Forex vs. Binary Options

People all over the world are always interested in investment opportunities that can increase returns online. For new traders, Forex trading and Binary Options are two of the most popular trading options that are available. There are different benefits as well as drawbacks of both types of investments. It is important to gather as much information on both as possible before deciding which to begin trading.

What are the differences between Binary Options and Forex?

Deriving a comparison between Forex trading and binary trading is not easy as they both have their own advantages over the other. The first difference is that Forex trading requires professionals with experience in foreign currency trading while Binary Options is quite simple and easily understandable even to novices in financial trading.

The second difference is that binary option trading has a higher level of profitability compared to Forex trading. The profitability rates of Binary Option trading often ranges between 95%% and 60%. In Forex trading, the returns are uncertain and can only be determined after the closing of a position.

The third difference is that Binary Option trading is safer compared to Forex trading. With Binary Options, brokers offer up to a 15% refund in case of losses, which acts as a cushion for the Binary Option trader. Forex trading has no safety precautions in place and in cases of wrong investment decisions the Forex trader loses all money invested.

Another difference is that with Forex trading you can trade continually throughout the weekdays while with Binary Option trading, weekdays are at predetermined intervals. The trading of Binary Options is dependent on the commodity exchange hours and the local financial markets.

And last, and certainly not least, the quantity of assets available differs between Forex and Binary Options trading. Binary Options trading enables a trader to trade many more assets, then Forex trading – not only currencies, but also stock, indices and commodities.

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