• Category: Beginner

Binary Options Pros & Cons: the definitive guide

Trading binary options is appropriate for investors of all skill levels - from those that are just starting out in the investment world to investors with years of experience in trading in the markets. A careful analysis of binary options pros & cons is required for you to make the maximum money out of binary options.

BINARY OPTIONS PROS

TAX EFFICIENCY
The money that you earn is free of stamp duty and capital gains. Hence it can serve as a great savings for you and you can save up to 20% as compared to other trading options.  In most of the cases, there is no commission or fees involved in this trading which in turn allows you to save in a lot of money.

SIMPLICITY
Investors only need to select if they believe that an asset will rise or fall in price upon expiration. To help investors decide which asset to invest in, most platforms provide information on past expiries and the internet is also close to hand so investors can access financial news and historical information on the asset.

VARIETY
Binary options allow investors to trade in a wide variety of markets without a large amount of capital and this is one of the reasons that this type of trading is so popular.

FREE SET UP
 In binary options, traders are not required to hire any intermediary or to pay lump sum commissions to the brokers or advisors. Registration to binary sites is free and there is no entrance fee. Some of the platforms provide demo accounts for the provisions of new traders. They can execute real trade without any investment and can gain good profits.

QUICK PAYOFF
Where else can you get a 70% or more return on your capital in hours, if not minutes? Payouts can actually be higher, and there is always a possibility for a rebate percentage amount if you guess wrong. Many brokers also offer special weekly “one-touch” options with astronomical payoffs in the 500% range.

TRANSPARENCY
Transparency: Who has not encountered unexpected losses in the markets? Who has not suffered from the economy taking a sudden nosedive? With Binary Options, there are no surprises. You know how much you an lose and how much you can make. This lets you trade with ease and in relaxed mode, which is the way you should always be when trading money. With Binary Options, profits and losses are known up front.


BINARY OPTIONS CONS

SCAMS
Some binary options brokers have simply closed up and taken investors money with them. Other brokers have been found to be outright scams from the start. This is why it is very important to read our brokers' reviews and choose a reputable binary options broker. We only promote popular and trusted binary options brokers.

POORLY REGULATED INDUSTRY
 Currently only Malta and Cyprus regulate Binary Options as financial instruments. While this is a start in the right direction many feel that Binary Options aren’t really a financial instrument and should be categorised as a form gambling.


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