Binary Options is a relatively new trading opportunity for traders. Both Binary Options and Forex trading involve high risk and high profit, in this article we will highlight the benefits of Binary Options over Forex trading specially for beginner and new traders.
First, Forex trading involves professionals who have a wide understanding of the market while Binary Options is relatively simple and certainly understandable even to beginners in financial trading. This simplicity makes Binary Options more attractive.
Second, In Forex, only currencies can be traded. While Binary Options offer a combination of currencies, indices, stocks and commodities which means more trading opportunities.
Third, Binary options has higher level of profitability than Forex. There is no margin in binary options. Nevertheless it allow traders to make between 65% and 90% which is very attractive specially without worrying about margin call. Not to forget that some brokers give up to 40% refund in case of losses. While Forex allows traders to use margin that makes them able to increase their trading capital. Thus, traders can place bigger trades which yield to bigger profit but also can create larger losses if the trade goes bad.
Fourth, Binary Options is safer than Forex trading. It is easier to manage the risk in binary options because the potential losses and payouts are known before taking a trade. However, there is no limit to the maximum profit and loss from a trade in forex trading unless you can use the Stop-Loss and Take-Profit features wish requires a lot of skills, studies and discipline. The earnings are undefined and can only be known after the closing of a position.
And fifth, there is no spread, swap, rollover and commission in binary options trading. In Forex, you will need to consider rollover, swap and spreads as these are the charges you will incur.
In Conclusion, whether you decide to trade Forex or Binary Options choose a trusted broker. That provides you learning, support and transparency. DerayOptions provides a highly reliable platform and the most transparent withdrawal policy in the market.