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Forum Spot Forex vs. Binary Options – Is it worth the switch? Reply To: Spot Forex vs. Binary Options – Is it worth the switch?

Jenette Rodela

LEVEL 1 : NEWBIE

REVIEWS 6 | REPLIES 3

#1794

wedge

September 1, 2015 at 1:00 pm

Binary options are a much fast pace high risk form of investing and is not for everyone. Please make sure to practice on demo before opening a live account and test out your strategies as something that works on forex will most likely not work for binary options. Binary options is a term that refers to the binary code 0,1 computer language and they use this comparison for a reason. You only have two options either up and down. Your either right or your wrong hence the term binary (two). Binary Options are a very fast pace environment and need to be treated with respect unless you want to go bankrupt. One could even make the comparison to the high frequency traders on wall street that pump and dump stocks in seconds rather than holding positions for longer periods of time. Binary options are in a way sort of the beginners version of forex for some but also many newbies are trapped into losing their entire accounts due to false thoughts of it being “easy to make money”. It’s never easy to make money and anything that seems too good to be true usually is. Another thing most people forget to mention is that with binary options there is no real liquidity other than what is in the broker’s bank account. Unlike forex there are no banks or financial institutions backing any binary options brokers to payout clients and also there are no spreads so brokers get paid solely from losses. So basically the only way binary options brokers make money is by having more losing traders than winning ones which in a way is kind of how Forex works but is not as sophisticated or regulated. Forex has also been around a lot longer and binary still has a long way to go.

Hope this helps.