Analyzing the development directions of the global financial market over the past 5-10 years, we can conclude that it is increasingly oriented toward traders / investors with a small starting capital. Today, almost everyone can open a trading account on the resources of brokerage companies, replenish it and choose the assets with which he plans to work (currency, raw materials, indices, etc.). Then, after a little theoretical / practical training, the novice trader can begin to conclude promising transactions. For some users of the World Wide Web, this opportunity has become a real Klondike. But you don’t need to be a professional analyst to guess about the presence of some “pitfalls” in the segment of financial markets under consideration.

The Dark Side of Online Trading

Classic financial markets, whose subjects are banks, investment funds, large companies and brokers, work with real assets (currency, stocks, securities, etc.). But for these operations, serious investments are needed, the size of which is several times higher than the capabilities of ordinary traders. As a result, this led to:

  1. The widespread use of “kitchens”, “bookmakers”, etc., which use the money of their customers for personal interests, without bringing them to real markets.
  2. The emergence of new financial instruments, primarily binary options, allowing you to attract traders who do not even understand what a stock exchange, forex, options, fiat currencies, etc.

For more than one year, binary options (BO) have been the main topic of discussion and heated debate for financiers, brokers, traders, etc. The indefinite status of binary options and the lack of legislation that governs all issues related to their treatment create a lot of problems for many participants in the global financial market. This fact prompted the representatives of one of the most famous ESMA regulators in the world to ban binary options in the EU.

If we conduct a small analysis of the elements under consideration, we can highlight several important points:

  • Most experts on online trading consider that binary options are not a financial instrument, they are of interest to bookmakers, and not to brokers or traders.
  • In some situations (on solid trading platforms), transactions with binary options correspond to a real change in the value of assets. But much more often, the administration of brokerage companies uses fake charts, signals, etc. or works on the principle of BC, as mentioned above.
  • The most important point is that all operations with binary options are classified as highly risky transactions.

Forex options

There are several directions for classifying binary options. “Up / down”, “range”, “touch”, etc., the criterion is the forecast of changes in the value of the asset. Depending on the subject, binary options apply to commodities, securities or currencies. The last option is the main topic of the question.

As in the case with any other binary options, working with forex options, the trader does not buy / sell any currency, he only gets the opportunity to execute these transactions, at the indicated cost, at the selected time.

The main parameters of the deals under consideration are:

  • Asset (currency of interest) and its price.
  • Duration of the option.
  • Type of transaction.
  • Fixed premium.

What determines the success and effectiveness of forex options? We highlight the key factors:

  • Trader’s ability to analyze charts, signals, statistical information.
  • Selected trading platform (how long ago a brokerage company was registered, its rating, fame, competitiveness in the market segment under consideration, and also the presence / absence of a regulator).
  • When calculating the size of the estimated profit, always consider the conditions of the broker, which are mandatory for the operation of interest to you.

Experienced traders recommend that their beginning colleagues, before starting work with forex options, give an answer to the question, what are the presented tools for you? The decision to conclude deals for good luck, without preliminary analysis, we testify that you will be much more interesting on the web resource of a brokerage company or in an online casino. Forex options can provide the trader with good financial income, but only if you approach the solution of the issue in question, professionally.

A large role is also played by the choice of broker. To date, the most promising forex options brokers are:

Broker Minimum deposit Bonus Availability of regulator Spread
Iq Option 10$ + 5
Instaforex 10$ up to 30% + 3
GFT 250$ from 5% + 1
SAXO BANK 1$ + 2
Alpari 350$ + 1,5
PACIFIC Financial 1$ + 0
AFX Capital 200$ + 2

When choosing a trading platform for conducting operations with Forex options, pay attention to the reviews of real users. But always take into account the fact that almost all subjects of online trading periodically buy reviews, and many brokers even turn to freelancers to prepare negative comments (reviews) about their competitors.

Leave a Reply

Your email address will not be published. Required fields are marked *

*