Chapter 22. Forex or Binary Options – What to Trade?

Forex or Binary optionsA quick search on the internet will quickly reveal an unofficial war between the online Forex industry and binary options industry. The markets for these two financial instruments are presently the most widely patronized by the ever growing retail traders sector. Traditionally, the online Forex industry dominated the market until late 2008 when binary options were introduced into the financial markets. Nobody could have predicted that such intense competition will exist between these two markets.


By volume, the forex industry is the largest financial market in the world commanding a daily turnover of around $3 trillion dollars. The growth in this market was largely assisted by massive deregulations in the way brokers do business and the revolution in internet technology. What attracts traders to the forex industry is largely due to the leverages offered by forex brokers. No other markets currently offer a leveraging ratio that can compete with the forex industry.


In comparison, binary options only made their debut into the financial arena in late 2008. Today, they seem to also dominate the online financial markets. Unlike forex, binary options brokers do not offer any leveraging facility to their clients. Yet, the binary options market had been able to expand rapidly until it had become a very serious source of competition to the forex industry.


You might be asking where do you fit into all these? Well, if you are looking to venture into retail trading then you might want to ask yourself which is better, binary options or forex? By understanding that the online trading landscape have changed tremendously over the last 5 years, you will realize that it pays to have a deeper look at what binary options are all about.



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