The Best Binary Options Broker 2020!
Perfect Choice For Beginners!
Free Demo Account!
Free Trading Education!
Get Your Sing-Up Bonus Now!
Only For Experienced Traders!
Binary Options Day Trading in Russia 2020
Binary options trading hinges on a simple question – will the underlying asset be above or below a certain price at a specified time? If so, you can make substantial profits with one of the most straightforward financial instruments to trade. But what exactly are binary options, and what are their benefits and drawbacks? This page will answer those questions, as well as detailing how to start day trading binary options, including strategies, tips, and regional differences to be aware of. Use the broker top list to compare the best binary brokers for day trading in Russia 2020.
Binary Brokers in Russia
What Are Binary Options?
Firstly, let’s have a look at how it all works. Put simply, binary options are a derivative that can be traded on any instrument or market. They appeal because they are straightforward. You know precisely how much you could win, or lose before you make the trade. No complex maths and calculator is required. This is why they are also known as ‘all or nothing’ trades.
If you anticipate news announcements, quarterly reviews, or global trends, then you may be able to make an accurate determination as to whether the price is going to increase or decline at a certain point in the future, turning a profit.
There is a whole host of derivatives to choose between. You can trade binary options on commodity value, such as aluminium and crude oil. You can opt for a stock price, such as Amazon and Facebook. There are foreign exchange rate options, including all the major and minor pairs. Even cryptocurrencies such as Bitcoin, Ethereum, and Litecoin are on the menu.
A Brief History
If you want to start trading binary options full-time, a detailed understanding of their origins will help. Binary or ‘digital’ options have been around for decades. Originally though, it was only large institutions and the fabulously wealthy that had access. However, 2008 saw the US Securities and Exchange Commission open the floodgates by allowing binary options to be traded through an exchange.
The internet and technology have since given the whole world access to these ‘digital’ options. As it stands, with low barriers to entry for savvy day traders and a simple to understand preposition, the demand for these digital trades will only increase.
There are a number of different option types to choose from. The most popular types are listed in the brief glossary below.
- Up/Down (High/Low) – The most simple and prevalent binary option. Will the price be higher or lower than the current price when the expiry time comes?
- In/Out (Range or Boundary) – A ‘high’ and ‘low’ figure will be set. You are then making a determination as to whether the price will finish within or outside of these boundaries.
- Touch/No Touch – Levels will be set that are either higher or lower than the current price. You then enter a position as to whether the price will ‘touch’ these levels between the time of trade and expiry. Payout will come as soon as the touch takes place.
- Ladder – These are similar to up/down trades. However, instead of using the current price, the ladder will have pre-determined levels that are staggered up or down. These normally demand a substantial price move. The flip side of this is returns will frequently exceed 100%. Although it is worth noting, both sides of a trade are not always available.
Another important component of binary options is expiry times. This is when the trade will end and the point that determines whether you have won or lost. These times can range from 30 seconds and 1 minute (turbos) to a full day (end of day), and even up to a whole year.
As an intraday trader though, you will be more concerned with trading 5 and 30-minute binary options. Opt for binaries with 1 minute expiry times though and you have the ability to make a high number of trades in a single day.
Is Trading Binary Options Legal?
Despite the somewhat negative reputation, the reality is binary options are legal. The majority of companies operate fairly. Opinions have been split because there are some out there that operate scams.
Regulation in certain regions has meant binaries have been withdrawn from the retail market. In the EU for example. But professional traders can still use them. In regions such as India and Australia, binary are legal – but traders should make sure they use a reputable broker, and read our section below on avoiding scams.
The Best Binary Options Broker 2020!
Perfect Choice For Beginners!
Free Demo Account!
Free Trading Education!
Get Your Sing-Up Bonus Now!
Only For Experienced Traders!
Scams & Frauds
The binary reputation has suffered from dishonest marketing and cybercrime. Too many unregulated brokers promise quick cash, whilst operating frauds. Regulators are on the case and this concern should soon be alleviated.
Binaries themselves are perfectly legitimate, but steer clear of ‘instant money’ promises, brokers that cold call, and celebrity endorsements, plus any claims that you can ‘start trading binary options for free’.
So it isn’t a question good or bad, it’s simply a question of being alert to the dangers and knowing what to look out for. If you’re unsure about a broker, ask the question in a live trading room to check they’re properly regulated.
Binary Options Vs CFD Trading
Although in some ways similar, there remain some crucial differences between binary options and CFDs. With CFDs, you have potentially unlimited risk. If the price of the asset moves significantly, the value of the trade can grow very large, very quickly – for better or worse.
Whereas binary options work slightly differently. Whilst you are still investing without owning the asset in question, the gain and loss rate is fixed. With a call option, it doesn’t matter if the price rockets, you retain the same percentage as if it rose by just a couple of pips.
Likewise, if the price sinks to zero, you’ll only lose what you put in. So, to define the difference – with binary options you get fixed risk.
Having said that, just as if it was binary options versus forex trading, you are restrained in your profit potential.
Why Trade Binary Options?
If you want to profit trading binary options, you need to first understand both their pros and cons. You need to make sure binary options will suit your trading style, risk tolerance, and capital requirements.
There is a whole host of attractive benefits to trading with binary options. The greatest advantages have been outlined below.
- Simplicity – Because you are making a determination on only one factor, direction, your bet is straightforward. The price can only go up or down. You also don’t need to concern yourself with when the trade will end, the expiry time takes care of that. Whereas in other markets, you may need a system to limit your losses, such as a stop-loss.
- Fixed risk – Trade stocks, gold, and crude oil and you’ve got a vast number of factors to contend with, from slippage and margin to news events and price re-quotes. With binaries, your risk is kept to a minimum with far fewer parameters.
- Trade control – Because you know what you may make or lose before you enter the trade, you have greater control from the start. Trade in stocks, for example, and you have no guarantee that your trade will make the entry price.
- Profit potential – Compared to other trading, the returns in binaries are extremely attractive. Some brokerages promise payouts of up to 90% on a single trade. If you’re looking to make simple trades with large profit potential, binaries could well be worth a look in.
- Choice – Rather than being constrained to a specific market, e.g. cryptocurrency or stocks, binary options gift traders the opportunity to trade instruments across virtually all markets, allowing you start currency, indices, and bonds trading if you so wish.
- Accessibility –In the binary options game, it’s always the best trading hours somewhere on the globe. So, you can login at night, or on the weekends and join the groups of avid traders attempting to turn daily profits. Real-time charts are available for every market so if you’ve got the time you can invest 24 hours a day.
Whilst there are plenty of reasons to delve into trading on binary options, there remain several downsides worth highlighting:
- Reduced trading odds – Whilst you can benefit from trades that offer in excess of 80% payouts, these are often when the expiry date is some time away from the trade date. If the odds of your binary trade succeeding are extremely high you may have to make do with reduced payout odds.
- Limited trading tools – Whilst most brokerages offer advanced charting and analysis capabilities, trading tools for binary traders often fall short of the mark. Fortunately, there are other online sources for these graphs and tools, plus brokers are working swiftly to increase their offerings.
- Price of losing – Your odds are tilted in favour of losing trades. Approximately for every 70% profit, the corresponding loss of the same trade would result in an 85% loss. This means you need a win percentage of at least 55% to break-even.
- Risk management – Unlike other markets, brokers often set a trading floor, with minimum accounts a trader needs to enter the market. This means losing capital can happen with ease. Whilst a stocks broker may permit you to open an account with $250, trading micro-lots, most binary brokers won’t allow $50 trades. So, even with $250 in your account, just five trades that don’t go your way could see you sink into the red.
Binary Trading via Mobile App
How Does Trading Binary Options Work?
Trading binary options for beginners is straightforward. Simply follow the steps outlined below.
Step 1 – Find a broker
This is one of the most important decisions you will make. You need a broker that meets all your requirements and who will enhance your trade performance. But with so many options out there, how do you know what to look for?
If you’re high-frequency binary trading each day, the commission fees and costs will quickly rack up. You want to maximise your profits so look for brokers with a competitive and transparent fee structure, and remember, different asset classes pay out different amounts.
One point worth investigating is rules around minimum deposits. Whilst some brokers will offer binary options trading with no minimum deposit, many will expect a deposit of close to $50, and some $100. A broker offering low minimum deposits is ideal if you’re strapped for cash. Trading binary with JC and GCI are good choices if you’re looking for low deposits.
Some brokers will specialise in certain assets. If you’re set on crude oil, it may be worth finding a broker that’s geared towards those binaries. You may benefit from relevant news feeds and the most prudent option choices available. Trading binary stocks with 212, for example, is ideal for those interested in stocks.
With scams out there it’s important you check your broker is properly regulated by the relevant financial body, e.g. FCA, CySec, CFTC. Trading with 247 Binary Options, IQ option, and Binary.com are all safe bets.
Binary options platforms are your gateway to the market and where you’ll spend many hours a day. There are now many online trading platforms, so, make sure it’s easy to use and offers all the charts, patterns and tools you need to make smart and accurate trade decisions. For example, will you be trading binary options with candlesticks or more obscure charts?
Both Keystone and Nadex offer strong binary options trading platforms, as does MT4. Before you buy, conduct a thorough trading platform comparison and check reviews.
Any problem could cost you time, and as an intraday trader, time can cost you serious cash. So, check the broker offers reliable support. Some brokers will offer 24/7 customer support through calls, live chat, and in a number of languages. Binary options trading with Etrade and 24 Option are smart moves if you want top quality support.
A growing number of people use mobile devices and tablets to enhance their trading experience. However, software for trading binary options varies hugely. So, it’s worth checking whether your broker offers cross-platform capabilities. Also, check the charting tools you need will work on your iOS or Android device. Binary options trading with IQ Option, for example, offers fantastic trading apps.
Many brokers will sweeten the deal with some useful add-ons. Some may offer free trading plans, courses, and lessons. So, find out first if they offer free courses online to enhance your trading performance. Some brokers will also offer free binary trading trials so you can try before you buy.
You could also benefit from trading bonuses, tips, the best strategy and trading signals reviews, plus free, practice demo accounts. Not to mention some brokers allow for binary options trading using Paypal. However, don’t be put off by no binary options trading deposit bonus, these can be a sign of potential scams.
For newbies, getting to grips with a demo account first is a sensible idea. Funded with simulated money, you can try numerous assets and options. It’s the perfect place to make mistakes and learn before you put real capital on the line. In addition, you’ll find most free binary options demo accounts require no deposit, so you can start practicing whilst you save that initial capital.
There is no universal best broker, it truly depends on your individual needs. Some brokers offer minimum trades of just a couple of pounds, whilst others require hundreds or even thousands. The solution – do your homework first.
For more guidance on making the right choice, see our brokers page.
Step 2 – Choose An Instrument/Market
You can trade binaries in pretty much everything, including stocks, forex, indices, and commodities. You can bet on anything from the price of natural gas, to the stock price of Google. Opt for an asset you have a good understanding of, that offers promising returns.
Step 3 – Decide On An Expiry Time
As a short-term trader, you’ll probably be more interested in 30 seconds, 1 minute and end of day expiry times. You need to balance binary options trading volume with price movement. Whilst the more trades you make means greater profit potential, it’s better to make fewer and more accurate trades. Also, find a time that compliments your trading style.
Step 4 – Decide On Size
In the binary options game, size does matter. The greater your investment the greater the possible profit. On the flip side, remember the entirety of your investment is on the line. You need an effective money management system that will enable you to make sufficient trades whilst still protecting you from blowing all your capital.
Step 5 – Choose An Option
You will have any number of the options outlined above to choose from. Think carefully about how confident you are in your determination. Consider factors that will jeopardise your investment, and select an option that gives you the best chance of succeeding. Don’t automatically select a ladder trade because you want huge returns, consider which options are the relatively safe bets.
Once you’ve made that decision, check and confirm your trade. Then you can sit back and wait for the trade payout.
Below is a video explaining how to trade binary options on the platform of a leading provider:
Binary trading strategies will differ from trade to trade. What may work for a ladder option in forex, may prove useless in a range option on gold. Having said that, there are two reasons you must have a strategy.
Firstly, a strategy prevents emotions interfering in trade decisions. Fear, greed, and ambition can all lead to errors. A strategy allows you to focus on the maths and data.
Secondly, a strategy allows you to repeat profitable trade decisions. Once you’ve found out how and why that binary option worked, you can replicate it to create consistent profits.
Building A Strategy
There are two crucial elements to your binary options trading method, creating a signal, and deciding how much to trade. The second is essentially money management. How do you go about determining these two steps then?
Step 1 – Creating A Signal
The signal will tell you in which direction the price is going to go, allowing you to make a prediction ahead of time. The two main ways to create signals are to use technical analysis, and the news.
Charts, Patterns & Indicators
If you can identify patterns in your charts, you may be able to predict future price movements. They rest on the idea that ‘history repeats itself’. You can start trading binary options using Heiken-ashi, other candlesticks, and line charts. Armed with charts and patterns, successful traders will build a strategy around their findings.
You can then build indicators into your strategy, telling you when to make a binary option, and which binary option you should go for. These technical tools can prove invaluable, so make sure your broker offers the features available to conduct thorough market analysis.
One of the great things about trading binary is you can use any number of your normal indicators, patterns, and tools to help predict future binary options movements. So, you can start trading with/using:
- Support and resistance levels
- Price action
- Stochastic oscillators
- MACD indicators
- Options close to expiry
For more detailed guidance, see our charts and patterns pages.
You can trade binary options without technical indicators and rely on the news. The benefit of the news is that it’s relatively straightforward to understand and use. You’ll need to look for company announcements, such as the release of financial reports. Alternatively, look for more global news that could impact an entire market, such as a move away from fossil fuels. Small announcements can send prices rocketing or plummeting.
If you can stay in the know you can trade your binary options before the rest of the market catches on. To do that you’ll need to be tuned into a range of news sources. You can browse online and have the TV or radio on in the background. Some of the most useful news sources in terms of trading information are:
- Yahoo Finance
- Business Insider
- Financial Times
Step 2 – How Much You Should Trade
If you’re just starting off it’s often best to keep things simple. Trading the same amount on each trade until you find your feet is sensible. Below are 3 binary options trading strategies for both beginners and experienced traders.
Binary options using the martingale trading strategy aim to recover losses as quickly as possible. To do this you’d trade larger amounts of money in the trades following a loss. So, you’d set an amount that you trade each time, say $250. However, if you lose on that $250, you’d bet $500 on the next trade. If the trade wins, you’ll already be back in the black, rather than being stuck around the break-even mark.
The problem with this strategy is that if you go on a losing streak you can lose a serious amount of capital in a short space of time. So, only use this strategy if you’ve got a relatively accurate means of making trade decisions. If you’re still in the trial and error stage, consider a different approach.
A percentage based system is popular amongst both binary options traders and other traders. The idea is you specify a percentage you’re willing to risk. Between 1-2% is common. So, if you’ve got $10,000 in your account, and your risk value was 2%, you could trade $200 on a single trade.
If you have a greater risk tolerance and consistent results you may want to increase that risk margin to 5%. The benefit of this system is that you should never lose more than you can afford. This makes it an ideal approach to take if you’re new to trading on binary options.
This example is best employed during periods of high volatility and just before the break of important news announcements. This technique can be utilised by traders of all experience levels. It gives you the capability to avoid the call and put option selection, and instead allows putting both on a specified instrument.
You aim to utilise put when the value of the instrument has risen, yet you think that it’s going to decrease soon. Once the descent has begun, place a call option on it, anticipating it to bounce back swiftly. You can also do it in the reverse direction. Simply place a call on the assets prices low and put on the rising asset value.
This significantly increases the chance of at least one of the trade options producing a profitable result. If you’re in a volatile market, this simple system could you see turn handsome profits. This works well as a binary options trading 60 seconds strategy, and will also cover expiry times of up to one day.
Bots & Algorithmic Trading
Once you have honed a strategy that turns you consistent profits, you may want to consider using an automated system to apply it. These robots usually rely on signals and algorithms that can be pre-programmed.
The bots then do all the leg work, trading options on your behalf. The plus side is they can make far more trades than you can do manually, increasing your potential profit margin. They can also trade across different assets and markets.
It’s worth investigating your brokers offering when it comes to auto trading and checking for robot reviews. Many allow you to build a program with relative ease. You can use your own entry points that rely on Bollinger bands, RSI/MFI patterns, and moving averages.
However, even when you’ve got your system up and running, you can’t go into trading binary options on autopilot, you need to stay tuned in. If any mistakes take place, you need to be there to remedy the problem. Technical crashes and unpredictable market changes can all cause issues, so stay vigilant.
Many binary option strategies pdfs fail to sufficiently consider time variables. Certain strategies will perform better with specific time options. You may want to look specifically for a 5-minute binary options strategy. Alternatively, trading 15-minute binary options may better suit your needs. So, whichever strategy above you opt for, ensure you take time into account.
Summing Up Strategy
Trading binary options with success rests on finding a strategy that compliments your trading style. So, consider the instrument you’re going to be trading. Then, employ an effective money management system and use charts and patterns to create telling indicators. Also, utilise news announcements to your advantage.
If you’re trying a new fence, gap, hedging, or any other binary strategy for the first time, why not try it on a trading practice account first? This will allow you to address any issues before you invest your own money.
For more detailed guidance, see our strategies page.
Binary options trading 101; immerse yourself in educational resources. As Benjamin Franklin asserted, ‘an investment in knowledge pays the best interest’. The top traders never stop learning. The markets change and you need to change along with them.
To do that, utilise some of the resources detailed below.
- Books & eBooks – There is a whole host of books and ebooks out there that can impart invaluable information on day trading binary options. You can benefit from the binary options trading knowledge of experts with decades of experience. The good thing about a book it is allows you to learn at a pace that suits you. One book that has made binary options trading easy is ‘Trading Binary For Dummies’, by Joe Duarte.
- Video tutorials & seminars – Engaging and easy to follow. There are numerous online video tutorials out there that can walk you through making a trade. With seminars, you’ll also be able to have questions answered and the binary options trading basics explained, plus some brokers offer weekly seminars to keep you up to date with market developments.
- PDFs & instruction guides – These will give you a clear breakdown of steps that you can follow and apply. The best part is you can find plenty online that are totally free and easy to download, whether you’re using Android, Windows, or iOS. The trading binary options ‘Abe Cofnas’ pdf is particularly popular.
- Forums & chat rooms – This is the perfect place to brainstorm ideas with binary options gurus. You can benefit from recommendations and learn in real-time whilst investing in your binary options. You can also swap live chart screen grabs to get a feel for other binary methods and tactics.
- Newsletters & blogs – These are brilliant for keeping up to date with upcoming developments that may affect your markets. Plus, you could hear about binary options competitions (yes, they really do exist).
- Copy trading – This is when social trading networks/platforms are combined with binary trading tools. You can follow experienced traders, analyse their strategies, and then replicate their trades. Check out copy trading reviews before you sign up.
All of the above will play a key part in your binary options trading training. Free trading videos and examples will help give you an edge over the rest of the market, so utilise them as much as possible.
There currently exists no binary options university. So, explanations as to why that option didn’t work can be hard to come by. Keeping a journal with all your binary option trading results in could solve that issue. A detailed record of each trade, date, and price will help you hone your strategy and increase future profits.
Whether you keep it an excel document or you use tailor-made software, it could well help you avoid future dangers. As an added bonus, it can make filling in tax returns at the end of the year considerably easier. A journal is one of the best-kept secrets in binary options, so now you know, use one.
Trading binary options successfully isn’t just about having the right strategy. If you can’t control your emotions you will make costly mistakes. As Robert Arnott stated, ‘what is comfortable is rarely profitable’. When the pressure kicks in, fear and greed can distract you from the numbers.
You need to accept that losses are part of trading and stick to your strategy anyway. If it’s based on accurate maths and careful technical analysis then you have to keep your faith. As soon as you start acting inconsistently your profits will suffer.
As the popularity of binary options grows across the world, regulatory bodies are rushing to instill order. That means where you trade and the markets you break into can all be governed by different rules and limitations.
If you’re day trading binary options in the UK, for example, you will require a license from the UK gambling commission. If you opt for a broker regulated by the Financial Conduct Authority (FCA), you’ll be guaranteed an extra level of protection. Beware some brokerages register with the FCA, but this is not the same as regulation.
Brexit has brought with it complications to trading regulations. The MiFID II guidelines were set to be implemented across Europe enforcing rules around binaries, however, the UK may not now implement the guidelines. This means the UK is no longer under pressure from Europe to reclassify binaries as financial instruments.
Binary options trading for US citizens is limited by a choice of just two brokers. Nadex and CBOE are the only two licensed options. Fortunately, they are both huge firms offering competitive prices and a range of different assets to trade binaries on.
Rest Of World
In Australia, the Australian Securities and Investments Commission (ASIC) runs the show. If you’re interested in brokers based in Cyprus and Israel, then check they are regulated by CySec. In Dubai and the rest of the UAE, binary options are regulated by the Dubai International Financial Centre (DIFC).
You can also start day trading binary options in Canada, India, Pakistan, South Africa, Malaysia, Kenya, New Zealand, Nigeria, Vietnam, Indonesia, and the Philippines. Each has their own regulatory bodies and different requirements.
So, if you want protection, ensure you do your research before you sign up for a binary broker on the other side of the world.
Another important regional distinction comes in the form of taxes. Some countries consider binary options as a form of gambling, such as the UK. This comes with notable benefits. The HMRC will not charge you any taxes on profits made through binary options. However, in the future binaries may fall under the umbrella of financial derivatives and incur tax obligations.
Having said that, if day trading binaries are your only form of income and you consider yourself a full-time trader, then you may be liable to pay income tax. Whilst you are probably still exempt, it is worth seeking clarification.
Outside the UK, tax regulation differs hugely. Binary options in Japan and Germany come with vastly different tax obligations, for example. So, before you start trading seek advice to ascertain whether you’ll be exempt from tax. If not, will you pay income tax, capital gains tax, business tax, and/or any other form of tax?
For more detailed information, see our taxes page.
Can Trading Binary Options Make You Rich?
Although exciting and dynamic, to make a living trading binary options you’ll need to use this page and other sources as guides. Can trading binary options make you rich then? Done correctly, yes it can. There is no question of binary options potential profitably, this is evidenced by numerous millionaires. To get there though, you’ll need the right broker, an effective strategy, and you’ll need to invest in your trading education, by utilising the resources outlined above.
Are binary options legal?
Yes, but regional regulation varies.
In India and Australia for example, binary options are legal.
In the US, binaries are available via Nadex, and perfectly legal.
In the EU, binaries have been withdrawn for retail investors, but it is still possible to trade binary options legally, by professional traders. Certain criteria need to be met in order to be classed as ‘professional’.
Can you trade at weekends?
Yes. There are two ways to trade at weekends. Firstly, forex markets are still open in some parts of the world during the “weekend” in other parts. Binaries can be traded on forex during these times.
There are also ‘synthetic’ markets with some brokers (such as binary.com) but traders should note there is no underlying market with these options. They are ‘virtual’ markets created solely to cater for traders looking to trade anything at all. They are not for sophisticated traders.
Are binary options banned in Europe?
Binary options have been withdrawn for retail traders by the European regulator, ESMA. Brokers not regulated in Europe may still offer binaries to EU clients.
It is also possible for EU traders to nominate themselves as professional traders. This waives their rights to regulatory protection, and means binaries are free to be used again.
Some synthetic markets can also be traded by EU traders, and while the product works exactly as a binary options, they are referred to slightly differently.
Do binary options work on MT4 or MT5?
There are no binary options brokers offering Metatrader integration. It is however, possible to perform technical analysis in MT4 and place trades on a separate trading platform.
Can you use binary options on cryptocurrency?
Yes. The leading binary options brokers will all offer binaries on Cryptocurrencies including Bitcoin, Ethereum and Litecoin. As a derivative, traders will not “own” any cryptocurrency, they will purely be speculating on the price. This does mean however, there is no need for a Crypto wallet or crypto account.
Binary options trading guide
With our binary options guide, you can’t ever get lost in the world of binary trading! We provide the best trading tips which are sorted out according to your current knowledge of trading.
We try to add on TradingBeasts.com as many helpful articles as possible, however, some of you might be even overwhelmed by them and you might not know which article to read first. Therefore we have decided to facilitate orientation of these articles by making a binary options guide. Our guide will provide you with the best trading tips which should help you to get on the right track in order to successfully trade.
In the first stepping stone, you will find tips for newbies and beginners where we explain the basics of binary trading, along with practical demonstrations of simple trades. The second part of the guide is already focused on what types of binary strategies we have got and which programs we can use for technical analysis. In the third part of our Binary options guide, we will introduce you to some of the strategies we use ourselves when we trade. This part is designed for traders which already have knowledge of the two previous levels.
#1 Complete Guide to Binary Options
As a newcomer to the online trading world, you will come across several types of trading. One of them is binary options. It is slightly different from the other types of trading because it requires you to predict and bet on price movements of assets.
You have to be careful while trading on binary options. You must do your market research and chalk out your own strategies. The profits do come, but not without risks.
If you have never traded in binary options before, the following guide will help you to get started.
What are Binary Options? Understanding the Basics
Binary options have several names. Some of them are Forex or digital options, all-or-nothing options, barrier options, fixed-return options, and two-way options.
Investopedia defines binary options as: “A type of option in which the payoff is structured to be either a fixed amount of compensation if the option expires in the money, or nothing at all if the option expires out of the money.”
The word “binary” indicates that traders must choose between the answers “yes” or “no” to the question of whether an asset’s price will be higher or lower than the established level at a given point of time.
Binary Trading – Is it a Sure Way to Make Money?
To put it very simple, binary trading is not a surefire way of making money. Some traders do make profits, but most of them just lose their investments.
But you can definitely make binary trading work for you if you understand exactly why traders lose their money. In the first place, they go in for low time-frame trading. They believe that strategies such as the 1 Minute, 5 Minutes, and 15 Minutes strategies really work.
The truth is that these strategies are associated with high risks although they promise huge profits.
Secondly, they sign up at binary brokers who operate without a valid license and require traders to make first deposits in the range of $100 to $250.
You can succeed with binary trading only if you follow these tips:
Register only at licensed and reputed online binary options brokers. Understand the basics of binary trading. Create proper trading strategies based on your experience, study, and research. Avoid treating binary trading as a form of gambling and making predictions at random.
Binary Trading vs. Forex
To properly understand binary trading, you must also understand how it differs from forex trading. We take a look at some of these differences below:
Duration of the Trade – You can exit a forex trade whenever you wish—at stop loss or take profit or depending on what you see in the financial news sites or charts. You cannot exit a binary options trade whenever you wish because you have to choose its expiry time when you purchase it. This could be anywhere from a minute to 60 minutes from the time of purchase. Of course, there are binary brokers who allow an early exit, but only if traders invest a higher amount. Risk vs. Reward – Forex traders who have chalked out a proper trading plan are fully in control of the associated risk and rewards. Binary traders can control their risks, but not their returns. Average binary trading comes with returns of 65% to 80%, indicating that the risk is definitely more than the reward. Cost of Trading – Forex trading is associated with spreads, commissions, and swap/rollovers. In case of binary trading, there are no spreads, commissions, or rollovers. Volatility – The forex market is full of surprise volatility caused by unexpected events, which can convert winning trades into losses. Such surprise volatility does not cause any harm to a binary trade as long as the trader makes a correct prediction. Making Errors – The possibilities of making a human error are higher in forex trading than in binary options trading, which is one of the chief reasons for the popularity of binary trading.
How to Trade Binary Options: Your Step-by-Step Guide
Here is your step-by-step guide to binary trading:
Step #1: Choose a Reliable Broker or Online Trading Platform
If you have already decided to trade in binary options, your first step is to choose a licensed, reputed, and reliable online trading platform or online broker.
Some of the highly recommended trading platforms are Olymp Trade, Binary.com and IQ Option. All of them allow new traders to open a demo account free of charge. Since they permit a minimum deposit in the range of $5 to $10, beginners can get started with minimum risks. In addition, they all have learning centers featuring video tutorials, webinars, eBooks, and one-to-one courses to educate beginners, intermediates, and experts in trading.
Step #2: Create a demo account
Create a demo account free of charge and test the online trading platform before you actually begin to trade for real.
Step #3: Get Educated
The top online trading platforms offer plenty of free resources to train, inform, and educate registered traders. These resources are in the form of webinars, eCourses, eBooks, video tutorials, high-quality articles, and so on.
Step #4: Practice Binary Trading
When you feel confident to buy trades, spend as little as possible. Avoid investing too much.
Step #5: Understand the Risks
Binary trading is fraught with risks. The leverage can work both for you and against you, so it is highly possible for you to lose all your money. Invest in binary trading only money that you can afford to lose.
Tips to Choose a Binary Options Broker or Platform
You have to compare a number of binary options brokers before actually signing up for the services of one. Irrespective of whether you are a seasoned trader or a beginner, you have to find a broker who can best meet your requirements. Since it is not easy to find a reliable online platform, you should spend a few days just to research a number of ratings and rankings.
Here are a few tips to help you choose the best binary options broker:
Deposit Bonus – Binary options platforms offering the biggest bonuses also offer low minimum deposits. However, you will also come across brokers who offer low minimum deposits, but no bonus. Asset Classes – Trading platforms offer different classes of assets. While some offer just two or three, others offer up to six or more. You have to choose an online trading platform that offers the largest number of assets. You can always increase your profits by investing in multiple assets. Trading Tools – Make a study of the trading tools at different binary companies. You will come across free signals, indicators, calculators, and automatic trading features. You have to select a broker who offers the tools you require for successful binary trading. Demo Accounts – A demo account enables you to practice trading without risking any real money. It helps you to learn and grow as a trader and gives you the confidence to start trading for real. However, you must choose an online broker who offers a demo account for life. There are some brokers that offer demo accounts only for a limited period of time. Easy to Use – Sign up at an online trading platform that is easy to use as it will save you a lot of time.
Free Binary Options Learning Resources & Video Guides
The best binary options brokers not only offer a trading platform, but also a library of free educational material. You can not only trade, but also learn. Or you can sign up to learn before you start trading.
For example, Binary.com is home to the Binary Academy where you can read high-quality articles from experts, check out educational videos, watch the Binary TV, read the latest news, register for webinars, get weekly trading signals, read eBooks, and obtain daily market reports.
IQ Option is home to a number of trading tutorials and market news, which can better equip beginners for trading. And Olymp Trade has an Education Center with webinars, strategies, and trend indicators.
If you are a beginner, you don’t have to waste money on “premium courses” or “secret strategies,” which cannot really help. The wiser option is to just sign up at trading platforms such as Binary.com, Olymp Trade, or IQ Option and check out the free educational material there.
Finding Binary Options Strategies that Work
Beginners to binary trading often search for binary options strategies that work. But the simple truth is binary trading has no formula for success. You just cannot win all the time. In fact, you have to be prepared to lose most of the time.
You will come across strategies such as the 1 Minute Strategy, but you will ultimately learn that they don’t really work. They just promise you huge returns but mention nothing about the risks involved.
If you want to become a successful binary options trader, you have to create a strategy that will work for you, and you can do this only through regular study, market research, and practice.
A Word on Automatic Trading or Binary Robots
As you dive deeper into the sea of binary options trading, you will come across the concept of using trading robots. The idea of using a robot to make money for you while you sit back and relax is alluring. But if such a thing was possible, all of us would have become rich.
To put it very simply, you can only trust a robot you have created on your own. You will find several robots that use a variety of algorithms to trade and earn profits semi automatically or automatically. But you will be taking two types of risks if you purchase such a robot. First, the robot may not turn out to be as good as it was described. Second, the seller of the robot may be an unreliable company.
If you are still determined to use a robot, you may consider the following pros and cons:
Robots work tirelessly and do not miss any opportunities. Robots do not trade emotionally. Robots are fast. You can use robots to find inexpensive or free signals.
Since you have to connect the robot to your account, there is the possibility of someone accessing your information. Since the robot is not human, it lacks your creative mind. It is guided entirely by a fixed set of parameters and cannot be trusted to make decisions in unusual situations.
Experts suggest not using a robot at all. Instead, they advise traders to create their own strategies based on their trading style and their study of the market.
Binary Trading FAQs
Q1: Is binary trading legal?
A: The legality of binary trading depends on your country of residence. Some countries have banned binary trading, but others have legalized them.
Q2: Is binary trading a scam?
A: No, it isn’t. However, it is a type of financial betting that carries a lot of risks.
Q3: Is binary trading is form of gambling?
A: Binary trades are structured to resemble gambling, but on a closer look, they are just a yes/no trade. One can safely say that binary trading is a form of financial betting.
Q4: How does a broker get blacklisted?
A: Brokers get blacklisted when they operate without a license, force traders to make a very high first deposit, use aggressive selling strategies, and persuade traders to invest more money than they can afford.
Q5: How much money can you make in binary trading?
A: It depends on a number of factors. To make a lot of money, you have to take a lot of risks. And if you take a lot of risks, you may lose a lot of money. You can make the most of binary trading by keeping your emotions in check, managing your risks well, and continuously educating yourself.
The above information should be enough to get you to start trading, but we suggest that you trade with caution. Binary trading is not for the faint of heart and you should never start trading till you are prepared to handle all the risks associated with it.
Binary Options Guides
It can be confusing to decide how to start trading online. One can choose among forex, crypto, CFDs or binary brokers from all over the world. Also, traders can’t only click and make profit, as they need to learn more about financial analysis and trading strategies. In this guide, we will try to present you with most common dilemmas and questions that are bothering not only new traders who are only starting, but also more experienced traders. The point of this binary options and forex guide is to get a sense of what the trading is about and to encounter some basic terms one uses when trading.
Also, an useful resource is our Forex trading basics guide and our online trading academy with more than 150 articles – from basic terminology to advanced trading strategies and patterns.
First, it is important to understand the basic differences between different types of online trading.
What is Forex Trading?
Forex trading is somewhat different than binary trading, even though traders don’t have to own the underlying asset. Forex trading is based on currency pairs (for example, EURUSD – see how to trade this pair) and traders can buy or sell the desired amount of currency contracts and use leverage to move larger amounts of money. Also, traders have different risk management tools like stop loss and take profit at their disposal.
What is Binary Options Trading?
Binary options are a special type of financial instrument that allows traders to know possible payout in advance. At the same time, traders never own the asset in order to trade based on it. They are placing a trade based on their prediction of the price movement and not based on buying or selling the actual asset. European market oversight agency ESMA decided to temporarily ban binary options (PDF) distribution and sales to retail investors for 3 months in 2020 since they felt this instrument design might present too big a risk for small traders.
What is CFDs Trading?
CFDs trading is very similar to forex trading, but the underlying asset is different. Contracts for difference are based on bonds, stocks, commodities etc. Most modern brokers offer forex and CFDs trading at the same time. We have also explained CFDs in our trading guide on forex.
What is Cryptocurrencies Trading?
Cryptocurrencies trading is the latest trend, based on digital coins or tokens that appeared on the market some 10 years ago. Traders can trade them as CFDs and forex contracts with regulated brokers (the safest option) or via crypto exchanges (riskier option). We have written a comprehensive guide for cryptocurrencies trading you should read. Also make sure to check out how to take advantage of Bitcoin CFDs, the first and most popular cryptocurrency to date.
Binary Options Guide for Dummies
The idea behind binary options is indeed one of simplicity, however, there are some general rules one has to know in order to be able to run the trading platform and become successful. Pushing Up/Down or Put/call will not be helpful unless tied to a serious understanding of the market.
Online Trading Dictionary – Options Trading for Beginners
Expiration Date: The time that the option expires.
Settlement Value: The value of the option on expiration.
Underlying Market Price: The actual real-time market price of the contract.
Bid: The premium price that traders pay for an opening to sell a contract or closing a buy order.
Ask: The premium price that traders pay for an opening to buy a position. This is essentially anticipating that the underlying market price will go up. It is the price paid by a trader who has an open position to sell and wants to close it out.
Spread: The difference between the bid and ask.
Bid size/Offer size: This reflects the number of positions being bought or sold.
Commission fee: The trader will pay a commission fee per transaction – more common in CFDs and forex trading, binary options do not require comissions.
Set-and-let: When you take a position and do not trade in the same market until the time frame expires and the bet is settled.
ROI: Return on Investment
Sell: The action used in forex and CFDs trading when traders believe the price won’t move in their favor. The opposite is “Buy”
High: if you believe the price of an underlying asset will rise, you click “High” in the trading platform
Low: if you believe the price will fall in the future, use this price direction to indicate which way the binary option should move.
Strike Price and the Underlying Market Price – what is the relation?
All beginners should understand these basic terms, whether they are binary options beginners or only starting in forex and CFDs.
The strike price is the price in the moment when the trader places the trading order. This is the price at which the option or CFD are executed. In case of binary options, if you expect the price of the underlying asset to rise, the price of the asset at the moment of expiry of the option must be higher than the strike price. This is called “in the money”. See how to decide the strike price with simple trend lines.
In case you were wrong, and the price is lower than the strike price – the option closed out of the money and you lost your investment.
Underlying market price is the price you are watching after the trade has been placed and, as explained, its relation to the strike price determines the outcome.
With binary options the returns in case of successful prediction can be high and it helps that they are fixed, but understand that in case of the unsuccessful trade, all money wagered is lost. Its different with CFDs, there the amount one wins or loses depends on the difference between the strike price and the market price at the time when the trade is closed. This is why these are called “contracts for difference” after all.
What are Fixed Price Options and No Touch Options?
The fixed price options are used for trading out the assets at a specific strike price. This means that the trade is being placed in the moment when the underlying market price reaches certain level which becomes the strike price for the option.
No-Touch Options are one of the most popular binary options and are considered to be somewhat riskier as traders will have to predict not just the direction of the price but the possible range it will (not) reach. This options type is extremely useful for traders who believe that the underlying asset price will increase over the range-bound during a specific time frame as they will end up making a lot of money if they are right.
Can I Make Money with Binary Options or Forex?
Binary options trading should not be taken as a risk-free way of trading online no matter what some brokers might say. There is always some risk linked to the process, but it does not mean that one cannot reduce the risk by employing smart strategies or trading responsibly.
Some of our other articles on recognising danger to your money and properly trading online:
If traders think the price of gold is going to rise, then they place what is called a call binary option. For this reason, they would need to select the assets they have, in this case being the gold. The next phase would be determined by what trend the asset is going to show i.e. up or down. The last phase is that they determine the amount they are going to invest in it. If things go as planned with the price of gold, they stand to earn up to 100% returns, sometimes even more. If the trade goes sour – they lose the invested capital.
On the other hand, if they feel that the price for the gold is going to decline, then they place what is called a put option. If the same happens as before, they will yet stand to earn even from the falling prices. The entire process can take place in minutes as well hours depending upon the expiry time they chose. But as a trader and an investor, one should exercise caution in all the steps taking in this regard, as they can also end up losing all their investment.
Binary Trading with Robots and Signals
Another way of increasing your returns can be trading with binary robots and signals. Binary robots are special software that use complicated algorithms to find profitable trades (commonly known as signals). Depending on the adjustments and trading settings, it can also place the trade instead of the trader.
Signals are trading alerts that contain all necessary information about a trade that has a high profitability potential. For example, traders get a notification that contains the underlying asset, trade direction, expiry time etc. All they have to do is trade it! They can trade it automatically or manually. Learn more about signals.
Just a few years ago, binary robots and binary signals were two separate types of services, but more and more often we see different types of trading and trading services integrated on the same trading platform. Of course, before using any signals or robot trading service, make sure to check the reviews available on FFB.
Top Myths about Binary Options Trading
What is the real truth behind binary options trading? Is it all a scam? Is it really that easy? Will we all become millionaires in the blink of an eye? The truth about binary options trading is sometimes as complicated as the myths that surround it.
Here, we will debunk some of the most popular myths!
Myth no. 1: Binary Options Trading is Gambling
To people uninvolved in binary trading, logic is simple: you make an account, deposit money and make a bet whether the selected option will go up or down. This logic couldn’t be further from the truth. Experienced traders agree in one: in its possible to trade binary options and treat them like gambling, but it won’t take you far. Read more about the difference of binary options and gambling
The truth about binary options no. 1: even though some treat it like a gambling game, there is so much more to it. Relying solemnly on luck is not a solution for traders who wish to be profitable and trade in a reliable way.
Myth no. 2: Binary Options are Fast Money
Many brokers use this technique to attract traders by promising them high returns in short time. Sometimes the general atmosphere is such that it is really easy to believe that all trader has to do is make a deposit, and platform will do all by itself and make him a millionaire.
The truth about binary options no. 2: Binary options require serious engagement and knowledge of financial analysis in order to be profitable. Testimonials and advertisements that use “get rich quick” language can be considered a scam and false advertising, as they are empty promises.
Myth no.3: Binary Options Trading causes addiction
Some claim that binary options trading, just like gambling, can cause addiction. The adrenalin of short-term trading may influence some traders, but not all.
The truth about binary options no. 5: Contrary to that popular belief, binary trading experts always warn that trades should be executed only after thorough analysis. Such trading behavior significantly reduces the risks and lowers the chances for emotional or forced trading. Never invest more than you can afford to lose!
How to Choose a Binary Options Broker
Apart from ensuring a higher rate of return, most of the experts also value safety. Many brokers do offer more than 100 % of returns, but that is not objective return rate. Serious brokers offer reasonable rates and not those that sound too good to be true. The best brokers have user-friendly platforms, great customer service and a variety of trading options.
Online Trading Broker Terms & Conditions
Terms & Conditions always offer more detailed information than the website and are usually located at the bottom. If some things are still not understandable after reading T&C, better don’t deposit, but contact customer service for additional questions.
Broker Trading Accounts and Bonuses
In order to start trading, traders often choose an account type and make a minimum deposit. Account types may vary: some brokers offer five account types, other only one or two (like Nadex) and each account requires different deposit amount. Minimal deposit is the minimal amount broker accepts as a deposit when opening an account or adding additional funds to your account.
The bonus is additional amount offered by the broker to motivate the trader. Unfortunately, some scam brokers use the bonus to blackmail the traders when they want to withdraw their money. Although it is completely legal to request a certain turnover before allowing bonus withdrawal, it is not legal to add bonus without trader’s approval. Also, bonuses are not allowed with CySEC regulated brokers anymore.
The Demo Account
Demo account is probably the best way to experience binary options trading. It is a special account type that enables you trading with fictional money in order to learn how to place trades and get accustomed to the interface. Traders win no money, and they lose no money.
Trading Assets and Trading Options
Traders can choose whether they’ll trade high/low, one touch, ladder, pairs, 60 seconds, long- term, range options any many more.
The expiry times of binary options may vary from short-term (15 sec, 30 sec, 60 sec, 2 min, 5 min) to long-term (end of the day, end of the week, end of the month, 30 days or more).
The underlying assets are currencies, commodities, indices, stocks and cryptos. There are also bonds, ETFs which are more common with CFDs brokers.
Customer Support and Education
Every successful binary options trader will tell one thing to inexperienced traders: never underestimate the power of knowledge in binary options. Many good brokers offer educational materials. Customer service nowadays is usually available in many different ways. Depending on the broker, traders can contact them via phone, email, live chat or skype.
Forex and Options Trading – Deposit & Withdrawal
The minimum investment is the minimum amount that can be placed in one trade while depositing is adding funds to the account. Withdrawal is a process of taking money from the trading account to banking account. There is usually a limit for minimum and maximum withdrawal.There are many ways to deposit and withdraw money: bank wire, credit card, debit card, e-wallets…
Bank wire is one of the most popular ways of depositing. The most renowned banks, like HSBC, allow depositing and withdrawing from their clients’ accounts. The bank ensures all transfers are safe as do most binary options brokers. For many traders, HSBC will surely offer premium service that also covers binary trading.
Make sure to upload your documents as brokers require them to verify your identity and stop potential money laundering schemes.
Today, most serious brokers are registered with at least one of many regulating bodies. The most popular regulatory body is CySEC as it covers the territory not only of the Republic of Cyprus but the European Union as well. The EU is a great market so it’s no wonder that most of the brokers are licensed by CySEC. Read more about binary options regulators here.
Learn about the CYSEC investor compensation fund to see how you can get some of your money back if the broker becomes insolvent.
You can also file a complaint with the regulator in case you think you have been scammed. However, the best way to get your money back is to use MyChargeback.
Every country has its own regulator as well. Regulated brokers are obliged to respect the laws enforced by the country of registration which is a great help in case anything goes wrong, as traders have not only customers service to ask for help, but a state body as well.
Binary Options USA
Global binary options are mostly tied to brokers that operate on a different platform than the one that is allowed by the US authorities. US binary options traders can use any regulated binary exchange. This is not a bad thing, as regulated market means that customer is more protected than on many other local markets.
For binary options trading USA that is compliant to all possible versions of the rules enforced there, there is NADEX, based in Chicago, that does offer binary options trading according to US rules and regulations. You can read our NADEX review here.
What is Social Trading & Copy Trading?
Social and copy trading are new possibilities in online trading that enable traders to follow others and place trades in the same way as they do.
Copy trading can be seen as copy/paste option on a personal computer. Trader selects a peer to follow, and trades, according to their affinities and settings on the platform are directly copied. The trader can choose which peer to follow and see their trades. If the trader finds the trade promissin, then he copies it, and if not – the trade is skipped, and trades some other time. Most copy trading systems automatically copy all the trades with preset spects from selected traders one follows.
Just like any type of investment, social trading is only reliable as the platform that provides it and the traders you follow. Besides selecting a reliable platform, traders must select reliable trader to follow as well. Sometimes, losing is inevitable, but there are still many traders who understand the market and price movement and who do the great analysis before placing trades. This is a type of trader one should follow.
What is important to mention is that in most cases, copied and social trades often have a limit when it comes to investing, which means traders can place only a certain percent of their funds. This rule is existing because, trader didn’t make a projection by himself, but is simply following another trader.
Cryptocurrencies Trading Basics
Cryptocurrencies, as implied by their name are a type of digital currency that uses encryption protocols for securing, verifying and sending transactions. They achieve it by using a technology called the blockchain which resembles a public ledger that chronologically registers and validates the details of every transaction. Tokens, on the other hand, are more like a digital commodity than a currency.
Crypto trading can take place in several ways. Learn more about crypto trading.
Trading Cryptocurrencies Like Bitcoin with IQoption
IQ Option’s platform is both advanced and intuitive. It provides quotes in real time, gives the ability to trade with fiat currencies on Forex and Options as well as Cryptocurrencies on CFDs. One of the benefits of Cryptocurrency CFD trading with IQ Option is the volatility of these assets, they provide a perfect opportunity to open and close short positions throughout the day, and invest in long positions, given the current bullish trend of the crypto assets. Another great advantage of this platform is the low investment threshold – only $1. Considering the growing interest in a sophisticated, decentralized exchange, it looks like an interesting platform with promising, great additions to come soon. You can try trading cryptocurrencies now, with a free demo account.
How to Stay Safe while Trading Online?
Binary Options Certificates Scams
When deciding on a broker, traders usually visit their websites, and then they see it: a line of aligned seals signaling the broker won an award for being “the best broker”, having “the best options”, being “100% secure”, or perhaps, “top broker”. Another worrying trend we noticed is brokers displaying their “regulated certificate”, even when they are not regulated by any regulatory body. In the case of doubt, always read Terms and Conditions. Regulated brokers usually state there which body regulates them, together with their regulating number. The regulating number can easily be proofed on regulatory bodies websites. For brokers who claim to be regulated by CySEC and other institutions, do it here. You can see an example of a false regulation seal to the right.
Binary Options Certificate Scam – Example
We noticed that one of the brokers that is on our Blacklist displays such elements on its web page. All one needs to do is scroll, and right on the bottom of the CapitalOption page, three “awards” can be found.
- “100% money back guaranteed”,
- “100% quality” and
- “Certified, secure, authentic”,
Sounds pretty good, right? Unfortunately, these awards and certificates make no sense as they are all fake.
Bonus Terms and Conditions in Binary Options
Bonus rules are provided by good and bad brokers alike, so the pure existence of rules is not providing any insurance at all. The difference is that good brokers have reasonable conditions while scam brokers leave to many information open to misinterpretations or don’t have such rules at all.
The formula for calculating the trading volume is mostly explained in bonus terms and conditions.
For example, the trader makes $250 deposit, and the broker is willing to add 100% bonus with a required turnover of x20.
This means that trader has $500 available for trading, but not for immediate withdrawal. The withdrawal can happen only in case a required trading volume has been reached. In this case, the trader can withdraw bonus profit and deposit, only after the total volume of the trades placed reached $ 5,250
Deposit + Bonus x 20 = required volume
$250 + $250 x 20 = $5,250
When the trader has reached the volume, the amount (bonus profit and deposit) can be withdrawn.
Here are some examples of how brokers manipulate with bonuses to prevent you from withdrawing.
Binary Options Bonus Scams
LBinary: Unauthorized bonuses – The trader lost $10,000 in a single night, as the broker traded in her name without prior approval, and even added an unauthorized bonus. No matter how much she tried to convince her account manager and customer support to stop, it was impossible. There was no written proof of her accepting anything, and the broker simply took advantage of the customer.
MyOption: Impossible withdrawals – In this case, the trader got a bonus without knowing what the terms of bonuses are, and every attempt to contact the broker was futile.The trader was told that bonus can be canceled at any moment, and the deposit is withdrawn fully, but the reality was much different.
Very often, a bonus is used as a way to incentivise the trader to deposit, and this is not surprising as bonuses are usually perceived as extra money that always comes in handy. According to CySEC, no regulated broker is allowed to offer bonuses. This protected many traders, but not those who are trading with unregulated brokers.
Sometimes account managers put additional pressure on traders with promotions that are potentially against the trader’s interest. Account manager and brokerage staff have a tendency to do all the convincing part via phone call, as it is harder to track what is going on, especially when it comes to scam brokers. For this reason, always insist on written correspondence via email.
Binary Options in Israel
After making conditions for registering binary options business even stricter, Israeli Securities Authority (ISA), under the leadership of prof. Shmuel Hauser has decided to make illegal all advertising and service providing in binary options industry towards Israeli citizens. The new legislation has created an unfriendly business environment so it can be expected that all brokers who are offering regulated binary options will have to stop offering such services. This means that Israeli traders will be forced to trade binary options with unregulated companies, and all that dependable on how rigorous ISA will be when it comes to prosecution of unregulated brokers.
Forex Trading in Israel
However, this ban doesn’t mean that it is impossible to experience online trading in Israel. You can still trade forex with regulated forex brokers. Forex is another popular type of online trading based on currency pair contracts that allows traders even more control and customisation possibilities than binary trading.
For example, forex trade can be closed at any moment, and you don’t have to wait for the expiry time to run out. As always, make sure to find a solid Israeli forex broker. We suggest you try trading with Plus500 (80.6% of retail CFD accounts lose money), where a trader with an account can trade CFDs on Forex, Stocks, Commodities, Options and Indices”.
Binary Options in South Africa
Binary options trading became very popular in South Africa in the very beginning, almost 10 years ago, but South African government still didn’t manage to completely regulate all aspects of this type of financial trading. All aspects of investing and finances, except banking, are regulated by the Financial Services Board (FSB). One of the most interesting aspects of binary options trading in South Africa is that companies in South Africa are not allowed to offer binary trading services to South African traders. This is another reason why South Africans have to trade with offshore brokers.
Traders who want more diversity or to trade with multiple brokers should select binary options broker regulated by other important regulators like CySEC.
Forex in South Africa
Still, traders can still find a regulated forex broker and trade with popular forex brands. This makes forex trading the preferred choice by South African traders.
Most popular brokers in South Africa are Plus500 (80.6% of retail CFD accounts lose money) and CMTrading (FSB Reg no.: 38782), that offers incredible trading accounts, risk free-trades and leverage up to 1:200.
Binary Options in Japan
Binary Options in Japan are legal and regulated by Financial Futures Association of Japan (FFAJ), that not only regulates the market but also publishes reports on the binary market. As most regulatory bodies in the world are only regulation-oriented and don’t care much about the market results, this case is another proof of well-known Japanese efficiency. Just like most other regulatory bodies, FFAJ publishes reports on the scam and unregulated brokers as well.
Binary Options in Lebanon
Binary options are becoming increasingly popular in Lebanon. Also, we mentioned that it is always better to trade with a regulated broker than with unregulated. Regulated brokers are, generally speaking, safer and more reliable as they keep funds in separate accounts and allow traders an additional level of transparency and security.
In Lebanon, the main regulator for binary options is Banque du Liban, or the Central Bank. One of the main roles of Banque du Liban is providing licenses to interested brokerage houses. However, like many other regulators, Banque du Liban does little to really regulate binary options. Binary options in Lebanon are mostly based on brokers that are regulated offshore by other popular regulators such as FMA or CySEC. Traders should always check whether or not the broker has a valid license. The license number can usually be found in the footer of the website, but don’t hesitate to contact the regulator as well, as some scams publish random numbers they claim to be their license number.
The Best Binary Options Broker 2020!
Perfect Choice For Beginners!
Free Demo Account!
Free Trading Education!
Get Your Sing-Up Bonus Now!
Only For Experienced Traders!