Over the past few years binary options have become more popular across the world. It has grown so quickly that it has become a multi-billion dollar business. That said, it still has a long way to go before it becomes as popular as more conventional online trading platforms but momentum is certainly building. So just why is binary options trading so popular?
1. Pretty much anyone can use them
Traditional trading is big business. Successful gauging the market and buying shares at the right price has made a lot of people very rich. However, unless you have a substantial amount to invest, it is pretty much impossible to get involved with this type of trading. Binary options, on the other hand, are more accessible and allow you predict the price of stocks or commodities. This could include Facebook or Apple shares, the exchange rate for a currency or the price of gold. When you sign up, you decide whether the price will rise or fall on the asset you have chosen will rise or fall and if your prediction is correct you receive a return on your investment, this is around 65%-95%. However, if your prediction is wrong, you lose. Fortunately, most brokers offer training to help you along your way and this usually includes a demo account so you can try it with just a small deposit to see if it is for you.
2. It is a great way to benefit from big business shares without massive investment
In the past, it has been difficult to profit from the success of big companies without investing substantial amounts in shares. However with binary options, it is possible to invest as little as £1 with some brokers, but people with more to spend can put £200,000 or more if they prefer.
3. Growth has resulted in better regulation
Like any form of business, binary options has attracted some dishonest so called brokers. However, as the popularity of this investment facility grows the regulations for traders have improved. The regulation authority varies from country to country but it has made it easier for investors to get involved with reputable brokers offering binary options in South Africa, and even in the UK and the USA. The Financial Services Board regulates financial services in South Africa. In the UK, the Gambling Commission regulates binary options firms while in the USA the CTFC is responsible for regulating these firms. New investors can contact these companies before using binary options to ensure a firm is reputable. Regulated brokers have a reputation to uphold and generally want to garner trust from consumers. This makes it less likely for those new to binary options to be scammed or misled by brokers.
4. It is flexible and you can improve as you go
You can bet on stock, commodities and exchange rate from virtually anywhere as long as you have access to a computer or a mobile device. This means you don’t have to sit at a desk all day. Furthermore, if you keep an eye on news about companies, brands and country you can make more informed decisions. New releases often make share prices increase while instability affects the exchange rate as we recently saw with the UK’s Brexit announcement.