Most experts who have been in the business for years and have tons of experience will probably agree that crucial elements for any broker house to be successful, reliable and respected are safety, security and performances. There are many companies on the market nowadays who can reach those standards in satisfying manner, and unfortunately there is even more of those under-performers which are not good enough and put other broker houses under a bad reputation.
However, there are also those which are offering even more than those three elements, and which make trading with binary options a very enjoyable and exciting experience. One of those companies is called 24Option and this article will try to demonstrate why you should sign up with them as soon as possible.
First of all, this broker house is extremely safe and their attention given to security is remarkable, so all clients can be completely free of concerns or fears about their investments or personal information. 24Option follows all necessary safety protocols to make sure that all areas are covered and that no security breach is possible, and there is certainly no talk about this company being a scam. They are a renowned enterprise, started in 2010, and have impeccable tradition in providing the platform for trading in binary options. During those five years since they operate on the global market, popularity of this company has sky-rocketed and nowadays 24Option has thousands of registered accounts from all over the world.
Second element for the staggering success of this enterprise was the fact that this company was licensed from all of the big names in the world of regulations, paperwork and bureaucracy. Perhaps the most important of those is CySEC, or Cyprus Securities Exchange Commission, and this regulatory body has issued its license to 24Option in 2013, under the number 207/13. This event was very significant in the history of the company, since it provided them with a “passport” for European Union, and from that moment 24Option was present on this giant market. Also, having the license from CySEC, 24Option was officially recognized as a safe and legitimate corporation. Very demanding standards and strict regulations of EU are a problem for a lot of smaller companies, but this obstacle was easily skipped by this broker house, and the road ahead was clean and full of new customers.
Binary Trading Strategy
Third element of a good company is performance, and this is something which 24Option also deals with in a superior manner. They have a website which is very easy to use, has lots of additional features but is in the same time very clean and simple, and provides quick and efficient trading. They have mobile apps as well, which are equally well optimized and regularly updated. Trading with binary options through this website is fast and, if you are lucky, can be potentially highly profitable. That depends on several elements which are more connected with the trader, but any one of them can be sure that placing bids through 24Option is a good solution in the long run.
Trading binary options has been around for over thirty years, as a minor part of the trading market. In 2008, it became officially acknowledged by SEC (Securities and Exchange Commission), and there has been a huge rise in popularity of binary trading ever since. Before this type of trading was officially recognized, it has been considered more like a gambling and there were neither clear regulations nor standardization of this type of trading was available. Today, when there are hundreds of binary options brokers, it is necessary to pay much attention when choosing the one to trade with, since not all of them are regulated by regulatory authorities.
Regulation is important because this way the traders are more protected from scams and fraudulent websites and false brokers. In the beginning, many binary options brokers were located in offshore sanctuaries like Cyprus. Today, in order to become a certified broker, your company must comply with many laws and regulations, or otherwise it will not get a license of operation. When a broker gets a license from the regulatory authority of its country, it must strictly comply with all the stipulations enforced by the authority, in order to keep the license and be considered a legal and legitimate binary options broker.
As a trader, if you want to choose a reliable broker, there are two ways of checking whether they have a license. First, you can go to the broker’s website and search for the license if it is stated on their website. The other method is somewhat more secure, and it includes going to the website of the official regulatory body of your country, look for the list of certified brokers and search for the broker you want to check.
To make this easier, here are some major binary options regulatory bodies in different parts of the world:
USA – Commodity Futures Trading Commission (CFTC)
Europe – Cyprus Securities and Exchange Commission (CySEC)
UK – Financial Service Authority (FSA)
Australia – Australian Securities and Investment Commission (ASIC)
United Arab Emirates – Dubai International Financial Center (DIFC)
Russia – Federal Financial Market Services (FFMS)
Some countries, such as Canada or South Africa have no official authority which deals with certification of binary options brokers. Therefore, when choosing a binary broker, make sure to check the country where it is situated. You can do so by searching the website, because the country of the broker’s headquarters is always stated. Also, many brokers do not accept USA traders, since most of them are situated in Europe, especially in Cyprus, because of the early history of binary options brokers. This is because some laws and regulations of Europe and USA simply do not comply. On the other hand, some reliable brokers, such as CTOption, Cherry Trade and some others accept traders from all around the world, including USA.
When you decide to trade binary option, make sure to protect yourself, and in order avoid scam and losing all your money, always choose a broker which was regulated by the official regulatory institution of your country.
Binary options trading, when viewed from the surface, seems very simple. You should just choose one of the two alternatives and that is it. However, it can actually be a very complex area of trading once you invest your time and effort into it. There are many actions to be performed before the trading itself and during the process as well. You should be educated about how the system works, follow the trends on the market on daily basis and monitor all the changes in the prices of the assets you trade, but also the changes on global level which might influence the price of your assets of interest. All of this can be done by the trader himself, but there are also some facilitating inventions for binary traders.
Trading indicators or binary options signals are the alerts about the assets’ presumed outcomes in some future period of time. They can be created by human experts, but it is more and more common that software is the one who creates them by complex algorithms. These signals are based on the thorough analysis of the market and all the changes and fluctuations in prices. These signals can later be used either to sent the suggestion to traders whether to call or put a particular options, or for the binary options robots to execute the trade on the trader’s behalf. If you want to use signals it is advisable to use signals of the platform you are using. So if you are using TropicalTrade platform, it is best to use their signal.
If you decide to use a binary robot for trading, that can be a good choice because there is no emotional involvement when making decisions. Instead, everything is based purely on facts and data, without human influence and wrong reasoning. The robot functions by analyzing the trading indicators or signals sent to it and creating a price forecast based on these signals. After that, the robot will choose to call or put an option based on those signals, and the trade is automatically executed through the broker’s trading platform. With most robots it is possible for you to set the parameters, such as minimum and maximum investment, maximum amount of money you are willing to lose, the number of trades to be executed etc.
Binary options robot can be chosen in two ways. The first is to get it through your broker, since there are some brokers that offer the service of automatized trading. Make sure to check the robot’s accuracy, and reading some comments from other users might also help you choose whether to use this kind of trading or not. The other way is to find a binary options robot on your own, through the websites that offer particularly this kind of service. It is important to find a reliable one, since in this particular area there are many scams. Do a background check and again, read other people’s experiences to get a full insight.
The accuracy of these robots is up to 85% and wherever there is higher accuracy noted, it is likely to be a scam, so be very careful. Also, keep this percentage in mind when using binary robot in order to be aware that there is no a 100% chance of winning every trade on binary platform, no matter whether it is executed manually or automatically.
You may have noticed a tendency of forex based articles, the tendency in which they aim to write about complicated things like indicators, candlesticks, shadows and so on. And people read that, which is why those articles are being written for. And after reading dozens of those articles, new trader feels that he is ready to start trading on forex. After which he creates account and enters the market where he is confronted with currency pairs, and he stops. Why, you wonder? Well because that trader doesn’t know what are those currency pairs.
He isn’t familiar with currency pairs because people have stopped writing about them, and in general there are only few articles whose subject are currency pairs. People who write those articles automatically assume that reader has knowledge about these pairs and no one mentions them, which brought us to the point where there are no articles explaining this subject. And that is why I have started writing this article.
Now, the easiest way to explain currency pairs is to give you an example of how things are traded on both stock market and forex. On stock market you use money to pay for goods ( assets ) and later you sell them for better price and earn the difference. On forex you use money to buy money, you use one currency to buy another currency, while paying attention on exchange rate between those currencies. Your income on forex comes from the difference in exchange rates when you buy or sell your currency, you buy one currency on one rate and then you sell it on another, and the difference is what you earned there.
Currency pairs are pairs created by two currencies that have exchange rate between them, the best example of currency pair is the most known pair EUR/USD. In the case you want to buy, you will buy euro with dollars, and vice versa. First currency is commodity and if you buy it, then you have to pay with second currency in a pair. And if you want to sell your commodity you have to sell it for second currency.
There are many currency pairs, but not all of them are traded as much as so called major currency pairs. All major currency pairs involve dollar as money, while the place of commodity in those major pairs is taken by either euro, British pound or Japanese yen. There are also minor currency pairs, and some of them don’t involve dollars as money or commodity.
When trading on forex you either take long or short position on market. These positions represent whether you buy a pair, in which case you take long position, named because it takes longer period of time for price to go up, or short position, where you sell currency pair, short because it takes less time for their price to go down.
Some of the major currency pairs can be traded outside of forex. They appear in form of binary forex options on broker lists. But be careful, they usually don’t follow price movement from and you may end up like some people, which you can find by browsing the Internet for CTOption Scam.
Some people like to compare forex with stock exchange market, but there can be only one conclusion derived from that comparison and that is forex is very different from stock exchange. First it is bigger, a lot bigger. Some data shows that forex is 100 times bigger than any stock exchange market. And this fact leads us to next difference. And other people like to compare forex to binary options market which is silly, binary options market has around 5 million of daily turnover, and placing your money in the hands of binary option robot demo software is stupid way to waste money.
Every stock exchange market must have central exchange and physical location. This is not the condition forex market has to follow, because of that forex doesn’t have any of those two things.
People think of forex market as over the counter market due to two things. First, forex market is fully automated, run by network of banks electronically and second, forex is active 24 hours a day.
Forex market allows people from all around the world to trade between each other. But it is up to those people to decide from who they will buy certin currency. There are parameters people look for when looking for someone to trade with, and this is to protect their finances. Reputation is maybe the most important thing to maintain and increase, then people look for prices other offer and there are few other things which will determine whether a successful trade is going to happen or not.
As you may have guessed dollar is central currency on the forex currency pairs market. Euro is in the second place, but difference between the amount of both of these currencies in trading is big ( note that two currencies are needed for trading and thus 200 percent will be used to present the involvement of each currency in forex trading ). Around 85 percent of all trading includes dollar, while euro has around 39 percent involvement in all forex trading. Japanese yen with 19 and British pound with 12,9 percent are other two major currencies on the forex market.
Most of the trading on the forex market is done by traders who decide whether to buy or sell based solely on intraday price movements. Some Speculators brought trading volume of forex market to 90 percent. This is why forex market has such a high liquidity,because of the size of trading volume.
Liquidity makes it easy for many to buy and sell, and high liquidity is especially important for investors. Liquidity determines the speed of price change over a certain time frame. Market with a size and liquidity like forex allows big trading volume which doesnt affect the price too much.
But there is more to forex market and finance management than liquidity and its size. As a aforementioned trading volume will not have great effect on price, but because this market has biger market depth, price can change, due to time of the day and currency pair you are about to trade or are trading.
This is only shallow look at both forex market and its liquidity. This is more complicated than it looks like, and explaining these two things in depth would take few ebooks rather than a page or two.