More and more people are tempted to trade binary options. Although binary options are quite simple to understand when compared with most financial instrument, one should not start trading binaries without understanding the advantages of this financial product. Like any leverage instruments, binary options can be extremely risky. Nevertheless, if you dedicate time to learn about financial markets and trading strategy you can generate significant profits. There are indeed many reasons why binary options trading should be included in your investment strategy. We listed below 10 reasons to start trading binary options with a regulated broker.
10 reasons To Start Trading Binary Options
The below are our own arguments but don’t forget that certain advantages of binary options (the leverage for instance) can also represent their biggest risk.
Compared to regular options, binary options have the advantage of being extremely simple to understand. You only have to choose an underlying asset, a maturity and a direction.
- A premium based product
When you buy a binary option, you pay a premium. It means that you can never lose more than your invested amount. This is not the case for the majority of popular retail trading instruments (CFD, forex, turbo…). If you decide to open a binary option trading account, you know that you will not risk losing more than your initial deposit.
- Huge Payouts
Binary options can generate payouts up to 85% in few minutes. It is clearly the highest profit generating financial product available for retail investors. Advanced binary options can even generate payoffs of more than 1’000% but of course are a lot more risky.
- Diversity of option types
There exist many different option types you can chose from depending on your market scenario. All these different option types enable traders to build a large variety of different trading strategies (one Touch, Range, Pairs…).
- Web based platform
Most binary option brokers offer intuitive web based trading platform. It means that you don’t need to install any software and that you can access the platform from any connected device (desktop or mobile).
- Attractive welcome bonus
There is a lot of competition among binary options brokers and that’s why most brokers offer attractive welcome bonuses. These cash bonuses will help you leverage your invested capital and generate even higher profits.
- Access to every asset class
Binary options represent the easiest was to access all the available asset classes on the market (forex, equities, indices, commodities…). You will be able to trade all sorts of different underlying assets with single trading account and on the same trading platform.
- A large range of different expiries
While binary options are mostly used to build short-term trading strategies, many brokers are also proposing long-term maturities for more defensive strategies. You can thus use binary options for speculative or hedging purposes.
- Broker supports
Compared with many financial instruments, binary options were specifically designed for retail investors. Binary option brokers are thus offering a full support along with multiple educational tools to help beginners improve their trading skills.
As you can see, there are many reasons why binary option trading makes sense for retail investors. Another key point to take into account is the choice of your broker. You definitely need to work with a fully regulated and reliable broker if you want to avoid problems related to deposits and withdrawals. We recommend you to have a look at our ranking of the best binary option brokers in Europe. They all fulfill the above requirements and offer a competitive advantage in the industry. Visit our reviews of Interactive Option, 24option, Anyoption and IG binary to find out more about the best brokers in Europe.