Investors are commonly confused with the differences between binary options trading and Forex trading. When it comes to comparing Forex vs binary options, the positives in both are quite clear. The consensus is, however, that trading in binary options is simpler and offers better, definite returns.
No Margins with Binary Options
In Forex markets, margins exist. You can use the margins to trade with but an individual broker determines the amount of margin available. The benefit of the trading margin is that you can increase your investment and return in Forex markets.
Margins are not used in binary options trading. The benefit is not dealing with margin calls.
Unknown Profits with Forex
With Forex, it is difficult to tell how much your profit or loss is until the deal is completely closed. With binary options, it is the exact opposite. In order to assist your investment in turning a profit with Forex markets, use stops and limits to control a certain percentage for profit.
Forex Does not have Set Expiry Positions
With Forex, you set the closing time but the broker has to agree to it. Binary options have set expiry times, which help investors to be on top of their profits/losses. With binary options, trading occurs both day and night. Reminders can easily be set to alert you to go to a specific market at a certain time to make necessary changes before the expiry time hits.
Brokers Decide Trade Sizes in Binary Options
When clients approach a binary trading broker, the broker sets the minimum and maximum investment for their clients. With Forex trading, the minimum micro lot to invest with is 1,000 units. This may cause an investment to be several thousand dollars. With binary options, your investment can be much less than that, as little as $50 in some markets.
Weigh the options of both Forex trading and binary options trading to decide which market trading option is best for you. Ideally, binary options are easier to learn and trade. Both markets are risky, as is the case with any investment. Markets can crash without notice, leaving you with a huge financial loss. Another benefit to trading binary options is that there are no fees, commissions or rollovers taking place. It is all straightforward trading. Your chances for fast turnovers for profit are much greater in the binary options markets. Use the assistance of a broker or financial advisor to help you get started in either of these investment-trading options.