By now, you have probably heard of Forex trading. You know that Forex is a multi-trillion dollar market, you know that you can trade large sums of money with minimal capital, and you most likely know how complicated actual trading can be. What you don’t know is that there is a good alternative to Forex trading: binary options trading.

Binary options trading is a promising space right now with many Forex traders testing the binary options (BO) waters. Why are we seeing so much crossover between Forex and BO trading?

The answer is quite simple. The two industries are very similar in many ways. To name a few of the areas where they overlap, when trading BO, you can actually trade Forex. Also, in essence, you are predicting the movement of the asset based on the analysis of the Forex market.

Also, just like forex trading, binary options require a very small amount of starting capital and the option to make a profit is in both directions. If you predict that the asset will go down and it does, you make money and if you predict that it will go up and it does, you also make money. Same as forex trading.

So if there are so many commonalities between Forex trading and BO trading, why do so many people drop the former and switch to the latter? Well, the truth is that as attractive as Forex trading is to many people, BO has some distinct advantages.

For starters, BO trading is significantly simpler than Forex trading. You decide if you think the asset will go up or down and that’s it. No charts, no analysis, no Fibonacci and no retracements.

Furthermore, earnings in Binary Options are immediate and transparent. Finally, all binary trading platforms are web-based, which means you can trade binary wherever you are, as long as you have an internet connection.

Whether you choose to trade Forex or binary options, it is important to have some kind of strategy, including your financial goals, your exit points and an exact definition of how much money you are willing and able to risk.