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How to Trade Forex Binary Options in 2020 • Benzinga

For investors the financial market offers a wide variety of ways to grow your wealth. Foreign exchange, or forex, gives you direct access to trade with international currencies at the click of a button. And trading binary options on the forex market is one of the simplest methods of making money.

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For investors the financial market offers a wide variety of ways to grow your wealth. Foreign exchange, or forex, gives you direct access to trade with international currencies at the click of a button. And trading binary options on the forex market is one of the simplest methods of making money.

A binary option lets you predict the price movement of a currency pair over a set period of time. For example, if you are speculating that the European euro (EUR) will rise in value against the U.S. dollar (USD) in the next minute, you can invest in a call option for the EUR/USD currency pair. If you are right, your binary option contract will settle for $100 and you get your money back with an earned profit of $100, minus the price of the contract. And if the bid falls below your strike price, you will lose all of your invested money in 60 seconds. 

Forex binary options are the epitome of the high risk-high returns proposition. It is an apt investment strategy for active traders who expect fast results in the forex market. Here’s what you need to get started.  

Step 1: Choose an Online Forex Broker

Before you begin, you need to have an account with a forex platform that allows binary options trading. You can compare different online forex brokers before signing up.  Some things to consider in an online forex platform for binary options include minimum deposits, minimum trade value, payout percentage and the number of currency pairs available to trade. 

Step 2: Pick a Currency Pair

Most online forex brokers will have a list of at least 80 currency pairs to pick and choose from. Common currency pairs that are traded in the forex market are EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF, USD/CAD and NZD/USD. But, just because a currency pair is popular doesn’t make it profitable. Making informed investments based on research and statistical data helps you limit the risks involved in the binary options you buy. 

Step 3: Pick a Binary Option

Online forex platforms let you pick the type of binary option you want to buy. Depending on your choice, the payout percentage on the binary options will vary accordingly. The most-traded binary options are listed below. 

  • High or low: You can predict if the price will rise above or fall below the strike price of your currency pair. For instance, if the EUR/USD is valued at 1.1134, you can buy a high or a call option at 1.1139. Likewise, you can buy a low or a put option at 1.1131. 
  • Range or boundary: You can predict if the price of the currency pair stays within the strike price or if it will exceed it. For instance, if the GBP/USD is valued at 1.2452 and you expect it to reach 1.240, you can buy a range option. Likewise, you can buy a boundary option if you expect it to reach 1.259.   
  • One touch: You can predict the price a currency pair is likely to reach. For instance, if the AUD/USD is valued at 0.6147, you can buy a one-touch option at 0.6150. 
  • No touch: You can predict the price a currency pair is not likely to reach. For instance, if the AUD/USD is valued at 0.6147, you can buy a no-touch option at 0.6140.  
  • 60 seconds: You can predict the rise or fall of a currency pair value within 1 minute. For instance, if USD/CAD is valued at 1.3997 and you expect it to reach 1.3999 in the next 60 seconds, you can buy a call option. 

Step 4: Set the Option for a Call or Put

Once you’ve decided on the type of forex binary option to trade, you can choose to buy a call or a put contract. If you expect the value of the currency pair to rise, buy a call option. And if you expect the value of the currency pair to fall, buy a put option. This does not apply for one touch and no touch binary options.  

Step 5: Set an Expiry

You need to set a time duration for the forex binary option to trade. The expiry on a forex binary option contract can be anywhere between 30 seconds to 1 day or even 1 week. Many traders indulge in intraday binary options to make a quick buck. Be careful while following in their footsteps; you could burn your fingers on a binary option just as fast.

Step 6: Reap the Rewards

Unlike forex trading, binary option contracts are purchased for a fixed rate and a fixed reward. Both the buyer and the seller of the binary option contracts will have to put in their money beforehand. So, you can cash in on your earnings as soon the currency pair hits the strike price.   

Foreign exchange trading does not have a physical marketplace. You have to open an account with an online forex broker to be able to trade in currency pairs. Since global economic and political news has a drastic impact on forex, you have to explore the full set of analytical tools that an online broker provides with a registered account. 

Based on crucial factors such as pricing, trade fees, trade execution speed, ease of use and regulations, Benzinga recommends the following online brokers for trading forex binary options. 

Account Minimum

100 of your selected base currency

Pairs Offered

80+

Minimum Trade Size

$1,000

Spread

0.2 pips – 1.0 pips

Commisions

$0 – Variable starting at $60 per million traded depending on account

1. FOREX.com

FOREX.com is an industry-leading online broker for foreign exchange trading. It offers tight spreads on over 90 currency pairs. You can open an account on FOREX.com with a minimum deposit of $100 or 100 units of your preferred currency. With it, you can trade forex on desktop, internet browsers or on its mobile application. It has an impressive average execution speed of 0.05 seconds per trade. 

FOREX.com provides powerful market analysis tools such as the economic calendar, advanced charting, pivot points and daily updates from current events and geopolitical news. It is regulated by the Cayman Islands Monetary Authority. For more information, you can read our full FOREX.com review

2. IG

Founded in 1974, IG is the preferred online forex broker for over 178,000 traders worldwide. You can open an account on IG with a $0 minimum deposit. You can also open a demo account to practice forex trading with limited risks. The demo account provides you with AUD $20,000 in virtual funds to help you try your hand at forex trading without any capital investment.

IG offers over 80 currency pairs to trade with. IG’s proprietary technology ProRealTime allows you to filter binary options by strike price and expiration date. It has a round-the-clock customer support facility to answer any queries you have. It is regulated by the Commodities Futures Trading Commission and is a member of the National Futures Association. 

Commissions

$0
$6.95 for OTC Stocks

Account Minimum

$0

3. TD Ameritrade

TD Ameritrade is a commission-free online forex trading platform. You can open an account on TD Ameritrade with $0 minimum deposit. It offers over 70 currency pairs to trade with. The paperMoney tool helps you experiment with new forex trading strategies without risking your own money. 

TD Ameritrade’s thinkorswim platform gives you access to professional-grade tech tools to heighten your forex trading experience. With this integrated platform, you gain access to global forex charting packages, currency trading maps and real-time breaking news from CNBC International. TD Ameritrade is regulated by FINRA. 

Sink or Swim

Trading forex binary options can feel a bit like cliff diving. When you hit the waters, you either sink or you swim, and for forex beginners that thrill can be all the more alluring. Similarly, when the contract expires on your forex binary options, it can either settle at $0 or $100. Your hard-earned money is either going to go in or swim out of your pocket, so you should consider this forex trading strategy only if you have a high-risk tolerance. 

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Forex Trading Knowledge Questions and Answers

Forex Trading Knowledge Questions and Answers

Forex Trading Knowledge Questions and Answers

What Is A Demo Account?

Demo accounts enable new investors to test their ideas and learn how to use trading technologies without risk. Users can use the demo account to trade with simulated money and see what their returns would be if they traded with real money. Demo accounts are often used in schools and universities to teach investing and compete in trading competitions.

Demo accounts are commonly used by stock traders, currency exchange traders, and commodities dealers, but not by long-term investors. A demo account is less effective since the longer it takes to produce earnings from an investment, the more time it takes away from compounding real money.

 

How Does A Demo Account Work?

Using demo accounts, investors can practice trading on a platform without putting their own money at risk. You will not be exposed to the dangers associated with live trading platforms on a demo account. As a result, you can learn how platforms work without putting your money at danger.

A demo account guarantees that you will not lose money, but it also guarantees that you will not make money. To reduce risk when trading on the real market, traders must learn discipline and establish techniques.

How to Open A Demo Account?

In general, opening a demo trading account is pretty simple. Choose a Broker – Most brokers provide demo trading interfaces to help you become acquainted with the features and create techniques. Choose which broker to use initially.

Registration is necessary, and you must provide your personal information. Name, address, and financial information will be requested. Your identification will almost certainly have to be validated as well.

Once you’ve decided on a broker, you can install MetaTrader4. Once you have decided on a broker, you will require a trading platform. MetaTrader 4 and MetaTrader 5 are the most popular trading platforms.

You will obtain login details after registering with a trading program. You will be able to open an account.

How Long Do Demo Accounts Last?

Traders can use a demo account to test out a program for up to three months before deciding whether to purchase the complete edition. The three-month term is basically offered to guarantee that the prospective buyer has enough information to make them desire to buy.

Why Is It Necessary to Open A Demo Account?

Traders can use a demo account to test out a program for up to three months before deciding whether to purchase the complete edition. The three-month term is basically offered to guarantee that the prospective buyer has enough information to make them desire to buy.

What Are Advantages of A Demo Accounts?

Demo accounts are an excellent method to learn about various trading tactics and software. Paper trading is a lot safer way for a beginner investor to make technical mistakes than real trading. Investors can benefit from the customised trading software provided by each firm.

A demo account lets you to test methods without risking any money, whether you are a novice or an experienced trader. Trading on a demo account allows the trader to test the approach before trading with real money.

Even though many traders begin with equities, commodities and Forex can be profitable. The same strategies, however, may not be applicable in all three asset groups. A demo account allows experienced traders to experiment with several asset classes.

 

The Differences Between Demo & Live Accounts

A forex demo account is distinct from a genuine account in that it is utilised as a training account for traders to practise trading without putting real money at risk. Real accounts, on the other hand, use actual money, and traders put their own money at risk. A demo account enables users to trade with fictitious money in order to imitate the earnings they would receive if they traded with real money. Demo accounts are often used in colleges and institutions to teach investing and compete in trading competitions.

However, studies have shown that even if a person has obtained extensive trading expertise through the use of virtual accounts, things may turn out differently when real money is involved. Because you are not putting anything at risk  is more accessible when dealing with virtual money than when trading with actual money.

Can I have Multiple Forex Demo Accounts?

You may be able to open up to five demo accounts depending on the broker. Some, however, provide up to 19 demo accounts. There is no way to predict how many demo accounts are available at any particular time. All brokers do not limit the number of demo accounts.

If your broker has a demo account limit, you can contact their customer service via email or live chat to request more demo accounts.

There are brokers who will only allow you to open one account of each type per email address.

As a result, you are not able to establish any additional accounts until you give them with another email address or open a new account. Traders do not benefit from this practise because it requires them to spend their resources on opening new accounts rather than allowing them to open as many as they like.

In most circumstances, you won’t need more than five accounts, and depending on your plan, one may enough.

In any case, you should practise on a demo account until you are really proficient.

Is A Demo Trading Account Free?

Demo platforms are usually free. There is no risk of losing money because you will not be dealing with real money. As a result, there are no deposits, withdrawals, or training fees involved.

 

How to Choose Forex Accounts?

Different accounts have different settings. Before you open a trading account, you should answer the following questions:

How much money do you want to put down? You should keep in mind that trading with money you cannot afford to lose is not a good idea.

What is your level of risk tolerance? If you are a cautious trader, you can open a micro account and trade micro-lots. However, if you wish to trade more aggressively, you should open a regular account.

Do you require any specialised equipment? Many forex brokers provide their best trading tools to its professional clients, which may include cutting-edge news analysis or access to a diverse set of indicators.

Once you’ve determined what kind of trader you are, your trading objectives, and your risk tolerance, you’ll be able to choose which account is best for you.

Can I Take Money Out of a Demo Account?

Unfortunately, the answer is no. Demo accounts are only for practise purposes. You do not deposit anything because the account is not funded with real money.

As a result, any profits you would have made would be ineligible for withdrawal.

Forex Trading Knowledge Questions and Answers

Forex Trading Knowledge Questions and Answers

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AvaTrade introducing 3 new crypto pairs

crypto trading with Avatrade

AvaTrade introducing 3 new crypto pairs – updating 3 others

AvaTrade has yet again improved their cryptocurrency trading offering.

AvaTrade is introducing three new cryptocurrency pairs: NEOUSD, EOSUSD & MIOTAUSD in addition to the 15 crypto assets already on offer.

These new pairs have been available since July 1st, 2019 and provide an excellent opportunity to diversify your clients’ portfolios and increase their exposure to this vibrant 24/7 market.

AssetTypical SpreadLeverageMarginMin Nominal Trade Size
NEOUSD1.5% Over-market2:0150%10
EOSUSD2% Over-market2:0150%10
MIOTAUSD1.5% Over-market2:0150%10

To unify their cryptocurrency instrument labels, They are relabeling their existing Ethereum, Ripple & Litecoin instruments, by replacing the existing instruments with new USD labelled ones:

AssetOld SymbolNew Symbol
RIPPLEXRPXRPUSD
ETHEREUMETHETHUSD
LITECOINLTC_MiniLTCUSD

These new pairs have also been available since July 1st,

The trading conditions for each one is identical to those of the older respective assets they replace.

Effective immediately, new positions are only available on the new pairs.

Avatrade Clients will not be able to open new positions on the old assets, but those already open will remain unaffected until July 29th.

Existing positions on XRP, ETH and Litecoin-mini that remain open on July 29th will be automatically replaced with corresponding positions on the new pairs, , at the same opening price and at no cost to clients.

as any broker that values their clients would do , Avatrade makes sure that the clients will not be affected by the change.

Visit Avatrade NOW

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Neteller Launches Cryptocurrency Exchange Service

Neteller Launches Cryptocurrency Exchange Service

Neteller  one of the most known Digital fiat currency wallet provider , has started allowing its users to buy, sell, and hold cryptocurrencies including BTC, BCH, ETH, ETC, and LTC.

They do this on the large scale with a pilot in 10 countries and soon another 50 countries to join . They understand that if you do this effort it will only succeed if you can do this on a global scale.

Neteller and Cryptocurrencies

Neteller is a service which is operated by Paysafe Financial Services Ltd.,

paysafe

paysafe

founded in 1999, Paysafe Financial Services entered the market with the mission to provide an online alternative to the known traditional payment methods.

Most of the traders aiming us now neteller as one of the companies through which we made our deposits and if we had any profits also our withdrawals. A couple of years ago they left the Forex and Binary industry behind since the charge-back issue became just too expensive.

But as any companies knows, if you do not adept you die. The binary option market is all but dead and the Forex industry has moved also into the directions of the cryptocurrencies. thus, neteller understands that this is where the future is.

So Lasts week they announced that they are now offering a wallet with buy and sell cryptocurrency options.

As of today, Neteller users can buy, hold and sell cryptocurrencies via a recognized cryptocurrency exchange including bitcoin, bitcoin cash, ethereum, ethereum classic and litecoin, purchased using any one of 28 fiat currencies available in the Neteller wallet.

It may not seem so exciting but for many users that love this service it actually is. More and more currencies will be added making them an true exchange in the near future.

Now one is able to fund their neteller account through many different means (Mobile, Epay, Paysafecard, local bank deposits, and bitcoin)

We think that will make the threshold for many people, who would want to buy or sell cryptocurrencies, lower. This in return is a good thing for the overall acceptance of the cryptocurrencies in the mainstream of every day life.

Conditions for buying and selling cryptocurrencies through Neteller

The rates offered are somewhat in the lower middle of the current market making them go for the save route. The average market rates on the major cryptocurrency exchanges differ all in all not that much anyways, as this is not the main reason to choose to buy Bitcoin through Neteller

The minimum cryptocurrency purchase or sale amount is “approximately equal to 10 EUR,” the firm clarified, adding that the maximum amount depends on the transaction limits associated with each account.

When You open an account with Neteller you have to choose your default currency. This is of course for most people in accordance on their geographical locations, people in Britain will go for the pound most Europeans go for the euro and pretty much the rest of the work goes for the US Dollar, thou other currencies are available

The fee is 1.5 percent for purchasing and selling cryptocurrencies from wallets with EUR or USD as the default currency.

The fee rises to 3 percent for wallets with other default currencies.

Neteller  | Why is this a good move for neteller and one that we should expect from other online Payment providers as well ?

At this moment till last week Neteller users can pay, get paid on thousands of sites, and send money around the world through their system.

The company claims to have “millions of point-of-sale, ATM and online locations” for users to withdraw or spend their cash.

Last July 25, Paysafe ( which as you remember is the company that owns Neteller and Skrill)  announced that another digital wallet provider in its group, Skrill ( formerly known as moneybookers), started allowing customers to “instantly buy and sell cryptocurrencies, including bitcoin, bitcoin cash, ether and litecoin, using any one of the 40+ fiat currencies available in the Skrill wallet.”

We could now see that this was like their test run on this concept.

We do not know the numbers that Skrill produced since they offered this service but it must have been encouraging enough for Paysafe to include their flagship brand in this endevour.

We will see where this leads but we are hopeful that this is the next step in global acceptance to the cryptocurrency revolution. Let me know what you think

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