Forex vs Binary Options
Forex (Foreign Exchange) Market is presently one of the major and most moneymaking markets in the world in terms of everyday turnover. The Forex market serves international traders and investments by enabling currency exchange. Online Forex trading has been gradually rising due to the probability of making huge money in it.
Binary Options trading is the newly kid on the block. This is a newly variant of Forex market trading that is uncomplicated equated to Forex trading. Binary options trading and dealing is farsighted. They were usually regarded exotic and there was no liquidity market for trading these instruments amongst their issue and expiry.
Differences between Binary Options and Forex -
While both these trading options may sound similar at a basic level but the risk, the trading assets, the trading steps and time line makes them two separate entities. Following are 5 basic differences that between Forex and Binary Options
Forex is for pro
The 1st difference is that Forex trading needs professionals with skill in foreign currency trading while Binary Options is moderately easy and simple to understand, even to beginners in financial trading.
Binary Options is secure
The 2nd difference is that Binary Options trading has a superior level of profitability equated to Forex trading. In binary options brokers provide up to 15% refund in case of losses and this act as a safety net to the binary option trader. Forex trading has no safety caution build in place and in case of a mistaken investment decision the Forex trader losses the entire money invested.
Trading Intervals are not same
One more difference is that in Forex trading you can trade constantly during the weekdays whereas in the binary options trading is on the weekdays at intervals. The trading of binary options is reliant on the commodity exchange hours and local financial markets.
Forex trading is limited
Finally, and for sure not the least is the magnitude of assets. Binary Options trading enables trade to trade a lot more assets then Forex- not just currencies but also indices, stock, and commodities.
Though they are distinguished by these above features, Forex market and Binary Options have a few common resemblance. Both are very available to the public. Since they can be functioned online what is needed of potential traders is a network connection and startup capital that can be as low as $100.