Forex vs Binary Options

Forex vs Binary Options

Binary Options are new to many in the investing world, however, Forex trading has been around for many years.  Many investors want to know what the difference is between these 2 methods of trading. The information below hopes to provide the answer to which one of these will be the most profitable available to you today!

Forex Trading

For those who are interested in trading Forex, it requires trading skills that are beyond beginners understanding.  Because of that, many who start out with Forex trading have a hard time really getting a grip on how to trade it.  There are many benefits of trading in the Forex market.  It is a very liquid market that is available 24/5.  You can use leverage when investing in Forex that enables traders to trade with a lot more money then they have to trade with.  For example, if the Forex broker that you are trading with lets you use 1:400 leverage with a $1000 investment, you could be trading with $400,000.  Because of this leverage, traders can make a lot of money, but also because of this leverage over 90% of Forex traders’ accounts are wiped out because of over-leveraging.

Binary Options Trading

People who trade Binary Options are able to have a vast array of assets to trade in; currencies, stocks, indices and commodities with their preferred broker’s trading platform.  Because there isn’t any software involved with Binary Options trading, traders are able to trade anywhere that they have connectivity to the internet.  One major advantage that Binary Options have over the Forex market is that there isn’t any leverage involved.  Because of that, there isn’t the option of over-leveraging yourself and therefore losing your whole investment, your risks are know the moment you place your trade.  This is a major factor that is pushing many traders into the Binary Options market because there isn’t a high degree of difficulty in understanding how to trade even though they don’t have prior trading experience.

The Preferred Option

There are many Binary Options brokers that will let you begin trading for a little as $10 per trade.  Because this is a small amount, you can have a much more realistic potential to profit from your trading.  When in the Forex trading market, your minimum investment is often between $100-$1000, that makes it difficult for the majority of people to trade it successfully or even trade it at all.  There are many methods that Binary Options brokers will take for payment, even through PayPal and other easy methods.  Since more and more traders are looking for an easy way to invest in assets that they understand, Binary Options are taking a lot of the steam out of Forex trading.