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Forex Trading and Binary Option

If you one of those people who trade online, you were probably wondering a what is better for personality Forex Trading or Binary Options. Well before we dive into this interesting questions, let’s try to figure out where do these two types of trading comes from.

Economics is what drives people to do what they usually do on a daily basis. Nothing might even happen if not for the effects of a good economic day. One of the more common economic activities that never cease to exist is trading. This is what drives the currency and how it affects the overall market across the globe. Exchange rates are affected as well. It might be one of those which a country, most importantly a businessman cannot do without.

Currently, trading activities is using two systems: Forex Trading and Binary Options.

Forex Trading or Binary Options 

The two have been the most effective systems currently used in the market. However, this is the only common ground that both have except. They have multitudes of difference which sets them apart from each other.

Between the two, the Forex Trading system is more complex, but has a higher turnover rate partly because of the conversion of currencies when it came to trading. Binary Option on the other hand is preferred by most traders because of how simple the design is.

That is why Binary has been commonly used by amateurs in the industry. Forex is used by those who have been active in trading market for a very long time. In addition, traders sell their shares directly to the buyer, minimizing the chances of being cheated off their money.

That is only the beginning of the differences between the two and those are the basics.

Binary also offers higher profitability and better assurance of profits. According to reports the Binary system has been shown to provide profit at 85 percent or 60 percent. In addition, Binary also includes a 15 percent refund policy in case losses occur as you entrusted your money with them.

With Forex Trading, profits are uncertain and can be extremely varied; always at the extremes. In addition, they do not have any insurance policy in case you suffer losses. Their system is all or nothing and that is why their process is only for those who have withstood the challenges that the trading market has put in their way.

Binary also offers more assets available in the market such as stocks, indices, and various commodities when compared to the Forex Trading system.Forex Trading or Binary Options

The one area that Forex Trading is better than the Binary Option is the time which they allow people to trade with others. Forex Trading allows you to make trades anytime of the day within the weekdays; weekends are off limits for business transactions. Binary Option on the other hand requires you to make trades within a specific interval or when the stocks are being made available by the company. So, you need to be very quick in making a decision if you are using the latter’s system.

Another significant difference among these two types of trading, is the amount of money that is at risk each time one makes a trade. With Binary Options, it is very straightforward in the sense that the trade can decide how much he is willing to risk on each and every trade, so the risk can never be more than what you have invested on that particular trade.

On Forex however, when a trader is entering a trade all of the funds he got in his account are under risk. The only way for a Forex trader to avoid a case of loosing all of his invested funds on one trade, is by placing a stop loss, meaning that the trade will be automatically closed after reaching a certain amount of losses.

Among all these differences, the best comparison between the two is their similarities and that is their accessibility to the public. Anyone can join any of the two ways of trading. There is not real answer for what is better Forex Trading or Binary Options, it is just a matter of weighing the pros and cons of the two.