Can You Make Money With Binary Options

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Good Choice For Experienced Traders! 2nd place in the ranking!

Can A Beginner Make Money With Binary Options?

But wait! First we have to see if binary option trading is legal in your country.

Binary Options Trading in your Country

Depending on your country, here are the brokers available to you in April, 2020:

Country Binary Options Available? Broker Info Best Broker
NO Trade stocks, indices, currencies. eToro (visit site)
YES Regulated US Binary Broker Nadex (visit site)
YES Regulated AU Binary Broker HighLow (visit site)
NO Trade stocks, indices, currencies. n/a
Mostly YES Binary Broker for non-EU/US/AU/CA traders IQ Option (visit site)

*Other countries: Binary options is still available to most non-EU/US/AU/CA traders however there may be some exceptions.

  • EU Traders are banned from binary options trading. The best alternative is eToro.
  • US Traders should go to our US Welcome Brokers page.
  • Australian Traders have a great choice available: Highlow.
  • All other traders (if you are not from the US, EU and AU) can sign up with IQ Option.

Beginners think that all a trader needs to do is go on one hot streak!

New traders often say to themselves: “just ten wins in a row and all of a sudden I will be a new trading mogul”. People looking for quick money think, that they can quit while they are ahead on a hot streak and go home richer than they could possibly imagine.

The truth is that you need a strategy and discipline to make successful trades on the long term. You should start by picking a legit broker first.

If you are just starting out with trading, then this is the perfect guide for you to start making money with binary options trading.

Here is our #1 Rated Broker

IQ Option – Best Trading Platform

IQ Option is a trading platfrom that is regulated by CYSEC. It is the best trading binary options broker on our website. It’s a perfect pick for new traders.

  • Trusted CYSEC Regulated Broker
  • Minimum Deposit: $10 (Lowest In The Industry)
  • Free Demo Account

How To Get Started With Binary Options Trading

Unfortunately binary options trading was banned in most countries but there are many more assets that you can trade: stocks, commodities, bitcoin, indices and more. There are many safe and regulated brokers.

You can start with a trading signals provider, especially if you are a beginner. FX Atom Pro looks really promissing.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Good Choice For Experienced Traders! 2nd place in the ranking!

  1. Step1: Sign up with 24Option
  2. Step2: Make a first deposit
  3. Step3: Start trading using trading signals

Alternatively you can choose a reliable broker like IQ Option that offers free demo accounts.
IQ Option is the most trusted trading platform at the moment. They are regulated by CYSEC and they have a stellar reputation in the industry. The minimum deposit is only $10 which is perfect for beginners.

Forex Trading – The Best Alternative To Binary Trading

Binary options trading may be too risky for you. Or maybe you heard too many horror stories about binary trading? We recommend you to try out Forex trading instead.

Forex brokers offer CFD and even Cryptocurrency trading. Most Forex brokers are regulated and have been around for many years. Here is the best Forex brokers:

Rank Broker Min. Deposit Regulated Features Review
$100 YES + CRYPTO TRADING TRADE NOW
$200 YES + ASIC LICENSE TRADE NOW
$200 YES + COPY TRADING TRADE NOW

Common Mistakes of Beginners- And How To Fix Them

When a beginner goes in unprepared trading binary options, the broker will feast on them. New traders often make mistakes such as taking way to big a position for one trade, taking a bad loss, and then staying way to small the next 5 times.

They may even experience winning easily on small trades, but they never make back the big loss. New traders take way too many trades, let emotions control their trading, and don’t have the self control to stay out of low percentage trades that they know have small chance of making them money.

After knowing all the pitfalls, why would a new trader ever decide to open a binary options account and become a trader? Well, they do it because they have the power to win systematically if they have some intelligence and a plan on their side.

A new trader needs to understand the most common pitfalls, otherwise they may not even know that they are making a mistake while they do it! With that in mind, here are the most common mistakes new traders make, with what they should do instead.

  1. Not taking every trade with a purpose. Beginners often find themselves taking trades based on a feeling, or out of boredom. This is a surefire way to make a broker rich. Never enter into a trade without a defined thesis as to why you are doing it. Think the trade over rationally before entering. Is your thesis really valid? Is it strong? What do you estimate the probability of winning given your experience? Are you hoping for the best outcome or considering the most likely outcome? Make every trade count.
  2. Letting emotion influence – when a trade is entered into, or how big the size of the trade becomes. Never let emotion influence your trading. Good or bad it will never help you. Trading is for cool rational thought, striving to systematically take profits.
  3. Taking way too big sized trades: Understand that you are going to have losses along the way. Even the best professionals do. Never let one trade significantly affect your account balance in a way that would affect your future trading. A good rule of thumb is never to take on a trade bigger than 1/15 of your total account value. With binary options I would recommend 1/20.
  4. Not learning from mistakes and repeating them over and over: Keep a trading journal as we have recommended before. Jot down a quick sentence or two whenever you learn something new. Do whatever you need to do to prevent yourself from repeating mistakes.
  5. Becoming frustrated and quitting right before you get good: The difference between making a lot of money systematically and losing money can be very narrow. Don’t let frustration keep you from realizing your ultimate goal. Understand that there will be lumps along the way, but there will also be victories, and the lumps make the victories feel so much sweeter.

How Beginners Can Make Money

Even with so many ways to mess up, beginners to binary option trading can make money if they work hard and follow a system. The key to binary options trading is to control risk. As a result, a trader can never lose too much money on any particular trade. Hypothetically, a trader has a 50% chance of being correct on any trade whether they buy a call or a put option. To make money, a trader only needs to be correct on about 60% of trades of the trades that they take. This means that of the trades that a beginner with absolutely no edge (an edge is something giving a trader a better than random chance to make money) would take, they need to figure out how to turn about 20% of them into winning trades.

Binary Options – How Much Can You Make?: This is not a simple question. There are certainly traders who make a living with binary options. You could make thousands of dollars every month. However the best is if you start with lower expectations. Making hundreds of dollars steadily is a good way to start.

Here are possible ways that any beginner can easily do this:

  1. Use a signalling service. While most are not are not going to give a trader a significantly better than random chance of making money, they still should tilt the odds into the trader’s favor. This is all any trader can ask for. There are paid services out there such as elite trader, but even a free service from a site like barchart can give you the edge you need.
  2. Learn to use technical indicators. Technical trading involves using strictly price action (price charts) to predict future movements. There are a lot of indicators out there, but some of the most common ones involve using moving averages. Examples of popular indicators are MACD, relative strength index, and bollinger bands. If you can find an indicator that works well for the security you are trading you can gain the edge you need in order to turn some of your would be losing trades into winners.
  3. Trade stocks before trading binary options. Stock trading is less volatile for a trader’s account than binary option trading as long as the trader does not use leverage and sticks to securities priced over $5. If you can figure out how to be correct on more than 50% of your stock trades, you can take what you learn and apply it to binary options to multiply your earnings power.
  4. Track your performance in each binary option security. Most people will be better at trading some stocks or commodities or currency pair than they are at others. The simplified reason for this is that each particular symbol will move differently than the others because each one has its own characteristics and traders involved in moving the price. If you find a handful of option trades that you are consistently profitable in, stick with what works and increase your size. You don’t need to waste your time and money on unprofitable trading.
  5. Buy the right option length for your trading style. Some trading styles will work better over very short term trades, and some will work better over trades held for a long time. Know your style and the appropriate length option you should buy. A value investor for instance would not be sensitive to price changes over a 1 minute option, but may be correct on a super high percentage of trades over a 6 month period.

Binary Option Trading Is Not Easy For Beginners

The problem with this dream is, how often does this really happen? Let’s just say a lot of brokers would never be in business if it happened very often that beginners made money.

Above all, beginners have dreams of being smarter, better, and luckier than everyone else who has every done something, but the harsh reality is that trading in any form is not easy.

Especially when it comes to making money from trading, it takes hard work, dedication, and a commitment to learning. And when I say learning I don’t mean just reading a couple articles, I mean actually learning from your wins, from your losses, from hard earned experience. As a result never take a trade and learn nothing from it, especially as a new trader.

What Our Readers Asked

The short answer is yes, you can make a lot of money trading binary options. However it will be very hard to do so if your initial deposit is low. Always keep in mind that binary options is risky and you could also lose money.

A binary options broker makes money when you lose your trade. This is the main reason why there are not fees when trading.

Yes, many traders have success with binary options trading. You can even follow some of these traders. In order to do so, pick a broker that offers social trading. This way you can pick your favorite trader and copy their actions.

Do We Recommend New Traders Even Try Binary Options?

Of course! Every successful trader was new at some point. Just because a lot of traders go into trading without educating themselves or having realistic expectations doesn’t mean you will as a new trader. In fact, since you are reading this article you almost decidedly will not. At How We Trade our job is to prepare new traders for success. So move forward knowing you have a strong ally in us!

Interested in opening an account? Check out our homepage for the best trading platforms, along with our top rated binary options brokers.

IQ Option – Best Trading Platform

IQ Option is a trading platfrom that is regulated by CYSEC. It is the best trading binary options broker on our website. It’s a perfect pick for new traders.

  • Trusted CYSEC Regulated Broker
  • Minimum Deposit: $10 (Lowest In The Industry)
  • Free Demo Account

Can you Really Make Money with Binary Options?

Updated on: 6 January 2020

Binary options trading is very popular in many countries around the globe. However, most people still ask the question “can you really make money in binary options”. In this article I will try to answer this question and give you a few tips on how you can make money trading binary options.

The short answer is that yes, you can make money online with binary options trading if you only trade at legitimate binary options brokers and learn the fundamentals of binary trading and employ proper trading strategy.

Binary options trading is a form of investing through predicting the movement of various assets such as gold, silver, the USD etc. It is very similar to other forms of investing such as forex and stock trading. It’s however simpler, has relatively fewer risks (in the sense that you will always know in advance what you might lose) and can offer larger payouts.

The idea is that you can make money in binary options only if you treat it as a real form of investing. This means learning how it works, learning how to read charts and learning how you can make accurate predictions. All these are not that difficult but it takes some time. If you treat it as gambling and just make random predictions then you will obviously not win.

Trading binary options online is not as complicated as many people think it is. You don’t have to be an economics expert in order to make money by trading binary options. Below these lines I’ll reveal why making money with binary options is actually pretty simple.

Quick guide: Yes, you can make money in binary options. The easiest way is to use a binary options robot, such as BinBotPro that will automatically analyze the markets and make accurate predictions for you. This is fully automatic and comes with a success rate of around 85%. The huge advantage of BinBotPro is that it trades with cryptocurrencies such as Bitcoin where daily gains of up to 20%-50% are very frequent.

At this moment the most reputable binary broker where you can make money if you use proper strategy is IQ Option. IQ Option has a payout rate of 88% and is also the broker with the most licenses and government-approvals, which means it’s 100% safe and fair. If you are from the US you can trade at BinBotPro instead, which is also a reputable broker.

Hot in 2020: Cryptocurrencies are the biggest gainers in 2020. You should register at BinBotPro in order to make a lot of money. BinBotPro is a trading bot that will invest in Bitcoin when it’s starting to go up and sell when it’s starting to go down. You can make up to 5% to 10% gains every day with BinBotPro.

September 2020 update: If you wish to make money without trading then you should check out Bitcoin mining. All you need to do is renting hash power and wait to see your Bitcoin being added into your wallet over time. Check out IQMining and their offers.

With Bitcoin mining you do not need to trade and your profits are almost guaranteed. You only rent the server and will then be paid out by the moned Bitcoin, which you can exchange into fiat currency. There is no possibility of “losing” your deposit here, as you will not be trading. You will get daily Bitcoin payments into your wallet. Check out IQMining now.

How Binary Options Work – Can You Make Money With Binary Options?

How Binary Options Work:

Binary options are one of the most controversial trading instruments – for a reason:

On the one hand, they are super easy to trade and therefore perfect for beginners.

And they are perfect for traders with small accounts because you can open a binary options account with as little as $250.

But on the other hand, there are some binary options brokers out there that are simply a scam. Most of them are overseas, and when you wire money to them, you’ll never see it again.

So let’s take a closer look at Binary Options and see if they are legit and if you can really make money with binary options.

In this article, you’ll learn…

  • How binary options work
  • Can you really make money with binary options
  • What are the best binary options brokers that are NOT a scam?
  • Are binary options legit?
  • Is binary options trading safe?
  • And what is the best strategy for binary options?

Let’s get started…

How Binary Options Work

Binary options are super easy to understand.

You just need to make a decision if a certain market is above or below a certain price by a certain time.

Let me give you an example:

Let’s say you believe that Gold will close above $1,700 by the end of the day.

So you can place a Binary Options trade: The price of a binary option will be between $0 and $100. And that’s the amount that you need to put on the table to place this bet.

Let’s say the price of the binary option to bet on Gold being above $1,700 by the end of the day, is $40.

When placing the trade, the broker takes $40 out of your account.

If by the end of the day Gold closes above $1,700, you get $100 back. So you put $40 in and you get $100, i.e. your profit is $60.

If Gold closes below $1,700, then you get nothing back. And since the broker took $40 out of your account, and you get $0 back, your loss is $40.

Here’s the cool thing:

Binary options are available for a wide variety of underlying markets:

  • Major indices like the Dow Jones, S&P 500, Nasdaq, …
  • Major commodities like Crude Oil, Gold, Silver, …
  • Major currencies like EUR/USD, USD/JPY, GBP/USD, …

… AND they expire daily or even hourly!

So if you don’t want to wait until the end of the day, you can trade a binary option that expires in the next hour.

All you need to do is decide whether a certain market is closing above or below a certain price within the next hour!

As you can see, the possibilities are (almost) endless.

So the next question is…

Can You Really Make Money with Binary Options?

IF you trade with a reputable broker: YES.

We will talk about the best binary options brokers that are NOT a scam in a few moments, but let’s talk about how to make money with Binary Options first:

Here are the 3 things you need to know:

  1. Is the market more likely to go up or down?
  2. Will a market close above or below a certain level?
  3. What’s the maximum price you’re willing to bet?

I will show you a simple trading strategy for Binary Options in the next article.

But before I show you the strategy, let’s first talk about…

Learn to trade stocks & options in 15 minutes a day

What Are The Best Binary Option Brokers?

There are a lot of fraudulent binary options brokers and scammers out there, and you need to be careful.

The only “broker” that I would ever trust is the North American Derivatives Exchange (NADEX).

Nadex is 100% legitimate and is designated by the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market and Derivatives Clearing Organization.

The CFTC is a U.S. government agency whose mission is “to foster open, transparent, competitive, and financially sound markets,” to “avoid systemic risk” and “to protect market users and their funds from fraud, manipulation, and abusive practices.”

That’s a mouthful for saying: Nadex is a 100% legitimate and regulated exchange.

They allow customers to open an account directly with them!

So you’re cutting out the middle man, which means lower commissions for you!

Talking about commission…

I really like Nadex’s commission structure:

It’s only $1 to open a trade, and they ONLY charge you another $1 to close the trade if you make money. If you lose money, they don’t charge you a commission to close the trade. How awesome is that?

Long story short: If you want to trade Binary Options, trade them at Nadex!

Are Binary Options Legit?

As stated earlier, there are many unregulated brokers who just take the customer’s money and never return it. Most of these brokers are operating offshore in countries that have very few or no regulations.

In the US, brokers and exchanges are VERY regulated. As of the moment, NADEX is one of the few licensed companies in the U.S. that is allowed to offer Binary Options Trading.

Binary options are legal and available to trade in the US, but only on a CFTC-regulated United States exchange, which – again – is NADEX.

In a nutshell: As long as you trade Binary Options on NADEX, it’s legit and legal.

This leads us to the next question:

Is Binary Options Trading Safe?

We already talked about the regulations, so we don’t need to cover this again.

As a trading vehicle, Binary Options are very safe since they are not leveraged.

This means that you can not lose more money than you have in your account.

Here’s an example of how binary options work:

If you have $500 in your account, and you want to put on a trade in which you risk $50, NADEX will automatically reserve $50 from your funds.

When the order is filled, these $50 will automatically be deducted from your account. So your balance is now $450.

If you were right, NADEX will give you $100 back as soon as the markets close. In this case, your account balance will jump to $550, i.e. you made $50.

Because of this mechanism, it’s impossible for you to lose more money than you have in your account.

As you can see, trading Binary Options is safe.

What Is The Best Strategy For Binary Options?

The best strategy for Binary Options is a strategy that makes it easy for you to pick the direction of the market.

After all, in order to make money with Binary Options, you need to know…

  1. Is the market more likely to go up or down?
  2. Will a market close above or below a certain level?
  3. What’s the maximum price you’re willing to bet?

Actually, since this article is getting pretty long, I’ll stop right here and will write another article on a trading strategy for Binary Options.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Good Choice For Experienced Traders! 2nd place in the ranking!

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Guide How To Become Binary Options Trader
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