The Forex or Binary Options debate continues as traders ponder to which is best. Is or will there ever be a definite answer? Realistically it comes down to a simple question such as what your favorite color is. Everyone has their own unique opinion and input to why they like black more than white. Theoretically, there is no right or wrong answer. I have to admit tempers do flare when we touch on this sensitive topic. This comes to no surprise. We need to look at this from a non-biased point of view. Easier said than done. With experience and a few years under my belt, trading both Forex as well as Binary Options, I can confidently state some concerning facts. The focus will be on how our trades are processed.
This allows you as the reader to come to your own conclusion, make your own assumptions and decide which is right for you. Fortunately, we can work off of facts. This should give you a good understanding in regards to your expectations when venturing into these two exciting forms of trading. This allows you as the reader to come to your own conclusion, make your own assumptions and decide which is right for you. Fortunately, we can work off of facts. This should give you a good understanding in regards to your expectations when venturing into these two exciting forms of trading. Made up your mind already? All good and well. No need to read any further. Still open minded? Forex or Binary Options, you be the judge.
Forex Or Binary Options – Facts
As mentioned above, we can state the facts, rather than opinion. I will only state the major key factors having the biggest impact when it comes to making your final decision. Some of these facts might be entirely new to you. Some you might have not even considered. The biggest difference between FX and Binary Options are the options you have in regards to how your trade is processed via a broker. To me, this is of most importance. Debating to which is more profitable, user-friendly etc. will simply be my opinion. The whole purpose is to stay on track and focus on the facts. To distinguish fact from option we need to understand the difference between fact and opinion.
What Is Considered A Fact
“Event, item of information, or state of affairs existing, observed, or known to have happened, and which is confirmed or validated to such an extent that it is considered ‘reality'.” – Fact, businessdictionary.com
What Is Considered An Opinion
Forex brokers offer 3 major options of processing trades. Acting as a Market Maker (Taking the opposite side of your trade/Dealing Desk), Straight-Through Processing (STP) and Electronic Communications Networks (ECNs/Access To Direct Market Liquidity). Each having their advantages as well as disadvantages. What stands out is that you as a trader have these options to choose from and are not limited.
Binary Options Trading
With Binary Options you are not fortunate enough to have the options FX brokers provide. Binary Options brokers ALWAYS take the opposite side of your trade. They require you to lose money for them to make money. If you are making money you are taking away from the brokers. Can you imagine the conflict of interest as well as room for manipulation? It can be compared to going to the casino and gambling against the house. Brokers have come up with so many lies and excuses to try and make manipulate clients to think otherwise.
For The Sake Of Keeping Things Fair
At the time of typing this article, the success rate of both Forex and Binary Options traders to be profitable long term is 5%. This is a statistical fact that 95% of you reading this article will not succeed long term. A lot of factors contribute to this. Something to be discussed in more depth in a later article. Simply looking at my options available to me Forex trading would come out at the top. That is just my preference. What is yours?