This is continuation of part 1 about Advantages of binary options trading.
Small initial deposits
Unless you take advantage of a binary options no deposit bonus, you will have to deposit money on your account. But you can start with as low as $100, more often brokers demand $250. Meanwhile futures trading requires thousands of dollars. Forex trading can be started with small deposits too, but you will still face the margin requirements.
When you trade forex, you will have to first cover the spread before you can make any profit. Spreads (difference between the ask and bid price) have lowered during the years, but so did the volatility of the markets. Spreads make almost impossible forex trading on small timeframes. If you like to trade 1 minute or 5 minute charts, you will soon find out that the spread can be as big as your stop loss, which means that the price will have to move the double of your stop loss to give you at least a risk/reward ratio of 1:1!
Binary options trading has no spreads. You always enter at the current price and you will win your high/low trade even if the price moved only just one tick/pip at expiration.
No commissions and fees
Futures, forex, commodities and classical options are always traded with some costs. You will either pay them through a bigger spread or through separated commissions. In certain markets you will also have to pay for the data feed, in certain cases you pay also for the trading platform. All this lowers your profit and you have to take it into account.
Binary options have no commissions nor any other fees. In terms of profits and losses, what you see is what you get. The trading platform is free, the data feed is free, your trading is free from commissions and any other fees.
No technical hassles
We already talked about the simplicity of trading options. But the advantages of the online platforms are broader. When you trade for example futures or commodities, you should first investigate, how your platform and broker handle the orders. Because if the orders are not held on the server side, you could easily lose your whole account with a single trade. It can happen if you lose your internet connection or your computer stops working after you entered the market. Maybe you even didn’t manage to place your stop loss, or you placed it, but if it is not held on the server, you are in the market without the protection of a stop loss until you restore your connection to the trading server. Therefore you should have a secondary internet connection and a second computer or mobile platform, so you can overcome technical problems and be always able to manage your trades.
Again, binary options do not use stop losses, so you can’t experience these problems. When you enter a trade, you can get offline and it won’t influence your trade. Either you make profit or you lose, but the same way as if you were online, the online platform handles everything for you.
Trade everything with one broker
If you want to trade more than one traditional market, you often have to use more than one broker. Or a big one that will ask for a huge initial deposit. A binary option broker let you trade everything from one place: forex, indices, commodities and stocks. Everything the same way with the same simplicity.
You can start binary options for free
In the trading industry you will find only a few brokers that offer a no deposit bonus. Most of them are binary options brokers. You won’t find any futures, commodities, stocks or options brokers that would give you free money to trade. You will find some Forex brokers with no deposit bonuses, but they are generally low. Binary options no deposit bonuses are up to $100 – that is enough to start trading.