Binary options: As easy as pie!
To trade binary options successfully, it’s not required to study tons of literature on the theory of trading. There is no need to do complex calculations and constantly monitor the price movement on the chart.
Forex: Requires experience in market analysis
Forex trading requires prior preparation of technical and fundamental analysis. Skills are needed for the calculation of volatility and market trends at different time intervals.
Binary options: High yield from the transaction
Options don’t mind market volatility. You will receive a predetermined profit, even if the closing price of the option changed by only one point of the option’s purchase price. Your yield will reach 90% of the invested funds from each transaction.
Forex: Yield depends on volatility
On Forex, your profit depends on the volatility of the market. With a quiet market, which has been observed in recent years, the yield is greatly reduced.
Binary options: Easy risk management
The potential risk of loss is limited and fixed before trading. Traders always know in advance how much profit or loss each transaction can bring. Compared with the Forex market, such a mechanism significantly simplifies the management of risk for the trader.
Forex: Losses are not limited
The loss for each Forex transaction is not limited, and the leverage doesn’t allow holding position in the red zone, which exceeds your own funds. This contributes to the loss of an entire deposit as soon as possible. To limit the risk of losses, it is necessary to use any added Stop Loss order.
Fees and spreads
Binary options: No fees and surprises!
Binary options trading has no commissions and other costs. Your income from the transaction will always be equal to your net profit!
Forex: A lot of hidden costs
When trading on Forex, you pay spreads or commissions that can eat up a significant part of your profits.
Binary options: You use just your money
When trading binary options, your loss is limited by the amount you invested in the option. This allows binary options traders to calculate profits and losses much more easily without calculating the price of one point. Here, you see your whole loss or profit in advance. This is one of the major advantages that accrue to a trader who decides to trade binary options.
Forex: You get just a percent
Leverage is provided by the broker as an opportunity to earn income from $10,000 when you have only $100. The remaining $9,900 are given to you by the broker "in debt" for trade, so that you can receive a percentage of the profits.
Binary options: You know the time you will receive the profit
Time spent on binary options is much smaller. You know in advance when you get your profit. It depends on the time your option expires (1 minute, 5 minutes, 15 minutes, etc.).
Forex: You never know what time you will win
When trading on Forex, the time when you earn a profit depends on volatility and your money. In binary options, if broker says you earn 90% of your invested $100 in option purchase in 15 minutes, you earn it in 15 minutes. On Forex, it’s unreal to earn 90% in 15 minutes. You can earn no more than 25%.
Binary options: You can double your money within one day
When trading binary options, you will be able to almost double your investment with each transaction. For example, the yield is 80%, so investing $25 in an option that expires in 10 minutes will earn you $20,and your profit becomes $45. Then, you can invest $40 and get $32, for a total of $72. It’s nice chance, having $25 to get an additional $52 for 20 minutes.
Forex: You earn just 20-30% per transaction
On Forex, having a $10 deposit will take you a long time to "grow" up to $30, i.e., a few dozen transactions, if you trade without risk and manage your deposit, risking no more than 5-10% of your deposit per transaction. Therefore, you will receive no more than 20-30% of the profits for each transaction.
Binary options: More than 50 different assets to trade
On the binary options market, you can trade currencies, commodities, stocks and indices.
Forex: The main asset on the Forex market is currency
You can trade only currencies, but it’s the most difficult asset to trade because you should take into account many fundamental factors.