Binary options traders are eager to know what are pros and cons in binary options trading in order to be successful when trading. Although binary trading isn’t difficult to learn, it does require a certain knowledge level and skills to become a pro in binary options trading.
Due to widespread popularity of binary industry, more and more South African traders became interested in this type of online trading. Since binary options is adapted to both new traders and professional ones, possibilities to maximize profit are numerous.
This guide about pros and cons in binary options will reveal how to learn all tips and tricks and become a successful binary options trader.
What are Pros in Trading Binary Options?
There are many advantages why a lot of South Africans became interested in this popular investment called binary options. This part of guide will show our readers what are the most common pros for successful binary options trading process.
High Binary Options Returns
Many reliable binary brokers listed on our broker list offer really amazing returns, which is very appealing to interested traders in South Africa. Payouts can go up to 100%, but mostly are between 77% and 92%.
Each binary broker has different platform as well as trade options and features, which traders can use. It is advised to read as much broker reviews as possible to get better insight of what trading instruments and services can be used on particular trading platform.
Try Risk-Free Demo Account
Demo accounts are considered without a doubt as one of the main pros when trading binary options. Thanks to many benefits, South African traders are able to invest in binary options at no risk which is extremely significant to inexperienced traders.
Best brokers in binary industry offers demo account to their register traders, such as Banc de Binary, IQ Option, 24option, Opteck, StockPair and many more.
On IQ Option demo, traders are offered with free demo account, which is funded with $1000 of virtual money. This means how traders don’t actually place trades with real money, but instead they invest virtual money. Therefore, there can’t be any money loss and South Africans are able to gain more trading knowledge and opportunity to test a trading platform.
Binary Options – Simple Online Trading
This comes as one of main reasons why many traders started to get involved in binary options, globally and locally. Binary options trading can be a great opportunity to new and inexperienced traders who don’t usually participate on financial market.
With binary options, traders in South Africa are able to use a variety of different features and tools in order to achieve high profits. Registration process is simple since traders only need to provide broker a few information and soon they’ll get access to trading platform.
With possibility to reach out for particular broker via live chat or email is important segment of successful trading process. In case of any queries, traders can check for valuable information in Education area or ask dedicated account manager.
With a selection of useful features and trading tools on disposal, trading binary options can be very profitable for all interested South African traders. It is possible to trade with short-term and long-term trade options and choose preferred expiry time. Also, a wide selection of assets are on traders’ disposal, such as stocks, commodities, currencies and indices.
Trading with Smaller Budgets to Maximize Profit
One thing which we find very useful is the fact that traders are able to make a profit, even when investing smaller amounts of money. Binary industry makes it possible to earn money even with low deposit or smaller sums of investment money.
An average of minimum deposit in binary options industry is $250, however there are plenty of brokers who have very low deposit amounts, such as IQ Option ($10), Binary.com ($5), 365trading ($100) etc.
What are Cons in Trading Binary Options?
After evaluating pros in binary options, this part of our guide will show what are most common cons when investing in this industry and what should be avoided.
Alert from Binary Scam Brokers
Trading with trustworthy binary broker is a the most important step when joining binary options industry. How to choose a right broker should be primary concern of many interested South African traders.
Since binary industry is popular since 2008, more and more brokers appear all the time, unfortunately, scam brokers also. Binary scam brokers can be spotted by having unclear terms and conditions and non-payment of traders’ funds. It is important to learn how to detect scam in binary options to have a secure and successful binary trading journey.
Be Aware of Risks
Although binary industry has many advantages, it surely doesn’t mean how traders in South Africa will achieve huge payouts each time. Trading binary options does include a certain level of risk. It is recommended to have a trading plan which traders can follow and place trades accordingly.
Traders shouldn’t believe empty promises to get instant money by placing even more in the second trade. Risk is present when trading and that is why South Africans should keep that in mind. Also, certain assets are influenced more by the market itself, such as currencies or commodities, in case of political changes or natural disaster.
Regulation status is taking a big step in binary options industry. Nowadays, more brokers choose an option to become a regulated broker and do business in accordance with EU laws and MiFID regulatory guidelines.
However, it doesn’t mean how unregulated broker are by default a scam, since this is a brokers’ choice if they want to obey a regulatory authority and participate on certain financial markets.
There are several regulatory authorities, which are responsible to ensure safe trading environment for traders to avoid scam activity in binary industry. CySec (Cyprus), FCA (UK) and FSB (Financial Services Board) are just few of those. Their job is to monitor if business is transparent to all traders who invest.