These days many people are searching for ways to make a substantial income without having to leave their house, and moreover, without being tied to one place and one specific work schedule. More often than not, it is over the internet. In specific, they are trading with binary options or on Forex. And, of course, the question naturally arises regarding which of the two is more profitable and where to trade to profit as much as possible, as fast as possible.

Many are already aware that trading with binary options differs in various ways from classical trading on the exchange. In order to best understand if switching from Forex to the binary options market is suitable for you, we must first go through what these differences are in all actuality.

 

How Forex Traders Can Become Binary Options Traders

 

Profitability

 

So, there is the matter of where traders can earn more profit, on Forex or when trading with binary options?

If speed is what matters, then, without a doubt, it is possible to earn faster with binary options. Let’s say that a trader acquires an option valued at $100, placing a trade on an increase or decrease of the asset price. Then, is the correct direction was predicted, in nearly no time (1 minute for example) $80 was earned. On Forex, in the same amount of time, a trader couldn’t earn a dollar, with a minimal deposit, it would be necessary for an asset to move roughly 50 points to earn an equivalent profit.

Binary options trading also differs due to the fact that it doesn’t matter the distance the rate covers, as traders can adjust the price a point so as to earn their well-deserved profit. With Forex, on the other hand, profit accumulates based on the number of points that the forecasted asset rate passes, so every further point brings in modest sums of additional profit.

Trading on Forex can be more profitable, as opposed to trading with binary options, when longer periods of expiration are selected and when large deposits are involved. So, if the rates move thousands of points over a long period (let’s say the trade runs for a month), then the trade will be closed with sizable returns. In cases like that, you can earn more money on Forex. That being said, this option is for those in no rush, who have the necessary financial means and experience to invest long-term without needing the returns anytime in the near future.

What this means for beginners is that binary options trading is, without any doubt, a more attractive prospect as it requires a minimum deposit no fundamental macroeconomic analysis to earn a respectable profit significantly faster.

The binary options market is also attractive for Forex traders not only as an insurance measure but also to diversify and trade successfully through uncertain periods on the exchange.

 

Risk Level

Meaning you must make peace with the fact that high profit carries with it high risk. Although the binary options market has one advantage, you can trade with short expiration periods.

Of course, traders on the binary options market can’t close contracts until the most opportune moment, when the price moves as anticipated. That being said, there are strategies that allow you intervene and reinsure your position, keeping your losses to a minimum.

 

Simplicity in Practice

 

From a purely technical perspective, trading with binary options also appears significantly easier. Traders don’t have to place orders and make complex calculations. There is no need to calculate the optimum moment to exit the market after the price moves in a different direction, creating the necessity to minimize loss. There is no need to resolve problems regarding the movement of orders when rates rose and the trader wanted to earn the maximum total profit possible.

In this case, you just acquire the option and wait till it is realized.

However, technical analysis also plays a key role when trading with binary options. In this sense, there is no difference between trading on Forex or on the binary options market. The most in-depth analysis of the asset possible will always lead to the best trading result, as is often the case in other circumstances.

 

Leverage

 

Leverage also becomes a risk factor for Forex traders, despite the obvious attractiveness of the prospect. After all, as soon as your losses compared to that of your total deposit, the broker closes all your trades, taking the money for themselves.

When trading with binary options such situations don’t arise. If you lose money, it is only possible to lose as much as invested initially. Therefore, calculating total profits and losses is easier for binary options traders, than for Forex traders.

Time Required

 

It isn’t difficult to wager that the amount of time required to trade with binary options will be significantly less. In relation to that, your level of exhaustion will also be lower when trading with binary options, as the amount of free time you have to relax will increase. Relaxing will also increase your ability to concentrate when working. It is very important.

 

Total Deposit

 

In this case, trading with binary options is also advantageous, as smaller bases of capital, such as $10 take too long to “grow” on Forex. While following risk management guidelines and placing several dozen additional trades, you have the possibility of increasing your total balance to $30, if every contract earns roughly 20% profit.

On the binary options market, traders have the opportunity to nearly double their original investment with every trade, for example, $2 becomes $3, and $5 becomes $8. Meaning that it is possible to start from practically “nothing” and quickly “rise”.

 

List of Assets

 

On Forex all the assets are currencies. On the binary options market, besides currency, you can trade goods, indexes, raw materials and assets of major companies. More or less, traders who come from a Forex background mostly stick to currency pairs out of habit. There is nothing wrong with the logic of that in essence. It is natural for people to stick with assets that they have prior experience applying specific strategies, especially when it is available on the trading platform. There is no need to start completely from scratch.

 

Trading Conditions

 

The general principles of trading on Forex or with binary options are practically the same.

First and foremost, every trader in any exchange must trade within the framework of their trading system. And in the case, they can expect a reasonable return, but more importantly, they gain invaluable experience.

Meaning that every beginner must learn the basics of technical analysis in order to start, even if it is the most basic level. After all, you need to understand how to forecast rate behavior, how to work with levels of support and resistance, learning the configuration of bars and candles, and how reversal figures are used.

A trader must have the ability to calculate which direction the rate is moving. The exchange isn’t a game, it is pure mathematics. For that reason, it follows that you shouldn’t buy into any propaganda on this or that platform implying that every trader will earn a huge profit. If you are aiming at earning a stable profit then you must rely on sound calculations and specific knowledge.

How Can a Forex Trader Switch to Trading With Binary Options?

 

It is very simple! After all, if a trader has even a basic understanding and a bit of experience trading, then they can safely begin to experiment on the binary options market.

 

How Do You Choose the Right Broker When Shifting to the Binary Options Market?

 

As it is well known, there are many binary options brokers providing various different trading conditions and unique offers.

It is worth avoiding any broker who needs to aggressively advertise. Instead, pay attention to the rating of the company, favorable financial terms for users, and the presence of demo accounts and free educational resources. Modern binary options brokers must be able to offer traders a wide array of various profitable assets, trading tools, and built-in chart analysis tools. Adjustable settings, with a wide range of expirations, the ability to scroll through historical rate data, and tech support available around the clock as well are all unquestionable advantages of selecting the right platform for trading with binary options. Besides that, traders must be able to move funds between their trading and banking accounts quickly and easily, without any delays due to the terminal, and trades must be able to be opened momentarily. An additional benefit will also be the analytical content on the broker’s site.

If you find this kind of binary options broker, then you can move on to trading without any worries.

Of course, it near goes without saying that traders with previous experience on Forex are better positioned to effectively trade with binary options than a “complete” beginner. However, even taking that into account, it is recommended to start with a demo account in order to “find one’s feet” and test to ensure that whatever Forex strategy you’ve chosen also works for “binary” assets.

If the trading strategy doesn’t fall short, then it is the right time to deposit suitable funds, enough to place at least ten trades. Keeping in mind that on the binary options exchange you must thoughtfully take into account the duration of the trade.

 

Common Mistakes of Forex Traders When Trading With Binary Options

Many novice binary options traders are troubled by the fact that 100% of the total investment is lost, in this segment of the exchange, if the contract is unsuccessful. They are not accustomed to it, as on Forex it is possible to manage the size of losses. More or less, when Forex traders earn a respectable profit from trading with binary options, their doubts usually fade. After all, binary options can bring in roughly 80% returns, in what would be considered a shockingly short period of time in Forex. It is also quite simple to lose a large sum on Forex as well, leading to some losses of over 100%.

It isn’t worth overthinking it, your knowledge from your Forex experience will help you achieve financial success with binary options as well. That being said, ending your Forex career is definitely not a requirement.

 

INVEST IN CRYPTOCURRENCY

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

How Forex Traders Can Become Binary Options Traders
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