Free Forex Signals Join Our Telegram

Forex Trading Vs. Binary Options Trading – Learn the Difference

Michael Fasogbon

Updated:
Checkmark

Service for copy trading. Our Algo automatically opens and closes trades.

Checkmark

The L2T Algo provides highly profitable signals with minimal risk.

Checkmark

24/7 cryptocurrency trading. While you sleep, we trade.

Checkmark

10 minute setup with substantial advantages. The manual is provided with the purchase.

Checkmark

79% Success rate. Our outcomes will excite you.

Checkmark

Up to 70 trades per month. There are more than 5 pairs available.

Checkmark

Monthly subscriptions begin at £58.


With the evolution of technology and easy access to online platforms, there’re several ways individuals are making their money.

Our Forex Signals
Forex Signals – 1 Month
  • Up to 5 Signals Sent Daily
  • 76% Success Rate
  • Entry, Take Profit & Stop Loss
  • Amount to Risk Per Trade
  • Risk Reward Ratio
  • VIP Telegram Group

39£

Forex Signals – 3 Months
  • Up to 5 Signals Sent Daily
  • 76% Success Rate
  • Entry, Take Profit & Stop Loss
  • Amount to Risk Per Trade
  • Risk Reward Ratio
  • VIP Telegram Group

89£

MOST POPULAR
Forex Signals – 6 Months
  • Up to 5 Signals Sent Daily
  • 76% Success Rate
  • Entry, Take Profit & Stop Loss
  • Amount to Risk Per Trade
  • Risk Reward Ratio
  • VIP Telegram Group

129£

For instance, there’s the forex market, which is arguably the largest in the world, with over $5 trillion daily trading volumes.

 

Eightcap - Regulated Platform With Tight Spreads

Our Rating

Forex Signals - EightCap
  • Minimum deposit of just 250 USD to get lifetime access to all the VIP channels
  • Use our Secure and Encrypted Infrastructure
  • Spreads from 0.0 pips on Raw Accounts
  • Trade on the Award-Winning MT4 & MT5 Platforms
  • Multi-jurisdictional Regulation
  • No Commission Trading on Standard Accounts
Forex Signals - EightCap
71% of retail investor accounts lose money when trading CFDs with this provider.
Visit eightcap Now

 

The method which folks apply to make their money is what differs. Some people have become professionals in binary options, while others won’t be pulled out of forex trading.

Forex Trading

As a novice trader, you may need guidance to discern, which between them can fit your needs.

Sort By

4 Providers that match your filters

Payment methods

Trading platforms

Regulated by

Support

Min.Deposit

$ 1

Leverage max

1

Currency Pairs

1+

Classification

1or more

Mobile App

1or more
Recommended

Rating

Total cost

$ 0 Commission 3.5

Mobile App
10/10

Min.Deposit

$100

Spread min.

Variables pips

Leverage max

100

Currency Pairs

40

Trading platforms

Demo
Webtrader
Mt4
MT5

Funding Methods

Bank Transfer Credit Card Giropay Neteller Paypal Sepa Transfer Skrill

Regulated by

FCA

What you can trade

Forex

Indices

Actions

Cryptocurrencies

Raw Materials

Average spread

EUR/GBP

-

EUR/USD

-

EUR/JPY

0.3

EUR/CHF

0.2

GBP/USD

0.0

GBP/JPY

0.1

GBP/CHF

0.3

USD/JPY

0.0

USD/CHF

0.2

CHF/JPY

0.3

Additional Fee

Continuous rate

Variables

Conversión

Variables pips

Regulation

Yes

FCA

No

CYSEC

No

ASIC

No

CFTC

No

NFA

No

BAFIN

No

CMA

No

SCB

No

DFSA

No

CBFSAI

No

BVIFSC

No

FSCA

No

FSA

No

FFAJ

No

ADGM

No

FRSA

71% of retail investor accounts lose money when trading CFDs with this provider.

Rating

Total cost

$ 0 Commission 0

Mobile App
10/10

Min.Deposit

$100

Spread min.

- pips

Leverage max

400

Currency Pairs

50

Trading platforms

Demo
Webtrader
Mt4
MT5
Avasocial
Ava Options

Funding Methods

Bank Transfer Credit Card Neteller Skrill

Regulated by

CYSECASICCBFSAIBVIFSCFSCAFSAFFAJADGMFRSA

What you can trade

Forex

Indices

Actions

Cryptocurrencies

Raw Materials

Etfs

Average spread

EUR/GBP

1

EUR/USD

0.9

EUR/JPY

1

EUR/CHF

1

GBP/USD

1

GBP/JPY

1

GBP/CHF

1

USD/JPY

1

USD/CHF

1

CHF/JPY

1

Additional Fee

Continuous rate

-

Conversión

- pips

Regulation

No

FCA

Yes

CYSEC

Yes

ASIC

No

CFTC

No

NFA

No

BAFIN

No

CMA

No

SCB

No

DFSA

Yes

CBFSAI

Yes

BVIFSC

Yes

FSCA

Yes

FSA

Yes

FFAJ

Yes

ADGM

Yes

FRSA

71% of retail investor accounts lose money when trading CFDs with this provider.

Rating

Total cost

$ 0 Commission 6.00

Mobile App
7/10

Min.Deposit

$10

Spread min.

- pips

Leverage max

10

Currency Pairs

60

Trading platforms

Demo
Webtrader
Mt4

Funding Methods

Credit Card

What you can trade

Forex

Indices

Cryptocurrencies

Average spread

EUR/GBP

1

EUR/USD

1

EUR/JPY

1

EUR/CHF

1

GBP/USD

1

GBP/JPY

1

GBP/CHF

1

USD/JPY

1

USD/CHF

1

CHF/JPY

1

Additional Fee

Continuous rate

-

Conversión

- pips

Regulation

No

FCA

No

CYSEC

No

ASIC

No

CFTC

No

NFA

No

BAFIN

No

CMA

No

SCB

No

DFSA

No

CBFSAI

No

BVIFSC

No

FSCA

No

FSA

No

FFAJ

No

ADGM

No

FRSA

Your capital is at risk.

Rating

Total cost

$ 0 Commission 0.1

Mobile App
10/10

Min.Deposit

$50

Spread min.

- pips

Leverage max

500

Currency Pairs

40

Trading platforms

Demo
Webtrader
Mt4
STP/DMA
MT5

Funding Methods

Bank Transfer Credit Card Neteller Skrill

What you can trade

Forex

Indices

Actions

Raw Materials

Average spread

EUR/GBP

-

EUR/USD

-

EUR/JPY

-

EUR/CHF

-

GBP/USD

-

GBP/JPY

-

GBP/CHF

-

USD/JPY

-

USD/CHF

-

CHF/JPY

-

Additional Fee

Continuous rate

-

Conversión

- pips

Regulation

No

FCA

No

CYSEC

No

ASIC

No

CFTC

No

NFA

No

BAFIN

No

CMA

No

SCB

No

DFSA

No

CBFSAI

No

BVIFSC

No

FSCA

No

FSA

No

FFAJ

No

ADGM

No

FRSA

71% of retail investor accounts lose money when trading CFDs with this provider.

Forex trading has been in the game for an extended period; about over 40 years, while binary options only became famous almost a decade ago after the Exchange Commission and the US securities’ approval.

At a glance, binary options are merely betting on price movements for various assets such as market indices, stocks, currency pairs, and commodities like gold.

Forex trading, on the other hand, is the exchange of one currency for another to make the profits from the difference in the exchange rates.

But to understand the difference between the two, learn the following differences:

Leveraging Support and Liquidity

One of the main reasons while most folks take on the forex market is the high leverage being offered.

Leverage allows a trader to invest more than their balance and hence, use it to increase returns significantly.

However, with binary options, leverage is not available.

Moreover, the forex market is a liquid market whereby over $5 trillion daily transactions take place, which surpasses binary options by a considerable margin.

Besides, transactions are instantaneous in forex trading, meaning traders get their profits quickly.

In binary options, orders take time to be filled, and a trader is only left to guess the price at which an order can be filled.

Furthermore, unlike in binary options, forex trading has no slippage.

24 Hours Open Market

The forex market is open 24 hours a day and five days a week. Trading is also done at any time of the trader’s choosing.

However, in binary options, trading is only done during the day when the market is open.

Therefore, forex trading provides unlimited time as well as the flexibility of executing several trades a day hence high returns potential than in binary options.

Choice of Assets

An area where the binary options get a node is the number of assets that you can choose to trade, which is unlimited, unlike in forex trading where it’s limited only to the currency pairs.

Transaction Costs

Forex brokers are paid in commissions for every transaction or spreads, or on other occasions, both.

The brokers make their profit from the spread between an asking price and the bid price. In binary options, commissions or brokerage fees are not present.

Brokers get their profit when a trader loses a trade as the whole amount invested in trade is lost to a broker.

Risks and Declining Markets

The forex market is excellent with leverage, but it can get messy with high risks in case the trades go incorrect.

Moreover, brokers won’t make profits with a declining currency market or downfall in main currency pairs.

ForexTrading

Since traders in forex trading speculate the direction of the asset as well as its price, the risk and profits are unclear when a trader places a trade.

However, with binary options, the risk is very much limited as a trader won’t lose more than the invested money for trade.

With binary options, a trader knows the maximum loss or profit precisely when placing a trade.

Moreover, binary options benefit from the market volatility thanks to the fact that there’s no actual buying of assets but only betting on price movements.

Therefore, binary options traders have high chances of making profits even with declining markets.

Also, binary options offer social trading support to novice traders, unlike forex trading, whereby a lot of time and knowledge is required to become successful.

 

AvaTrade - Established Broker With Commission-Free Trades

Our Rating

  • Minimum deposit of just 250 USD to get lifetime access to all the VIP channels
  • Awarded Best Global MT4 Forex Broker
  • Pay 0% on all CFD instruments
  • Thousands of CFD assets to trade
  • Leverage facilities available
  • Instantly deposit funds with a debit/credit card
71% of retail investor accounts lose money when trading CFDs with this provider.

 

The Bottom Line

Just like in a casino, anyone can get lucky and gain some profits. However, to understand the difference between forex trading and binary options, you must first understand trading in general.

Therefore, in considering which is on top, consider all your needs, and if you’re just entering into the game, binary options’ social trading support will be of great help.