightly differently.

Do binary options work on MT4 or MT5?

There are no binary options brokers offering Metatrader integration. It is however, possible to perform technical analysis in MT4 and place trades on a separate trading platform.

Can you use binary options on cryptocurrency?

Yes. The leading binary options brokers will all offer binaries on Cryptocurrencies including Bitcoin, Ethereum and Litecoin. As a derivative, traders will not “own” any cryptocurrency, they will purely be speculating on the price. This does mean however, there is no need for a Crypto wallet or crypto account.

Binary Options vs Forex

Binary Options vs Forex Which One You Should Choose?

Binary Options vs Forex | If you are just about to start investing, you may wonder which one you should choose. Or maybe you have tried other one and you are thinking if you should change to the other? Or maybe you have just another reason why you want to compare the two and to know if superior in some way. In this article I will go through pros and cons of both so that you have easier decision to choose the one that fits your personal preferences better.

Binary Options are actually a new form of investment, while foreign exchange trading has been for as long as there have been various currencies. Therefore, it is obvious that the currency markets are much bigger by turnover. In fact, they are the world’s largest market, currency trading takes place five days a week 24 hours a day averaging over $ 5 trillion per day. When you invest in currencies, you are directly competing against other top professional investors such as Warren Buffett and George Soros.

Binary options markets are hundreds of time smaller than currency markets, and there are surprisingly small number of professional investors involved. Also, investors have much more trading assets to choose from than currency traders have. In addition to that, only a few people know how to use auto traders like binary option robot, when for currency traders, highly sophisticated trading software is almost a necessity.

Binary options trading is much easier for novice investor than forex trading

How Binary Option Robot Can Change Your Life? Check This Out!

Which One Should You Choose Binary Option vs Forex? Read Out Thorough Investigation And Find Out Which One Is Better And the Reasons Why?

How to Make Money with Binary Option Robot

Top Binary Option Robots in Russia

Claim your free binary option robot, get started with three easy steps:

  • Name of Robot
  • Min. Investment
  • Min. Deposit
  • Rating
  • 1. Your Binary Option Robot will analyse the market and decide, which asset (currencies, indices, commodities and stocks), is right to trade at that point in time.

    2. The Binary Option Robot Will Predict the Price Movement

    Your robot will assess a wide-range of factors, and then make a prediction on how the assets price will move, saying: Call (up) if it believes the price will rise and Put (down), if it believes the price will fall.

    3. Decide on how much you want to Invest

    Then you need to decide how much you want to invest in the commodity and when that investment will expire.

    4. Collect your Earnings

    Finally, you collect your earnings (the good part!)

    TABLE OF CONTENT

    Main Reasons To Choose Binary Options

    First I’ll go through the main points why you should choose binary options over forex. After that I will tell you what kind of investors should choose forex trading over binary options. Basically, by far the majority of investors binary options fit much better, while currency trading is suitable for a small minority of people who are able to specialize and possess certain characteristics.

    • With binary options, you have much wider selection of different trading assets. In currency trading you trade only currencies. Binary Options allows you to trade, forex, commodities, indices, stocks and basically any investment with a variable value. This is limited only to what the broker is willing to take to the selection. Unless you only want to trade currencies, this is huge factor and main reason to choose binary options.

    • In binary options trading, competition is not that fierce, at least not yet. As already mentioned, the foreign exchange market is world’s largest market by turnover, where participants are the world’s smartest and most successful investors. In foreign exchange market, you are competing directly against these investors. In binary options investing, competition is still at a very low level. The main reason is that with the really large sums, direct investment in equities is cheaper. This gives a great opportunity to investors who are investing with smaller amounts, the toughest competitors are totally absent and all the talented mid-level competitors are so far absent also. You should use this great opportunity now while you still have time.
    • Binary options investor gets access to much greater bonuses. In foreign exchange market, competition is relatively stable due to its long history. Sometimes new viable comes into the market and shakes it a little bit by offering cheaper prices, but usually consumer will have to settle with what is currently offered. In binary options trading, markets are still constantly developing. New brokers appears every day, and they are trying to attract customers to themselves with large and juicy bonuses and benefits. For you as an investor this is a great thing, all freedom of choice is left to you.
    • As a binary options investor, there is a number of great software available for free. Intense competition does not extend purely into brokers, also different software developers are having tough competition because of scarcity of customers. As a result, the best applications such as The Real Robot, Binary Hedge Fund, Binary Stealth, Copyop, PayDay FM and OptionBot 2.0 are all available completely free of charge for now. This may not continue for very long so I recommend you to register all of these through our links while you still can. In this way, you ensure that you will have them for free in the future also if they become chargeable. On the other hand, best forex software costs at least thousands of dollars, and if you want that you have any hope of progression as an investor, you are practically forced to use these. This will drive investors with little money into hopeless situation.
    • With binary options you know exactly what your payout will be if you hit right. In forex trading, you can never know exactly how much you will earn in the best case or lose at worst case. This makes the choosing of right investment amount extremely difficult. Sometimes you will have the risk a bigger sum what was originally intended. With binary options, you know beforehand exactly what is your potential winning and what is the potential loss amount if the investment goes wrong.
    • With binary options, you choose beforehand when you wanna close the position. Some investors may view this as a disadvantage, but I think this is clearly an advantage. When binary options investment has been set, you do not have to worry about or keep track of it in any way if you do not want. You can spend time with your family or even go to the beach. In forex trading, you need to follow the changes in value of the investment continuously and to consider whether now is the best time to close the position or would it be perhaps sometime in the future. At worst, you will not be able to do anything other than follow the investment.
    • There is no transaction costs in binary options. Binary options investor do not pay any transaction costs. Expenses are in fact already directly tied to payout percentage. In forex trading transaction costs can be quite high and the minimum costs can make investing with small amounts unprofitable.

    Candlestick chart is the most common form of forex chart

    Main Reasons To Choose Forex Trading

    Forex trading fits better for a small number of experienced investors who know for sure what they are doing and invest in larger sums. If you invest in currencies using mere intuition, you will only lose your money.

    1. If you have comprehensive expertise about the currency markets. There I mean the know-how that comes from years of studying and practical experimentation. That is, if your expertise is such a high level that the acquisition of the same skills with binary options would take you a really long time. You also have to remember that skills must be such that you can apply it directly to the practice profitably. Mere theoretical knowledge without the ability to apply does not take you very far.
    2. You want to invest only really large amounts of money. Most of the binary options brokers allows you to invest only up to $ 5000 at one time. Some of us this amount may be too small. In currency trading, you can set investments worth even tens of millions of investment at once. With such a large sums, transaction costs are also significantly lower proportionally what they would be in binary options.
    3. If you are not interested in other trading assets except currencies. If you’re absolutely sure you want to invest exclusively currencies in the future also, currency trading is probably a better option. Even in that case I recommend to starting with binary options using small amounts of money and gathering some knowledge before you decide to convert fully only in currencies.,

    The Difference Between Forex and Binary Options

    Though it looks similar, the binary and the forex trading is very different from each other and it is of high importance to understand the differences in order to be successful.

    The Basics

    The binary options are contracts which have a fixed risk and reward ratio. The binary options trading requires you to predict the direction of an underlying asset within stipulated duration. The binary options are available for commodities, stocks, indices, and currency pairs. The traders are informed their reward upfront in case their prediction turns out to be correct.

    Binary trading, as the name suggests and as explained earlier, requires you to predict the direction of the asset. The setup is very simple; traders get 80 percent payout in case their prediction is right. For example, if you invest $ 100 on USD/JPY and payouts is 80 percent for the winning trade, in this scenario if you predict that the USD/JPY will move higher at expiry and if that turns out to be true then you receive your investment amount ($ 100) plus the payouts (80 % of $ 100 that is $ 80), totaling to $ 180, however, if the USD/JPY moves in the opposite direction of your prediction then you will lose your investment amount of $ 100.

    To be a successful binary options trader, you must win a majority of your trades. While in the case of the forex trading, you are allowed to set your profit target and stop loss for the trade, which allows you to make a profit even if the underlying does not achieve your set targets. So, in the case of the forex trading, the traders can make money even if they do not win a majority of their trades.

    Both the forms of trading are tradeable online, and also you can start trading with small capital. Traders speculate on the movement of the underlying in both the markets and if the prediction is true both reward the traders with the handsome amount.

    Variability

    In binary options trading, the traders predict the direction of the next move within certain time period. In this way, there is no variability in the risk or the profit potential. As the name suggest, the binary market operates on only two outcomes (Up of Down).

    While in the case of the forex market, the traders are required to predict the direction but also they have to estimate how high or how low the asset can go. This way there is an uncertainty in terms of the return and a higher risk.

    The forex market doesn’t have a ceiling on how much money one can make or one can lose unless the trader’s use risk mitigation tools like stop-loss which limits the amount of loss one can have in a transaction. Meaning, the trade will automatically close if the stop loss has been hit. Similarly, the trader can decide how much money they want to make by deciding the value at which they want to close the trade.

    So, in the case of the binary options, the maximum amount of loss could be the entire investment amount whereas in the case of the forex the risk can be mitigated by using certain tools.

    Expiry

    The binary options trade with specific expiry durations and once the trade has been initiated, the traders have no control till the expiry over their transaction. Each and every binary option have a specific expiry attached to it and the trader needs to select the expiry before initiating the trade. Though some brokers allow closing the trade before expiry with restricted payout options, the majority of the brokers does not allow to close the trade before expiry.

    However, the forex trading allows you to initiate and close the trade whenever you want. The rollover is possible in case of the forex trading while the majority of the binary broker does not offer this facility.

    Leverage

    The forex trading allows to invest higher capital with the leverage allowed by the FX broker, but such facility is not available with the binary options trading. This allows the forex trader make higher winning with limited investment but in the case of the binary trading, the trader can only allow investing the money which is available on the account or the amount which is restricted as per the brokerage site.

    Types

    The binary trading offers 5 variants of the trading types. These options are high or low, 60 seconds, one touch, boundary, and option builder. Whereas, the forex trading offers several option types for the trading including buy or sell, limit, stop, One Cancels the Other, trailing stop, hedge amongst others.

    Although the forex trading and the binary options trading look similar, there are some striking differences and one should be aware of these before initiating their first trade.

    Pros and Cons of The Forex and Binary Trading

    In the recent past, the binary options trading has seen an unprecedented rise. The little known binary options of early 2000, now have more than 400 operators who offer binary trading.

    Accepted, that the binary options trading is growing at a rapid rate but why you should indulge in it? Or why should you learn a new trading platform when you are already deep into forex trading? Is it really superior to already known trading mechanisms?

    There are several advantages and disadvantages of the forex trading and the binary trading. The following text describes some of the most pros and cons, and hopefully, it will assist you in making the selection.

    Maximum Risk

    The biggest advantage of the binary trading is that the traders are aware of the maximum risk per trade, and it is the amount of money the trader invest in the underlying. Certain brokers, also allow you to close the trade before the expiry allowing you to further cut the losses, of course with certain conditions.

    However, the same is not true for the forex trading. Even if with stop losses, you cannot be 100 percent sure that you will lose only the pre-decided amount. Though less likely, there is a chance that you may lose higher amount due to slippages, illiquid asset, price jumps, technical issues, amongst others.

    Flexibility

    In the case of the binary trading, except high or low options, the strike prices are set by the broker and even if you have a fair idea on how an underlying asset will behave, you cannot place an order to be executed at certain price points. On the other hand, the forex market offers the flexibility of placing limit orders or market orders during market hours to suit your requirements.

    In an open trade, there are limited brokers in the binary arena who allows you to close before the expiry with certain conditions while the majority of the broker disallow pre-closing of open trade. On the other side, the forex trading allows you to close the trade even after 1 second of opening the trade, giving you a complete control over your transaction.

    If you are on a winning trade, then the forex trading allows you to scale the investment and gain higher returns, whereas, the risk and rewards are fixed in the case of the binary options trading.

    Cost

    The forex trading attracts transaction costs in terms of a brokerage or spread or both. Whereas, in the case of the binary trading there is no addition cost for trading the instruments.

    Assets

    Unlike, the forex trading which has only one asset type for trading, the binary options have evolved to provide trading in commodities, stocks, indices, and currency pairs. This is one of the biggest advantages as one can diversify the trading portfolio by staying only with one broker whereas the same cannot be said for the forex brokers.

    Risk Volatility

    This is another advantage for the binary options traders. As the traders are well aware in advance the maximum loss they can incur in a single trade. So the events which induce high volatility in the market have a limited impact while trading with the binary options. Also, along with the risk, the reward is also fixed in the case of binary trading, and there is no possibility of scaling in more amount to gain higher rewards.

    Whereas, in the case of the forex trading, the market reacts to events and sometimes the reactions cases heavy volatility increasing your risk multiple times. For instance, if you have taken a position in a specific currency pair expecting it to move higher, an unfavorable event can crash the prices of the currency pair, giving you no time to cover your losses. This way the volatility risk is very high in the case of the forex trading compared that with the binary options trading.

    Errors

    The errors in entering the trade are very low in the case of the binary trading as there is only one action which needs to be taken which is to open the trade and the rest is being done by the software. The binary options trading does not offer limit orders or stop losses for adjustments, these have their own advantages and disadvantages.

    Even if you are a professional trader in the forex trading, your one mistake has potential to wipe your entire account. For instance, you forgot to exit from an open trade and the tide has turned unfavorable, in that case, the trade will continue till you may lose the total amount available for the trading in your account. Such errors will never occur in the binary trading, as the expiry is set and the trade will close automatically limiting the loss only up to your per trade investment amount.

    Finally

    As discussed above, both the platform provides ample opportunity for the traders to make money and both offers distinct advantages and disadvantages over others. The above text provides definite insights into both the trading world. However, the ultimate decision of selecting the trading market rests in your hand.

    Best Binary Options Broker To Start With

    My number one recommendation is IQ Option, the best broker site there is. When you invest with IQ Option you can be sure that you can start easily and effortlessly. They have comprehensive learning materials, friendly customer service and brilliant bonuses. Besides all that you know that your money is fully secured with one of the world’s most trusted broker sites. When you open an account to IQ Option by clicking the button below you are qualified to get 100% bonus when you deposit at least $ 200. Unfortunately, IQ Option does not accept US customers, so if you are from the United States, I recommend reading our GOptions, CTOption of Porter Finance reviews.

    Conclusion: Binary Options vs Forex

    As you may have came across many times in this article already, my personal recommendation, especially for novice investors is definitely binary options. You get to compete against other beginners from the same starting line, and you will also might find that investing can be really fun. Forex trading is a hard game dominated by experienced professionals. For a novice trader, it is really hard to make profit with forex trading, most likely result is a rapid loss of money. If you are nonetheless fascinated by the currencies I recommend investing in them by using binary options.

    Best Binary Options Brokers: 2020 Ranking
    • Binarium
      Binarium

      Best Choice! The leader in our ranking!
      Perfect for beginners!
      Free Demo Acc + Free Trading Education!

    • Binomo
      Binomo

      Good choice for experienced traders!

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