What is the difference between binary options trading and forex trading? This question is asked by almost everyone who makes money in the financial market.
Having decided to draw parallels and figure it out, we compared the trades of these financial instruments: binary options and forex.
1. Trading tools.
Binary options have the same stock of trading instruments as forex: Currency, raw materials, oil and precious metals.
2. Where does the trade take place?
Trading takes place with the same brokers. Many forex brokers open additional companies to trade binaries. You can track by license number and by registration to whom the Brokerage Company belongs. TopOption is owned by forex broker Markets.
3. Brokerage trading licenses.
If you check the licenses of binary options brokers and forex brokers, you will find that the regulators are the same in both cases. This is explained by the fact that financial markets are regulated by the same authorities.
This means that security and honesty in bidding are exactly the same.
So what is the difference between binary options trading and forex trading?
Time frames, trading periods. Forex is designed for all time frames (time frames) when binary options are traded up to a maximum of 4 days.
Adapting to bidding also changes the approach. In Forex, the result is achieved over a longer period.
In binary options, your loss or earnings are known at the conclusion of the transaction, when in forex the transaction can work without a time limit.
Binary options brokers often do not remove spreads (trading commissions) when forex brokers are interested in the highest commission.
Binary options trading is adapted to high-speed trading and earnings, when forex does not always allow you to close a position in less than a minute.
Conclusion:
Binary options and forex allow you to earn on different time formats. For fast trading (scalping), binaries are most suitable for longer-term investments, forex will be the best solution
