Frequently Asked Questions

Binary options brokers are theoretically regulated by the same bodies as other types of options, like the Commodity Future Trading Commission in the US or the Financial Conduct Authority in the UK. Many binary options brokers are regulated by multiple organizations in Europe, as these options are increasingly under scrutiny.

Technically, all binary options brokers will claim to be regulated. But only some have regulatory standards that are worth your time.

Not really, although there has been some discussion along regulatory boards about whether or not this is true. The reason for the confusion is that binary options are structured similarly to bets on other “win/lose” scenarios.

At this time, most places and organizations don’t consider trading binary options to be a form of gambling. This may change with additional fees and regulations in the future, however.

In general and according to the mathematics of the type of trade that binary options represent, most binary options traders will not be very successful. Because you only ever receive less than 100% of what you put down on a binary options trade, you need to mathematically “win” more than 50% of the time.

This is very difficult to maintain over the long-term, so most people who attempt to make money using binary options and up losing money overall.

This being said, studying binary trading strategies and using the right platform can do a lot to hedge the bet in your favor. Most people on the stock market who attempt to actively trade also lose money because they’re inexperienced; the same wisdom applies here.

Binary trading can be safe depending on how you go about your trades and how much money you put down. Doing your research and practicing before attempting to make serious money with binary trading is key to not dumping out your life savings into the market.

In terms of investments, binary options are pretty safe. Remember, no one actually owns the asset in question, so it’s not as though any investment you purchase is going to decrease in real-world value.

Many people perceive binary options trading to be easier than forex trading. This is just because there isn’t any changeability or malleability to the trade; binary options are simple yes/no trades were all the prices are agreed upon before any party puts money down. Forex trading requires that the investor doesn’t know the final risk or profit until the trade is finalized or closed.

We actually have a whole additional guide on binary options strategies that you should check out a few really want to make the most of your efforts. But the most common and easily effective trade strategy is directional or “trend” trading.

In a nutshell, you look at the trend that an asset price looks to be going and make a decision based on that. You look for overall larger swings in the market direction rather than smaller swings. In this way, you take a few positions and make bigger gains. \

For instance, you can take a call binary option that pays off if an asset price is higher than the strike price at the expiry date. Or you can use a put binary option that pays off if the value is lower than the strike price at the expiry date. These simple binary options are easy to apply to general market trends and a relatively easy even for beginners to figure out.

What kind of binary options broker did you decide to go with for your trades? Is there a strategy you like to use? Let us know and join the discussion about binary options brokers below!

If you take time to understand how the markets work then it is relatively easy to get to grips with. It takes patience and sometimes you won't see the results for weeks.

A broker welcome bonus is a bonus that you receive for opening an account. Often it is a no deposit bonus which means that you don't have to deposit your own money to secure the incentive.

If you choose a reliable and reputable broker then your money will be safe. Our broker reviews are comprehensive and examine multiple criteria to ensure that we only bring you the best.

The first thing to check is their licensing. We have spent lots of time examining each broker and only recommend those that are reliable and trusted.