After nearly ten years on the market, binary options trading had certainly left its mark on the financial markets, both globally and in South Africa.
Still, the market and binary options are continually evolving and potential new traders may not be aware of the immense potential binary options trading have.
Hence, we will present a guide to potential and interested South African traders on the benefits of trading binary options in hopes of making their decision easier and perhaps quicker.
After all, time is money!
A Potentially Profitable Business Venture
There is this misconception that in order to be successful in trading, it is necessary to already be wealthy and well-educated when it comes to financial matters. Certainly, both those things might be seen as a handy springboard to further improve ones’ financial portfolio.
However, neither are necessary to start trading binaries which can be seen as first of many benefits of trading binary options.
Binary options rest on a simple premise – the price of the underlying asset will either move upwards or downwards. Naturally, more aspects are included in this trading process but that is the basis upon which everything else is revolving.
The main point is, that no matter the background or lack of experience, anybody stands a fair chance of turning binary options trading into a profitable enterprise. All it takes is some time and effort to learn the basic elements and then even those South Africans who never traded a stock or a commodity in their lives may find success.
With some time and practice, traders can develop skills necessary to monitor the financial circumstances on the market which will help them to make the educated guess when it comes to predicting how the price of the underlying assets might move.
Of course, the biggest benefit of all is the alluring prospect of making relatively large sums of money in a short time should traders predict the price direction correctly. In most cases, there is a possibility to receive from 60-85% returns upon profitable investment.
What’s more, South Africans looking to trade binaries will know beforehand just how much they stand to win or lose per trade which helps a lot when it comes to money management.
Further fact that most brokers have a reasonable and affordable minimum deposit of $250, makes this online trading even more attractive. In fact, there are popular and well-established brokers like IQ Option which has a minimum deposit of only $10 which makes binary options trading attainable for most.
Further benefits of trading binary options lie in the fact that this is an online trading investment and can be done from the comfort of their home or via a mobile trading app. So long South African traders have a reliable internet connection binary trading can be done.
Availability of Educational Materials
In part, benefits of trading binary options rest on the fact that educational materials are readily available and really, just a simple click away.
From informative binary broker review sites like binarytrading.co.za which does not just offer detailed broker review but guide and strategy articles to binary brokers themselves.
In fact, it would be difficult to find a broker which does not have an education or academy section stacked with numerous helpful materials. Webinars, virtual demo tours, 1-on-1 lessons with a trading expert, eBooks to useful blogs. All this is available to registered traders and may be used to gain more knowledge and understanding.
In a way, it is the broker review sites which could be the best source of information. There, traders can find detail broker review and, more importantly, guide and strategy articles on every segment included in trading binaries.
From more information about underlying assets, to which trade options might be the best for beginners to useful strategies and the importance of having a trading plan. The best part? Traders get to do this from the comfort of their home, or the library or as they commute home from work.
And, they get to learn when they want, how they want.
Diversity of Brokers, Underlying Assets and Trade Options
People, by default, like choices, options and diversity. All of the aforementioned is a stamp of binary options and can be counted among the benefits of trading binaries.
A quick search will tell traders that there are around 300 binary brokers currently available on the market. Add to this the fact that most Asset Index lists broker offer number from 40 up to 200 underlying assets and combine that with interesting trade options and South Africans certainly won’t be able to complain about the lack of choice.
Traders can choose among numerous binary brokers, which range from the most popular ones like 24option, IQ Option, AnyOption or StockPair to those who have recently started but already made their mark like Daweda Exchange.
The same goes when it comes to trade options as South Africans can, depending on the broker, opt to use most popular trade options like High/Low, 60 Seconds.
They can also try out Pair Options, One Touch, Boundary, Ladder, Range or Long Term Options. South African can also find trade options such as Bubble Options, Turbo, Dynamics or Kiko Options but they are not so common, with Kiko options only offered by StockPair.
When it comes to underlying assets, four usual groups are available – commodities, stocks, currencies and indices with a substantial list of various underlying asset combinations presented on binary broker trading platforms.
The Practice Field a.k.a. The Demo Account
One of the trading features binary options traders find among the most important benefits is the demo account. In a sense, the demo account can be seen as a free practice field without the possibility to lose funds.
The reason is quite simple, the funds on the demo account are virtual ergo traders are not in danger of suffering losses. On the other hand, using the demo account, which is usually either the same as the real trading account the broker provides or an approximation of the one, can do a lot for traders in terms of experience.
In using the demo account for practising, South African can improve their knowledge and understanding of binary trading significantly. Additionally, they can also test various trade options, expiry times, strategies and underlying assets.
All this is done in a risk-free environment since trades do not have to focus on winning but rather on gaining experience. Yet, the demo account is not just a fantastic practising tool for novice traders as even those who have experience may use it and test some trade options or strategies they were reluctant to use thus far for fear of failure.
There are other beneficial trading tools which most brokers provide traders nowadays, such as mobile trading app which allows traders to trade on the go thus saving time and additionally taking advantage of all potentially profitable trades they might spot.
The New Face of Binaries – Binary Options Signal Providers
Lately, there is another trait that attracts even more traders, both globally and on the South African market, to binary options – automated binary trading.
In a sense, it could be said that using binary signal providers or binary robots painted binary trading in new and more vibrant colours.
Naturally, it also added another benefit to trading binary options.
The attraction of automated binary trading over manual are numerous, but the biggest advantage is that the auto trading software basically does most of the work on behalf of the trader.
The majority of signal providers or binary robots make use of the sophisticated, advanced algorithms which scan the market to create the most profitable signals and after that the automated software uses it to carry out the trades on behalf of the traders.
One of the most popular binary robots on the market which even managed to scoop the prize for the best binary robot in 2016 is Binary Options Robot.
What South Africans get with this amazing auto trading solution is a 100% web-based trading system, which provides their traders with a VIP account, five trading strategies, daily stop loss option and the auto trade approval button.
The last provides traders with the huge amount of control over the binary robot as the software, despite being automated, will never carry on with placing a trade without the approval from the trader. It will also never trade if traders are not online which means that it is not possible to empty the traders’ funds.
Finally, all South African traders have to be aware of the risks. There is always a possibility of losing funds. Indeed, it is not possible to be successful in every trade.
However, in becoming sufficiently informed, taking the time to learn the most important segments and being aware of both the benefits of trading binary options as well as possible pitfalls, that risk can be managed.
And binary options trading can become a profitable long-term trading venture.