Are binary options better than the traditional forex trading?

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The binary options trading is an activity that offers some non-negligible advantages in relation to traditional forex trading. Whether the trader is a beginner or experienced, the main motto of this form of binary options trading is simplicity. With forex brokers, we very often find trading platforms that are developed for connoisseurs; these platforms offer numerous complex functionalities that require certain skills and a long documentation that needs to be mastered beforehand. These few complications that are specific to forex trading may discourage traders. When it comes to binary options, the platforms are very different; they are simplified to the maximum and allow anyone to simply buy or sell a financial asset and make a certain profit. In addition to their simplicity, binary options offer other advantages, such as the absence of costs, a certain flexibility, an advance knowledge of potential gains and losses not to mention easy access to the market that is also open to small investors.

Trading at no cost, no spread and no commissions

This is one of the particularities of binary options trading. Traders who are enthusiastic about this product are not subject to any trading fees when conducting transactions on the financial markets. Unlike forex brokers, binary options brokers do not apply any tax or commission levy on the transactions of their traders. The lack of commission is one of the criteria that drives traders to opt for this type of investment.

The flexibility of binary options

On the Forex market, traders can maintain their open positions in the market as long as they wish to provided that their capital on the trading account allows it. With binary options, traders have the flexibility to determine beforehand the duration of their investment through what we call a “maturity”. The maturities proposed by the binary options brokers aim to satisfy all types of traders, both short-term traders looking for quick gains as well as medium-term or long-term traders who are seeking profits on long-term investments. In fact, traders can set their maturities from only 30 seconds (as permitted by the 24option broker). They can also enjoy intraday maturities (usually at 5 minutes, 15 minutes, 30 minutes, 1 hour, end of day) but also longer-term maturities (weekly, monthly, quarterly and even yearly).

The predetermined potential gains and losses

On the Forex market, traders can make the choice of determining a “stoploss” (maximum loss in terms of pips (incrementing market unit)) and a “takeprofit”. Because these parameters may be more or less difficult to define, many traders then choose to speculate without stoploss or takeprofit; in other words they are not protected and in case of significant price movement in one direction or another within the market they risk losing their entire capital. With binary options, this issue can not be encountered; when traders choose to buy or sell an asset, they determine the amount to be put at stake. For example, if we invest $ 100 to buy the EUR / USD currency pair thinking that the price will be on an upward trend, our risk is known in advance. If our investment turns out to be a losing one, we will also be losing our $ 100. The potential gain is also known before our decision to take a position on the market. If the return on investment displayed by our binary options platform is 70% in case of a winning transaction, we will recover our $100 investment in addition to $ 70 of return on investment.

Regulated binary options brokers available from $100!

It is not uncommon to find some traditional forex brokers that ask their new clients to deposit hundreds or even thousands of dollars to open a trading account and gain access to the market. When it comes to binary options, the policy of binary options brokers is quite different; these brokers want to allow anyone to have access to the market, hence opening a trading account is often available from only $100.

Just like the Forex market, there are serious binary options brokers with the necessary authorizations that allow them to offer their investment services to individual traders. These brokers are called “regulated binary options brokers”. We highly recommend that you opt for these brokers instead of the unauthorized ones. With a broker that is regulated by the financial authorities, you are immune to the risks and binary options scams and thus enjoy a nice experience in the financial markets.

Brokers like 24option or TopOption are authorized and regulated by authorities such as the CySEC (Cyprus regulator overseeing the brokers at the European level), the AMF (financial market authorities – France), the CNMV (Comisión Nacional del Mercado de Valores – Spain), the CONSOB (Commissione Nazionale per le Società e la Borsa – Italy) or the FCA (financial Conduct Authority – United Kingdom). By having licenses from these financial authorities reflects the brokers’ seriousness and quality, which also explains their success with traders in the financial industry.

Negotiated bonuses on deposit

Our team was able to exclusively negotiate for our readers bonuses on deposit with many binary options brokers. For example, you can double your initial capital upon registration with some of our partner brokers. If we take the example of regulated brokers that we recommend, such as 24option or TopOption, be aware that opening a 24option account allows you to receive a 100% bonus on deposit, whereas the broker only offers a 20% bonus on the initial deposit. A 100% bonus can also be obtained by opening a TopOption account through our website while this broker does not normally offer any bonus on deposit.

The BonusBinaryOptions.net guarantee is another privilege that we provide to our readers who proceed to opening a new binary options account from one of the links on this website. This guarantee allows traders to benefit from the special relationship that our team maintains with the brokers thus allowing us to help resolve any problems that may be encountered during your experience in the markets.

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