Binary Options and Forex Trading

What are the main differences between Forex & Binary Options Trading

Margin

Binary Options: Margin is not used to trade binary options. Even without margin, binary options allow you to make between 65% and 100% on standard options and this is highly attractive to traders. In addition, you never have to worry about a margin call.

Forex: Forex allows you to use margin and the maximum margin is set by the broker – it is usually 1:500 or 1:200. Margin enables you to increase your trading capital so you can place larger trades which produce larger profit but also can create larger losses if the trade goes bad.

BrokerBonusMin DepositPayoutUS TradersReviewOpen Account
IQ Option - RISK WARNING: YOUR CAPITAL MIGHT BE AT RISKFree Demo Account Without Deposit & Great Trading Contests (*) Tournaments are subject to Terms & Conditions10$up to 92% * Amount will be credited to account in case of successful investmentReviewVisit Broker
Binary.com€/$ 20 Free Bet - Binary Options No Deposit Bonus5$up to 100%ReviewVisit Broker
Verum Optionup to 100% Deposit Bonus50$up to 95%ReviewVisit Broker
Close Option USA Trading Broker20$ Binary Options No Deposit Bonus, Deposit Bonus & Free Entry to Daily, Weekly and Monthly trading Contests!5$up to 95%USA AllowedReviewVisit Broker
Finrally100% Deposit Bonus + Risk Free Trades + Free Entry to Weekly $20 000 Trading Contest!250$up to 90%USA AllowedReviewVisit Broker
BinomoFree Options Worth up to 150$, up to 140% Deposit Bonus & Risk Free Trades!10$up to 95%ReviewVisit Broker
MarketsYESup to 300% Deposit Bonus!250$up to 100%ReviewVisit Broker

Losses and Payouts

Binary Options: Before you open a binary options trade, you will know what your loss will be if the trade does not go your way and you will know what your payout will be if your trade finishes in-the-money. The typical return on binary options is between 65% and 100% and because you know the potential profit or loss, you can easily manage your risk.

Forex: In forex trading, there is no limit of the maximum profit that you can make from a trade. You can set a stop or limit order that guarantees a particular profit percentage if the stop or limit is executed. Losses in forex trading can also be managed with stop and limit orders in the same way as profit is managed. The maximum loss could be all of the trading funds in your account.

Types of Orders

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Binary Options: There are a variety of different binary options orders to choose from including the popular high/low also known as up/down or call/put. There are also several other types of orders that may or may not be offered at binary options brokers.

Forex: There are also a number of order types in forex trading and the most important are buy-sell orders. There are also advanced order types like hedge orders, trailing stop, limit, OCO, stop and others.



BrokerBonusMin DepositPayoutUS TradersReviewOpen Account
FreshForex Broker200$ Forex No Deposit Bonus, Forex No Deposit Demo Account, 101% Tradable Deposit Bonus, MegaRebate 2.0, 48% Per Annum & No Deposit Commission!1$ReviewVisit Broker
XM.com30$ Forex No Deposit Bonus, 100% Deposit Bonus & Free Trading Signals!5$ReviewVisit Broker
InstaForexUp to 100$ Forex No Deposit Bonus & 250% Deposit Bonus & 1$ Minimum Deposit!1$ReviewVisit Broker
FBS Broker123$ Forex no Deposit Bonus, 100% Deposit Bonus for Each deposit & up to 100% Deposit Insurance (Cash Back If You Will Lose The Deposit)1$ReviewVisit Broker
MarketsYESup to 300% Deposit Bonus!250$up to 100%ReviewVisit Broker

Size of Trades

Binary Options: Every binary options broker has a maximum and minimum trading size. The minimum size may be $5 per trade while the maximum can be $1,000, $5,000 or even more.

Forex: A few brokers offer micro lots which are 1,000 of the base currency. The maximum is set by the broker and can be as much as 100 standard lots which is $10 million in currency.

Cost of Trading

Binary Options: There is no commission, rollover, swap or spread in binary options trading.

Forex: In forex, you will need to consider rollover, swap and spreads as these are the charges you will incur. There are usually no commission fees.

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