Forex Trading

Forex trading has been developed into the post popular markets today. The gates to riches are open not only to the experienced traders, but also to individual investors looking forward to trading currencies instead of buying stocks and futures.

Forex gives an exciting and profitable opportunity that sure beats stocks and commodities.  Below are just some of the features that currency trading offers:

1.     Leverage

Great leverage options starting from 1:100 and going all the way up to 1:500 with some brokers.

2.     Liquidity

Currency trading is the largest financial market with almost $3 trillion traded per day!

3.     No Commissions

No commissions, since brokers are getting paid with spreads (difference between buy and sell price of the selected currency pair). There are brokers that do offer fixed commissions, which is an attractive option for those who do not fancy changing spreads.

4.     Tones of Forex Brokers

Lots of forex brokers to choose from. Even if you are not satisfied with your first choice, you can always move on to a more suitable option.

5.     No Need to be a Genius!

You don’t have to have a degree in finance to start trading forex. Anyone can do it with a little determination and discipline.

6.     Low Spreads

Top brokers offer low spreads. It may seem not much of a difference between trading with 4 pip spread vs 6 pip spread, but in fact there is a huge difference. If you multiply the spread by the amount of trades you make and the amount of money invested, you will appreciate the lower spread more!

7.     Free Demo Accounts

Free practice accounts are available with every broker; some are for unlimited time, others are for 30 days. Demo accounts are great for obtaining the beginner trading skills and understanding a trading platform before plunging into real money trading.

8.     Low Deposit Requirements

Forex brokers offer different types of accounts – mini, standard and professionals. Mini accounts may not possess all the attractive features of standard or professional accounts; however the minimum deposit requirement may be as low as $1 – perfect for those who aren’t confident enough to invest $500 and up.

9.     Available All Day Long!

Currency market is available 24 hours, 5 days a week. With different market zones, you can trade all through the day. Forex trading can be your full time profession, or an afternoon hobby.

10.  Fantastic Profit Potential

There is a great profit potential from rising and falling prices. The currency pair may increase in value in a minute, or decrease in value due to economic changes. By catching the important moments you can turn $500 into couple of thousands in no time.

Read more: Why Forex Trading is The Most Popular Market Today?

It’s hard not to notice the new buzz in forex industry – binary options. It’s new, it’s exciting and it is profitable! What is binary option trading and how is it different from the conventional trading concept?

Forex Trading VS Binary Option

Instead of purchasing and selling the currency itself, binary option trader has to speculate on which direction the currency pair will move to. When you purchase binary option, a contract is made which gives the buyer (aka you) the right to buy an underlying asset at a fixed price, within a specified time frame with binary option broker (aka seller).

This kind of trading is called binary because there are just two possible outcomes known to investor - it is either yes or no, 0 or 1, win or lose.

While in forex trading each position may bring surprising turns and unexpected gains, in binary option both risk and reward is pre-defined. Therefore, binary option is less risky because the potential loss is limited to the amount of money committed to each trade, while in forex trading, due to leverage, you can end up clearing your whole account with one wrong decision.

Is it Gambling?

Due to the nature of this type of investment, you might ask yourself whether binary option is gambling. It’s true that traders forecast whether the price will rise or fall within the selected period of time, however the professional trader will still make the decisions based on technical and fundamental analysis. Therefore, while it seems like gambling at first glance, it is hardly a game of roulette where there is no possible way to predict the outcome.

Advantages Binary Options

1. It is Simple

Since the speculation options are limited to up or down, you don’t have to break your head with all the possible outcomes and fluctuations of the market. Following the news and documenting how the market reacts to latest economic data releases, is good enough to figure out the direction of the assets.

2. Less Risk

As mentioned above, you are in full control of how much money to put at risk. Before you start trading, you know exactly how much will the profit be, or how much will the wrong decision clear up from your wallet.

3. Fast Profits

Since you only have to focus on the direction and not on the volatility of the whole market in the long run, large profits can be made even with small trading amount.

4. Everyone Can Trade

You don’t have to be a mastermind to trade binary options – the doors are open to both professional traders and complete newbies. There are no restrictions and most brokers allow you to start trading with just $25!

Read more: Forex Trading VS Binary Option