Why Binary Option Robot is Better Than Forex Trading

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  • Binarium
    Binarium

    1st Place! Best Binary Broker 2020!
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  • Binomo
    Binomo

    2nd place! Good choice!

Contents

Binary Options Vs. Forex

Binary options trading has long existed over-the-counter, only experiencing a massive growth spurt in the last few years.

Now, approximately 90 companies (including those who white label their products) offer some sort of binary options trading service.

So okay, it’s a growing industry… But why should you involve yourself in it?

There are many advantages and disadvantages to both binary options and spot forex.

Max Risk

One of the great things about binary options trading is that you always know the exact maximum gain or loss in advance.

The trader controls the premium at risk to enter the binary option trade, and that is the only amount that can absolutely be lost.

Most binary option brokers even allow you to cut your max loss by “folding” your trades ahead of expiration after certain types of trade conditions have been met.

In contrast, with spot forex, even with a stop loss order set, you cannot be 100% certain that you will lose only the pre-calculated amount that you risked.

While improbable, there’s always the chance that certain issues may affect your final max risk like slippage, lack of liquidity to execute a stop order at the desired price, a broker’s trading platform goes down, etc.

Trade Management Flexibility and Maximizing Reward

Aside from High/Low options, many of the binary option plays are only available at certain times of the day or week, and most times the strike prices are set by the broker.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    1st Place! Best Binary Broker 2020!
    Best Choice for Beginners — Free Education + Free Demo Acc!
    Sign-up and Get Big Bonus:

  • Binomo
    Binomo

    2nd place! Good choice!

With spot forex, you are able to enter limit orders for any price or execute a market order at any time during open market hours.

In terms of exiting open trades, some binary options brokers allow you to close options trades early, but usually only after a predetermined amount of time has pass after the option trade has opened and before it closes.

And as mentioned before, the value that is returned to the trader is based on whether the market is in-the-money or out-of-the-money and of course, with a piece going to the broker.

In spot forex, you can close your trade at any time (except on weekends with most brokers). Even if it’s one second into the trade, you can get out and book profits or reduce losses.

Finally, if you think there’s going to be a long trend and you want to maximize your profit on it by holding it as long as possible, you can do so in the spot market using scaling in and trailing stop techniques.

With a binary option, the expiration date and cap on profits limits you; you’re out of the trade as soon as you close or the option expires.

Depending on your risk and trade management preferences, either trading instrument can be good or bad depending on how much time you want to spend in front of your trading platform, how active you want to be, or what you expect the market may do.

Transaction Costs

In binary options trading, there are no additional transaction costs other than what is normally factored into the final payout.

In spot forex, the transaction cost comes in the form of a spread, a commission, or both. We’ve already discussed this in a previous chapter, but feel free to revisit the lesson and read up on it again.

Trade Choices

Another great thing about binary options trading is that you aren’t limited to just currency pairs like with most retail forex brokers.

While currency pairs are the most common assets you can trade, with some binary options brokers, you may also have the opportunity to trade your ideas on a limited number of individual stocks, stock indices, and even commodities.

Volatility Risk

Surprise volatility is not usually an issue in binary options trading. Any trade you take can weather the volatility caused by certain events.

The max risk is still set, but so is the max reward.

In spot forex, however, sharp swings can affect the value of a position greatly and very quickly, which makes the additional task of setting up proper risk management processes very important.

Trader Error

The margin for error when entering a trade is very small in binary options trading.

This is due to the fact there are only two actions to take with binary options: open and close.

There are no limit orders to keep track of, or to close or adjust. In spot forex, an inattentive trader may forget to place exit and/or adjustment orders, potentially creating a loss greater than he/she intends.

Why trading with Binary Option Robot is better than Forex Trading?

Today, thousands of people are making money online. It is not as easy as some may think it is. It is actually quite difficult as like all businesses, there will be risks involved. Binary options trading and online forex trading have come a long way, but they still need the investment of time and effort to turn them to profitable ventures.

Binary options came after online forex trading, but it is already becoming more popular today. It is already becoming a way of earning an income online today. The leading broker in binary options today is Binary Option Robot. They have proved that it is a legitimate business like any other and it beats online forex trading hands down.

Here we look at the differences between the two trades and show how trading with Binary Option Robot is a better option than trading with forex as a way to make money online.

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

The most profitable new trading platform Binary Option Robot VS. Forex Trading Official Comparison Learn how to make money while you sleep!

How to Make Money with Binary Option Robot

Top Binary Option Robots in United States

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!)

    Get the binary option robot for free by clicking on the button below and learn how you can make money while you sleep!

    How is trading with Binary Option Robot better than Forex?

    Predetermined risk-reward ratio

    When you trade your binary options with Binary Option Robot, you will have predetermined your total loss and your expected profits before the trading takes place. This is because as a trader, you will make your predictions on whether the price of an asset will rise or decline within a specific period and you will have put some money at stake from the trade. The broker will give you a payout before you trade. This means that you will know your profit before the trade is executed. Similarly, you will know how much you will lose should your prediction of your price not come positively. The total loss will not exceed the trade amount that you had staked for the trade.

    In forex trading, things are different. Traders cannot adequately project their profits and losses accurately. This is because forex trading works differently. There is no time scale set to determine the outcome of the trade. What will happen is that the trader will wait as long as it takes for the price to rise substantially for him to make a decent profit. If he is waiting for the price to go down so that he can buy, he can only wait for the market to organically produce his results. He cannot predict when his deals will come good and what his profits and losses are likely to be.

    Predetermined timelines

    When trading with Binary Option Robot, you will be sure of the time by which you will have made your profit. This is because all trades in binary options are subject to an expiry period. This period is set by the trader before the trade is executed. With expiry periods being as short as 30 seconds to long-term ones which can go as much as 365 days, a trader will be sure when his profits will come in.

    With forex trading, this is not the case. A trader in forex does not have this luxury. When he purchases a currency, he has no idea when he will make his profit. This is because there are no expiry periods in forex trading. What he will do is to wait patiently for the price to come to his favor and then he can sell his asset. If he was holding out t buy an asset which he anticipates will come down inprice, he has no idea when it will or if it will.

    Faster Trading

    Binary Option Robot has expiry periods as short as 30 seconds. This is the time it will take a trader in binary options to make a profit. Of course he can opt for the longer term options, but if he wanted he would make it as short as less than a minute. What this implies is that there are faster trading opportunities here. If a trade is profitable with the short-term periods, a trader in binary options can opt for a Rollover which means that he can make the same trade over and over again hence maximizing his earnings over a relatively short period.

    In forex trading, such quick profits cannot even be anticipated leave alone made. This is because forex trading comes out a lot slower and it may be days or weeks before a trader makes a substantial profit. The only time a forex trader makes a quick profit is if he is fast enough to execute a trade immediately a news item or an event that has the potential to make a major shift of prices and he is at the right place in the right time.

    Round the clock Trading Opportunity

    Binary Option Robot has no ‘off’ hours; it is always open for business. For every hour of every week of every year, a trader in binary options can make trades at any time he wants. This is because in this business there are always profit-making opportunities. It will not matter to a trader if the exchanges in Tokyo, Hong Kong or Singapore are closed, or that there is a holiday in United Kingdom or in The United States where the London and the New York stock exchanges are closed. Anytime is trading time in binary options. It also means that people with day jobs can moonlight as binary option traders.

    In forex trading, 24/7 trading is a pipe dream. Trading in some assets closes for the night and you will not make any substantial investment decisions when the markets are closed. This is another aspect that will make you opt for the binary options other than forex trading.

    There is no Buying or Selling Involved

    In binary options, trading involves the making of predictions of the movement of the price of an asset within a specific time period. You will stake some money on this prediction and if it goes your way, you are ‘in the money’ and your profit plus your investment is credited to your account instantly. You will realize that there is noplace where the purchase of any assets is mentioned.

    In forex trading, you will not be doing any business if you do not make actual purchases. You will have to buy the USD, GBP or the EUR on the cheap and hope for the price to rise so that you can sell and make a profit. Conversely, you will sell the currencies when the price is higher with the hope of buying the back when the price drops. This means you have to buy and sell the actual currency which takes up your trading capital.

    Very Small Initial Deposit

    To open a trading account with Binary Option Robot, you will need just $250 and you are ready tomake good profits in binary options trading. This low minimum deposit allows even the new traders, or those who do not have a big allocation for investment in the financial market to have a platform where they can trade and make profits.

    In forex trading, this is not the case. You will need a lot more money running into the tens of thousands of dollars to make any decent profits. Forex trading is not for everybody, it is for those with huge investment reserves.

    Binary Option is easier way of making money than Forex Trading

    No trading against your broker

    When you trade with Binary Options Robot as your broker, there will not come a time when you will be trading against your broker. You will be trading with predictions on the movements of prices of assets. This is for all trades.

    With forex, you will very often be having your broker as the party you are trading against; when you lose a trade, the winner is your broker. This is a little discomfiting because this is a case where your broker may be in a situation which can be described as a conflict of interest. Here he is holding your account and he stands to gain when you lose. Seems like a skewed arrangement by all means.

    No transaction costs

    The main reason why people venture into the financial markets is to have a good return on investment. Any savings on spending money when looking for more will be highly sought as it increases your overall ROI. With Binary Option Robot as your broker, you will not expect any transaction fees charged on your binary options account. This will be for all trades. It will not matter if you had one trade in a trading session or a hundred of them, you will not be charged extra for them.

    Transaction costs are rife in forex trading. They can also be quite high. Besides reducing your ROI, they also make a person who wants to make small transactions feel unwelcome. This is because these fees make small trades quite expensive thus uneconomical. These fees alone are a discouragement to small traders to venture into forex trading.

    You chose the time of closing before the trade

    There will be traders who would like to determine the time to close a trade when it is still active. To most traders this is a good advantage; it is better to choose when a trade closes than to have it hanging when the trade is still active. This is because you can spend the time before the closing to do other things other than spend all your time tracking the trade. You can be planning more profitable trades in that time or even spending time with your loved ones.

    With forex trading, you have no option but keep yourself occupied by following the trade and the shifting values so that you do not miss the best time to close. Sometimes you will have to make instant judgments which could benefit your trade or not. Where you will questioning yourself whether this is the right time to close this trade or if you should hold out a little longer is not the right position to be when you are looking out for profits.

    Wide range of assets

    Binary Option Robot has over 120 different assets that a trader will choose from when he wants to trade. As a trader, you are spoilt for choice because there will never be an instance where you will not find an asset that you can trade with profitably. These assets are also in different types. You could select an asset from the many commodities that this broker supports, you could choose assets from the many stocks of blue-chip companies, you could trade with indices, and yes, you can trade with currencies like you do with forex trading.

    The problem with forex trading is that you are restricted to one type of asset which according the name, is just forex. If the forex markets are too volatile and unpredictable, the best thing you can do is keep away from trading until the markets stabilize somewhat. Unlike binary options trading, you cannot switch to a different type of asset which could be doing better in terms of returns when compared to forex. You are stuck to forex for good.

    There are no rebates in forex trading

    As noted earlier, a good ROI needs you to get savings from whichever source you can. Binary Option Robot offers rebates for all losing trades to all traders in their platform. This means that if you lose a trade, whether you had a trade amount of $10 or $10,000 you will get a small percentage of that as a rebate should you not get the prediction right. This acts as a cushion as you will not fall flat when you lose a trade.

    In forex trading, rebates are too rare to consider their likelihood when making the decision to get into this trade. When you lose a trade, you fall hard. It doesn’t matter how much you had invested in but rebates will not be coming your way very easily. You have to regroup without any help from your broker. This in effect makes your ROI quite low.

    Free software

    The good thing about competition is that prices of products go down as the quality of services goes up. When binary options started to be trades about 9 or so years ago, you had to part with a little fee to open an account with a broker. Intense competition has reversed this. Today, brokers like Binary Option Robot do not charge traders nary a cent. In fact, the software and its use are totally free. All you will need with Binary Option Robot is your deposit. The broker shoulders all the costs of maintaining the software and upgrading it. With this broker being the leading brand in binary options, you will see that this is not about to change any time soon.

    With forex trading the opposite is true. The best software in this business cost an arm and a leg. In forex, the software that is reputed to be a great one and a fair one in prices, fees and charges will not be accessible without having to pay cash in the regions of $1000. This is money that goes straight to the software developers. With binary options all this is money that you could have added to your deposit to make handsome profits.

    Greater bonuses

    Binary options’ trading is still taking its baby steps when compared to the foreign exchange market; it is still under ten years old. As a result, it is always developing with new players getting into the fray every day. It is for this reason that brokers like Binary Option Robot give generous welcoming and other bonuses to their traders as an incentive. This adds up to the funds that they have to trade with which is great for the maximization of profits. This is a good thing and it is not coming to an end very soon.

    Forex trading on the other hand is more rigid I its operations. You will not find players joining the business every other day and competition is generally quite low if you compare with the situation with what is happening to binary options trading. With forex there is nothing much to give trading firms and brokers any serious bonuses. If any is offered a new outfit, it will probably attract new traders and a few experienced ones. The market is rather laid back and most traders will find it easier to remain with their service providers than switch to another one on account of small bonuses.

    Sign up today and start making

    No experience or training needed

    Trading the binary options with Binary Option Robot as your broker, you will not require extensive and intensive training to make your trades profitably. You will not require beingan experienced trader to make profits here either. All you need is a desire to make profits with Binary Option Robot is your deposit and a desire to succeed. Anything else is an added advantage and not an essential. Of course there will be training tools when you open an account with this broker. The training will not give you the ability to make profits but it will give you the necessary skills to make you a better trader. The fact that there is a fully automated trading platform here means that your training and experience are needed less and less each day.

    To make any profits with forex trading, you need some good training or an extensive orientation. New traders have it worse at forex trading than at binary options. With forex, the trades are so complicated that you really need to have some trading skills before you make your first dollar. With Binary Option Robot, you will make your first profits as you learn your ropes, probably even within hours of opening your account.

    Profits will not be determined by the level of change in prices of assets

    In binary options, you are aware of your expected profit before you make a trade. You will also be aware that your profit will not be affected by the rate at which the price of an asset will rise or fall. If for example you have an account with Binary Option Robot and you are trading in binary options, and your current asset of choice is gold, whether the profit rises by $.50 or by $5 an ounce, if your payout was pegged at 90% that is what you will receive when the trade expires; no more no less. All youwill need is a shift in the price; even a 1% change in the right direction will give you your full payout.

    In forex trading, this is not the case. The rate at which the value of an asset drops or rises is proportional to the profit that you will get. If the price goes your way by 3%, that will be your return for the trade. If it changes by 10% your profits will go up. You can see where the difference comes in.

    Better risk management

    When you have an account with Binary Option Robot, you will have the ability to manage your risk a lot better than when you are trading in forex. The fact that you already know the maximum level of the funds that you are likely to lose before you make the trade makes all the difference. This is because you can adjust accordingly and make changes to your risk factors before you execute a trade.

    With forex, this is not possible. This is because you cannot predict the amount in investment funds that you stand to lose if the trade does not go your way. You will have to wait till the trade becomes inactive before you can tell the full extent of your loss. The only other option is to stop the trade yourself before you make a total loss.

    Conclusion

    Trading binary options with Binary Option Robot beats trading forex hands down. While forex is still a source of profits for thousands, Binary Option Robot has the ability to raise your profits in a way that is not possible from any other form of financial markets trading. The profits will be more and more frequent, your risk levels will be determined before you make your trade( there are no nasty surprises with Binary Options Robot); your likely profits or any other outcome will be determined before you make the trade.

    Get the binary option robot for free by clicking on the button below and learn how you can make money while you sleep!

    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 United States

    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.

      Binary vs Forex – The Pros And Cons

      If you are new to the world of trading, you may be feeling bamboozled by all the terminology and the options open to you. There are many ways to trade, but two favourite methods are Forex and binary options. When you look more closely at what is involved in these types of investing it isn’t as complicated as it might seem.

      Forex is based on the movement of currencies and is currently the largest trading market in the world. It is commonly known as Forex or FX and stands for Foreign Exchange. Quite you have to trade on the one currency strengthening correctly while another weakens.

      Another popular method is binary trading. Binary options differ significantly from Forex in that you can invest in many more assets including things like commodities, stocks and currency. Options are a more recent entry and have only become popular in the last few years.

      In this guide, you will learn:

        The difference between the two online methods Which type of trading is better suited to you All the pros/cons of both types of investing

      Take your next step:

      Trading Payouts And Losses

      There is one main difference between the payout and losses of binary options vs Forex trades, and that is knowing how much you stand to win or lose on the result of your trade. With Forex you don’t know the maximum profit you can make on a trade. You don’t know how much you could lose on a single trade, and you could lose all the money in your investing account.

      With binary trading, you know precisely how much you stand to win or lose with every trade. The way to manage this when it comes to Forex is to put a limit/stop on the trade so that you don’t go past a certain level. Due to the fixed losses, many traders prefer binary vs Forex as the risk is lower and the amounts more manageable.

      There are many ways to trade, but two favourite methods are Forex and binary options.

      The Costs of Each Method

      With binary options trading, you open an account, make your deposit and trade a certain amount each time on the call or put of an asset. There are no commissions or costs, and any money that the broker gets is pre-calculated when working out the stated up front payouts of each trade. You know from the start how much you stand to win or lose, and there are no hidden extras.

      With Forex it is different. There are spreads and commissions involved which vary from broker to broker. The trader pays a small commission for each trade. The commissions are not always a clear cut amount and often get combined with the spread; the spread is the difference between the currency pair buy and sell price. Forex involves more of a risk in that the range could be huge or tiny. You don’t know.

      Which Trading Type Suits You

      The format you choose is dependent on your preferences. You may be less of a risk taker and like to know up front what the outcome will be or you may be comfortable with Forex trading and the risks associated. You may be an experienced hand that likes to trade both. One of the significant factors to consider, apart from the investment factor, is whether you will find it enjoyable and comfortable to trade and which one suits your style.

      If you prefer the choice when it comes to assets, then binary options give you this. If you prefer to trade in currencies, then Forex could be the ideal option for you although you can trade currencies with options trading too. How much work are you willing to put in? Well, trading Forex is more complicated with the trader needing to put in more work and research.

      The Final Pros And Cons

      In binary trading, there is still the option to get a percentage of the money invested back with an unsuccessful trade. With a Forex trade, you lose it all on an unsuccessful outcome. There are also options to rollover binary trades to give the asset a chance to recover if it’s not doing as well as anticipated.

      When it comes to fundamental investing itself and the ease of use then again binary trading comes out as the more natural way. All you need to do is choose the asset, decide how much to invest, select the time of expiry and press the button to trade. It isn’t as simple in Forex, and the process is more involved and complicated, you need a solid strategy or signals. In fact, for a beginner, binary is the simpler of the two.

      The cost to trade varies between the two types and where options trading already ticks many boxes, for those entering the investment market, it is no different when it comes to the cost of entry. You can sign up to a broker and invest as little as $10 to start; there are some platforms where it costs nothing to open an account which is ideal for the beginner looking to dip their toe. It isn’t as easy to open a Forex account, and a much bigger deposit is needed to open one.

      While there are benefits to both types, it is clear to see that for the beginner or trader who isn’t looking to invest thousands of pounds then binary options is the less risky, more accessible option. It is no surprise that it continues to experience such growth in popularity.

      Shelly is proud of her current position as Head of Brand for a well-known organisation that owns several brokerages in the trading sector. She’s consulted for us since 2020 and readers can benefit from her insider knowledge of how brokers work.

      Binary Options vs. Forex Trading: Understanding the Difference

      Forex trading and binary trading are quite different and it is important to understand these differences in order to become

      The article was written by Connor Harrison from Binary Brokers (BBZ). BBZ makes an effort to educate their traders so that they can understand recommendations regarding binary options, international legislation, risk management and other issues related to trading.

      Binary options are option contracts with fixed risks and fixed rewards. In binary options trading, the trader must decide whether an underlying asset, such as a stock, a commodity, or a currency, will go up or down during a fixed period of time. Traders are shown up front the value of their earnings if their predictions are right.

      Roulette

      Binary trading works in much the same way as a roulette: if your prediction is wrong, you lose all the money you risked, but if your prediction is right, you receive your money back plus a return. A common set-up is for the trader to make 80% of what they bet on any trade that they get right. For instance, if a trader puts in $10 dollars betting on the value of the USD/EURO going up, and the guess is correct, he would receive $8 dollars plus his initial investment. If the value of the same currency drops, however, the trader loses 100% of the money that they put in.

      Connor Harrison, BBZ

      To make money in binary options in the long run, you must win the majority of the bets. Since forex trading allows users to set their own profit targets vs. stop loss orders, traders can still make a profit even if they do not win the majority of their trades.

      There are of course some similarities between binary trading and forex trading. Both financial trading markets are tradable online, and they both allow users to start trading with small amounts of capital.

      In both types of markets, users are speculating on which direction an asset moves in. In the case of guessing correctly, both trading options provide strong profit potential.

      However, there are some differences between binary options and forex. In a binary market, traders only guess whether an asset, such as a foreign currency, will go up or down in value over a fixed period of time. In this sense, there is no variability in the risk or in the profit potential. The binary market is named after the binary system, in which the only two input options are 1 or 0. Similarly, in binary trading, the only two options are up and down.

      Higher variability, more risk

      Forex markets offer higher variability and more risk for traders. In forex markets, sometimes known as FX markets or currency markets, traders must decide not only in which direction as asset will go, but must also predict how high or low that asset goes. Thus, the ultimate risk and profit is unknown.

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      In forex, there are no limits to how much money a trader can make or lose, unless they use certain tools to control trading. One tool is a stop loss, which prevents traders from losing more than a certain amount. In other words, once the trader has lost a certain amount, the trade automatically closes. Similarly, the potential reward may also be fixed beforehand. The trader can decide that he wants the trade to close once it has reached a certain profit value.

      The maximum loss in forex would be all the money on your trading account. In forex, both losses and profits can be managed with limit/stop orders.

      Timelines

      Binary trades operate on specific timelines. The trader has no control over when a trade begins or ends once a trade has started. Before a binary options trade begins, users must select when the order expires. Each option has a start time and an end time.

      At the expiry time, the trade automatically closes. Some brokers allow you to close early but you will exit your option at a percentage of the expected return. Not all brokers offer this option.

      Similarly, some brokers allow traders to delay the expiry time to the next expiry time. This is called “rollover” and is only possible if traders increase their investment by a certain percentage.

      In forex trading, users can take trades lasting from one second to many months, since they can open and close the trade whenever they feel like it. This flexibility has both advantages and disadvantages.

      Margins

      Forex also has a tool called margins. Each broker determines the maximum margin. Margins allow traders to increase their investment capital so that they can make a larger profit if the trade is a winning one. Margin is not a tool available for binary options.

      There are five types of binary options you can trade. These are high/low, 60 seconds options, touch/no touch options, boundary options, and option builder. There are many different types of orders in forex. Buy/sell are the most important type. However, there are more advanced types such as limit, stop, OCTO (one cancels the other), trailing stop, and hedge orders, among others.

      Forex trading and binary trading are quite different and it is important to understand these differences in order to become a successful trader.

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