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Why it’s better to trade binary options than Forex

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Trading process

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.

Yield

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.

Risk

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.

Leverage

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.

Time

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%.

Deposit

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.

Assets

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.

Comments

homero15's picture

Wow, great information, thank you.

homero15
TommyL's picture

I like Binary options because the risk is limited. It's impossible to lose everything for one deal.
At forex I lost big part of my deposit for one deal.

TommyL
@FreemanZ's picture

To be honest, binary options and forex - it's just a game, not real trade. However, of course binary options are less risky.

@FreemanZ
Zoran D.'s picture

Yeah it's a game but this game can give you much money.

Zoran D.
SanPaulo's picture

As for me, in case of yields Forex is better than Binary. Let's consider you put $50 with yeld 85%, so you can get $42,5 in 15 minutes.
At forex you put $50 and the price of the pip is $10 (with the laverage). The pair EUR/USD can make 40-50 pips per 15 minutes. Today it makes 100 pips. So you can make $400 per one trade.

SanPaulo
riksa18's picture

Binary option is very similar to forex but it is bit easier than forex trading. No calculation of stop losses, no assumption of take profits, you just need to assume either the underlying value of the asset will increase or decrease within the specific time frame usually called as expiry. If your prediction goes well, you will win or simply loses your money. I had traded forex for some time but then I shifted to optiontrade for trading binary options and I am making quite good returns now.

riksa18
Vizory's picture

You can argue all you want, but it's impossible to say which is better, forex or BO. Forex has its advantages and disadvantages, same as BO. To compare the two is like comparing an egg to a chicken...

Vizory
Nicrahe's picture

I wouldn't say that trading on binary options is easier than on forex. For each point in the first post I can answer why options is more complex than forex.

Nicrahe
Prime's picture

The first advantage I noticed for myself in binary options was that I know ahead of time how much I'm going to make and how much I'll lose, in that regard forex loses strongly.

Prime
Salton's picture

In essence I agree with all the points that have been given in the article, especially with the one that the losses on forex can be limitless.

Salton