Binary Options Trading Egypt
2008 was the year when binary options trading, though in existence before that time, became not just legal via US Securities and Exchange Commission, but also publicly available via Chicago Board of Exchange. As stated, binary options existed before 2008 but trading them was only possible for big, regulated traders or individuals with high net worth with the trading done via over-the-counter-market.
The reason why binary trading made such an indelible mark on the global financial market is a curious, but appealing combination of simplicity, affordability and flexibility.
Learn about binary options with IQ option!
Naturally, traders need to first understand the governing principal of binary options, but once they tie the loose ends together trading binary options stands a good chance to become a simple, fun and profitable way of given their budget a bit of an upwards nudge.
Defined by the theory (in this case the name itself) and backed up by the practice too, binary options have only two possible outcomes – up or down. That means that the value of the asset chosen for trade either climbs up or falls down. So far we have tackled the simplicity part of the story since it hardly gets more simple than this.
Flexibility is next in line, and this is explained via various trading options, strategies and expiry times traders have to choose from in order to explore and develop their own, unique trading style. Various trading accounts further supplement the story of flexibility available to binary options traders.
The fact that all the trading is done online and traders also have the possibility of using their mobiles to execute traders adds more credence to the flexibility aspect of binary options trading.
Bearing in mind that most deposits do not exceed $300 (some are even considerably lower) and the fact that with some brokers traders can start trading with the investment of only $1, affordability pretty much explains itself.
Of course, there is more to the wide-spread appeal of binary options trading which reaches beyond these three factors.
Perhaps the one that tops all previously stated is the enormous amount of time saved.
How? When one takes a cursory look back, it is easy to see that financial trading existed in the realm not easily attained by mere mortals.
A bridge was built by binary options that managed to overcome a gaping precipice. Because, suddenly, regular folk could become successful traders but without years and years invested in intricate networking, expensive business schools and a thick bank account.
Of course, some research and knowledge gathering is necessary, but it does not come even close to what was once needed to be able to trade successfully on the financial market.
Time invested in gathering and careful consideration of info collected on the subject of binary options can only serve to further propel possible monetary gain, and we most certainly encourage future traders to do their homework thoroughly.
The main difference – instead of sitting in the dusty library (though, nothing wrong with that either) binary options traders (or those who wish to join their ranks) get to sit in the comfort of their own home, or a vibrant café while they gather valuable knowledge which is just a few clicks away.
Going first to the source, like broker review sites, is a great way to start their binary options journey.
Binary Trading Options
One of the first things that interested Egyptians ought to do, is look more closely at trading options available with binary options trading.
Naturally, the more trading options particular broker has to offer the more manoeuvre space traders have.
Potential Egyptian binary option traders should take time to properly investigate and understand what each option has to offer and how it functions since not all will be appealing or even appropriate for each trader.
What we shall list below is, more or less, what is available as a trading option with most binary options brokers.
- Pair Options
- 60 Seconds
- Range Options
- One Touch
- No Touch
- Boundary Options
- Long Term
Basic trading option, High/Low, is perhaps the easiest way for newcomers to start with binary options trading.
Simplicity is the selling point of this option since traders need to choose either one or the other; meaning, traders either invest in the price of the asset going up or the price going down.
Another interesting option, due to its extremely short trading period, is 60 Seconds. The name, really, says it all – traders make a prediction, invest funds and after 60 seconds know whether the trade was profitable or not. Benefit of such short trades is that traders can execute many trades without having to wait long to know the outcome.
One Touch, perhaps more suitable for traders who have been in binary options trading for a longer period of time and thus have more experience, is based in a precise prediction. In order to make a profitable trade, the trader needs to estimate a precise price of the asset in question.
In a way similar to One Touch, No Touch (again aptly named) is based on the fact that an underling asset trader is using cannot touch the specific value within the designated time, hence no touch.
Pairs Options is another interesting option in binary trading where traders have to estimate the respective performance of two underlying assets in comparison to value direction of one of the assets in the pair.
Based on two specific prices, both placed on opposite places of the present market value, Boundary Option generates profit for the traders if both market prices have been triggered within the specific time frame.
Another option firmly defined by its name, Range Option is based upon the price range within which the underlying asset will trade in the determined time. The trade generates profit if the price fails in moving beyond the range selected.
Lastly, Long Term is the trading option often considered to be the safest one since underlying assets traded are traded during a long period of time and have a reduced risk of failure.
The point of the matter is, getting familiar with various trading option is of great benefit to potential Egyptian traders. Not just because they will understand how each option functions, but in doing so will learn just how many different ways of binary trading they can explore.
The basic principal of binary trading is the same – the value of the underlying asset traders wish to trade with moves in a certain direction, either up or down. However, investing time in properly understanding what each trading option has to offer is of huge importance since it will allow traders to find options which will accommodate both their character and trading style.
Traders might like some and intensely dislike other trading options which is why proper research beforehand becomes very important.
In the end, that can determine the direction trading can take for traders themselves – losing funds or generating profit.
Selection of Expiry Times
Those Egyptians who are looking into binary options should pay attention to expiry times binary options broker has on offer.
Broadly speaking, the more choice traders have the more they can “play” around with. Meaning; there is plenty of room to test what works for them and what doesn’t.
There are usually three distinct categories when it comes to expiry times in binary options trading: short, medium and long.
In majority of cases short expiry times range from only 15 seconds to 30 min with 30sec, 60sec, 2min, 5min and 15min stuck in between.
Medium expiry times commonly range from 1h, 10h, 24h to End of the Day with the long expiry times offering End of the Week, End of the Month, 30 Days, 150 Days and End of the Year periods open for trade.
General notion is that it is much easier to predict what shall happen with the asset over a longer period of time. On the other hand, trading binary options opting for short expiry times does allow traders to perform more trades swiftly which, again, might generate great profit.
Broadly speaking, available assets in binary options trading include stocks, currencies, indices and commodities. However, those are simply categories of assets and underlying assets are, depending on the broker, numerous. With some binary options brokers they can go over 200, which certainly gives interested Egyptian traders a healthy choice.
As a rule, binary options brokers have a detailed asset index available on their platforms so individuals interested in binary options trading should study what is on offer.
Another appealing feature of binary trading is that traders aren’t, in any way, restricted by their location, even in the sense of using their mobile phones for trading which means they needn’t even be behind their computer to execute a profitable trade.
Though, one aspect of trading binary options in different location to the one of traders’ residence is the time zone and that should not be neglected.
If traders wish to trade, for example, various currencies around the world then determining the time zone for that particular country is of utmost importance since trading times correspond to time zones. Egypt is in the Eastern European Time zone.
Egyptian traders interested in binary options can find a brief explanation of basic features marking popular assets available with binary options trading and chose those who hold their interest the most.
Silver, gold, corn, sugar, oil, coffee – most of these goods are as old the Pharos and are still sought-after goods in the modern world.
These underlying assets are marked by their rather stabile nature and there are rarely great surprises when it comes to trading commodities.
Since they are heavily dependent on weather conditions, demographics and political situation keeping an eye on the latest news is a good way of getting information needed to trade commodities.
Since indices are not, typically, prone to sudden price changes, predicting how the prices might behave is trickier than might be the case with the rest of tradable assets in binary options trading.
S&P 500, Nasdaq, Dow Jones and FTSE 100 are some of the choices available with majority of binary options brokers.
Stocks, as a result of rather high winning rate, fall more within the category of professional traders. However, we should also point out another reason for this and that is the knowledge necessary for trading stock successfully. That means that those Egyptian traders who have their heart set on trading stocks must also obtain more information about it.
Thankfully, that should not pose a huge issue since info on stocks is readily available online.
Trade different assets thanks to IQ option!
Coca Cola, Audi, Toyota, Google, Apple are just some of the stock available for binary options trading and procuring information on those should not be a big problem. Yet, taking time and learning more about the current situation regarding those companies and then using that knowledge in binary options trading just might mean the difference between making profit or losing the investment made.
Since the very start of binary options trading, currency pairs remain at the very top of favourite underlying assets to trade with. Again, simplicity plays a huge factor in making Currency Pair the old time favourite.
Binary option traders usually go for well-known currency pairs such as EUR/GBP, USD/EUR or GBP/USD.
Most binary options brokers offer a nice selection of currency pairs so interested traders needn’t feel restricted.
Strategies in Binary Options Trading
In accordance with various options, expiry times and assets available in binary options trading, different strategies are also there to be explored and used.
Common strategies we shall briefly discuss below are:
- Trend strategy
- Pinocchio strategy
- Reversal strategy
Situated around diligent monitoring of a trend line, the gist of this strategy is precisely that – keeping an eye on movement of the trend line and then making a decision based on that info.
Much like the nose of Pinocchio, this strategy goes to extremes which means that the price of the underlying asset is either galloping forward at break-neck speed or rapidly declining. When the aforementioned situation is happening the Call option (up) is advised, the latter is when traders should use a Put option.
The backbone of this strategy is for the traders to go for both Call and Put options at the exact same time, which makes this strategy a near perfect fit for those assets which have a tendency to swiftly change price direction.
Binary Options Accounts
Heavily dependent on the deposit made, large majority of binary options brokers offer various trading accounts to their registered traders.
Potential Egyptian traders can find details about trading accounts on trading platforms of the broker they are interested in. The usual approach to account choosing is to carefully study what the broker has to offer (the higher the deposit the more traders get in the account setup) and it is also a good idea to use customer support to ask any additional questions about the account traders are interested in so that they get the full picture and avoid any future dissatisfaction.
IQ option has a free demo account!
With most brokers the number of accounts varies from three with some brokers offering up to seven different accounts.
There are some brokers who, atypically, offer just one trading account.
Forging new and innovative ways to execute binary options trading is everything except a surprise since this is an online business venture which, in itself, allows for a much larger playing field then some mainstream business setups. Simply put – handy trading tools!
Mobile Trading App
In order to prevent both the loss of time and squandering of favourable trading circumstances, a lot of binary options brokers offer mobile trading apps on their trading platforms.
There is usually a link (mostly free for registered traders but it would be wise to check with customer support first) which will lead either to App Store or Google play where traders will be able to download the trading application.
Being aware that people mostly use either iOS or Android devices, most brokers have trading applications available for those devices.
Depending on the broker traders have chosen, changes between the trading platform and mobile trading app are minimal and should not interfere with binary options trading since, much like the platform itself, mobile apps are also designed to be user-friendly and easy to grasp and use.
As is probably obvious, mobile apps are a fantastic tool to use since traders are not restricted by their location but are instead able to trade on the go.
If we want to be pedantic, demo account is basically balancing a fine line between being a trading tool and being a trading feature.
The reason for that is that using a demo account will not directly result in making a profit. However, using a demo account as a tool to practice trading can help a great deal in making profit later on.
In most cases, demo accounts offered are a truthful doppelganger of the actual trading account with one key difference – funds used are virtual rather the real. That, in turn, means that traders can practice what it feels like to do binary trading sans fear of losing money.
This is a great way to gain confidence, experience and try out various trading options, which makes this a fantastic tool/feature for all traders.
On the other hand, even experienced traders might benefit from using demo accounts since they can perhaps test trading strategies they are interested in but have been reluctant to try for this reason or that.
We suggest that interested Egyptian traders first see if demo account is an option with their chosen broker (not all brokers offer this) and then, after they make a deposit, first try trading using a demo account and then slowly progress to actual trading. Also, it is important to keep to note that demo accounts are available to be sued for a certain period of time after which traders move on to actual manual binary options trading. But, the period allotted is, objectively, sufficient to get the overall feeling of what it means to execute a binary options trade.
Those traders who have found their perfect broker but who does not offer a demo account should not feel cheated. That gap can be bridged via using educational materials which all brokers have on their trading platforms.
Academy Section a.k.a. Educational Materials
Academy section or educational materials have become a permanent element on binary options broker platforms.
The reason – they are useful.
Traders can, be they experienced ones or new, browse, read, learn and inspect informative data which has been assembled in various lessons, e-books, tutorials and presentations with some brokers also making available a demo tour of their platforms.
In most cases, the amount of available educational materials does depend on the deposit made or the type of account a trader has, but free materials on offer do give plenty of helpful date which can be put to good use while trading binary options.
Binary Options Bonuses
There are hardly any brokers (if any at all) who do not offer some sort of bonuses. What most traders fail to realize is that in order to withdraw the bonus (should they accept it), is that there are very strict terms under which that is possible.
Those terms are different for a different binary options broker, but with a reliable broker traders will be able to find all the pertinent info relating to bonuses either in the separate bonus section, as is the case with Banc de Binary, or under terms & conditions section which every reliable broker has to have on their trading platform.
Bonuses can be very attractive and should not be cast aside, but reading more about the conditions attached is paramount.
Payment Options and Procedures Egypt
Considering we now live in a world which has numerous options available when it comes to payments then it is reasonable to expect the same from binary options brokers. Indeed, there are various payment methods traders can utilize, depending on their preference and country of origin, when making deposits and later on, requesting withdrawals.
Bank wire is one option open with all binary options brokers with credit/debit card option being the other. Most brokers support Visa, Maestro, MasterCard, Diners and the like on their platforms but other debit/credit cards might also be an option which can be easily checked with customer support.
In the last few years e-wallets such as Skrill, PayPal and CashU are also becoming popular options for financial transactions and most brokers offer some or all of these as payment methods.
American Express, Discover, One Card, Mobiamo, MOLPoints and Mint are all payment methods available and frequently used in Egypt. For traders who are interested in using some of these options to conduct financial transactions the best approach would be to contact customer support and see if that is possible with a broker of their choice.
With regard to withdrawal process, individuals who are considering binary options trading should be aware of the fact that this is a process which takes a bit of time. When traders wish to execute a withdrawal they first need to send a withdrawal request to the broker (a pdf document or a form is available on the broker platform) after which the withdrawal form needs to be processed which takes anything from an hour up to 2-3 days, depending on the broker chosen. Further 3 to 7 business days, again this varies from one binary options broker to the next, will be necessary for funds to be visible on the traders’ account.
Binary Options Robots
Auto-trading or binary options robots have also become a sought-after way of trading in recent times.
The reason behind it is rather frank – almost no human input needed. It makes perfect sense, seeing as how we live in an age of great technical advances.
In the case of binary options robots, the entire process of trading is heavily dependent on binary trading signals. In turn, signals are calculated via trading algorithms which use objective mathematical calculations. The end result is an objective, logical prediction.
This approach can be especially useful to those who are only just trying their hand at binary options trading since the decision-making is out of the game.
However, it is still necessary to do a bit of research in order to find the right binary options robot in order to avoid scam. Another this is that some binary options robots and signals are free and some are not.
Those traders who find this an interesting option they would like to explore can try with Binary Options Robot.
Binary Options Brokers
There are more fundamental differences between binary options brokers aside from the varied accounts, underlying assets, trading options and tools and that concerns three specific areas: regulation, trading software and which traders are accepted and which are not.
Regulated Binary Options Brokers
There is no regulated binary brokers in Egypt. Egypt does not regulated binary options within the borders of Egypt. This does not mean that Deriv and IQ option are not good brokers to trade with.
IQ option is a licensed broker! Find out more about it!
Names such as SpotOption, TechFinancials and Panda TS may or may not be familiar to Egyptian traders but these are, in actuality, important factors when deciding with which broker to do binary trading.
All the above are well-known trading software used on trading platforms. One of the leading brokers in binary options trading, Banc de Binary, uses SpotOption as their trading software which is also used by more than 250 brands around the world.
24option, another big name in the binary options business, uses TechFinancials while Porter Finance uses Panda TS.
Tradologic, TradeSmarter, OSystems, TraderSoft, Leverate and HalloMarkets are also used as trading software by binary options brokers.
To a smaller degree, there are binary options brokers who, instead of mainstream trading software, opt to use proprietary platforms. The term actually refers to exclusive trading platforms which are designed especially for a particular broker. StockPair and IQ Option use their own platforms for binary options trading.
Egyptian Local Legislature & Islamic Accounts
Bearing in mind that different countries have different ways of categorizing binary options trading, offering a concise view of legislature and binary options does become a bit difficult.
Majority of countries find binary option trading to be legal. We have mentioned previously that the best way to start binary options trading is to opt for a registered broker.
Another advantageous fact Egyptian traders can use is that more and more brokers are offering Islamic Accounts since the number of Muslim traders keeps on growing.
Islamic accounts are so designed to suit the specific needs of Muslim traders and which respect the Sharia Law, meaning they are interest-free.
Local Tax Laws Egypt
Egyptian tax system can be quite daunting to navigate. When one adds the fact that every country holds binary options trading in a different light the story gains another twist.
Rule of the thumb is – taxes are paid when profit is made.
However, the best approach in the case of gains gotten via binary options trading in relations to taxes would be for traders to consult either a professional working in the domain of taxes or to enquire with the proper authorities so as to avoid all or any problems that might stem from this.
Also, it would do to keep in mind that international tax law might be applicable since all transactions are done online with traders residing in one country and brokers in another.
Whenever financial transactions are in questions the issue of security invariably follows, as is normal. In binary options trading transfer of funds (be it as deposits or withdrawals) as well as exchange of sensitive, personal data is unavoidable, hence security cannot be below par.
Binary options brokers who are reliable and trustworthy shall make sure the security of their platform is top-notch. That starts with excellent trading software to using the best safety technology.
A quick look at broker platform will show to interested Egyptian traders that most brokers have a small green padlock or a green bar in their URL address as well as HTTPS in which “S” stands for Secure. Majority of brokers make use of Secure Sockets Layer (SSL) security technology which encrypts all data being exchanged between the trader and the trading platform (broker).
This is an area that all perspective Egyptian traders should look into prior to exchanging any personal or financial data. In addition to making sure that the broker has taken all the necessary steps on their part to ensure a safe connection, trader too must do their part.
Guard your passwords and install all necessary safety programs on your computers/mobile devices to avoid problems.
Any self-respecting broker will make known the fact that trading binary options is not without a risk. In fact, there is usually a risk warning immediately detectable on their home page. It will state, in no unclear terms, that trading binary options does carry a certain amount of risk and Egyptian traders who are considering this sort of trade bust read, understand and accept the risks which are present.
Some binary options brokers have an entire section dedicated to risk warning (Banc de Binary) while other have a section within terms & conditions which explain the risk involved.
It is the duty of a respectable broker to make the fact about the risk known, but it is also down to the traders themselves to get familiar about the risk involved and then proceed further bearing that knowledge in mind.
Useful Tips for Beginner Egyptian Traders
At the end of this extensive article we shall summarize what perspective Egyptian binary options traders ought to know and do in order to have a seamless initiation into binary trading.
- Know Your Broker – take some time and learn about the broker who took your fancy. With so much information available learning key aspects of the broker traders wish to use should not present a huge issue nor should it take an inordinate amount of time.
- Know Your Trading Platform – visit trading platforms, check what is on offer – from trading options, expiry times, strategies to underlying assets, since all information is relevant information.
- Test Customer Support – with numerous ways traders can contact customer support it would be ignorant not to use that prior to choosing a broker. Ask relevant questions and monitor customer support response in terms of how quickly they responded, how informative and useful of an answer they gave, how friendly and accommodating they were. All that can give traders a good sense about the broker since customer support is, in a way, their first port of call.
- Read Terms & Conditions – invest a bit of to go over terms & conditions section every binary options broker has to have on their platform. FAQ section is another fantastic way to get familiar with basic facts about the broker. Knowing the rules and regulations as well as rights is one of the basic steps in any business deal and binary options trading is not an exception.
- Test Security – make sure the broker you wish to use is one who takes security seriously. It will take trades but a few sort minutes to ascertain this fact (look under Security section).
- Know the Risk – know the risk involved in binary options trading a.k.a – read the risk warning all trustworthy binary brokers have on their platforms (usually on the homepage or in the separate section)
- Research – it will take a bit of time, but ultimately, it shall serve as a clear guidepost on how to advance further.
- Know Your Limit – refrain from investing more than you can stand to lose.