Binary Options vs FOREX

Binary Options vs FOREX - What to choose?
Usually those on Binary Options Forex does not like, and who is in Forex does not like Binary Options.

It is true that when the Binary Options appeared in 2008, had a very high growth, which encouraged the creation of many brokers and companies that have all the freedom they did what they wanted because there was no regulation, and as such, no one controlling this activity.

Until the beginning of 2013 (when the Binary Options have become regulated) there were several schemes and fraud Brokers that were not regulated. For its part, in the FOREX, a market already with many years of existence, control and regulation existed.

Today, both the Binary Options, or FOREX, are regulated activities, and as such, both have the legitimacy to exist.

Such a situation does not invalidate that there are companies today, especially Brokers, whether Binary Options, or FOREX, not being regulated, may have less serious and honest attitudes towards their customers. Each investor is free to put your money wherever, however the advice that all serious Sites and Blogs say is: Do not work with Brokers unregulated.

Binary Options vs FOREX - Similarities

Both recorded major developments, following the development of the Internet. Their platforms are online.
Both can be traded from applications for Smartphones and Tablets.
Chances of big profits and big losses are possible in both.
The assets traded are the same.
It is possible to manually negotiate or use signals or automated service systems (algotrading or robots).

The strategies for negotiations of both instruments are the same, mostly, with some adaptations. But the key may be used either in binary options, either in FOREX.

Binary Options vs FOREX - Differences

In Binary options we have several types of trading already parameterized. We just have to choose the asset, the value of negotiation and the expiration time.

In FOREX we have a kind of negotiation, but we choose the asset, the lot size, the closing value gain (Take Profit or TP) the maximum loss of value (Stop Loss or SL). By doing this we have to calculate the pip (varies with each asset) know the leverage and calculate, how much we win or lose in this operation. In practice, a poorly made calculation can take an account to lose everything or to fold in just a negotiation.

In Binary Options, we know hardly put the negotiation that ends, as we gain and how we can lose.
In FOREX, even after doing all the calculations above we can lose or gain more because there may be a gap or something that prevents the system to comply with the locking points. Also an order, you can close in 1 second or 1 day, 1 week, 1 month. We never know when is that such negotiations will reach the desired value.

In Binary options, except in some kind of options and some brokers, from the moment that trading is placed can not close in advance, or can only be done for a while. Factors time profit and loss, are stipulated and are not changed. It may seem a disadvantage, but it is a huge advantage. Who Trades Forex, you realize why.

In FOREX, we can close a transaction whenever we want, whether it is gaining or losing. Time is not an "existing" factor in FOREX. However able to close the possibility at any time, usually it works against the dealer / trader. 

This is because sometimes when it starts to make a profit, afraid to lose that close negotiations before the stipulated value, whereas when you are losing the opposite happens. We are always in expectation that will change and we ended up losing sometimes more than you should. 

The emotional sometimes prevents the profits to be higher and losses are smaller. Anyone who has traded Forex, certainly has passed through it.

In Binary Options risk management is simpler because all accounts are simple to make and the values ​​are always in cash.

In FOREX risk management is more complicated because the pips (unit of measurement) and the lots have to be calculated for each asset, as each has a different value. It is still necessary to multiply this value by pips SL. After it is still necessary to turn this in our local currency to calculate the risk associated with each operation. Nor am to include Spreads and Swaps (fees and commissions you pay to Broker).

Binary Options vs FOREX - Conclusion

I who have experience in both areas, have the following opinion.

For anyone who is a trader / inexperienced negotiator or experienced anything, the Binary Options are easier to understand and negotiate. Simply understand a strategy and some bases, such as risk management, or enjoy a Free Training Course and is able to negotiate.

For an experienced trader who has no difficulty in mastering all the necessary processes and calculations will like more than FOREX as it has more freedom of choice of values, gains, trading forms, etc.

In both you can make money, but to do so we must learn, and the Binary Options this process is faster and simpler.

Apart from that one can earn it is also very fun to negotiate. I am of the opinion that it is worth trying one or the other, provided that take time to learn.