Binary options are a very interesting alternative (or complement) to Forex. Indeed, if the functioning of the Forex scares you, the binary options are a very simplified version. Forex is a market, with all that flowing from it, while the binary option is a type of investment made in this market.
In binary options, you "bet" on the fact that the price of a currency pair, or a raw material, index etc. Will increase or decrease for a predefined period of time. For example, you can invest a sum of money on the fact that the EUR / USD pair will increase by the next hour. If it increases, even very little, you earn a profit corresponding to a certain percentage of your stake. These percentages vary according to the type of transaction, its duration, and the asset concerned, but it is around 75 to 85% profit!
Some very fast operations last only 60 seconds! You decide to invest on a rise or fall of the chosen asset within 60 seconds!
It's interesting, but I do not know anything about stock exchange or finance!
This is not at all a problem! Binary options trading platforms provide you with all the tools you need to train, but also to help you define the trend of a particular market or asset. Real-time news, market analysis, videos, webinars, training tutorials, etc. ; You will be spoiled for choice in the tools available to you to start this activity with serenity.
Can we copy experienced traders?
"Copy trading" or social trading is developing on binary options trading websites. It is not yet very widespread, however some platforms already offer it (see my list of binary options trading platforms below).
On the other hand, you will find many specialized forums, but also blogs, on which experienced traders do not hesitate to share their knowledge and experience free of charge (beware of those who sell this type of information!). You will be able to share their experiences with them and ask them for advice.
What are the mistakes or scams to avoid?
As binary options are booming and experiencing a great success that keeps increasing, scams are not lacking!
A scam that comes up quite often and you have to run away at all costs, is the so-called "martingale" system. Used initially in casino games like roulette for example, this method consists of betting a certain amount, continuing to bet it as long as one wins, and conversely continue to double it every time one loses . It is already very dangerous at the casino, it is even more in the field of the stock market!
If you do some research, you will definitely come across websites or advertisements promising you an easy and revolutionary method to get rich quickly thanks to binary options, a secret method known only to a handful of elected officials, that you will sell for The modest sum of $19.99. I am exaggerating here voluntarily, but it is to give you an idea of the type of sites to flee without turning around!
How to find reliable websites and useful information?
If you want to learn how to trade binary options, you can easily find them by a simple Google search on the subject, specialized forums and blogs, containing useful information, see tutorials, FREE, which will teach you the basics of this activity.
If you want to opt for social trading, for now and to my knowledge, only the website anyoption offers it. However, keep an eye open, as social trading is in full development in the field of binary options, anyoption's competitors should soon follow!
Here are also some of the best sites to trade binary options. All are reliable, regulated by several official bodies (CySEC, AMF, etc.), and in particular have many training and analysis tools for beginners and more experienced traders:
- Anyoption: As mentioned above, besides the fact that it proposes social trading, this site is among the best, the most known, the most reliable ... in short, do not hesitate to visit it! The minimum deposit required is 200 $, and the minimum investment on a transaction is 25$ , for a profit of up to 80%.
- 24option: With a minimum deposit of 250$ and an investment per transaction of 24$, you will be able to generate on this site a profit of up to 90% per transaction. It is the best known site in the field of binary options, recognized by both users and professionals.
- OptionTime: Third site with the "binary options" area, it is also very complete, and regulated by all the main European regulators, which is a guarantee of reliability. Its minimum deposit is 200$ , but transactions start at only 5$, which can allow you, if you wish, to have a slower progression (or to multiply your positions).
The binary option is a new type of investment that makes it easier to tackle the stock market and the Forex market. Its operation is simpler, and the profits that can flow from it are very interesting. This can be a good way to get started in the Forex market, or to complete your investment portfolio.