Home STRATEGY IN TRADING Binary Vs Forex – Investing and Earning Online
Binary Vs Forex – Investing and Earning Online

Binary Vs Forex – Investing and Earning Online


Binary vs Forex – which is the better solution for online trading? Are you looking at making money online trading? We highly recommend that you read this extensive review on the different options available for investors for online earnings. Binary vs Forex is an impartial post, being written for the sole purpose of explaining the similarities and difference between Binary vs Forex and to provide a clear investment guide to both new and experienced traders.

Binary vs Forex – Make Money Trading Online

Whether you are a new trader, or even a seasoned one, finding the best option for investing your spare cash and generating an income online is not an easy choice.

Binary Options trading is made to look like it is super-simple, yet when traders try their luck, they end up using the platforms like slot machines. Many new traders end up gambling off their investment, instead of trading properly.

On the other hand, Forex is presented as super-complicated, when in fact, if the basics are followed, it is easily mastered.

Nowadays, Forex trading platforms are being designed in such an intuitive manner, that even new traders can learn to navigate quickly. The crux of the matter is only one! Can you make money online trading Binary vs Forex trading?

Trading Binary vs Forex Trading – Which is The Better Option?

The first and very obvious downside to the “easy to trade on” binary options, is that there are plenty of scam brokers.

Therefore identifying how to avoid binary option scam brokers, and scam auto traders, is your first key answer.

In case you are new to trading, you should read our post of “What are binary options”. In a nutshell, binary option trading, is picking a trade and deciding whether the currency pair or the asset will be heading “UP” or “DOWN” within a chosen time frame. All the trader has to decide, is direction and hit the “execute” button.

binary vs forex

However, this is not the whole truth! The reality of binary options trading is somewhat different. When trading binary options, you are not trading on the open market. You are in effectiveness trading against other traders on the broker’s platform. The broker needs to balance off between “players” on their platform. They will net the difference between the pay-out and the original investment. If for some reason however, all the “players” are choosing on the same side, the Broker is the net loser.

For this reason, it is of great importance that you pick a legitimate broker when trading binary options. A broker who is properly funded, and can afford to be the net payer, in case many traders win on the same side.

Of particular importance it is essential that you invest your initial capital with a Broker that is properly licensed and regulated in your geographical area.

Guidelines to Safe Investment in Binary Options

  • If trading in the United States – you should only trade with NADEX – this is the only Binary Options Broker that is licensed by the CFTC to solicit U.S trading in Binary Options. You can read our Nadex Review HERE
  • In case you are trading in other countries, particularly Europe, you should definitely have a look at 24 Option. 24 Option are licensed by CYSEC and have an impeccable reputation for pay-outs. Read the full 24 Option Review HERE
  • Learn how to trade binary options by opening a FREE DEMO ACCOUNT with IQ Options. IQ options offer a no commitment free demo account, which is funded with “virtual money” and is therefore absolutely useful to a new trader. It is the only risk free way by which to trade and learn. Read the full review on IQ option HERE

Bottom line, stay safe and trade only with the highest quality brokers. Small and non-regularised brokers, although not always the case, can go broke. They may not pay you, if they happen to have a major player winning against them. They just go broke.

Here is our list of RECOMMENDED BROKERS.

Trading Strategy – Binary vs Forex – Is it Really Complicated?

We will now quickly evaluate Forex Trading. Forex trading, is trading the currency markets. Today, most broker will offer also a wide range of other assets, which includes commodities, shares and other financial instruments.

In this review of the Binary vs Forex for and against strategy, we will however also show you the differences between trading binary and trading forex.

Whereas in binary options you are trading against the broker, which is also called “in-house” trading, in Forex you are trading in the open market.

In Binary you are “betting” in the eventuality of the currency pair going in the direction you pick. Whilst in the case of Forex, you are choosing the direction that the currency pair will go, in the open market. In case your direction is correct, you will make “pips” or “profits measured in fractions” depending on how far the direction goes in your favour.

The broker only provides you with the platform you trade on, and makes several pips of profit off your trading.

As to the question of whether trading Forex is really complicated, that is another question. Forex is based on leveraging.

What is Leverage in Forex?

Here is an explanation a brief and visualized explanation of leverage in Forex.

binary vs forex

Visual courtesy of CMFX.COM

Another downside to Forex is that you either learn how to place your “stop loss” and “take profit” or else you are stuck in front of a computer, monitoring the movements of your trades!

Here is how to easily solve this matter, especially if you are a new trader. We recommend that you visit the eToro platform. eToro is probably the world’s leading social trading platform. eToro have devised a user-friendly platform, where you can either trade solo, or better still discuss with other traders before placing your “order”.

With over 5 million traders subscribed to eToro, you are networking with like plenty of like-minded traders, who are either seeking or giving advice. Best of all, eToro has two important features which are

  1. Copy Trader – you can select the best performing traders and have part of your capital allocated to automatically copy trades of professionals.
  2. Copy Funds – this is a very new feature, whereby traders can copy entire funds instead of a single asset. So one single trade will be weighted against the net result of an entire portfolio.
  3. You are given a demo account for $100,000 with unlimited usage the minute you join eToro. Minimum investment is as low as $50
  4. If you are a new trader, eToro is the best choice for trading forex. It is not just user-friendly and offers automatic trading options, but it is fully regulated by CySec. Read the full eToro review HERE

So how does Forex trading vary from Binary Options?

If you are dealing with the right brokers, there is not much difference. The principles of trading are the same for both binary options and forex. Bottom line, you need to learn how to trade. You must understand the basics like “Fundamental Analysis” “Technical Analysis” and “Sentiment Analysis” Picking the right entry price, is the most important basics of successful trading.

Again, we recommend that you have a look at “The Secret Trader” This e-book and online trading course, will take you by the hand and teach you how to trade. Expect to start off as a beginner and follow through as a seasoned trader. ebook banner the secret trader

In a nutshell if you are choosing between Binary vs Forex, what you need to bear in mind is the following points:

  1. Pick the Right Broker and AVOID SCAMS!
  2. If you are a new Trader – use features like “Copy Trader” on eToro or “Lexington Code” for Binary Options. Both have been tried and tested with real trading results. Consider these are the “tools” in your trading tool kit.
  3. There is no real substitute to working hard. Understanding how to use the best trading strategy requires skill. Invest in your own Education, and you are already on the best road to success.start profiting now with lexington code

Can I Make Money Trading Online?

Undoubtedly the answer is YES! Trading remains one of the most legitimate and easy ways by which to make money online. When we say “easy” we mean that everyone can do it. However, it is subject to the provisos explained above. You must also consider your “money management” before trading. Never trade what you cannot afford to lose. You may potentially gain a lot with trading. You are equally exposed to potentially losing your capital. This is especially true if you trade without the correct tools! And remember the advantages of joining a Social Trading Group – where you will meet traders who have the same issues and questions on trading strategy and investment as yourself.

Thank you for taking time to read this Binary vs Forex review. We sincerely hope that this has been easy enough to understand, and to help you make a decision where to head in the future. Will it be Binary vs Forex? Both have their advantages and disadvantages, but in the end a lot will depend on you and your skill in trading. Therefore self-investment is always the key to your own success.

Please do subscribe to this blog for more information on trading, and the best strategy for investment and profits. Subscribe also to our YouTube Channel for live trading sessions. And remember, we are here to help. Drop a comment in the comment box below if you need any help or reach out via support(at)



  1. i have been doing binary but now after reading this article maybe i will start slowly with forex, if the demo account is for free i will open it and test it myself.


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

I'm not a robot *

Information on should not be regarded as recommendations to Trade Binary Options. Trading Binary Options carried substantial risk of loss of capital. is not licensed nor authorized to provide advice on investing and related matters. Information on the pages of BinaryOptionSheriff are only guidelines and should not be treated as investment advice. Clients without a good knowledge of Binary Option trading should seek individual advice from an authorized source. Past performance is not a guarantee for future returns. does not accept any liability for any loss or damage as a result of reliance on the information contained within this website. This website is independent of the Binary Options Brokers and the Signal Software featured on it. Before trading with any of the brokers, or using Signal software, clients should make sure that they fully understand the risks and check and ensure that the broker of their choice is licensed and regulated. We recommend choosing an EU regulated broker if you reside within the European Union. US REGULATIONS IMPORTANT NOTICE. Binary Options Companies are not regulated within the US. These Companies are not supervised, connected or affiliated with any of the regulatory agencies such as the Commodity Futures Trading Commission (CFTC), National Futures Association (NFA), Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority 9FINRA). Please NOTE that any unregulated trading activity by U.S. Citizens is considered unlawful. Trade only at your own risk. CFTC rule 4.41: Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown. All information on this website are for educational purposes only and are not intended to provide financial advice. Any statements about profits or income, expressed or implied, do not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold Binary Option and any authorized distributors of this information harmless in any and all ways.

Translate »