As a new way of online investment, binary options trading has quickly gained interest among people in South Africa who want to invest and profit from binary options.
Thanks to this level of popularity it is clear why so many South African decided to trade with binary options and maximize profit.
Both new traders and professional traders who are experts on forex market are attracted to binary industry due to its many benefits.
To have detailed information about trading process, here you can find out more about pros and cons in binary options trading.
Pros in Binary Options Trading
In this part of articles, we will provide our South African readers information why many traders invest in binary options and what are the main reasons for such popularity of this new online investment industry.
A lot of trusted brokers, like Banc de Binary, Opteck, 24option etc offer secure trading platform where traders can achieve high payouts, between 75% and 90%. Binary options industry is known for its benefits available for traders worldwide. it is possible to invest in short term (60 Second option) and long term. Where else it is possible to trade and earn high profits of 80 or 90%?
This is definitely one of the main reasons why traders deposit with binary brokers. With high payouts available, traders can experience profitable binary trading process.
Binary Options as Fast Growing Industry
Binary options started in 2008 as a new aspect of investing. With binary options, traders in South Africa are able to participate on financial market and maximize profit when trading with different assets in predetermined period of time.
Over the years, binary options industry became widespread thanks to advantages it offers to traders. They can select preferred binary broker and explore trading platform in order to trade profitable with the help of many useful trading features.
Binary options trading is available for both experienced traders and also those who are new to this way of online trading. With the help of many education materials and strategies, available on the platform, South Africans have a great chance to profit from binary options.
Simplicity while Trading
These is yet another of pros in binary options trading.
Trading binary options is very simple and shouldn’t present difficulties to people interested in this online trading business. Traders who select reliable broker can experience simple registration and login process.
Trading platform is easy to use and traders can easily navigate over the site. South Africans can check education materials and FAQs to get answers on any topic relevant to binary options trading.
In case of any assistance, traders can contact customer support of particular broker that can provide them necessary information.
As stated, binary options trading is actually very simple and has only two outcomes. Traders have to deposit, select preferred asset type (stock, commodity, currency or index), trade option and expiry time.
Later on, they only have to choose will asset price rise or fall. If traders predict that asset price will rise in predetermined time, it’s called “Call” option, and if they are convinced that price will fall, then we are talking about “Put” option.
Practice on Demo
Demo accounts are considered as an valuable feature in binary trading.Trial versions fall into category of pros in binary options trading. A variety of reliable binary brokers offer demo account for traders in South Africa, such as:
Traders have possibility to practice on trading platform and place trades without having fear of potential risk of money loss. Demo account enables safe trading environment for traders to invest in different underlying assets.
By this we mean that traders are able to trade with virtual money, not real money. Depending on the broker, demo accounts are usually available for limited period of time and broker ensure traders with a specific amount of virtual money.
Demo is excellent way for South African traders to improve trading skills and experience the most for safe trial version. Traders can use different available trading strategies and instruments which can lead to a successful trading process. Later on, when they gain more confidence, they can just switch to real account and start trading binary options for real.
Small Budget for Successful Trade
This industry enables traders to maximize profit without necessity to invest huge amounts of money. That also might be one of the reasons why traders in South Africa find binary options trading as a great chance to increase income.
A lot of broker offer different minimum deposit, ranging from $10 to $250. With this amount invested and properly selected tools and strategies, traders can go far away and earn money in binary options trading.
Of course, it is possible to open account with more than $250. This way, traders can get access to even more attractive trading features and services.
More Influence on Trading Process
This is why so many traders in South Africa find binary industry as a great way to maximize profit.
Since traders place trades on assets in future time (from 60 seconds to 150 days), they instantly know how much money they can earn or lose. This isn’t like on forex market where risk is much higher and it is possible to lose huge amounts of money.
We advise our readers to diversify their trades. This way they don’t keep “all eggs in one basket”. To have possibility to control their own trades is very important and valuable in the trading process.
Cons in Binary Options Trading
After we have mentioned all pros, now we should inform our readers in other facts that can be considered as cons in binary options trading. It doesn’t necessarily mean that all following facts are negative, but to inform traders to be aware of potential alerts when trading.
The Risk of Scam Brokers
To choose a safe and reliable binary broker is of utmost importance in binary options trading process.
Traders should be aware of potential risk since in binary industry there are over 300 brokers who operate on financial markets across the world.
The best thing we recommend is to carefully read broker reviews and check their platform to see if they offer clear terms & conditions, FAQs etc.
All these information can be very significant because no one wants to deposit with a scam broker, earn money and be unable to withdraw their own money. There are several indicators how traders can avoid scam in binary options and experience only profitable and safe binary trading process.
Let’s not be mistaken, binary options trading isn’t risk free business.
There is certain risk involved, since traders places trades in different assets. Stocks, currencies or commodities are all subject to changes on financial markets, whether we are talking about natural disasters or political situations. So to claim there is no risk and this industry guarantees 100% payout isn’t real.
This is what traders have to always have on mind before depositing with a broker. South Africans should be aware of potential risk involved as well as potential money gain that can be reached in short period of time.
Lack of Regulation
In binary options industry there is a wide selection of brokers who participate on financial market and offer trading services to traders.
Some of them are regulated, while others aren’t. It is important to mention that unregulated brokers aren’t by definition scam brokers.
Regulatory status is a choice and it depends on a broker does he want to have regulatory licence or not.
CySEC and FCA are two authorities responsible for regulation of binary brokers. CySEC stands for Cyprus Securities and Exchange Commission, based in Cyprus, while FCA is based in UK as a Financial Conduct Authority.
These regulatory bodies provide a certain security level for traders since they monitor business of binary brokers. They are in collaboration with EU and brokers regulated by CySEC have to follow European laws and conduct their business in a transparent way.