How to Make Money with Binary Options?

Binary options trading is the newest form of online trading on the Internet. The Industry was established in 2008 when US authorities officially legalized this form of online trading and gave the permission for US companies to apply for a financial trading service provider license at the CFTC.

But what are binary options and can you really make money with them? 

What are Binary Options? How do they Work?

Binary options trading is basically speculating on the future movement of various underlying assets. An underlying asset can be anything that’s publicly traded, such as the exchange rate between various currencies, stocks of companies, commodities like gold, silver and more. And to make it easy, online trading binary options is so convenient.

Unlike in regular stock trading, in binary options trading you will not have to actually purchase any asset. You will merely be betting on the future movement of an asset of your choice. One might even say that this type of trading is more like sports betting; and while there is certainly some truth in it, in reality in binary trading you can actually influence the outcome of your “bets”.

Lets take a concrete example in order to illustrate how binary options trading works:

• Imagine that the stocks of Microsoft are at $300 at this very moment
• You predict that the value of Microsoft’s stocks will increase above $300 within 2 days.

Now, at a binary broker you will have the possibility to purchase a binary options contract that predicts that the value of Microsoft’s stocks will increase in the future. 

• Imagine that the broker offers a payout rate of 90%
• You intend to invest a total sum of $100

In case your prediction will come true, then you will be receiving a total payout of $190. This is calculated by multiplying your initial investment with the payout percentage, which will be your profit margin. The broker will also return your initial investment, hence the $190 price.

So, as a concept, binary options indeed work like sports betting however here if you have expertise in financial matters then you will be able to predict the outcome of your bets. Many people who are involved in business and finance are perfectly capable of making correct predictions.

And the great part about binary trading is the fact that you will be paid out with very high payouts. Like in the example above, if you invested $100, you won $190. You would have won that amount even if the value of Microsoft’s stocks had increased to just only $301 from the initial $300.

However, would this have been normal stock trading, then to earn $90 profits you would have had to buy stocks worth $27,000 at the price of $300 to gain $90 profits while selling them at $301. – So, as you can see, the difference is huge.

Can you Really Make Money?

If you paid attention to the above example, then for sure you have noticed that yes you can indeed make money with binary options. However, you will have to treat binary options as a form of investment and not sports betting. If you buy binary options contracts by random then you will obviously lose.

If, however, you have the patience and discipline to conduct serious market research, then yes, you can indeed make large sums of money. Take the Microsoft example above. If for example you have researched that Microsoft will release a new product next week, then you can be 99% sure that the stocks of the company will increase after the product launch.

Instead of purchasing Microsoft stocks for like $10,000 hoping make around $100 profits, you can just invest $300 in a binary options contract that predicts that the value of Microsoft will increase make $200 profits that way. Doesn’t this sound easier?

But where’s the catch?

Well, there isn’t really a catch in the traditional sense of the word. However, if your prediction will not come true then you will lose all your investment. – But as explained, IF you are determined to conduct a proper research before investing, then you will be able to achieve a winning ratio of around 80% at any moment (just for reference purposes: Most of the time if you achieve a winning ratio of around 55% you will be making guaranteed profits.

Is Binary Options Trading Legal?

In most countries binary trading is at this moment either not regulated or legal. Options trading is not explicitly illegal in any country. If you live in a country where binary trading is not regulated then you should only invest at brokers that are regulated in other countries.

Laws in the United States

At this moment in the United States only NADEX (North American Exchange Derivative) is legal and licensed. All other brokers operate outside of the law. NADEX is officially licensed and regulated by the CFTC and SEC.

Laws in Europe and other jurisdictions

In most places outside of the United States binary options trading is not regulated. In Europe binary trading is regulated only in Cyprus, Italy and the United Kingdom. Brokers that are licensed in one of these countries are legally allowed to operate in other European countries as well.

In most other countries binaries are not regulated however this does not mean that they are not legal. This merely means that the government of those countries is at this moment not invested in this form of financial trading and it allows citizen’s to decide what to do in this regard.

However, people living in unregulated markets are recommended to only trade at brokers licensed in other countries, preferably in Europe. This is an absolute must, since brokers “licensed” in some weird places like Cayman Islands are fraudulent.

Future Regulation and Money Making Potential

It’s expected that more and more countries will in the future decide to regulate binary options. This will result in a much safer industry and much more advantageous and safer services. However, until then, people interested in this form of online trading are recommended to stick to the trusted USA or European brokers only.

So, in short, binary options trading is indeed a good method to generate money online. However, this form of trading should not be underestimated and treated lightly. If you treat it professionally and do your homework then you will definitely be able to make consistent profits.

Creating the Perfect Personal Finance Strategy for Middle-Aged and Senior Citizens

Finance (Photo credit: Tax Credits)

With the recent financial meltdown debilitating the job sector and leaving an entire generation’s financial security compromised, it’s hard to imagine the troubles faced by middle-aged and senior citizens when the younger generation is in so much hot water. Transitioning to a life with no full-time job and, more importantly, no fixed income can be overwhelming if you’re not prepared for it. 

Whether your retirement plans involve moving back to your old house in Exton PA or settling down comfortably in Napa Valley, you must have excellent dominion over your finances to help you realize these dreams. If you’re pushing 50 or 60 years of age, then here are five key questions to ask yourself in order to choose the most effective strategy for keeping your financial boat sailing smoothly under all conditions.

What Assurance Does Your Health Insurance Give You?

Blindly rejoicing under the blanket of assumed safety of Medicare may not be the smartest idea. It is imperative to be well-versed with all the fine print mentioned in the insurance policy you sign up for and back it up with another policy that covers the loopholes of the former one. It will save you the rude shock of getting a colossal medical bill you’re not prepared to handle.

Are Your Financial Records In Order?

Keeping vigilant records of your expenses and savings is the first step to developing a successful financial plan that will help you enjoy a comfortable retirement. They make it easier to identify any possible deductions such as employment costs, mortgage payments, or commuting expenses that will lower your taxable income. Consult a reputable financial planner by showing them your financial records in order to get a better assessment of your financial status.

What Are Your Tax Liabilities?

Sometimes getting a raise may not be the best thing to happen if you don’t possess the financial savvy to manage it. In fact, graduating to a higher tax bracket may do your bankroll more harm than good. That’s why it’s quintessential to keep track of any revisions in IRS and Social Security policies and adjust your financial planning strategy accordingly.

Is Social Security Really The Ultimate Safety Net?

Contrary to popular perception, Social Security isn’t always a financial guardian angel for your retirement years. If you look at the rules and laws governing Social Security policy, you’ll find out that they’re uncomfortably dynamic in nature is because the age of retirement specified in the Social Security policy keeps changing. Thus, you should maximize your income while reducing your taxable Social Security income as much as possible.

How Bulletproof Is Your Investment Portfolio?

Most financial planners agree that middle-aged citizens should focus on maintaining a growth-oriented investment portfolio with a healthy mix of blue-chip stocks and bonds. As a citizen crossing the age of 50, it’s recommended that you stick to making only stable investments with a low risk factor to ensure guaranteed returns.

Five Tips to Help you Launch a Successful Business

If you have a business idea, now could be a good time to take the plunge and set up on your own. Setting up your own business will not be easy, but the tips below should help get you started and highlight some potential pitfalls.

Start with a business plan

Before you start, it is essential to have drawn up a solid business plan to lay out the details of your business and help you secure finance from your bank or other lender.

Your business plan should contain an overview of your business and other information, such as its objectives and how you plan to finance and market it.

Consider serviced offices

Many fledgling business start-ups launch from home and later move on to an office or other business premises, though this in itself can be a daunting process. Leasing a building often means a commitment for a number of years and doesn't leave much room for expansion or the sudden need to downsize. 

A good compromise could be to rent a managed office for a short time or hire a unit in a serviced office complex. This is a fantastic cost saving measure, especially if you're operating a business that potentially doesn't require a lot of real estate space, like a home care healthcare business. 

The top home care management software will handle rostering and document systems in a way that allows your staff to be either with a client or off the clock and still be able to access vital information remotely, removing the need for a physical office presence. Once your business is off the ground a bit more, there may be more justification to upsize your offices.

Don't forget insurance

Professional indemnity insurance is a must for many businesses, particularly if you offer advice or provide any form of consultancy. For some professions, it is a legal requirement.

Mistakes happen, and if you make an error during the course of your work, which results in a financial loss to your client, you could be hit by a compensation claim against you, for which you will need to be covered.

Consider outsourcing

Taking on staff brings responsibilities. Salaries will be paid each month, not to mention holiday pay, overtime, and deductions to calculate.

Outsourcing routine tasks such as personnel, accounting and payroll can free up your time so you can concentrate on the important stuff - growing your business!

Marketing matters

Marketing lies at the heart of business success and is one of the most important considerations when you are first starting out. It is up to you to introduce your product to new customers via your marketing strategy.

A good strategy will combine such elements as PR, advertising and digital marketing. Once the awareness is out, you can start to rely on word of mouth and a good reputation.

Starting a new business can be a daunting process, and there are a host of reasons why new businesses fail to get off the ground. Often, simple things such as inadequate market research or overspending can lead a business to financial ruin.

Failing to take out business insurance could also cost your business dearly and is something that is easily overlooked.

If you are launching a business, make sure you check out the professional indemnity insurance from Hensure.com, which can provide immediate quotes and cover for most businesses.

Sending Money to People in Other Countries

These days there is an ever-increasing amount of people both going abroad for holidays as well as choosing a foreign country as a place to live or retire. 

This increase in the amount of people residing overseas has also meant that there has been a steady rise in the demand for international money transfers from banks and of course independent transfer companies.

In fact, these days most high street banks can transfer money to overseas accounts, as well as the independent money transfer companies that are now found in most town centres. For people that transfer money overseas on a regular basis there are other options and by visiting www.currencyuk.co.uk or other similar companies you can actually set up an account for dedicated international transfers. 

There are however, a few simple things to remember before you set off to the bank or transfer office to send money to your backpacking daughter or maybe even send funds as part of an overseas business investment. Below we will look at a few of these considerations, which will definitely save you time and possible even some money.

Your ID

Before you set off out to the bank or transfer office make sure that you have some proof of identity that you can present to the bank teller or transfer staff. These days all international transfers need proof of ID before they will send funds. This is due to international regulations regarding money laundering as well as the illegal funding of terrorist organisations. If you forget to bring your ID you will quickly find out that you have just made a wasted journey and will have to return home to retrieve it.

Pick your Day

A money transfer can take from 10 minutes to 7 days to reach its intended destination. Most banks however can generally get the money to the recipient in around three working days. So, if you are sending money to someone using a bank, remember that the beginning of the working week will always be advantageous. If someone finds themself in a situation where they are very desperate for cash, it is generally a good idea to pay the extra fees and use an instant transfer service.

The Exchange Rate Margin

If you are transferring larger sums of money overseas for maybe a business or an investment, it’s very wise to check the exchange rate margin. This is how much the service provider is actually taking from the currency exchange. If you are only sending a small amount the rate is not really so important but on larger transfers it can seriously add up. So, before you actually send your money make the calculations to make sure that you are not losing too much on the exchange rate.

Your Receipt

Remember to keep your receipt in a safe place, this will be your only proof of sending if for some reason the transfer does not go through cleanly. Keep the receipt until the person you have sent the money to confirms the transfer. It is just a precaution but if you are sending funds to some of the more remote areas in the world, still a good idea.

IBAN

An IBAN or an international bank account number is something that you will need if you are sending money to another persons bank account outside of your own country. This number will be on the top of your bank statements next your sort code and will be clearly marked ‘IBAN #’. You will also need to know the IBAN number of the recipient’s bank account before the funds can be transferred.


About the Author:Currency UK at www.currencyuk.co.uk is a money exchange business that is dedicated in helping clients move pounds in foreign currency across the globe. 

How Do You Know If Factoring Receivables is a Good Option for Your Company?

Factoring receivables is something small or mid-sized businesses often use when they are in need of cash flows. This is nothing but selling your purchase orders to someone else and getting cash earlier, and then it is the factor or the purchaser of your orders who collects the amount from your customers. Whenever a firm decides to make use of factoring receivables they sell off their purchase orders to a factor for eighty or sometimes even ninety percent of the value of the orders. Then it is the responsibility of the collector to get the cash from the customers on behalf of the company. After the receivables are received by the factor, they give an amount to the seller. This amount is the total value of the orders minus the advance the factor paid up front.

What’s the Catch?

The factors deduct around two to three percent from this amount as their fee towards offering factoring service. This is two to three percent of the amount that the factor has to receive or has received from the customers. Let us now try to understand if factoring is good for your business or it is not.

It’s Another Form of Loan

It is important to understand that factoring is just another glorified name of borrowing money and money should not be borrowed under ideal circumstances. In simple words, factoring services should not be availed if there is no need for it. Consider this, with one to three percent that you pay every month towards the services you get your annual fee can be anywhere between twelve to even thirty six percent, which is pretty big. This is too big a fee to pay for just getting a lump sum one month in advance. The businesses can be better off making use of the local banks to borrow the money they need as they offer at much lower interest rates compared to factoring service providers. This would also be a much more cost effective option considering the long run.

It Makes a Great Practical Choice to Maintain Cash-Flow

That being said, the practicality of factoring services can’t be overruled completely. There are cases where this is the only option in front of you. If yours is a small company or business, which has either poor, limited or no credit at all and you need some cash urgently, factoring can be the only option that you may have to resort to. For example, one of the leading trucking factoring companies in USA, Pay4Freight has helped many companies in crunching times. You can learn about Pay4Freight's factoring service by visiting their official website. Similarly, there are many such companies that help small businesses every now and then.

The Best Bet for Small Businesses

Small companies are often unstable and not well established to be self-sustained for all kinds of projects. Then often need one cash injection to get their dices rolling and that is when they approach these factoring companies. With one push of a lump sum they manage to finish some of their initial projects and generate revenue. They don’t necessarily have to do it over and again. As long as these factoring services are availed in a smart way, they can be leveraged to your advantage. But, make sure that you don’t become dependent on these services for your monthly cash requirements.

Author Bio - Robert Beard works for a factoring agency called Pay4Freight and offers his services to leading trucking companies in and around the United States of America.

How Much Life Insurance Do You Need

No one wants to think about life after they are gone. Not many people feel the need to plan that far ahead. Canadians are very practical people and planning for the future is something that comes natural to them. Taking care of the ones that they love is deeply rooted in the fabric that makes up the Canadian pride.

So they ask… How much life insurance is enough? And when do you know you have enough? The average insured person has only 3.6 times his annual income in life insurance coverage, and that comes out to be around $166,800 at the time of pay out. See more statistics about life insurance in Canada. 

That may seem like plenty of life insurance now, but will it be enough for your family and loved ones when they need it the most?

An incorrect assumption… Is that 78% of people are thinking that they have enough or too much life insurance. But unfortunately this is not so, many people greatly underestimate their needs. That means only 12% of all Canadians have enough life insurance to take care of loved ones and ensure that all their future obligations are cared for without a significant reduction in their quality of life.




  Let’s take a look at the math… 
For many experts, it is recommended that you have at least ten times your annual income in coverage. For most people that have coverage, the insurance pay out amount will be around $166,800. 

While the recommended life insurance coverage is over $405,840 and even higher if you have a large family. This amount would ensure your family could maintain the mortgage and not lose the family home. Plus allow for future education needs and cover emergencies. But who’s to say that even this will be enough. Many families have more obligations and commitments, so customizing your insurance needs is important for the safety and security of the family you love. 50's plus finances has wrote about why life insurance is required! 

How much insurance do Canadians really need...? 
When you stop to consider all the things your family will need after your gone it can start to add up very quickly. And just when they need you the most, there will be funeral costs and possibly medical bills to take care of. There will be debts to pay off and money for everyday living expenses, plus the kids may need braces or want to go to college. 

The reality is you will need more than 10x your gross annual income in order to support your loved ones. But you still need to sustain a balance between what your family will need and how much you can afford to pay. 

By shopping online you can get the best rates by going to Insureye.com to compare rates and coverage plans. You can read reviews online for many different companies and get real consumer company reviews in order to make an informed decision about Canadian Life Insurance. 

Don’t be part of the 78% who think they have enough insurance. Shop today and get quick and fair rate quotes from people who care.