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Binary Options Trading Advantagesand Disadvantages

Top Binary Options Brokers During our 3 year experience as avid traders, we've traded at literally dozens of brokers. Here we bring you the top rated brokers that in our opinion are the best out there. The trusted brokers presented on this page are the ones we both recommend, and trade at ourselves.
1	AnyOption - Gets the top spot for the best Broker. An honest and credible broker. Great customer service, quick response to traders' questions and requests. Payouts are paid without any problems.
2	OptionBit- Is one of the best-established online trading brokers on the Internet. Great Customer Service and prompt pay outs.
3	iOption - Performs well in all categories. Once you sign in and start trading you'll enjoy the high quality trading platform and the great service.
4	Banc de Binary- Provides 5 star quality binary trading. Excellent service and exclusive bonuses make this a favorite place to trade for traders seeking top quality.

Binaries Trading Advantages and Disadvantages

Consider the following advantages and disadvantages when trading Binary Options (BO):

Advantages

Risk control - With BO the return on initial investment is fixed From the beginning, thus the amount of possible profit or loss is well known. Which means that you'll never lose more than what you expected and can determine your risk as completely as is possible. There's a limit on how much could be earned or lost in one trade. Because the rate of return is relatively high, and trade times are short, in the long run the fixed rate of a binary option can be a big advantage.

Short-time trading (daily, hourly) - with BO you decide what the expiry time of the option will be. If you are a fan of long-time investments, you can choose “end of the week” and “end of the month” expiry times. However, most traders would prefer shorter time frames.

Low minimum amounts - Binaries brokers have low investment minimums, thus allowing you to start with small amounts. With most brokers you can start trading with as low as $20. If you are familiar with stock market trading, you probably know that you need a decent amount of preliminary investment capital, brokers, commissions, etc. Thus the possibility to begin trading with just $20 as well as the flexibility to pick your investment amount is certainly an advantages.

Online trading - BO are traded on online platforms and therefore you don't need any software downloads. Trading is available from anywhere, all you need is a computer and internet access. You simply enter your login and password and get straight to your personal profile page and start trading.

Simplicity - Trading BOs is very simple and straightforward, all you need to do is decide which of the two directions the asset will move, up or down.

Trading binary options video

Disadvantages

The main disadvantage of BOs trades is the level of "fee" that is paid to the broker, it is relatively higher than in other investment areas. Fee? What fee? well, it's not exactly a fee, it's more of a 'spread'. The brokers' "fee" is embedded in the business model of a binary option brokerage. You buy the contracts from the brokerage, if you win, the broker will pay you out about 71% to 85%. If the contract expires “out of the money”, some brokers will refund a small percentage of the principal. The brokerage firm gets the difference between the sum that they keep on a losing trade and the amount they pay out on a winning trade.

Meir Liraz