Here’s a question – what exactly is it about binary options that’s so attractive? Why is it that right now at this very moment, hundreds of thousands of traders at all levels are favouring binary options over and above every other type of trading available?
To call binary options trading an advancement or evolution would be something of an understatement. In reality, it has proved to be nothing short of a sensational revolution. Much of what applies in the world of traditional trading is exactly the same in the world of binary options, which is why those with any trading experience will find the binary learning curve particularly gentle.
But in terms of specific benefits, what is it that the world of binary options trading offers that is unique and exclusive to this modern, innovative approach to trading?
High Return on Investment Potential
Well, first of all there is the way in which depending on who you work with and how you approach trading in general, it is possible to take home an exceptionally high ROI with binary options. Generally speaking, average returns vary from around 60% up to 90% and even higher. By contrast, traditional Forex traders would usually be looking at an ROI more in the region of 10%. While it’s not to say that binary options trading guarantees any profit whatsoever, it certainly has the potential to deliver larger profits when trades are successful. Brokers establish their own maximum returns – something to take into account when selecting which broker to work with.
Something else that separates binary trading from the traditional variety is the way in which there are no unknowns or estimates when it comes to risk and reward. Or to put it another way, when you enter into a trade of any kind in the world of binary options, you instantly know exactly how much you stand to win or lose, depending on the outcome. This in turn means that the risk level is fixed and the potential ROI is likewise set in stone. Unlike other examples of trading, it makes no difference whatsoever how high or low any price goes – just as long as it finishes in-the-money for you. If you predict that the price of an asset will increase by the expiry time, it doesn’t matter if it has increased enormously or by the most insignificant fractional amount. Either way, you still take home the same profit.
Returns Even When You Lose
Though this is something of a nonstandard feature and varies significantly from one broker to the next, there is often the potential in binary options trading to get at least some of your money back if your investment proves unsuccessful. This generally tends to be one of the features highlighted as a key selling point for the broker in question, who may offer anything from 1% to 15% by way of a refund on unsuccessful trades. The exact amount to expect back will vary significantly, in accordance with both the broker and the specifics of the trade in question. Nevertheless, to get anything back whatsoever is considerably better than getting nothing in return at all.
One of the single biggest advantages of working with binary options is the way in which the vast majority of platforms have been designed to cater to the needs of those with little to no experience. Over recent years in particular, online binary options trading platforms have become more user friendly than ever before and make every aspect of trading incredibly simple. From educational resources to demo accounts to dedicated customer service, it has never been easier to take those first pivotal steps into the world of trading. Not only this, but the fact that there are only ever two possible outcomes when trading binary options makes the concept as a whole so much less difficult to grasp and work with than conventional trading.
In most instances, traditional trading and investment opportunities have always been about playing the long game. Specifically, entering into contracts where the results will only make themselves known after a considerable period of time, as something of an on-going process which determines both whether and to what extent you can expect to make money. With binary options trading, everything is flipped on its head. While there is always the option of long-term trading with many binary options brokers, traders are also able to make use of much shorter trading instruments – some as short as 30 seconds. Which in turn means that if you would rather know the results within one minute and potentially make a solid ROI in a short period of time, you have the opportunity to do exactly that.
Free Demo Accounts
While there have always been plenty of educational resources and learning materials available for every kind of trader, actually benefiting from practical experience has proved difficult. Which is something else that binary options trading has transformed, enabling newcomers to dive right into real-life trading via powerful platforms, without actually having to put a penny of their own money on the line. Free demo accounts of course remove the prospect of earning any money, but can at the same time be priceless in value when it comes to picking up the basics. Many service providers are only offering demo accounts after deposits have been paid into the respective customer’s account, but there are nonetheless others who offer demo accounts 100% free of charge.
Countless Types of Assets That Can Be Traded
Advanced traders always highlight the benefits of diversifying risk and working with a wide variety of tradable assets, rather than putting all of your eggs in one proverbial basket. Which is something binary options trading allows for perhaps better than almost any type of traditional trading. Regardless of your skill level and experience, you will instantly gain access to an extensive library of assets, in turn allowing you to diversify your trading portfolio and take better control of risk.
For the most part, trading in the traditional sense has been something of a full-time job exclusively. More of a lifestyle, in fact. It certainly hasn’t been the kind of thing that any average person can indulge in on a casual basis, alongside whatever it is they do to generate their primary income. With binary options trading however, casual trading becomes a definite possibility. In fact, the overwhelming majority of binary options traders these days do not in fact trade full-time as a career. Instead, they trade for a few hours here and there on a casual basis, with the intention of supplementing their primary line of income with the occasional profit.
Another incredible advancement that binary options trading has brought about is social trading. Right now, more service providers than ever before are beginning to offer outstanding social trading features and platforms, which essentially combine a fully featured training environment with many of the features more commonly associated with social media. This way, the trading community is able to combine knowledge and work together for mutually beneficial results. In addition, social trading also allows traders at all levels to monitor and replicate the actions of other traders, should they wish to do so. This can be extremely attractive and useful for newcomers in particular, who may wish to follow the examples set by traders more successful and experienced than themselves.
Last but not least, another outstanding reason to get involved in the world of binary options trading is the way in which doing so represents the first step on an on-going journey towards bigger and better things. To work with one of the very best binary options brokers in business is to gain access to far more than just an outstanding platform alone. Along with all the tools, features and functionalities required to facilitate the trading itself, the best in the business are also committed to nurturing the development and progress of their customers. Extensive educational resources and entire libraries of learning materials are made available, which can potentially take traders from newcomers status right up to professional competency in no time at all. Traditionally, traders have been left entirely to their own devices to both collect and make use of important learning materials – quality binary options brokers have made the training and education process infinitely more accessible.
Of course just as is the case with every other type of trading across the board, binary options are most certainly not for everyone. It is an approach to trading that caters to a very specific trading style and set of preferences. But at the same time, it is so comprehensively open and easy to get into that it is certainly something that should at least be tried out by anyone with an interest in trading.