Best Binary Options Exchanges

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Broker 2020!
    Perfect for Beginners!
    Free Trading Education! Free Demo Acc!
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  • BINOMO
    BINOMO

    Trustful broker.

Best Binary Options Exchanges

You can’t read an investment blog without coming across posts about binary options. There’s a lot of money in binary options – for users, brokers, and advertisers – so this won’t change overnight. Binary options trading is legitimate, but incredibly risky. You’ve got to understand the the industry and the risks involved – and you might be better served staying away entirely.

Don’t believe reviewers who pitch binary options as a quick fix for your financial problems. In reality, nothing can be farther from the truth.

How does Binary Options Trading work?

Binary options traders “invest” in the future movement of certain assets, such as gold, stocks, markets, etc. Simply put, binary traders try to predict whether the value of such assets will increase or decrease during a certain time frame.

If your prediction comes true, you will win and earn a commission on your investment. If the value doesn’t change as you predicted, you will lose all the money invested to lock in your prediction.

Presented this way it becomes obvious that binary options trading is more like sports betting than real investing. Binary options is nothing more than betting on financial assets, much like you would bet on the outcome of a sports game.

So, is it a scam?

This doesn’t make binary options a scam. It’s just not an investment.

The majority of binary options brokers are legit businesses. As legitimate brokerage houses, your money will not be stolen and you won’t be defrauded.

The problem is that the majority of brokers promise unrealistic expectations. The average user does not get results like these.

The most common way binary brokers attract new traders is to show them cases where simple people managed to win huge amounts of money by just trading low amounts on gold and other popular assets.

Sure, cases like that do exist, but they are the exception not the rule. The same way some sports gamblers manage to win extremely large sums, skilled/lucky binary options traders occasionally make bank. However, this happens extremely rarely.

Not knowing this, a lot of people sign up with binary options brokers that offer unrealistic winning promises. In the end, lots of people end up losing all of the money they put into the system.

But can you really win?

The biggest factor in winning at binary options is LUCK. But yes, you can really win.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Broker 2020!
    Perfect for Beginners!
    Free Trading Education! Free Demo Acc!
    Get Your Sign-up Bonus Now:

  • BINOMO
    BINOMO

    Trustful broker.

The thing brokers will not tell you is that you will have to put in a lot of effort and research if you want to win consistently. And even then, luck is the most powerful variable.

Like in sports betting, if you want to win you will have to have a great knowledge about the sport in question and about the teams that are playing. You will have to understand the game, the strengths and weaknesses of the teams, and the skills of the players. You will have to know about historical performance, fitness levels, injuries, and dozens of other variables. Even then, things might not go your way.

If you factor in all these variables then you probably will win in the long run. It’s exactly the same in binary options trading. There are countless variables and risks that you will have to consider in order to accurately predict the future development of an asset.

Issues like time of the year, state of the economy, political developments, economic performance of key market makers, recent business news and events are constantly influencing the movement of stock prices and commodities.

In order to be able to accurately predict the movement of an asset, you will have to be up to date with all of this info. Also, in order to be successful you will have to understand a variety of technical data as well, such as being able to read charts, use technical indicators, understand statistic calculations, and much more.

As you can see, binary options is much more than just investing $100 on gold and then getting $300 back 10 minutes later. If this is your approach, then you will lose 100% of your investment sooner than later.

But that sounds hard!

Yes indeed! That’s exactly what solid binary trading requires. I know most entities advertising binary options make a lot of bold promises, but in reality it’s much more complicated. In order to really make money you will have to invest significant amounts of time in market research and learning about the technical aspects of this business.

No matter what anyone promises, you will never be able to make easy money by placing random bets here and there. Brokers count on you doing exactly this because they know that this way, you will be paying the price of becoming a losing trader (meaning brokers will be making money off of you).

So, this is the truth behind the binary option business. There isn’t anything inherently wrong with this form of online trading (or, better said, betting), except that brokers are artificially hyped up and are dishonestly presented as something they’re not.

So one more time, is Binary Options Trading a Scam?

Binary Options trading isn’t a scam, but it’s financial gambling that will only work well in the long term for the most devoted and knowledgeable users.

2020 Update: Binary Options Industry Changes

If you read our thoughts from 2020, you know that binary options is legit, but extremely risky and difficult to take part in profitably. But that was back in 2020. Things have changed quite a bit since then.

As mentioned above, there is still no easy shortcut to binary options trading success – you will still need to learn the basics of this trading form and do lots of market research to make real money. That said, some new developments have appeared in the industry which might make it easier for you to make a living through binary options trading.

More Welcoming To New Traders

For one, social trading has finally become a major aspect of binary options trading. Newbies who would like to start making money without having to fight against a gnarly learning curve can look to the practices of seasoned veterans. Some brokers even offer in-house social trading platforms that let you profit from the trading experience of highly successful binary option traders within the company.

Of course, there is the risk that the trader is going to fail, in which case you risk losing money just the same. So, you will have to choose your signal providers very carefully to avoid disappointment.

We now have binary options robots as well, which purport to automate winning trades for users. Unfortunately, many of these bots are scams, which is why you would be better off avoiding them altogether (unless in cases where your broker is offering their own auto trading services).

Even then, you cannot really count on a broker to give you a highly profitable automated trading tool. Why would a broker give you the tools to take their money? You will have to do your own research first to see if the auto trading system is worth its salt. And should you choose to use an independent binary trading robot company, you will have to be extra vigilant to avoid getting scammed.

More Tools For Advanced Traders

It is easier to access quality financial information needed to make intelligent trading decisions than it was two years ago. Premium binary option brokers now have great platforms that provide excellent data for comprehensive technical analysis on the assets you are trading, helping you to make better trades.

Additionally, there have been cases of brokers introducing robots that scour financial newswires, giving you the latest events so you can anticipate market fluctuations. All these advancements make binary options trading easier (for people willing to put in the time to learn the system inside and out).

Still Legit?

Yes, binary options is legit, and growing. But you will still have to jump through lots of hoops to make it in the industry as a beginner. There are also plenty of scams to take advantage of helpless new binary options traders who don’t know how the industry works. At the same time, we now have a broader selection of trustworthy brokers and signal providers than we had a few years ago.

Furthermore, better information and technical analysis makes the industry more lucrative for dedicated users. Even so, you will have to be a lot more watchful of who you get into bed with when entering the industry to keep your money from falling into the wrong hands. If you are willing to put in the work, learn through trial and error, and develop better methods than the average binary options trader, you can actually make money with binary options in 2020.

What is the difference between forex trading and binary options trading?

New traders typically face a choice of whether they will trade forex or binary options. They may also consider stocks or futures, but since these endeavours are more capital intensive, forex and binary options are the most accessible to the average person. Although you can use the same charts for forex and binary trading, there are several differences between the two and these differences will likely appeal to different traders. Before trading either market with real money it is important to have a plan for trading, a reliable trading method and sound position management.

Before looking at how forex trading and binary options trading differ, let’s first address some general ways in which they similar.

  • Both are tradable online and typically anytime the underlying asset market is open. For the forex market and binary forex options (usually) this means trading takes place around the clock during the week.
  • You can begin trading either market with a small amount of capital, usually around $100, sometimes less. Since you don’t want to risk a lot on each individual trade (see: Determining Binary Options Position Size) likely you will want to start out with more trading capital than $100 though.
  • Both allow you make or lose money based on which way the asset moves–currency or otherwise.
  • Both are tradable on short-term time frames, although with forex trading you can also take long-term positions.

Differences

There are also major differences between forex trading and binary options trading.

  • One major difference is that with binary options the risk and profit potential are both fixed at the outset of the trade. For example if a binary option pays out 80% to winning traders, then you know that if you place $10 on a trade, you will either lose your $10 or make $8 (and of course you keep your initial $10 as well).
    • Forex trading is more variable. This can be good or bad depending on how the trader trades. A stop loss can be used to control risk, but market conditions may prevent the order from being executed at the expected price resulting in a larger than expected loss. If a stop loss is not used, then the risk of the trade is unknown. A profit target can also be used to take profits at a certain price or percentage level, but there is no guarantee that price will be hit.
    • Binary options trading is simpler than forex trading because there is no variability, you know your risk and profit potential and when the option expires you either lose or gain the pre- determined amount. With forex trading you don’t know your ultimate risk and profit until you close the trade. But this can also be an advantage depending on your trading level as the fixed risk and profit of binary options offers little flexibility in customizing risk relative to reward.
  • The risk and reward profiles for forex trading and binary options are also drastically different. With the forex market you can customize your potential reward relatively to risk. For example, you can place a trade and place a stop loss order which exposes you to a $100 loss, and at the same time place a profit target at a price which will give you a $300 profit. The trade stays open until one of the orders is hit, resulting in a $100 loss or $300 profit (or close to it).
    • With binary options trading on the other hand your risk is almost always more than your reward. Binary options typically pay out 60% to 80%, but if you lose usually 100% of the money you placed on the trade is gone.
    • With binary options you will need a greater than 50% winning percentage on trades to breakeven (about 55% or higher depending on the payouts) and/or make a profit. With forex trading you can actually lose more trades than you win, but since you can customize your reward relative to risk you could end up still making a profit.
    • Certain traders will like the flexibility of forex trading, while others will appreciate the simple transparency of binary option’s fixed risk and payouts.
  • Magnitude of price moves is another difference. When the underlying asset is barely moving a binary option will still pay out 60 to 80%, but forex traders are likely to be sidelined because there isn’t enough volatility to make a decent profit.
    • When trading forex the magnitude of price moves matter. You not only need to pick which direction you think the market will move but also need to assess how far it may go–both for and against you.
    • With binary options the magnitude of the price move doesn’t matter. If you buy a EUR/USD call option thinking the price will rise in the next 15 minutes, it doesn’t matter if the price goes up 1 pip or 100, you still get the full payout and are exposed to a known risk (the amount you placed on the trade) if it drops 1 or 150 pips instead.
  • Another difference is the time frames available for trading. With forex trading you can take trades that last from 1 second to many months, and every conceivable time frame in between because you open and close the trade when you feel like it. With binary options you must trade on the time frame of the options provided to you.
    • Knowing definitively when your trade begins and ends will appeal to many traders, in which case they will likely be drawn to binaries. Others will prefer the flexibility of forex trading on any time frame they want, opening and closing positions at a time and price they determine.

Final Word

This is not a definitive list of the similarities and differences between forex and binary options trading, but will likely help you on your way to making a choice.

Both the forex market and binary options provide profit potential. Binary options are simpler and you always know your risk, profit potential and how long the trade will last. Forex trading is much more variable and there are more things to consider, such as when you will get in, when you will get out and how you will manage the trade in the mean time. This variability of forex and the simplicity of binaries both have advantages and disadvantages. Based on the differences assess which you prefer, or try a demo account with a forex broker and binary options broker to see which you like better and ultimately in which market you perform the best.

Can you Really Make Money with Binary Options?

Updated on: 6 January 2020

Binary options trading is very popular in many countries around the globe. However, most people still ask the question “can you really make money in binary options”. In this article I will try to answer this question and give you a few tips on how you can make money trading binary options.

The short answer is that yes, you can make money online with binary options trading if you only trade at legitimate binary options brokers and learn the fundamentals of binary trading and employ proper trading strategy.

Binary options trading is a form of investing through predicting the movement of various assets such as gold, silver, the USD etc. It is very similar to other forms of investing such as forex and stock trading. It’s however simpler, has relatively fewer risks (in the sense that you will always know in advance what you might lose) and can offer larger payouts.

The idea is that you can make money in binary options only if you treat it as a real form of investing. This means learning how it works, learning how to read charts and learning how you can make accurate predictions. All these are not that difficult but it takes some time. If you treat it as gambling and just make random predictions then you will obviously not win.

Trading binary options online is not as complicated as many people think it is. You don’t have to be an economics expert in order to make money by trading binary options. Below these lines I’ll reveal why making money with binary options is actually pretty simple.

Quick guide: Yes, you can make money in binary options. The easiest way is to use a binary options robot, such as BinBotPro that will automatically analyze the markets and make accurate predictions for you. This is fully automatic and comes with a success rate of around 85%. The huge advantage of BinBotPro is that it trades with cryptocurrencies such as Bitcoin where daily gains of up to 20%-50% are very frequent.

At this moment the most reputable binary broker where you can make money if you use proper strategy is IQ Option. IQ Option has a payout rate of 88% and is also the broker with the most licenses and government-approvals, which means it’s 100% safe and fair. If you are from the US you can trade at BinBotPro instead, which is also a reputable broker.

Hot in 2020: Cryptocurrencies are the biggest gainers in 2020. You should register at BinBotPro in order to make a lot of money. BinBotPro is a trading bot that will invest in Bitcoin when it’s starting to go up and sell when it’s starting to go down. You can make up to 5% to 10% gains every day with BinBotPro.

September 2020 update: If you wish to make money without trading then you should check out Bitcoin mining. All you need to do is renting hash power and wait to see your Bitcoin being added into your wallet over time. Check out IQMining and their offers.

With Bitcoin mining you do not need to trade and your profits are almost guaranteed. You only rent the server and will then be paid out by the moned Bitcoin, which you can exchange into fiat currency. There is no possibility of “losing” your deposit here, as you will not be trading. You will get daily Bitcoin payments into your wallet. Check out IQMining now.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Broker 2020!
    Perfect for Beginners!
    Free Trading Education! Free Demo Acc!
    Get Your Sign-up Bonus Now:

  • BINOMO
    BINOMO

    Trustful broker.

Binary Options Trading School
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