Why binary options are much better than forex
Setting up a binary options practice account is something that is sensible to do before anyone could indulge into trading binary options. Many binary options brokers offer their users with a practice account to get used up with the platform and signals. These users are those who have registered with them to trade binary options online. Well, using a binary options practice account is always a clever move before you invest any real money into trading your options.
Many binary options brokers provider their traders with ultimate information that could fetch them high returns on their investment. They provide their traders with a comprehensive guide that would help them with their trade. It allows them to convert their capital investment into higher profits. Having a binary options practice account with leading brokers can give a trader a good start!
Many people will be familiar with Forex trading. Foreign exchange trading has been around almost as long as money itself, and retail investors have been enjoying the benefits of the mechanism for years. Traders assess the relative strength of currencies and take a position based on which way they believe price movement will go. There is an estimated $4trillon per day traded on foreign exchange markets.
The good people at GOptions believe that, despite the enormity of the Forex market, the youthful binary options vehicle has a number of distinct advantages over their older compatriot. When the experts say something it is normally just about spot on.
GOptions is a binary options trading platform that was established in 2012. A team of traders developed the platform. After seeing the huge potential of the binary options market they decided to introduce a platform that was widely accessible both geographically and demographically. They have been hugely successful in their vision, achieving 5 star customer ratings and wide acclaim in the trading industry.
The Financial Analyst at GOptions, states the three clear advantages of binary options over Forex.
Firstly, binary options offer stability. Right from trade commencement traders understand the potential profit and the potential loss. This enables to control risk and affords a level of stability that has been increasingly desirable since the onset of the World Economic Crisis in 2008.
Secondly, he explains that the simplicity of binary options makes them better. Binary options are perhaps the most simple trading vehicle to understand and utilize. Forex traders are already acutely aware of the dynamics of currency pairings and are flooding to binary options in search of a simpler more controllable trading vehicle. Around one third of traders within the binary options trading community have a background in Forex.
Lastly, the diversity of trading opportunities available through binary options is much larger. Binary options can be traded on commodities, currencies, stocks and indices. This means that there is always a viable asset through which to trade. If one market is too volatile at a particular time there are always alternatives. Platforms such as have a handpicked selection of assets that offer diversity of asset and geographical diversity to ensure maximum trading choice.
It is hard to fault the analyst’s logic. One thing is for sure… The rise and rise of binary options is attracting Forex traders in their hoards. Forex platforms are no doubt glancing over their shoulder and getting anxious about the retail investor market share that binary options are gaining
How do you choose a binary option trading software platform with a practise account?
First you need to sign up with the recommended binary option broker to start earning money. Getting to know the platform with the help of binary options practice account is a smart move. It doesn’t matter whether you are a professional trader or a beginner, practice makes perfect. Even traders with a few years of experience, find it difficult to find a broker with a free practice account. Most binary options brokers provide a free demo account to practice without any strings attached. But, these brokers do not advertise their platform much, which is a drawback. Since, only few new traders come to know about such free offers. However, the best method to follow to know about such brokers and their free practice account is through detailed research. Though, this takes a bit of your time, it is worth it!
Though there are lots of binary options scams, yet there are few legitimate platforms that offer tested brokers and signals to help traders trade in the binary market. Below are some tips on how to find an effective platform to trade binary options using the help of the binary options practice account offered by the broker?
Security: To ensure that all your transactions are safe, you need to watch out for the encryption. A website that has 128 bit SSL encryption is the right now. Since, it avoids any online theft from happening.
Transparency: Check out whether all the details like fees, investment amount, broker signals, and other things included in binary option trading is transparent. Any strings attached to any of these can be of problem in the future. Make sure of the terms and conditions beforehand to perform a clean trade without any disturbance.
Support: An expert advice is one thing that can help from time-to-time for any type of a trader. A beginner or an expert needs some advice at some point of time when the market is dull, and the movement of the market cannot be predicted. Hence, experts help is needed 24/7.
Advantages of Trading Binary Option
- Controlled Risk – The percentage reward is known from the onset, as is what you stand to lose.
- Simplicity – You only need a sense of direction i.e. ‘Will Google stock price increase/decrease by expiry?’
- Attractiveness – For a profitable trade to take place there is only the need for the price to close in-the-money and the winning trade will receive the entire payoff, even if was ‘right’ by a single pip.
- Hedging opportunities – A safer option to take if a trader has an open position elsewhere in currency, stocks etc. Utilizing a binary option can eliminate a further loss elsewhere.
- Punctuality – Binary contracts are being issued around the clock, allowing traders to trade on multiple time frames. There is always an expiration time arriving, which constantly yields new opportunities for binary traders.