Forex trading is proving quite challenging to some traders who thought that the activity would be a walk in the park. Many traders who need quick profits are swiftly hurrying to Binary Options which in truth is one of the riskiest investment known to me. In many aspects, binary options have much similarities to gambling but that doesn’t stop it from having some benefits.
a) It’s easy to conduct and it isn’t as complicated as Forex trading
Many brokers of binary options have designed their websites in such a way that users find the websites friendly and easy to use. There are features like; live chats, demo accounts and informative videos. Another good aspect with binary options is that there are only two possible outcomes, this makes it easy in choosing either way. In addition, there are no complex features like Stop Loss and Close trade buttons.
b) Consolation price even when your trade loses
Many traders are afraid of binary options because of the high risks that the trade entails but the brokers are doing something to make it more appealing to traders. Instead of a trader losing 100% of his/her trading capital, most brokers give back up to 15% of the money that the trader had invested.
c) Speedy turnover rate
Faster turnovers are good because they give traders quick access to profits or quick losses in case they are unlucky. Most turnovers in Binary options don’t go beyond an hour and other turnovers that resemble gambling can go as short as 60 seconds. This means a trader can make many trades within a day and collect his/her profits within a very short time.
d) High returns potential on investments
Inasmuch as binary options are risky, when a trader hits the target, it can only be a big win that can cover all the other lost trades. The average returns in this trade is 60%-90% when compared to a paltry 10% which is the average returns in Forex.
e) Simple and easy for beginners to get started
The options that are available in the market accommodate both seasoned traders and beginners. You can trade from vanilla options to exotic options and find a lot of varieties to choose from. There are simple options for starters and difficult options that can fetch high profits for the experienced investors. In short, anyone can trade in binary options even with limited knowledge and edge.
f) Access to numerous assets
This form of trade can enable ordinary traders to have access to types of stocks that would be too expensive to the average traders. This doesn’t mean that a trader can own a piece of the company stocks, it only means that the trader can make the overall prediction of the stock at a cheaper price.