Binary Options Trading vs Forex Trading

Earning an income and trading forex on the Internet are two notions that many think of as an integral whole. The majority of people believe that interbank currency exchange is factually the only way to make profit. As can be seen in practice, forex trading is an excellent way to multiply funds and is used by many people who wish to capitalize on currency speculation. Forex market features a wide range of advantages, it is not without reason that forex is considered to be the best type of investment.

Among the main advantages of the binary options are named high yield, quick earnings and the absence of high risks.

Now, however, widely touted is binary options trading. What is more, it is positioned as an easy, fast and perfect way to make money, a better one than the international currency market. Among the main advantages of the binary options are named high yield, quick earnings and the absence of high risks. But what is really a better choice, FX trading or binary trading? In order not to be sorry about your decision, you have to conduct a comparative analysis of these both trading types.

Preliminary training is essential for any kind of trade; the amount of profit is directly influenced by the level of the trader’s experience. Just like any other activity type, trading proficiency requires money and time.

For comparison let’s consider the simplest versions of forex trading and binary options trading.

This is the key factor of any business. For example, let’s consider a $100 account. So, what can be expected with this money on the global forex market and in binary options trading? On the foreign exchange market you can expect 20 to 30 dollars on each transaction, but trading is risky, as the leverage is 1:100. In options trading it is minimal to get $60 per transaction.

In such case trading forex is less risky; when trading options you are unable to close a position at any time as in currency trading. Once a transaction fails, you are losing almost everything, because the maximum compensation does not exceed 15%.

Options trading is more simple, therefore it is easier for a novice to predict the outcome. To be certain of this, open a few trades on a demo account and see for yourself.

Binary options brokers offer their customers an opportunity to work in a web browser, which means the risk of any technical problems is low; at the same time, most of these brokers are new to the market yet, and don’t have neither positive nor negative operational history. Choosing a company for options trading, for example, 24options or Anyoption, refer to reviews of traders who’ve been practicing this type of trading already. OptionFair is one of the already well-known binary firms, so you can easily find information about it.

Forex brokers are mostly large and reputable companies, and have earned a name during years of work of the currency markets. Among such companies are FxPro, Alpari, NordFX, etc. The information about them is abundant, therefore, knowing the basics of choosing a forex broker and being aware of the FX brokers’ ratings, it is realistic to find a proper company. It must be admitted that ‘freezing’ terminals are a problem common to many brokerages, though not to all of them.

Summarizing it all up, we come to the following conclusion: binary options are more profitable and less difficult to be mastered by beginners.

Summary

Summarizing it all up, we come to the following conclusion: binary options are more profitable and less difficult to be mastered by beginners. At the same time, they are pretty risky, so from this point of view forex trading is preferable: at forex your earnings are going to be somewhat lower, but you won’t lose everything at once, - with the right approach, of course.

Strategies and Trading Opportunities

A small investment is a broad concept, covering everything from putting money in a bank savings account to investing in a mutual fund that tracks...

How to choose the right currency pair?

Practice shows that most novice traders are limiting themselves to the pair EUR / USD. In fact, this financial instrument has a number of negative features...

Deposit Acceleration Techniques

Many novice traders mistakenly believe that by devoting several days to training and replenishing the trading account with 100 USD for several months...


How to start trading Forex?

Consider a national currency as a security, like stocks, commodities or precious metals. The recipe for success is to buy it at the cheapest price and then sell...

ABCs of leverage in the forex market

The usage of of such a specific tool related mostly to forex market as leverage is an opportunity to increase the trading volume at the...

10 Ways of Risk Management at Forex

The popularity of forex trading has always been high for a number of reasons. The main one is the outstanding profit potential, provided by a significant...


Forex leverage: a double-edged sword

Leverage is the ratio of your deposit to the lot you work with. In other words, those having a deposit of $ 100 can make a deal with a lot of 10,000...

Pros and cons of using standard MT4 indicators

MT4 is considered the most popular platform among forex traders. Its success can be explained by at least 2 reasons...

What are support and resistance levels?

Support and resistance levels create the basis for building effective trading strategies and combine the principles of technical analysis. They confirm...

Top 10 Forex Brokers 2019

200+ Forex Brokers
TOP 10 Best Forex Trading Platforms
Best Forex Platforms 2019

A variety of web terminals and specialized software makes a choice of a trading platform a difficult one for a novice trader. What should be this vital decision based on? To begin with, it is necessary to highlight the main criteria that high-quality software must meet for making money on financial markets...

Top 10 Forex Platforms 2019

All Forex Platforms