Binary Options vs. Forex – Which is Better?
Those new to forex trading will encounter a variety of terms and concepts that can be overwhelming at first glance: swaps, pips, rollover, and FIFO to name a few. A further obstacle, yet a very important one, is deciding whether to trade binary options or forex. So what are the pros and cons when it comes to binary options vs. spot forex? The answer, as you’ll see in our article today, really depends on your profile as a trader and overall strategy.
For Play or For Real?
If you are looking to just have fun, then binary options might be a better choice. These platforms are very simple in nature and boil down trading to the very basics. If you wish to approach forex from the standpoint of an investor, however, then it would be better to open a forex account. The reason is that forex software offers far more tools and resources than binary platforms. In addition, forex platforms are far more comprehensive and allow you to do much more than binary software, which is by nature very basic.
Regulation for binary options is very limited as many global jurisdictions have either banned the product outright or view it as a gambling product. Should you have a financial dispute with a binary options broker, it may be difficult, if not impossible to get a resolution. Forex, on the other hand, is highly regulated around the globe. For example, the United Kingdom’s FCA (Financial Conduct Authority) acts as a venue to lodge complaints, an option you don’t have with FX.
Opening an account with a forex brokerage will offer far more support in terms of resources than a binary options account. The majority of forex brokers will offer education, guidance, and a far more personal approach. If this is your first time trading and you have many questions, it’s better to go with a forex broker as you’ll be treated far better.
Should you have further questions about trading forex, binary options, or establishing a broker, don’t hesitate to contact Atomiq Consulting.
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