Binary options trading is quickly becoming one of the most popular ways to make money in the financial markets, without actually investing into stocks or company shares like traditional investing. With option trading, you make money by simply predicting which direction the market will go by a certain time frame (expiry time). With binary options, you can trade a wide range of assets in a variety of financial markets including stocks, commodities, indices, and currencies. Binary options give you the ability to make money in any market condition, regardless of trading experience or financial background.
Here’s some of the main reasons why option trading has become so popular in recent years.
- Fixed Payouts and Risk - Know what your payout and risk is before executing a trade.
- No Prior Experience Necessary - Suitable for both beginner and advanced traders.
- Fast Return on Investment - Execute trades that have 60 second, 15 minute, or 1 hour expiry times.
- Market Flexibility - Make money regardless of whether the markets are up or down.
- Mobile Trading - Trade binary options straight from your smartphone.
- Minimal Investment - Some trading platforms allow you to trade with as little as $10 at a time.
Choosing The Right Broker
There are literally dozens of different binary option brokers to trade with, and each of them has their own pros and cons. Some brokers may have a higher payout on their trades, while other brokers may have a bigger selection of assets to choose from. Choosing a trading platform to work with really comes down to what factors are most important to you. Some people prefer to only use brokers that are fully licensed and regulated, while others just want a company that’s going to give the best bonus for signing up. We’ve done in-depth reviews on all the top binary option brokers on the market, to help you decide which one is best for you.
Comparison of the Top Trading Platforms
Here is a quick side-by-side comparison of the top brokers currently available. If you want to sign up to any of these companies, click on the “Visit Web Site” link in the table below.
|85%||No||$100||Up To $2,500||Visit Web Site|
|85%||Yes||$200||100%||Visit Web Site|
|81%||Yes||$200||50%||Visit Web Site|
|89%||No||$250||50%||Visit Web Site|
Binary Option Bonuses
Many binary option trading platforms are now offering incentives in the form of bonuses, to encourage clients to use their platform over a competing brand. This is a great opportunity for you to get some free money deposited in your account, just by signing up. We’ve compiled a list of the best bonuses currently being offered, so you can take advantage of these generous promotions.
Binary option trading signals are indicators that identify profitable opportunities and trades, before they actually happen. Many companies provide subscription services for trading signals that will alert you in real-time as soon as a big opportunity is spotted. These companies have a team of professional traders that are constantly analyzing the financial markets and economic factors that can cause a particular asset to rise or fall in price. These signal providers can alert you via SMS, email, or instant messaging with information such as the asset, the time to buy the signal, the expiry time to use, and which direction the market will go. Most of these companies guarantee a 70-85% success rate on trades.
An effective trading strategy in binary options can make all the difference in the world. Many traders tend to go through trial and error in hopes of finding a winning strategy that fits every scenario. Unfortunately, there is no magic bullet or one-size-fits-all solution. But whether you are a beginner or advanced investor, having some sort of strategy is going to give you a much better chance at success than not having a strategy at all. We’ve created numerous strategy guides for beginner and advanced traders, to help you learn some techniques that can help you in your journey.
- The In/Out Boundary Trade Strategy
- The MacD Indicator Strategy
- The Breakout Strategy
- The Touch Strategy
Types of Binary Option Trades
High-Low (Call/Put) - With this type of trade, you have to select CALL if you believe the price of the asset will increase by the expiry time, or select PUT if you predict the price will decrease by the expiry time.
One Touch / No Touch - With this type of trade, you have to predict whether an asset will reach a predetermined strike price before the trade expires. You select One Touch if you believe the asset will reach the set strike price, or select No Touch if you don’t think the asset will reach the strike price. This trade is useful for traders that believe an asset will reach a certain price point, but aren’t sure if that price point will be sustainable.
60 Seconds – This type of trade is basically the same as your standard high/low trade. Except that you have to predict which direction the market will go with expiry times as little as 60 seconds from the start of a trade. This is a great feature for people looking for a fast-paced trading environment or want to see a quick ROI on their money.
Range / Boundary – With a boundary or range trade, there is an upper and lower price point set for a particular asset, as well as an expiry time. The goal is to predict whether or not the asset’s price will remain within the upper and lower price range. If the asset remains within the range that is set, then you earn a profit.
Option Builder - This is a unique feature that not every platform supports. It basically allows you to have almost complete control over your profit, risk, and expiry time. It’s a great way to customize your trades to fit whatever trading strategy you may have. For example, instead of having set profit of 85%, you can decide to set your own profit at 70% and then get a 15% refund in case you lose the trade. So you can adjust the profit, refund, and the expiry time to fit your needs.
Advantages of Trading Binary Options
Fast Return on Investment – With option trading, you can see an ROI from your investment in as little as 5, 15, or 30 minutes. Although there are longer-term trades available with most platforms, most trades last anywhere from minutes to hours or days.
High Return Rates – Most trading platforms offer anywhere from 80-90% payouts on your standard high/low trade. But for traders that are looking for a bigger payday, most brokers also offer high-yield trades with payouts that can be as high as 500% ROI.
Easy To Get Started – Binary option trades are very simple and easy to execute. Here’s the steps you need to take to start a trade and earn a profit. (1) Select Your Asset. (2) Enter Your Investment Amount. (3) Choose Which Direction The Market Will Go. At the end of the trade’s expiry time, you will have earned a nice payout if your instincts were correct.
Low Barrier To Entry - Most binary trading platforms require an initial deposit of $200 in most cases to open an account, and have a $5-10 minimum trade amount. The low investment amount makes trading in the financial markets very achievable for newbie investors.
Wide Range of Assets - Most brokers offer anywhere from 80 to 160 different assets that you can buy options with. These assets include commodities, currencies, stocks, and indices. So you can make money by predicting the price of gold will go down, or the stock price of Facebook will increase, or the value of the U.S. dollar will decrease. With so many options, your opportunities are limitless.
Make Money When The Market is UP or DOWN - Unlike the stock market, you don’t have to worry about the market being up or down. With binary options, you can earn a profit in any market condition.
24/7 Access To Trades – Many brokers allow access to trades at any time of the day or night. Trades can be done on the computer or laptop, as well as via smartphone. As long as there is an internet connection available, you can be making trades anywhere in the world.