Blogs Gurutrade

Forex and binary options: Main distinctions

Many people believe that the interbank currency exchange — is actually the only way to get profit. It is well known that the currency market is a good place to increase the capital using currency speculation. The currency market possesses a wide range of advantages, for this reason Forex is considered one of the best types of investments.

Nowadays binary options trading is considered a very popular type of earnings. Their main advantages are high profitability, fast profit and absence of high risks. All these qualities turn binary options into a more favorable option of earnings in comparison with the currency market. However, what to choose: binary options or Forex? Before making a choice, it is necessary to conduct the comparative analysis of these types of trading.

For reference, let's consider the simplest scenarios of Forex trading and binary options trading.

It is a key factor in any business. For example, we will consider the account of $100. In the currency market, the trader can expect a profit of 20-30 dollars for each transaction, but the process is dangerous, as the leverage is 1:100. In binary options, the minimum is $60 for the transaction.

However, in that case, Forex trading is less dangerous. Trading in binary options the trader can't close a position anytime, as in Forex. As soon as the transaction fails, the trader loses almost everything because the maximum compensation doesn't exceed 15%.

Binary options trading is rather simple therefore in this type of trade beginners can predict results easier. The binary options trading platform is available in the web browser that considerably reduces the risk of emergence of technical problems. But at the same many brokers of binary options appeared in the market quite recently and don't possess neither positive nor negative reviews.

In contrast, Forex brokers, mainly, represent large and reputable companies which earned to a name during many years of work on the currency market. To choose the trustworthy broker, it is necessary to conduct the thorough analysis.

Summing up the results, it is obvious that binary options are more profitable and simple earnings for the beginner, however trading is interfaced with big risk. While trading on Forex will be less profitable, but at loss the trader won't lose everything at once.



To leave a comment you must be or register

Number of comments: 3
  • Whitney.kors
    • #

    Not so long ago, I've decided to try binary options trading, I can say that is much easier than clear Forex, but there are risks too.

  • Stacey
    • #

    I've also started from Forex and still have open deposits, but right now I pay all my attention on binary options. Really nice and fast possibility to make money and returns are high.

  • Kendra.cole
    • #

    My career in the financial markets I've started from Forex, now I have several accounts too, but mostly prefer binary options, I guess it is the easiest way of trading I even can combine it with my full-time job.