10 Reasons To Start Trading Binary Options

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Good Choice for Beginners!
    Free Trading Education, Free Demo Account!
    Get a Sign-Up Bonus Now!

  • Binomo
    Binomo

    2nd in our ranking!

10 Reasons To Start Trading Binary Options

Binary options trading is both very risky and very profitable. You can learn, with a proper caution, how to make money in this type of a market. There are many reasons why binary options trading should be included in your business strategy. Below, you can see the 10 biggst reasons there are

1) Simplicity

After reading only couple of articles, binary options are very easy to understand even for novices who don’t have any kind of experience with CFD trading.

2) Great return

One of the biggest advantages is the great percentage return in every successful trade. A lot brokers will offer you up to 89%. That is a number you don’t reach trading CFDs very often.

3) Strategies

There are a lot of strategies on the internet and some of them will help you increase your chance to win. You’ll find a summary of basic strategies for binary options trading on our web.

4) Popularity

Binary options trading is becoming more and more popular judging by the the fact that more and more brokers keep popping up. If, for example, you are interested in sports betting, you could have already heard of a company winner. In 2003, this company also started offering binary options trading.

5) Independence

A very big advantage of binary options is that you don’t need to install any software. Every broker provides an online trading platform available on the web. Of course, you could also use your mobile phone or tablet with android or iOS.

6) Deposit bonuses

There is a lot of competition among binary options brokers and that’s why every broker will try to get their potential client in every possible way. One of these ways are deposit bonuses, where some of the brokers could easily offer you a 150% from what you’ve deposited for free.

7) Customer service

Another big PRO is a customer service that brokers offer. Whenever you are stuck you can use a live support with most of the brokers and they will answer all of your questions. Great amount of brokers will even call you back , if they know that you’re having trouble depositing.

8) Size of the trade

Minimal size of the trade is a great advantage, especially for those who are just starting off. A lot of brokers offer $10 as the minimal trade size, but you can find others who let you trade only with a $1, which, will also allow you to try the platform easily, even if they don’t offer a demo account.

9) Broad spectrum of the market

Lots of binary options brokers will offer you up to 150 assets to trade, so you can trade with a broad range of currency pairs and commodities as well.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Good Choice for Beginners!
    Free Trading Education, Free Demo Account!
    Get a Sign-Up Bonus Now!

  • Binomo
    Binomo

    2nd in our ranking!

10) Minimal risk

Trading binary options offers you a very low risk compared to other trading areas. Do you ask why? Well, for example, you can start betting from only $1 and you always know how much you can lose or gain. Even a slight fluctuation can guarantee success that you couldn’t even dreamed of in the “real” stock market.

Author

More about the author J. Pro

Unlike Stephen (the other author) I have been thinking mainly about online business lately. I wasn’t very successfull with dropshipping on Amazon and other ways of making money online, and I’d only earn a few hundreds of dollars in years. But then binary options caught my attention with it’s simplicity. Now I’m glad it did because it really is worth it. More posts by this author

2 Responses to “10 Reasons To Start Trading Binary Options”

Sir, with all what I’ve read here now, I can tell you sir that I’m interesting in this Binary options, but a beginner ready to put on all effort to catch up as a broker.Thank you for all your effort.

Good morning sir. I knows nothing on how to use binary option, but i still want to learn how to use it perfectly.
Kindly put me through .

10 Reasons to choose binary options

With the advent of online trading, traditional trading is slowly being pushed into the oblivion. Before committing to an investment opportunity, it is always of vital importance to conduct a vigorous risk assessment while at the same time evaluating the probability of success. Binary options being an online trading venture is no different. Binary options are online contracts where the trader has the rights but not the obligation to exercise the options. In binary options trading, a trader does not own the underlying asset compared to other ventures such as stock trading and traditional forex. To start trading binary options, a trader has to access an online trading platform from which he/she can access financial markets. A binary options broker also offers a mobile trading platform to increase flexibility by facilitating trading while on the go. Today we have compiled reasons on why you should choose binary options. If you are a beginner, we would advise you to start with our binary options trading basics article .Also, we would recommend you read our article on why choose binary options trading over forex.

10 Reasons to choose binary options

Easy to trade and straightforward

Binary options are not only simple to trade but they are also very straightforward. The road map to binary options trading right from choosing a brokerage platform to making your initial deposit is fairly straightforward. Binary options trading is arguably the easiest form of financial trading in existence today. This is mainly because a trader is only required to predict the direction most likely to be taken by the market price of the underlying asset. After making a deposit, getting started does not necessitate previous financial trading knowledge. Placing a binary options trade is a 4-step process. First, a trader is supposed to choose the financial security to trade followed by the desired trading option. A trader is also required to choose an expiry duration which will define the length of the trade. Finally and most importantly, a trader is supposed to predict the direction of price movements in line with the selected option. After placing a trading, all a trader is supposed to do is just wait for the trading contract to expire. However, in some cases, a broker may offer trading tools which a trader can use to alter the length of trading duration.

Limited risks

Decision to engage in an investing opportunity is always hinged on the risks facing the investment. If the risks outweigh the potential returns, the then investment venture ceases to be viable. Compared to other forms of financial trading, binary options trading has minimal risks which can be evaluated even before a trade commences. In a binary options trade, trading risks are confined to the invested funds and funds not committed in a trade are always free from risks. Meaning, the amount of funds invested is the maximum amount a trader can lose in a trade .Also, most binary options brokers offer a myriad of risk management tools .When tools provided by a broker are used effectively, they can greatly elevate the chances of getting a winning outcome. For instance, rollover and close early are the most common trading tools offered by binary options brokers. The rollover trading tool is used to lengthen the duration of a trading contract. This tool comes in handy when a trade is headed on a losing direction. By extending, the length of a trade, there is the likelihood of tables turning and the trade ending in the money. On the other hand, the close early tool enables a trade to close a trading position before trade expiry. Using the close early tool, a trader can lock-in profits without necessarily waiting for the trade to expire.

Relatively low investment

Physical ventures are capital intensive and a small-time investor is always at a big disadvantage. For example, let’s consider real estate investment. A real estate investor works within the “buy low, sell high” adage. The capital requirements in the real estate industry are sky-high and unless you have a decent bank-roll, the real estate is not for you. Purchasing a single unit of a building in a prime location can cost upwards of $50,000. Additionally, other investment ventures such as stock trading are capital intensive. Buying shares of a given stock or a commodity requires a substantial amount of investment.

However, binary options trading capital requirements vary from one broker to another. Binary options traders are able to invest small amount of their capital at a time which makes binary options trading very affordable. Interestingly, some brokers allow trades to place trade with as little as $1.The maximum investment is usually capped at a couple of thousands of dollars. Meaning, traders are at liberty to invest any amount of money on a trade provided the amount of the invested funds lie within the minimum and maximum limits. Also, it is worth noting that the amount of the invested funds is directly proportional to potential profit. The larger the investment, the higher is the profit.

High Rewards and Fast Returns

During the conception stage of an investment venture, a serious investor is supposed to project the expected returns. In real estate for instance, an investor can buy property worth $100,000 only to resell the property 5 years later at $150,000.the investor will end up making less than 30% profit when you minus the tax rates and maintenance costs among other expenses. Investing in stock trading is more of the same .You can hold on to a stock on for the stock to appreciate marginally a couple of years down the line. Even worse, the price of the underlying stock may not appreciate but on the contrary, the stock can lose value.

Binary options trading is distinctly different from traditional financial trading .On the onset of a trade, a binary options trader is required to choose expiry duration. Expiry duration in this case is the period of time between the buying and selling of an option. To that end, binary options brokers offer a myriad of expiry durations .A trade can last as short as a couple of seconds or as long as a few weeks or months. That is, a trader can choose between short ,medium and long term durations. Binary options trading presents an opportunity where traders can make up to 90% return on capital in a very short time. Additionally, some high-risk options attract huge payouts which can sometime be as high as 1000%.

A wide range of assets and options to choose from

As you well know, binary trading is a form of financial trading where traders leverage on price volatility of the underlying asset. In binary options trading ,you will always win if you correctly predict price movements opposed to criterion of magnitude of price change common in other trading modules. Binary options brokers usually offer a wide selection of tradable assets which are derived from the four markets: forex, stocks, indices and commodities.

A trader can access multiple currency pairs common in forex spread trading; but this time, minus the spread. Actually, when modern binary options were born, they were initially a spinoff of forex trading. Currencies offered by binary options brokers can be grouped in 3 categories. There is the major currencies category with forex heavyweights such as USD/EUR, EUR/GBP, and USD/GBP among others. Other categories include minor currencies and exotic currencies. The number of currency pairs available for trade is solely dependent the broker in question.

A binary options trader also has access to a variety of global stocks. Most common global stocks include Microsoft, Amazon, AT&T, Google Apple and much more. Brokers may also offer a selection of regional stocks such as BMW, French Telecom and Gazprom among others. Read Are Binary Options Like Gambling?

Stocks

Stocks are the second most popular asset types in binary options. Most common stocks include those of famous companies such as Apple, Microsoft, Amazon, AT&T, Google and more. Serious binary options brokers provide a very large selection of stocks including a lot of regional stocks such as Gazprom, French Telecom, BMW, and a huge number of others.

Indices

Traders can also access a wide array of stock indices such as Nasdaq, FTSE-100, DAX-30, DOW Jones and many more. Some brokers may even offer indices comprising of stocks from outside the United States. They may offer indices from UK, Germany, Japan, and France among other countries.

Commodities

A list of available assets can’t be complete without inclusion of commodities. Binary options broker may offer both hard and soft commodities. Hard commodities in this case include minerals such as Gold and Silver while soft commodities are agricultural commodities such as coffee and wheat.

Zero commissions or hidden fees

Binary options trading does not attract commissions or hidden fees. When initiating a trade, a trader knows what he/she will get at expiry. If a trades in the money after expiry of the trade duration, the trader gets the quoted payout, not a cent less. For instance, if let’s say a trader invests $100 on a trade with 80% quoted as the payout, the final payout will be $80 plus the initial investment. Binary options trading is undoubtedly the only form of financial trading where traders are not charged fees on deposits and withdrawals. However, it is important to note that some service providers may charge a fee to remit your withdrawals to your account.

Trading binary options is convenient

Physical availability is not a necessity in binary options trading. In fact, you can even trade in the comfort of your bed is you so wish. Binary options trading is achieved on online trading platforms (browser-based or downloadable) and hence you only require a stable internet connection and of course the starting capital. In addition, most binary options brokers offer versatile mobile apps which enable traders to react to market events while on the move. With cutting edge mobile apps, traders can keep an eye on trading positions and use available tools to manage the positions. Additionally, traders can securely upload and withdraw funds to or from their trading accounts with ease. Most brokers also offer support to their clientele 24/7 including weekends and holiday. Interestingly, some brokers even offer trading on weekends (but we highly discourage you from trading on weekends). Also see What do Binary Options Brokers do?

Easier Trade customization

Binary options brokers offer a wide assortment of trading tools which are developed to make trade customization easier. For instance, some brokers offer the option builder tool. With Option Builder, a trader dictates the terms of a trade starting from the underlying asset, expiry duration, trade prediction and the size of the investment. However, for the trade to go live, the broker has to accept it first. Another important trading tool offered by most brokers is the double up tool which enables traders to take advantage of a lucrative trading opportunity by doubling their investment mid-trade translating to more profit.

Conclusion

Binary options trading is superior compared to other forms of online trading. Binary options’ trading is not only profitable but it is also very flexible, not to mention convenient. A trader can generate income from the comfort of his couch using the innovative mobile apps provided by binary options brokers. Also, binary option’s trading can be termed as a hybrid market considering the fact that traders have access to the four financial markets. You can trade currencies, stocks, indices and commodities in a single click. The upsides of binary options trading are countless. However, don’t let the simplicity fool you. Success in binary options is not as easy as it may sound. Sometimes you have to go out of your comfort zone to find a winning strategy. Although binary options trading is less risky, you should understand that risk is risk and once a risk happens, you either cut your losses or bear the blunt.

10 Things You Need to Trade Binary Options

Thinking about getting started in the exciting world of binary options? Online trading is making investment possible for low- and moderate-income customers who might never have had a chance to try before. Trading stocks is quite challenging and has high entry barriers. You have to pay a fee for each of your trades, and it can be quite substantial. With binary options trading, there are no fees for your trades. You can get started with just a couple hundred dollars. Do you have everything you need to become a binary options trader? Let’s find out.

1. Investment capital.

The majority of binary options companies will allow you to sign up on their site and start trading with as little as $250 to invest. Some companies may even let you start with $100. The matter of investment capital is a little more complicated than this (not much though!). You also need to look at the minimum investment amount to see how much money you need to put down for an actual trade with a company.

Managing your money is really important if you want to win. You cannot deposit $100 and then invest $25 on each of your trades. In just four trades, a short losing streak, you could blow your bankroll and find yourself out of the game. You will need to choose a broker that allows you to invest an affordable percentage of your account. That in mind, you will want to either choose a broker that offers a low minimum investment amount ($5-10), or you will want to deposit more money than the bare minimum. $500 is a nice starting amount for a small account holder.

2. A computer or mobile device and an Internet connection.

To trade binary options, you will need to be able to get online on a regular basis. You can trade on your personal computer, and with many binary options companies, you can also trade on your mobile device. Many companies nowadays have apps for Android and iPhone. With those apps, you can trade on the go. You will need a stable internet connection wherever you trade, though.

3. A trading method.

If you do not care whether you win or lose, by all means, start trading armed with nothing but your Internet connection, mobile device or PC, and your initial investment amount. But if you do want to win, and win consistently, you absolutely must get a trading method, sometimes called a trading system. A trading method is a simple set of rules which you use to identify trade entries. When your trading method tells you to trade, you have a good shot at winning money. If it does not signal an entry, it helps you to avoid trades you would probably lose.

If you do not have a trading method, you can search online through thousands of free trading methods which have been developed and use effectively by others. You also have the option of building one from scratch, or you can start with a system developed by someone else and make it your own with modifications. A trading method is like a good horse. With it, you can ride out your profits for a long time and continue to grow your bankroll.

4. A trading plan.

Your trading method fits within the larger scheme of your trading plan. A trading plan includes not only a method, but a trading schedule, and notes about your goals and other aspects of business. Without a trading plan, there is no context for what you are doing, and you will have a hard time managing your business. And yes, binary options trading is a business, or can be, if you treat it like one. If you want to go pro, that is a must!

5. An accountability partner.

This is optional, but a very helpful thing to have, especially if you are a person who really struggles with self-discipline. An accountability partner is someone you can talk to about your trading. As the name implies, it is a person you are accountable to. You have to be honest with your accountability partner at all times, and you may even empower that person to stop your trading if you violate your own trading rules or money management rules. A trading partner can be anybody you trust. It might be a coach, a business partner, a friend, even a spouse.

6. A trading journal and spreadsheets.

These are tools you use to keep track of your trades and how they progress. In your spreadsheets, you record wins, losses, and basic information about your trade. This is as simple as opening Excel and setting up some columns and rows for your information. You can use Excel to calculate helpful statistics which you can then use in your analysis.

Your trading journal is simply a document where you write down more detailed information about your trades, and about trading in general. Here you can reflect and develop self-awareness. You can look for patterns in your wins and losses, which will help you become a better trader as time goes by.

7. A broker.

You certainly are not going to get too far without a binary options broker! Here you can view our list of recommended binary brokers. These companies have passed our tests for features, customer service, and reputation. Finding a good broker is not optional! Even if you are an amazing trader and even if you have the best trading system ever devised, you will fail if you do not have a trustworthy broker that gives you the features you need and allows you to make easy withdrawals that are hassle-free.

8. A demo account.

You need to find somewhere you can demo test before you trade live with real money. You may want to think about making this one of your requirements for evaluating binary options brokers, since some brokers like Marketsworld do offer demo accounts to traders. If not, you will need to find a broker where you can test and another where you plan to trade. Demo testing is a critical step, so do not neglect this aspect of binary options trading.

9. A goal.

You need to know why you are trading binary options before you jump in. Are you trading with the goal of having fun? Having fun and making a little money on the side? Or is making money your primary objective? Do you want to be able to unchain yourself from your desk at your 9 to 5 job, or would you just like to supplement your main stream of income with a little extra on the side? What do you want to do with the extra money? Retire? Build a house? Donate to charity? Support loved ones? Create something amazing? Whatever your goal is, having one will keep you focused and motivated when you need it the most.

10. The right attitude.

Perhaps the most important thing you need going into binary options trading is the right attitude! At a minimum, you need to be willing to trade responsibly and not exceed your finances. This is true whether you are trading to win or trading for entertainment. If you want to win, and win often, you also need to add self-discipline, self-awareness, and willpower into the mix.

While this list may be longer than you might have expected if you are a binary options novice, you will notice that most of the items on the list are cost-free. For this reason, trading is a great choice for a business to start on a shoestring. You need capital to finance your account, but a trading method is free, and so is the right attitude.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Good Choice for Beginners!
    Free Trading Education, Free Demo Account!
    Get a Sign-Up Bonus Now!

  • Binomo
    Binomo

    2nd in our ranking!

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How To Start Binary Options Trading 2020
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