What are Binary Options? – Honest Review
In this article I will show you what are Binary Options and how do they work:
Binary Options is a financial instrument to trade on long or short markets in a certain period of time (derivatives). The Trader only got 2 options: Win a high amount of money (75% – 95%) or lose the investment amount for this trade. It is like betting on rising or falling markets. Binary Options are very flexible. It is possible to trade any financial market and use different time horizons (starting from 30 seconds).
- Call: Make a forecast for rising markets
- Put: Make a forecast for falling markets
How does it work? – Where to trade?
In the next steps, I will show you how Binary Options work. You will understand it in a few moments but first of all, where to trade Binary Options?
You will need a Binary Options Broker (see the table below). There are different companies around the world who provide this financial service. You can open a free demo account. This is an account with virtual money, so you can learn how to trade without risk. It is important to choose a regulated broker to trade safely like in my comparison below.
- You need a company (broker) which provides the financial service (Binary Options)
- Open a free demo account with virtual money (no risk – table below)
Is Binary Options trading safe or not?
Safety is the most important point by online investing. You should choose a good and reliable broker which is safe. I recommend using a regulated company for your investments. There are regulated and unregulated companies for trading. It always depends on the broker to trade safely Binary Options. I did a lot of research and clearly, I can say that a regulated broker does not cheat to its clients. Normally unregulated brokers do not cheat too. But it is not 100% safe because sometimes these are small and unknown companies.
In conclusion, you should use a regulated broker for trade Binary Options safely! It always depends on the Broker if it is safe or not. Do the research by yourself and read my review about the broker on this website.
What you need to know about platforms
There is a huge diversity of Binary Options Platforms and you have to check out what is your personal favorite. Nowadays developed software is very flexible and available for any device. It is possible to trade with the computer (browser and desktop), smartphone and tablet. That means you can trade from everywhere around the world if you got access to the internet.
Especially for a beginner sometimes it is hard to learn to trade with a new platform. There are a bunch of options which can confuse you. Most brokers will give you education material like video tutorials or step to step guides. Also, you can ask the support for help by phone, chat or email.
Flexibility and charting are provided by the platform. You can do a personal chart analysis with indicators, technical tools, and different chart types. Sometimes you will get access to economic news directly in the platform. Indicators are known for giving you feedback on the market price at the moment. They are customizable like you want. So it is possible to analyze different timeframes.
Mobile Trading: Today Mobile Trading is one of the most important factors for trade successfully. It is a great opportunity to boost your profit. In the past traders could not trade online or via mobile phone. So the options were much lower for making a profit. Apps are available for Android and iOS users or any other device. Check out your trading account 24 hours per day via your mobile phone.
Computer Trading: In my opinion, it is better to use the web-based platform with your computer for analysis. Often there are a lot more functions than in the app. Furthermore, you can see the chart more detailed and a higher range of it. Professional analysis can be made by using a computer.
Trading Tutorial | Step by Step Guide
As a trader, you can choose between a lot of different assets on a Binary Options Platform. You can trade Forex, Stocks, Commodities, Cryptocurrencies and more. This trading tutorial will show you how it exactly works to trade the financial product. The process is always the same as you see in the video and picture below. Just practice it in a free Demo Account. Personally, I recommend the “IQ Option Account”.
The functions of Binary Options – Learn to trade
Now you have to imagine and predict the asset price direction for the future (forecast).
You can use the specially programmed trading platform of a Binary Options broker to analyze the charts and get trading ideas. It is very important to have a good working strategy for maximum profit. Beginners should use technical analysis for trading the chart. On the broker platform, you can learn more about it in different education videos/centers.
Therefore every Binary Option expires after a specified time. You can use the time horizon between 30 seconds or 5 months or more. Sometimes it depends on the broker. As you see you can trade short-term or longterm Binary Options.
After you have decided on the direction and the expiry time for your trade you can “sign” the contract with your broker. Just click the call or the put button. On some platforms, you have to confirm the trade.
- Call: The price will go up in your expiration time
- Put: The price will go down in your expiration time
If you are right in your decision, the broker will pay you a high asset profit of 75-95%. The trade automatically closes after the expiry time. Sometimes the broker allows you to close the trade before the expiry time ends. That is a way to reduce the impact of a wrong decision.
Example: EUR/USD – 95%. That means if you invest the amount of 100$, you can earn the amount of 195$ on a certain time horizon. 100$ is the return of your investment and 95$ is the profit.
Trading platform tutorial
- Search for an asset with a high profit. If you trade the assets with the highest yields in conclusion from my experience the result will be much better in the end. Some Binary Brokers offer you different account types with different asset profit.
- Analyze the chart on the platform. You can choose different time frames, indicators or financial news for your strategy. Every Binary Broker offers you some educations, too. Learn in webinars, videos or coaching the best strategies of the world.
- Now you should select the expiration time of your Binary Option. There a lot of possibilities for your trade. Some traders like it to trade short-term options and some other traders like it to trade longterm options.
- Choose an amount you want to invest in your trade. The most time it starts at 1$.
- At latest trade the Binary Option with a call or put. There are only 2 options in the market, that’s why it is called “binary”. In the end, you earn a high yield or you lose your selected amount.
The conditions of Binary Options Trading
You can trade any asset with Binary Options. It can be stocks, commodities, forex or cryptocurrencies! The most brokers give the option to trade more than 100 different assets. The expiration time depends on your broker. Some companies provide Binary Options with a time horizon of 30 seconds or less. These days you get a lot of different options on every broker.
- Trade stocks, forex, commodities, cryptocurrencies and more
- Choose between a lot of expiry times (short-term – longterm)
As the time horizons, the yield (return of investment and profit) depends on the broker. Often there is a possibility to get a high payout of more than 90% of your investment but there is no rule for the value of the yields. Sometimes short-term trades got the highest payout and sometimes long-term trades got the highest payout. In comparison from my experience, the yields are between 70% and 95% for standard accounts.
Another way to boost the yields are the account types. Most of the brokers offer different account types, which are linked to the deposit amount. For example, you will get a VIP account if you deposit more than 3000$ on IQ Option. Not every broker got the offer of account types but you should search for it if you plan to invest a high amount of money.
Binary Options are risky to trade, but there are advantages why the risk is less than trading other financial products. Especially new traders fear the loss of a high amount of money. With binary trading, you can only lose your bet amount. Traders clearly see what they can lose in a trade. Compared to other trading instruments this is a big advantage because the risk is limited always.
Another advantage is that you get a high asset payoff no matter how much the market moves. The asset price just has to be above or under the entry point. Traders like this financial product because it is so easy to understand and to calculate the risk and the trade profit.
Demoaccount – Yes or no?
It is very important for beginners and new traders to practice the Binary Options Trading. The most brokers give you a free demo account. It is an account with free virtual money. You can always recharge the account with one click. It is risk-free trading.
Why it is so important?
Every trader should learn more about the trading platform before he is going to invest real money. Also, you can learn new strategies or try out different methods on the market. First, develop your own strategy with virtual money.
Opening your real account
For trading with real money, you have to fulfill different criteria. On the most brokers, you can trade and deposit without verification of your account. In my opinion, every trader should verify his account before deposit money. This can prevent annoying errors and waiting times. For a full verification, you need to complete the account setup.
Sign in with your real personal data. That includes full name, birthday, real address, email, and your phone number. After that, you should upload the required documents for the broker. The company checks if you are a real person. Upload a picture/copy of your Passport. Sometimes they require a utility bill too. In most cases, the verification only takes 24 hours or less.
How much money do I need for Binary Options Trading?
You can start trading with a very low amount of money. Especially on IQ Option, you can open a live account with a 10$ deposit. The minimum trade amount is 1$. The upper limit is open for your trades. Look at the table below or over this text and choose the broker of your interests.
From my experiences as a trader, it is possible to make a huge amount of money with the right strategy. Binary Options are the tool for trading with a small or big amount of money.
- Start with only 10$ in your account
- Trade with 1$ per trade
- You can easily trade with high amounts, too
Deposit and withdrawal
As mentioned before the deposit is easy as the withdrawal of profits. On the most brokers, there are not any fees for deposit and withdrawal money. For payments, you can use more than 20 different methods. It is possible to capitalize on the trading account in a few seconds. In most cases the payout takes time of 24 hours depends on your broker.
Get a free Bonus for your deposit
The most brokers offer a free bonus for your deposit or risk-free trades. The bonus amount depends on the deposit amount. It can be a 20%,30%,50% or 100% bonus. In other words, they give you a higher bonus for a higher deposit. Furthermore, some brokers allow trading risk-free trades. If you lose a trade, the broker pays back the lost money in form of a bonus.
The bonus is not completely free. Sometimes traders have to trade a high turnover of the bonus. For example, make a turnover of 30x of the bonus to get the bonus withdrawn. If you are not satisfied with the conditions in most cases you can deactivate the bonus. A bonus is a good opportunity to grow a bigger account and trade with more money.
Can you really make money with trading Binary Options?
The key to your success is to get a good education and find a professional strategy. In addition, you have to control the risk with sensible money management. In this article, I showed you an insight into profitable trading with Binary Options.
It is easy to make money with Binary Options but you have to be prepared. The markets are not easy to trade for beginners and it takes time to trade profitably. You will not see the success directly. From my experience educated traders do not blow up the account. They earn money constantly. Read through my other pages to get deeper knowledge.
- Education: This is the most important point for beginners. You should be prepared for the markets and know how the financial product works. There are different tutorials on the broker webpage or on my website to learn the functions. In addition, it should be easy for you to use the trading platform of your broker. Just practice in the demo account until you feel comfortable. Moreover, most brokers offer deeper knowledge. There are webinars, coachings, and tutorials. Education and knowledge is the key to make money with Binary Options.
- Strategy: Develop or learn a professional strategy for trading. You have to know what you are doing in the market. It is like a system for you which always have to repeat. Without a proper strategy, you will blow up your account. There are different ways to learn a strategy. Use the knowledge of a broker or my website.
- Money Management: The most traders fail to control the risk. In my opinion, money management should be sensitive by using 0,5 – 3% of the account balance per trade. Sometime a losing streak will occur. By using sensitive money management you can trade without emotions and you can trade enough trades without running out of money.
In conclusion, you can really make money with trading Binary Options but you have to learn and invest your time in the right knowledge! The demo account is the best way to practice before you start investing real money.
Are Binary Options legit or not? – My scam review for beginners
In my opinion, Binary Options are not a scam for your money. The financial product gives you the possibility to invest in short or longterm opportunities in the market. Binary Options are so popular because they are so easy to understand and you can make a lot of money in a short time.
My advice to you: It is very important to choose a good broker. Some small brokers are scamming users, that’s why a lot of people think Binary Options are a scam. Definitely, it is not a scam if you trade with a safe company.
Basic trading checklist for beginners:
- Choose an asset you want
- Forecast the price movement
- Choose a variable expiry time of the trade
- Bet an amount starting 1$
- Trade a call (long) or a put (short) option
- Get profit
- Payout the profit
On this site, I have shown you how the financial product is working. I think you can easily understand it now and start trading with more security. On my other sites, you can learn more about Binary Options. Happy trading! ;)
How to avoid scams
The problem of Binary Options is that they are not a scam, but some brokers or financial educators are scammers. Every time before you start investing real money you should do a sort of research. You should pay attention to reviews or advice from strangers.
In the following table, I will show you how to avoid scams and learn how to trade with a good partner and broker. Check out interesting companies with the following points and you will be very safe.
|No investing advice||Investing advice without logical reason|
|Good and fast customer support||Bad customer support|
|Official business address||No address or postbox|
|Fast withdrawals without commission||Slow or no withdrawals with high commission|
|Provides a lot of investing content||You do not find much information about the company|
Read through my other articles:
With the experience of more than 5 years of trading, I provide you the best articles, tips & tricks and review on this website. I try to give you transparent information about the financial product Binary Options. Beginners should read through all articles to get higher knowledge. In my opinion, knowledge is king. Learn about successful trading before you start investing real money.
Find the best Binary Options Broker
Nowadays it is hard to find a reliable broker. In the past, I tested a lot of different company. In this review, I will show you the best companies for trading Binary Options. You should use a tested and recommend broker because there are some scams outside. In order not to be cheated to read this test.
The best strategy for trading
In this article, I will show you my best strategy. It is free to use and very simple to learn. Every trader needs a strategy for the markets. Without a reliable strategy, you will blow up your account fast! With this method, you can earn much money if you do it correctly. In addition, you have to practice it.
Create your demo account
The demo account is very important for beginners and advanced traders. It is an account with virtual money. You can trade without risk and practice. Learn and develop new strategies or try new assets. Read all about the demo account and what you need for your success.
As mentioned before the broker is the tool and partner of a trader. Before you invest your real money you should collect information about the companies. On this page, I only recommend tested brokers. Read the full reviews:
- IQ Option Review
- Finmax Review
- Expert Option Review
- Olymp Trade Review
- Binomo Review
- BinaryCent Review
- Pocket Option Review
- Ayrex Review
Tips & Trick
How to avoid the most common mistakes in trading? – In this article, I will show you my best tips and tricks for trading successfully. First, learn about the financial product before you investing money without knowledge.