BinaryBrokerZ
customer service

Forex vs. Binary Options

Learn the difference between Forex and Binary Options trading.

TRADE WITH 0% SPREAD

I am over 18 and I accept these
terms & conditions

I would like to receive information regarding my account

 

 

risk is involved

WHY BINARY OPTIONS?

for beginners and experienced

for beginners and experienced

Constant Liquidity of funds

Constant Liquidity of funds

Higher revenue

up to 92% profits

Trade with 0% spread

Trade with 0% spread

When comparing the differences between Forex and Binary Options, it is important first to define each of these two financial instruments.
Forex
Forex is short for Foreign Exchange, and revolves exclusively around the trading of world currencies. Forex trader’s profit by correctly speculating whether or not a single currency will increase or decrease while paired to another currency. In an example of this trading process we will look at the currency pair CHF/JPY with the current price of CHF/JPY being at 116.344092. If the Forex trader believes that this price will increase in the future, they will purchase one or more lots of the currency pair, (a ‘lot’ refers to how many units of currency are in the trade). The forex trader will then wait for the price of the currency pair to increase to a point where he/she will want to close his/her trade and collect any profits that were made if the upward speculation was correct.
Binary Options
Binary options can be a very profitable form of income in which the payoff can have only two possible outcomes. Binary Option traders have to correctly predict whether the price of the choice of their financial asset such as a currency pair, commodity, stock, or index will either increase or decrease from its’ current price over a pre-determined period of time.
An example of a binary option trade can be seen using the same currency pair as was used in the Forex trading example, CHF/JPY. If the binary option’s trader believes that the price of this asset will be lower than what it is within the pre-determined 30 minute time period, he/she will place a LOW option on the asset. If at the end of the 30 minutes the price drops down, they will receive up to 92% profit on their original investment. Finally, with up to 260% of investment amount, the pay-outs offered by Binary Brokerz are some of the highest in the industry.
The Benefits of Binary Options Trading Over Forex Trading

The Benefits of Binary Options Trading Over Forex Trading
Forex trading is considered a riskier investment mode than binary options trading, in part because you never know the potential risks or maximum profits. While there might be the chance of a higher pay-out, there is certainly a higher potential for loss. The benefit of binary options trading is that before making any trade, you already know the exact pay-out rates as well as percentages of potential loss on any completed binary options trade. This allows you to balance the risks involved with trading much more sensibly.

In summary, the maximum loss with forex trading can be much greater than the invested amount, and can be incurred much quicker than incurring losses while trading binary options. Additionally, forex brokers typically charge a commission or “spread” per trade, which can quickly add up if a trader prefers to trade in volume. That being said, Binary Brokerz charges no spread or commissions on trades. (CHANGE THIS LAST SENTENCE, BECAUSE WE DO CHARGE COMISSIONS AND FEES).