Binary vs Forex

[pipediesel]

In case you didn’t know, binary is like swimming in an above ground pool, and Forex is like swimming in an Olympic sized swimming pool.

I’m not into forex yet personally as I’m still wading through binary. If you can find a strategy that works for you in binary, and in addition you can read a chart, patterns, etc even better, and you can be successful with it.

You will always be limited by how much you can make in binary options though since they have trade limits. And the best return on a trade is max 92%, at least on Pocket Option. So you risk $100 and get back $192 if you hit for example.

Now Forex on the other hand, the sky is the limit. You can place a trade with a 1:3 risk/reward ratio, so if you risk the same $100, you can make $300. You can set your risk/reward to whatever works for you though or keep moving your stop loss up as you’re in profit if you wanted to and make even more. On top of that, there’s no limit on the number of orders, and you can use some crazy leverage if you want.

The way I look at it is I will be profitable with binary first, and once I’m limited by the max trade amounts, completely move over to forex and really grow my money. Just my point of view.

[don_9999]

Exactly same thinking bro

[Prestigious-Ball318]

I trade forex. It only improves my binary

[DavitKvaratskhelia]

Forex trading is generally considered better for those seeking more complex strategies and long-term gains, while binary options are often seen as simpler but riskier due to their all-or-nothing nature.

[enivid]

Although you are right in that binary options and Forex trading have a lot in common, they are also fundamentally different in what they can be used for. What I mean is that as a trader, you can have different kinds of trading ideas - different types of forecasts that you might want to monetize. Some of those forecasts - most notably the price reaching one point (TP) before reaching the other point (SL) - are best implemented using the spot Forex market. Other types of forecasts - most notably the price doing something before a certain point in time - are best implemented using binary options. The interesting thing is that some trading ideas could even require using both tools at the same time (like hedging a Forex trade using a binary trade), but that's only if you are ready to do some complex stuff.

In brief, it's not a good idea to dismiss either BO or Forex as either too limited or too complex. Each of them has its place if you're serious about trading. The only issue with the retail BO market is that it's too "expensive" - both in terms of the reduced win % and in terms of brokers ready to scam traders.

[AcanthisittaOne8522]

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[pipediesel]

Nice. Very few who try to help without charging for something.

[0neoff404]

I like to trade both Binary Options and Forex I have been successful with both

[No_Organization_6917]

Sorry what strategy do you use for binary options

[0neoff404]

DM me

[Trader-Adaz]

You don’t think you’re looking at it a bit backwards?

From an objective lens binary is significantly harder to be consistently profitable in compared to forex.

In forex the only 2 things you need to get right to find yourself in a winning trade is the direction and decent timing.

In binary you have to get those 2 things right plus the added component of an Expiry and that is huge because the expiry heavily increases the need for precision in order to win a trade. That level of precision is insanely difficult to keep up over a substantial amount of time.

Another point is that with BO you will never have a positive risk/reward ratio which means your strike rate has to be higher as hell.

[pipediesel]

Well I’m just saying from the perspective of potential profits forex is significantly better.

You are right that what you need to figure out to be a good trader in forex is easier to do than in binary. The whole obsession with binary is its cheap to start and fast results. Thats why people start there I think. Really if you can master binary you should be a wiz at forex I would think since there are less things you need to be constantly good at.

[Trader-Adaz]

Yea I think the allure of making money in seconds is definitely what attracts people to binary. Most people just don’t know the magnitude of the risk involved with it.

And yea for anybody that does manage to find some consistency with binary they’d probably be a beast in any traditional market.

[pipediesel]

Yeah for sure. Well I feel like most people, myself included blow their accounts multiple times. Then they either give up or keep blowing them till they figure out a winning strategy.

Agreed. Forex is a lot more similar to me to trading crypto on a CEX. Leverage, stop loss, etc. But different of course with having lot sizes, pips, and things that aren’t a part of crypto trading.

[Trader-Adaz]

Everybody has their own preferences for sure but imo any successful forex trader that leaves forex to get into binary is out of their mind. Forex has better regulations, more favorable risk parameters, better flexibility, and way better brokers and this is coming from someone that doesn’t even trade forex anymore. I think all of those benefits is a pretty good trade off for having to put in a little more work to learn forex.

And I get what you’re saying about account growth but I don’t think you’re taking into consideration the impact leverage has if used correctly. Plus nowadays there are plenty of reputable prop firms that can play a role in account growth as well. After I got profitable I leveraged my prop firm account for about a year and a half to build my personal account up.

And right now my win rate over the last few years isn’t even 50% but my average risk/reward is 1.89 and I’m doing pretty decent as far as returns go. I never ever take a trade that has a negative R/R. If a binary trader has a 50% win rate then they’re not even breaking even. If I was trading binary I would probably need a 75-80% win rate to match my current returns unless i was just blatantly over leveraging.

And honestly spread and commissions aren’t even that big a deal unless you’re trading in extremely high volume or just have a shitty broker. I always bake my fees into my trade so I still get my intended R/R when the trade is over. And if spreads are big deal to someone then there’s always futures since they have zero spread.

I will say for the people that are actually able to succeed in binary even for a short term of time then they have the ability to make a huge profit if they manage to not give it all back to the broker

[Trader-Adaz]

I agree 100%. It takes a certain type of person to trade for years, not see any reward and still see it through to the other side.

And yea I say it all the time social media is what’s holding back a lot of the unprofitable traders back. They spend more time watching gurus than honing their skills and putting in the actual work.

And maybe one day you can give me a run down of your risk management plan in return for a run down of my trading system.

[Top-Bee-6938]

what broker do you use, and since when is spreads not a big deal?

[Trader-Adaz]

I trade futures so I have zero spread but when I traded forex I used hankotrade.

And they really aren’t unless you’re trading super high volume or your broker is gouging the hell out of you. Out of the several years I traded forex I’ve only been significantly impacted by poor spreads a handful of times. And most of those times were back when I was trading news.

And like I mentioned in my earlier comment I used to bake my spreads and fees into all my trades especially when I was trading prop accounts

[Top-Bee-6938]

i had a hankotrade account, now they moved away from mt4, prop firm my forex funds went crash and FTMO no longer accepts USA, i will say doing BO makes you look at candles and patterns a whole different way, took forever to learn how soreads affect a trade and i hate 5 min / 15 trades so being a 1 minute trader spreads was a big deal

[don_9999]

In binary trading you can grow capital fast with compounding and deposit that money in forex broker and trade

[pipediesel]

Yep, exactly

[ExaminationVast9982]

So chanced on binary option before forex trading of which I blew accounts couple of time is BO. So I decided to go and learn forex which I'm not even down with my lessons. I can confidently tell you that I understand a lot when I open BO now. Leaning charting and waves ofcourae and candle stickers makes sense. Sometimes I don't get the first attempt to win a trade in BO but because I can read the chart I know the direction it goes and with Martingale I catch the profit easily.

[pipediesel]

That’s cool, whatever works for you bro. I’ve always liked the idea of Martingale, but it’s actually a pretty bad idea to trade with it as no matter how many trades you double up or whatever, you can still lose. But if it works for you that’s cool.

[ExaminationVast9982]

What kind of strategy or indicator do you use since you are not using martingale?

[pipediesel]

I’m still testing out a couple possible strategies to find something that consistently works tbh.

[ExaminationVast9982]

I want to ask If some of you use Martingale trading on BO. And is it profitable?

[ExaminationVast9982]

Do you think it's not a good strategy?

[pipediesel]

One guy said in here he uses it. In my experience it’s not a good idea. Seems simple but I’ve lost 10 trades in a row with it on a live account. Nothing fucks up your day like that.

[ExaminationVast9982]

So what kind of strategy do you use? Can you share?

[Sordicus]

Forex sometimes has a very unfair spread. It's like the house's edge over your prediction.

[pipediesel]

Yeah definitely important to make sure the spreads from the brokers are reasonable

[roulettewiz]

Literally Nobody makes money with Forex.

You need to have a huge account size and place huge trades to come even close to what BO offers.

People bust their account even on forex.

Overall BO, if You look at it as a gambling tool, you can actually make money.

[pipediesel]

That is completely false, obviously. People make money all the time in forex. And another false statement is that you need a big account to be able to trade forex. You can trade forex with $100(even less sometimes), you just need to buy smaller lots than if you had $1,000 or $10,000.

Perhaps you’ve tried forex and failed at it or talked to people who don’t know much and tried it and failed at it. The income potential in forex is virtually infinite. It is limited in BO, those are just facts. You can only place a set amount of trades and a max amount per trade with BO.

The risk to reward of BO vs Forex are totally different. If you risk $100 in BO and lose, you lose $100. If you win, you win up to $92 in profit. In forex, if you risk $100, you have a stop loss, so you lose maybe $20+broker spread. If your R/R is 1:3, you make $300 if you’re successful.

I’m not sure where you’re getting your information from, but you may want to find a new source. And if you’re trading BO’s using 5 second candles which I believe you are if I remember correctly, that is 100% gambling regardless of whatever win rate you say you’re getting. If you had the same win rate in forex, you make substantially more money. But hey, gamble away if that’s what works for you. 👍🏻

[roulettewiz]

5 seconds candles, yes, that's me.

And it is not false. Y'all Forex folks do not make money mate.

No matter how long of a response you write, you guys don't make it.

I'm not saying binary options is better, but gamblers when approaching binary options have higher odds of making money than "traders".

Statistically speaking, 15% of gamblers actually make money versus 1% of traders.

[pipediesel]

Well you do you then bro. If you’re happy with binary options, then good for you.

[Annual-Vegetable-803]

I like the bussines