Forex vs. Binary Options

Forex vs. Binary Options

Binary Options Brokers

Broker Bonus Min Deposit Payout US Traders Review Open Account
IQ Option - RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK Free Demo Account Without Deposit & Great Trading Contests (*) Tournaments are subject to Terms & Conditions 10$ up to 92% * Amount will be credited to account in case of successful investment Review Visit Broker
Binary.com €/$ 20 Free Bet - Binary Options No Deposit Bonus 5$ up to over 100% / Trade Review Visit Broker
Verum Option up to 100% Deposit Bonus 50$ up to 95% Review Visit Broker
Close Option 20$ Binary Options No Deposit Bonus, Deposit Bonus & Free Entry to Daily, Weekly and Monthly trading Contests! 5$ up to 95% USA Allowed Review Visit Broker
BinaryMate 3 Risk Free Trades & 100% Deposit Bonus 250$ up to 95% USA Allowed Review Visit Broker
Finrally 100% Deposit Bonus + Risk Free Trades + Free Entry to Weekly $20 000 Trading Contest! 250$ up to 90% USA Allowed Review Visit Broker
MarketsYES up to 300% Deposit Bonus! 250$ up to 100% Review Visit Broker

People all over the world are always interested in investment opportunities that can increase returns online. For new traders, Forex trading and Binary Options are two of the most popular trading options that are available. There are different benefits as well as drawbacks of both types of investments. It is important to gather as much information on both as possible before deciding which to begin trading.

The Forex (Foreign Exchange) market is currently one of the largest and most profitable markets in the world in terms of the daily turnover. The foreign exchange market assists international traders and their investments, by enabling currency conversion. A significant part of the large turnover is contributed by online Forex trading, which has been steadily increasing over the past few years. This trend is expected to continue well into the future.

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Binary Options trading is the new kid on the block. It is a new version of Forex market trading that is simple in comparison, which makes the preferred trading method. Binary Options contracts have long been available and sold directly by the issuer to the buyer. They were generally considered “exotic” and there was no liquid market for trading these instruments between their issuance and expiration. Since mid-2008, Binary Options websites have been offering a simplified version of exchange-traded Binary Options. Currently the number of binary option traders are few compared to their Forex trade counterparts, however, market gurus are optimistic that with time the numbers of both binary option brokers and traders will increase exponentially.

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What are the differences between Binary Options and Forex?

Deriving a comparison between Forex trading and binary trading is not easy as they both have their own advantages over the other. The first difference is that Forex trading requires professionals with experience in foreign currency trading while Binary Options is quite simple and easily understandable even to novices in financial trading.

The second difference is that binary option trading has a higher level of profitability compared to Forex trading. The profitability rates of Binary Option trading often ranges between 95%% and 60%. In Forex trading, the returns are uncertain and can only be determined after the closing of a position.

The third difference is that Binary Option trading is safer compared to Forex trading. With Binary Options, brokers offer up to a 15% refund in case of losses, which acts as a cushion for the Binary Option trader. Forex trading has no safety precautions in place and in cases of wrong investment decisions the Forex trader loses all money invested.

Another difference is that with Forex trading you can trade continually throughout the weekdays while with Binary Option trading, weekdays are at predetermined intervals. The trading of Binary Options is dependent on the commodity exchange hours and the local financial markets.

And last, and certainly not least, the quantity of assets available differs between Forex and Binary Options trading. Binary Options trading enables a trader to trade many more assets, then Forex trading – not only currencies, but also stock, indices and commodities.

It isn’t a secret that the binary options market is meant for retail traders who want to make some passive income. This is why binary options brokers have very small requirements for initial deposit. For example, most brokers will accept an investment of just $100 and few brokers even 5$ to 50$ if you want to start trading. You can also trade contracts that aren’t more expensive than $5 and few brokers accept even 1$ minimum trade size. Meanwhile, Forex brokers require a larger initial investment, and due to the leverage they offer, you may lose your money faster than you think.

The truth is both markets have their advantages, but the main difference between them is that they are meant for different types of traders. The Forex market is a suitable choice for people who want to turn trading into their full-time job, while the binary options market is convenient for retail traders who don’t want to get involved too much.

Forex Brokers



Broker Bonus Min Deposit Payout US Traders Review Open Account
FreshForex Broker 200$ Forex No Deposit Bonus, Forex No Deposit Demo Account, 101% Tradable Deposit Bonus, MegaRebate 2.0, 48% Per Annum & No Deposit Commission! 1$ Review Visit Broker
RoboForex up to 115% Deposit Bonus or Deposit 10$ and Receive 30$ Bonus! 10$ Review Visit Broker
XM.com 30$ Forex No Deposit Bonus, 100% Deposit Bonus & Free Trading Signals! 5$ Review Visit Broker
InstaForex Up to 100$ Forex No Deposit Bonus & 250% Deposit Bonus & 1$ Minimum Deposit! 1$ Review Visit Broker
Plus500 up to 25 Euro Welcome Bonus Without Deposit + Deposit Bonus! 100$ Review Visit Broker
JustForex 100% Deposit Bonus & MQL5 Trading Signals! 1$ Review Visit Broker
Grand Capital Broker 500$ Forex No Deposit Bonus, 100% Deposit Bonus 10$ Review Visit Broker
NewForex Broker 50$ Forex No Deposit Bonus & 100% Deposit Bonus! 1$ Review Visit Broker
MarketsYES up to 300% Deposit Bonus! 250$ up to 100% Review Visit Broker

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