I have held back from writing about binary options trading as one of the ways to earn an income at home until I found out more about it. I have not chanced trading in binary options as yet, and that is why I needed to research more about this alternative way to earn working from home, but before talking to you more about it, my aim was to establish this: is binary options trading a good idea, and can you make money online by trading binary options?
What is binary options trading?
The name in itself gives it away. Binary is referred to the fact that you are asked to choose on one of two options. In the world of binary options you put a bet as to whether the value of certain assets, such as gold, or stocks or markets, will go up or down within a certain time frame. If your prediction is correct, you will win the bet and will earn a pre-set commission. However if you loose the bet, or rather your prediction is incorrect, you will loose the money you have invested in the bet.
Put in such terms, binary trading sounds no more no less than a pure and simple betting system – nothing brainy, more so made easier as the choice is only between one of two options, as opposed to the many chances put to you by a more sophisticated probability system. But at the end of the day, it founds its concept on a gambling system, and as such may have no security attached to it when it comes to guaranteed earnings. For this reason, many do not trust, or will even consider binary trading as a legit way of earning from home.
Have a look at a training video from IQ Options, one of the leading and most reputable brokerage platforms world wide:
Who can trade in binary options
Binary trading is done mostly online nowadays. Therefore, provided you have a computer or laptop or even a tablet and a wi-fi connection, no matter where you are, you can trade in binary options. Everybody is deemed suitable to trade.
However, you must have a minimum capital available to invest immediately.
Also, it is deemed that in order to be successful at trading in binary options, you must have done research on the ongoing trade in the value of the asset you are betting for. So, if for instance you would like to predict which direction the value of gold is going to take within the next 24 hours, you may have done your research beforehand, also looking at recent political events in the main countries that produce and export gold and which may affect economic trends in those countries that import and resell gold for retail. In other words, for you to become a successful binary options trader, you must have good nose for a hunch.
So, is binary options trading a scam?
Given the risky nature of this business, not many of us take lightly to such a way of earning. In first instance, and unlike many other ways to earn whilst home based, this type of business requires an initial capital to invest.
You will be saying the same applies when you purchase stock to resell, or when you purchase a domain to build a website. However the risk with binary options trading is seen as much higher as you do not handle physical goods, nor do you receive an immediate service in return for your investment.
However the ill reputation binary options trading has gained is due to the many fake broker companies readily available on the market.
What gives bad reputation to binary options trading
Unfortunately in the past binary trading was primarily available through broker companies that were not legit or did not pay commissions as per original agreement. These companies were pure and utter scam – cowboys who chanced their luck on beginners to make themselves rich at the expenses of the many of us who were trying to invest their hard earned money for a chance of an extra income.
Thankfully the binary trading market has been regulated much more tightly all over the world in recent years. Nowadays there are many reputable brokers out there, who not only offer you the opportunity to trade free of charge initially for you to get used to the system and to make yourself comfortable and learn how trading works. But many brokers these days also allow you to put your prediction with a reduced investment, unlike in the past where you could only trade, and risk to loose, higher amounts of money.
A couple of tricks up your sleeve, or three…
Now, I am no expert in this field at all. In fact, as mentioned, I have always been sceptical about the whole affair, nor have I felt comfortable talking about binary options trading as a good way to earn from home until I have satisfied my doubts by researching. And in the course of my research, I have come across a couple of tips or three from the expert as to how to make binary options trading less risky for you.
#1. Do not bid more than you can afford
There is no denying that brokerage platforms are in the business to make a profit, not certainly to play even. Another aspect of this business therefore is to bear in mind that, at the end of the day, you are dealing with a sales business where it will be in their interest to ‘encourage’ to place your bid for as high money as they can possibly squeeze from you.
Like in gambling, you must be absolutely level headed about binary options trading. Never trade for more than you can afford. In fact, best secret is always to go for less than for more. Yes, admittedly by bidding for less you may miss out on the highest earnings. But you will also miss out on the highest loss, should your prediction not be accurate on the day.
#2. Play safe
Again, and as mentioned before, find a platform that will allow you to bid for little amounts of money. Commissions on binary options platforms are really appealing, with winning in the region of 70-80% increase over your bet. So, to put it plainly, if you started bidding for as little as a tenner and got your prediction right, you could see your winning nearly double up at as much as £17-18. But remember that if you loose, you will loose a much higher percentage of 100%! For this reason…
#3 Know when to stop!!!
It is vital that, like when gambling for fun in a casino, you know when it is a good time to stop. So, if you are on a relatively healthy winning, just stop – do not chance your luck one too many times. Or again, if you are really tempted, just keep bidding that one more time for a small figure.
A lot of brokers put a payout limit to your withdrawal of funds from the trading platform. Try looking for a relatively high one, but never leave too much deposit on your platform’s account. The more money you leave there, the more tempting it may be for you to keep bidding. And also, it is your money at the end of the day, and by leaving it in the pockets of your broker, you will enable them to earn in interest rather than if your money sat in your bank account!!
#4. Research, research, research
And this last tip is applicable yes, to current news of political and financial nature that could possibly have an impact on the value of the commodity you are about to bid on. But it also apply to the platform you choose to use for your trading. Try to go for what appears to be a reputable one. Before you commit your money to them, however small a figure it may be, google reviews on that company and find as much information as possible about how reputable and reliable in their payments they are.
Do not go for binary options trading if you do not feel absolutely comfortable with the idea of ‘gambling’ however little amount of money, whether that may be for ethical or religious believes, or simply due to financial hardship.
However, if you are ready to chance your luck, go for a platform that will allow you to be as cautious as you wish – for a platform where you are in control of the game, not them!
Truth be told, have I ever tried trading in binary options? Never! In fact, I have never traded in stock and shares markets either. Would I ever do it? Now I have come across IQ Options, yes I shall, given the fact that you can start trading for as small as £10!
I shall discuss the merits of IQ Options more in details in my separate review. Rest to say that IQ Options is one of the reputable platforms I was referring to, giving you the options to trade in real time with no deposit, for you to familiarise with the system. They use commodities with high commission percentage, therefore making your taking the risk on your deposit worthwhile. Unfortunately they have a payout threshold of £1000, but this practice is not uncommon in financially related industries, and if you start making a substantial profit, and are prepared to bid higher figures, you can reach that payout fairly quickly.
Another chance for affiliate marketing
Admittedly, my field of expertise when it comes to making an income from home, is through affiliate marketing. And that is the other reason why I like IQ Options.
If you believe IQ Options is a true way to make money online through binary options trading, and if you would like to give others the opportunity to earn as much as you have just done, click on the above banner and find out the high earning potentials through promoting IQ Options as the place to be when it comes to legit binary options trading!
I am sure there are many of you out there who have had a go at binary options trading and lost money, and many others who in fact are still trading successfully. As I am still very much a newbie in the subject, I would like to find out more. Please leave your comment below and let me know what you think of it.