What to Look for in a Forex and Binary Options Platform

binary options (Photo credit: opportplanet)

Forex and Binary options are among the simplest and most lucrative way of earning money today. Its popularity among investors is because it can be accessed online at all times. Another factor contributing to its popularity is that an investor does not have to be skilled or experienced to trade. However, just like any other business, a trader must follow some tips in order to be guaranteed of making a profit. 

There are several Forex and Binary Options platforms that can help an investor earn more profits. With the high number of platforms it can be a daunting task for an investor to select the best. Below are some of the things an investor needs to look for when choosing a platform to trade Forex and Binary Options.

It is best to select a platform that gives a return even when an investor is out of money. It can be quite disappointing and discouraging to lose cash and, therefore an investor needs to choose a platform that offers some form of return even for negative outcomes. Not many platforms offer such returns but there are ones that do offer up to a 15 percent return on out of cash results.

An investor or trader should also choose a platform that provides a wide range of trading assets. Today, investors have the opportunity to follow the movement of assets through financial newspapers, business news channels and the internet. A platform that provides a wide selection of assets offers the investor more opportunities to make profits.

There are also some Forex and Binary Options platforms that charge some form of joining fee, so an investor has to take care with such platforms with hidden costs or joining fees. Before starting to trade with any platform, it is important to learn about the joining charges and other fees before signing up. Quality platforms with a good reputation have a page committed to providing this information. 

A trader should also choose a Forex and Binary options platform that has excellent customer support. A good customer service department will ensure that any assistance needed can be provided within the shortest time possible as required. This is important because regardless of an investor's experience, sometimes one might need technical or other assistance. 

Therefore, customer support provided should be good to advise and offer help when required. An experienced customer service team should be trained in order to offer instant help without having to make other enquiries which can waste precious time.

Choosing a Forex and Binary Options platform that puts the investor first allows you to focus on your trades and profits.

Various Types of Binary Options

Binary options are meant for investors throughout the globe for trading. This is because only binary options trading can provide high return. Also binary trading involves low risk, with easy concepts and can be done easily, and hence attract more attention. Not only are the new traders, even the experienced traders too interested in binary trading.

The only thing that any trader taking up binary option trading should take care of is the expiry time. No matter whether the trader has opted for long term or short-term trade, this is the best thing to do. The expiry time vary from few minutes to many days. Also there are various assets available and these assets are stocks, currency pairs, commodities and indices.

The binary options which are known as digital options are excellent for those who want to earn dual benefits both by manual as well as internet trading. It is not at all tough to earn money through binary trading. The only thing the traders have to do is to do the estimation about the movement of the option and then take a decision. If the decision is correct then the trader earns good returns. However, a wrong decision would not give any financial benefit though the loss would be insignificant. There are two types of possibilities in binary trading options, one is “in the money” where the trader earns good amount of money and the other one is “out of the money” where the trader gets no financial rewards.

Here are the types of binary options available in the market. These are:

• Above/Below: This option is also known as High/Low and it is the most popular among the binary options. In this type of binary trading, the trader has to provide the estimation of the rise and fall of the value of an asset. There are two options ready for purchase in this type of binary trade. The call option is for those traders, who estimate that the price of the asset would be higher than the strike price. The ‘put’ option is for those traders who estimate the value of the assets to be lower than the strike price.
• Boundary or Range option: In this option the trader has to estimate whether the price of a particular asset would be within a specified range when the expiry time approaches. There are various types of values that are given and the traders have to estimate whether the price of the assets are within that range. If the trader choose the “In” option, that means that the trader would estimate that the price of the asset would be within the range of upper and lower value specified. If the trader chooses the “Out” option, it will mean that the asset price would be outside the specified value range.
• Touch: In this binary option, if the trader chooses the “Touch” option, then that means that the trader is estimating that the price of the asset will reach the strike price by the expiry day. If the “No Touch” option is selected, then the price of the asset would not reach the strike price according to the estimation of the trader.