When it comes to online transactions where investors can make money, there is always a doubt in the air, especially on the side of beginners in the financial market. I choose to trade forex and binary options? What are the advantages with respect to other? Which features faster returns and minimize risks? These and other questions will seek to address here in this article.

Keep in mind that, before trading any market with real money, it is essential to have a trading plan or a trading method that is reliable and that is not risky.

Similarities Between Forex and Binary Options

Before seeing how it works binary options and forex, and the differences and similarities between such trading methods, it is good to know that: both one and the other are possible to trade online, hence the size of demand and practicality found by investors, instead of having to go somewhere, they can do everything on the Internet.

Another thing: both in the forex market or binary options, investors can start trading with a small amount, usually revolving around $ 100, or even less. There are binary options brokers that accept up to $ 20 for opening an account, or, if the investor does not intend to risk a large amount of money at first, is a great choice to consider.

Another similarity between these two markets is that both allow the investor to gain or lose money based on the decision regarding the way the currency or financial asset will take, ie, up or down. short-term intervals are observed in both, but the forex trading allow you to make decisions in the long term as well.

Main differences

Despite the similarities are large, there are several differences between forex and options, which we list below:

In binary options, from the start of trading, the potential for risk and profit remain fixed. As well? If the binary option pays 80% for investors who are victorious in a transaction, then it gives to realize that if you invest $ 10 in a transaction, you can either lose $ 10 or win $ 8, while maintaining $ 10 early.

The forex trading is more variable, ie it can be viewed positively or negatively, depending on the involved negotiations. For example, a stop loss can be used to control risk, but market conditions may in fact prevent the order is executed with the expected value and resulting in a higher than expected loss. Now, if the stop loss is not used, then the trading risk is unknown.

Trading binary options are simpler than forex. Because? There is variability, since it is possible to know about the risk and bottom line until the closing of trading. The investor knows immediately when the option expires if the