Do binary options make money? Debriefing

As an investment tool, they appeared in 2008, since then a lot of speculation and gossip have been circulating about them, they have been periodically called a “scam” and a “method of luring money”, despite the fact that the number of dollar millionaires who have made capital in this field continues to grow. To date, traders are already accustomed to a relatively new type of earnings in the financial markets, but the debate about whether it is actually possible make money with binary options have not subsided so far.

From this article you will learn:

What is the advantage of binary options?

1. You can quickly make a profit. When buying a contract, the trader chooses the term of its execution, that is, indicates the period after which the price of the underlying asset will be fixed as final. If the trader makes a correct forecast, then after the expiration of the selected period he receives the desired profit, otherwise he loses the bet. The broker has the opportunity to choose the expiration time of the option from 30 seconds. up to six months, which means that with the right bet, you can already get the expected income in half a minute. At the same time, supporters of long-term strategies who do not welcome stressful situations and reactive decision-making can also make money on binary options.
2. Risks are limited. In the process of concluding a deal, the amount of investment is clearly indicated, which, in the case of a correct forecast, can be increased or completely lost in case of unsuccessful hands. With the Finmax broker, the maximum profit from a transaction can reach up to 90%, and losses are always limited to the size of the bet made and no more. Depending on the selected account, the broker can share the loss of the client and return him up to 6% of the contract amount. At the same time, the minimum contract amount for Finmax is only 5 USD, which makes it possible to try yourself as a trader and make money on binary options even for an ordinary person who does not have large capitals.
3. Large range of assets. When trading binary options, you can choose currency pairs, securities, stock indices, commodities and cryptocurrencies as the underlying asset, the direction of the price movement to which the trader will need to predict. A trader can choose any asset and trade it around the clock. While the Finmax broker has over 80 financial instruments in its arsenal, novice traders are advised to improve their skills on several assets, follow their behavior for several weeks, and then choose a specific instrument for their strategy.
4. No spreads. Unlike other financial markets, where you have to pay a commission to the broker in the form of a spread for each open trade, regardless of its outcome, there are no such trading costs in the binary options market, which means that a trader can open many trades without worrying about that most of the money will be spent on commissions.
5. Simple procedure. Most beginners have doubts about whether it is realistic to make money on binary options , creep in precisely for the reason that the procedure for concluding a transaction looks too simplified. After all, there is no need to calculate points here, it is enough to correctly predict in which direction the price will go at the time of the option expiration and, in case of correct forecasting, take the earned profit. This is a condition for concluding deals on contracts of the Up/Down type, and another type of binary options is available for Finmax clients – High/Low. When trading it, you need to predict whether the price will be able to reach a certain level indicated by the broker.
6. Minimum down payment. More recently, to access the financial markets, it was necessary to lay out more than one thousand dollars, but now, in order to open an account with Finmax and start real trading, it is enough to deposit an amount of no more than 100 USD. This means that binary options trading is a great earning opportunity for a large number of people.

How to choose a binary options broker?

Do binary options make money? traders or are left without a livelihood, depends on how correctly they initially chose a broker. The broker is an intermediary between the market and traders, while he himself acts as an exchange for his clients. The principle of trading in the binary options market is similar to the purchase of futures, where players buy contracts or financial assets from each other through the platform itself or brokers.

To make it easier to understand whether it is realistic to make money on binary options , we will describe how money is made in this field, and where the high profitability of this instrument comes from. Suppose two traders buy options with a diametrically opposite forecast: the first one buys a Call option, assuming that the price of the asset will go up at the time of its expiration, the second one buys a Put option, predicting a fall in the price. Their joint contribution to transactions is 200%, 100% from each. The maximum yield on the contract with the Finmax broker is 90%. When the contract expires, one of the traders is guaranteed to make a profit, while the forecast of the other turns out to be unprofitable. Result: one trader receives 190% (100% is his own contribution and 90% is profit), and the remaining 10% is the broker's earnings. A trader who makes a wrong guess loses the invested amount and does not receive any profit.

This is an ideal situation, but its example makes it easy to understand the principle by which profits are distributed when trading binary options. In reality, there may be other ratios, including those not in favor of the brokerage company. Therefore, it is very important when choosing a broker to give preference to those companies whose activities are regulated, and they have at their disposal insurance fund able to cover unforeseen situations. Licensed brokers such as Finmax have their own liquidity providers, thanks to which, even in unforeseen situations, the company can pay out profits to all its clients, using not only its own funds, but, if necessary, also liquidity providers.

If we talk about brokers without regulation, it is difficult to determine whether their clients make money on binary options, since the activities of such companies are not strictly controlled, which means that when opening an account with them, the trader acts at his own peril and risk. At the initial stages of cooperation, such companies promise "mountains of gold", but in any difficult situation, there is a high probability that they will prefer fraud to an honest payment of profits to their customers. There are countless examples of unregulated brokers defrauding their clients, so in order not to become a victim of dishonest deals, you need to carefully choose the company with which to open an account.

In order not to doubt whether it is possible to make money on binary options , When choosing a broker, you need to be guided by the following rules:

• choose a company that provides services for at least a year ;
• broker must have license to carry out their activities;
• there should be an overwhelming majority in trading forums positive feedback about the broker and its services;
• the broker must provide quality customer service and an understandable trading platform for traders.

An important aspect when choosing a broker will be the trading conditions offered by him, including the minimum initial deposit.

Not every broker meets all the requirements listed above, Finmax can be taken as an example. It was founded in 2015, its activities are regulated by the non-profit organization CROFR, and the quality of the services provided is confirmed not only by the reviews of its clients, but also by numerous awards and prizes.

Is it possible for a beginner to make money on binary options?

Despite the simple principle of making deals in order to earn on binary options , you must first undergo special training, develop your own strategy, and only after testing it, move on to real earnings. Many beginners spend a lot of time looking for useful information about binary trading, attending paid courses and seminars, while really reliable brokers who are interested in the success of their clients provide all the necessary materials themselves. For example, Finmax provides thematic literature, video courses on the principles of working with binary options, manuals for working with the trading platform, webinars and personal consultations from leading analysts. During the webinars, the company's experts show via video conference whether it is possible to make money on binary options , and teach this to clients.

After gaining theoretical knowledge, it is very important to remain calm and not rush to immediately switch to real trading, because it is because of haste that many beginners enter into chaotic transactions, take unreasonable risks and eventually drain their deposit. It is these hurried people who write on trading forums in response to the question: “ Do binary options make money?- various accusations against binary trading, not realizing that the cause of their troubles is a banal lack of knowledge and practice. And it is easy to get practical experience, for this it is enough to choose a broker who, immediately after receiving theoretical knowledge, makes it possible to test your knowledge on a demo account. This is a practice account where trading is carried out on real quotes, but without the need to deposit your own funds into the account. With the Finmax broker, all registered clients can open such an account, while 1000 virtual dollars will immediately be on the balance. This amount is enough not only to test your abilities, but also to test the effectiveness of the developed strategy.

Developing your own strategy for traders is also a very important point in making money on binary options. A reliable and client-oriented broker will provide its clients with all the necessary tools to make correct forecasts. Traders who open an account with the Finmax broker receive at their disposal the latest economic and political news, up-to-date forecasts and market reviews from the company's leading analysts, an economic calendar and a large list of ready-made and proven trading strategies, from which beginners at first can choose for themselves the most acceptable, and in time, having gained enough experience, they will develop their own manner of behavior in the market.

An example of real earnings on binary options

The easiest way to find out is it really possible to make money on binary options , from a practical example. Let's try to make a deal on the Finmax broker's trading platform. As the underlying asset, we choose shares of the popular social network Facebook, which have recently shown a stable upward trend. It should be noted right away that the platform of this broker works clearly, without delays, delays and other problems, which is very important when working on the binary options market. It has a simple and clear interface, so even beginners have no problems with choosing an asset and using other functions.

We select an asset from the list of available ones, as we see, the broker has a large arsenal of financial instruments in addition to shares.

We select the option expiration time for 10 minutes, which means that the transaction will be closed at 21.35, and if the forecast is correct, the trader will receive his profit in 10 minutes. Next, the amount to be invested is entered, and the "Up" button is pressed. Thus, the trader assumes that at the time of closing the transaction, the value of the shares should increase in relation to the current price value.

In the case of a correct forecast, the trader will receive 70% of the profit. 10 minutes have elapsed.

The price of Facebook shares really rose, so with an investment of $40. into the deal, the trader received another 28 c.u. income.