There are a number of reasons why new and old traders alike are turning to binary options in droves. Binaries are a relatively recent development in the world of trading. Their predecessors, digital or all-or-nothing options, were only approved by the SEC in 2008. Since then, they have hit the online trading community and changed the face of trading in just a few short years. Until binary options hit the internet, online trading was a considerably more complicated affair. Online forex trading currently has the lion’s share of online traders. But Forex trading has some drawbacks that binary options negate by its very simplicity.

First of all, when you trade Forex you only have access to currency pairs, this may not be a huge hurdle for most traders at first, but being limited to currencies only limits the options at your disposal. Most digital options brokers offer trading on stocks, commodities, and indices, as well as currency pairs. Having these other assets to trade offers advantages to binary traders. This is because they can rely on correlations between assets when trading to diversify their trades. But this is the least of the advantages that binary traders have over Forex traders. The way binary options work makes them a better alternative to online Forex for a number of reasons. First of all, binary options have preset levels of risk and reward, which means that traders know before placing a trade how much they stand to gain or lose. This means that binary traders have much more control over their funds than Forex traders. Binary trades have only two possible outcomes and only two possible choices that a trader must make. Either the bet will bring a certain profit (somewhere between 60 and 80 percent), or most of the amount bet will be lost. And all you need to decide is whether the asset you are trading will go up or down. With Forex not only do you not have this luxury, but you also buy your currency pair for a little more than the market price, which means you have to go higher for your trade to succeed, but you also have to sell it at a higher price. lower than it’s actually worth, which means you’re at a disadvantage on both the output and input.

But binary options are not only an attractive alternative to the current status quo, their simplicity makes them much more efficient trading vehicles. The binary option is particularly useful because the duration of the trades is as flexible as possible. Binary options traders can select from several trading expirations, from as little as 60 seconds to the end of the year. This flexibility is much more useful in the case of short-term positions. The ability to define precisely how long a trade lasts is invaluable, allowing you to enter trades at the right time, profit from momentary fluctuations in price action, and not be tied to the fortunes of a given asset for longer than necessary. . Short maturities and preset risk structures also allow you to earn money when an asset changes direction. This eliminates the need for long trading sessions, meaning you can earn more in an hour of intense binary trading than you can with a day long Forex trading session.

Finally, with binary options gaining wider acceptance and regulation by different broker companies, the only real advantage that Forex had, basically a higher level of respectability, is quickly being undone. In trading, as in all aspects of life, the best idea prevails. Binaries make the most sense, for all types of traders, beginners and experienced. Forex would do well to take a leaf out of the binary options playbook. Simplicity is key.