Can A Beginner Make Money With Binary Options?

Binary options trading is often done by beginners, but can a beginner really make money doing it?  The easy answer that many want to hear, of course, is that sure they can. They think that all a trader needs to do is go on one hot streak!

They 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.

If you are just starting out, then I will help you in this article.

How To Get Started With Binary Options Trading

Especially if you are a beginner, the first step is to choose a reliable broker like 24Option that offers demo accounts or try out a binary options signals provider like OptionRobot.

  1. Step1: Sign up for a free OptionRobot account here
  2. Step2: Make a deposit at one of their recommended brokers (This will be your trading backroll. OptionRobot does not charge you anything)
  3. Step3: OptionRobot starts trading for you

OptionRobot is an auto trading software that does the trading for you. It will make a prediction for you, based on multiple sources.

OptionRobot – Free Signals Provider

OptionRobot is considered to be the best auto trading robot. This software will make it a lot easier to make money with binary options trading. The software is free if you sign up with one of their recommended brokers.

  • Huge 91% Payouts
  • 100% Auto Trading
  • Many brokers to choose from


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.  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. Beginners of anything 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.

24option – Best For Beginners

24option is considered to be the best binary options broker and you can try the demo account. 24Option is CYSEC regulated and very safe. Start trading on 24option and take advantage of the welcome bonus.

  • Huge 88% Payouts
  • The Minimum Deposit is $250
  • Regulated in the EU (CYSEC)


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. Never take a trade and learn nothing from it, especially as a new trader.

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 through us?  Check out our open account section, along with our recommended brokers comparison.


Daniel Major

B.S. Degree in Economics and Finance. Professional day trader. Live and work in Manhattan, NY, NY.

Page Updated: October 17, 2016

47 thoughts on “Can A Beginner Make Money With Binary Options?

  1. Hi I deposited money for trading at binary, now I think I lost I cannot see any improvement, and worse I don’t get assistance from experts there, I already confused about trading

  2. Hey Nondumiso, welcome to Please tell us more info about your trades. Did you follow any specific trading strategy? What did you trade on?

    1. Hi, I have signed up with 3 brokers for binary options account. I have tried trading but most of the time I lost. May I know what is the best strategy or indicators to use.

      1. I am not a binary option trader but I buy real stocks and sell them within a week or a month, I have made 35% gain so far this year with my investment on stocks. My advice is to understand the fundamentals of the stocks you are trading and use the same techniques to buy options, the only difference, option is cheaper to buy but you only trade options on the money that will not affect your life if you have lost it. My general rule is, a company has the least debt within its sector will sail through the economic downturn and re-gain its winning momentum quickly. Companies with aggressive acquisitions are loaded with debts and easy to crash to the bottom with bad news. Start with $200 and take 7 years to gain experience and you start making money, lots of money.

        1. iT SEEMS TO BE A COMMON THREAD ANYMORE. Why is it you read someones recommendations only to go to this website, then that website to see where this is a scam, that is a scam. Its no wonder individuals can invest at all without losing their hard earned dollars. For cry out loud, where is it that you CAN go, set up an account and have said broker, WORK for YOU for a change instead of ripping off their customers. You get a sense of, you cant invest anywhere because someone or some company just blackmailed another on a website report, yet here is the kicker, why would THEY advertise for you to go to THEIR recommended site. You stated that you have been into stocks for a while. You know, I just read an article very recently that states Forex trading is illegal in the USA, so WHY are these companies allowed to do this? Im tired of reading said articles and I dont have a $5000 or even $10 k to put into an account. I just want to be able to get my measly $250 or even $500 to start off with and make a nice quick cash profit because I need it. Im reading people putting $50 down or $100 and getting back, $2500 to up as high as $100,000. Insane to hear these reports but Ive been told most of these stock programs use an algorithm to indicate what stocks to pick that will win, in which case most of the news publications have their day traders speak about yet when you have questions, the publications tells you that you are not allowed to speak to these people, but their disclaimer says their customer service people are NOT investors or strategist, If I have a publication paper with then the why cant I have my questions answered either by them or their editors. Ive been told to consult a licensed broker, UNFLIPPEN REAL… What can you add to this? Who can you trust, yet someone is making a killing in the markets. Im seeing it everyday. Also, when you do sign up with a broker, why do they require you to put in a minimum amount in your accnt of $1000, $2500. What is that used for? Is it for the Broker only, or is that what they can work with. I seen a lot of free accounts to open, is that a red flag because Im concerned about fees and other unknown charges.

  3. Inspiring article. Been trading for a while now, lost quite a bit of money, but always looking for ways to improve my trading as I am sure I can eventualy make it work.

    1. Sorry for your lose Serban. I am a newbie also and I don’t want to lose s lot of money. I need someone to show me how to make some.

  4. Iam also a beginner and I a bit scared to trade big because the only trade platform Iam using now is the high-low system and its nerve-racking, have more loss than any gains. Been reading articles, checking charts but its tough

  5. Thank you for this articel it is truly mind opening and gives great tips about binary options trading.
    I am trading forex for the last 5 years and recently decided to try binary options trading. Although they are similar but still there is a big difference between binary and forex. Your article helped me understand the difference.

  6. yes you can make money but you need to know how and lots of people will give it to you, Most of it has ulterior motives and stretches the truth a bit, which makes it even harder to continue after losing. I did continue and blog about it, with a website containing info made simple. Also the trading I do, I keep simple and I take very low risk. I make 200-300 USD per day, I won’t become a millionaire but at least it is honest and realistic.

    1. Hello John,

      I would definitely be happy with $200-$300 a day, any advice? I’ve never done any sort of trading…



    2. Hi John what Platform do you use?
      Do you have a particulate strategies you use.
      That’s the kind of income i’d like make.
      Can I do that with a 300.00 investment
      I have an account with Nadex they charge by trade .99 you know before you make the trade how much you can make or lose.

  7. Hello I’m also a newbie on binary options … I use IQ options ,they are very good ..and the platform is easy to understand … on the mobile app or webrowser they have an educational material … which I find very help ful … Buh this article also has opened my eyes and mind thank u!

    1. Hi Thabo! It sounds like your happy with IQ Option,are you making money? The reason I am asking is that I have lost a lot of money on other Binary Option Platforms(Three Platforms) I am so frustrated and confused,any tip you can advise me on if making money?

  8. I joined a Banc de Binary last November 2015. Making it clear that I could not afford to lose any money. All my deals were the recommended ones by experience traders the ones I was told to do. I was pressurised into putting more and more money in with PROMISES of making my money back. The moment I said I wanted to put my initial money back in my account I only made losses. To start with they put in bigger sums on each deal. I said I wanted a slow and sure increase not a quick “win”. They did not listen. Compliance did not listen to me they should not have accepted me. I have lost everything I put with them, total $22.000. Yet they keep telling me 48% of the placed trades have expired in the money, so how come I have 1000 left!

    1. I had a similar experience (with BinaryBook) although I didn’t lose so much money (they did tell me I should borrow more!) 48% of the trades ITM means that more than half were losing money, and when you win you don’t double your money and when you lose, you lose all of it, so you have to finish ITM MORE than 50% of the time. I knew about money management, but I, too, trusted that the “expert advice” I was getting was trustworthy and placed trades with too large of a percentage of my account. It’s an important warning for new traders.

    2. Ponsonby, Brokers only look after themselves. I’ve been burnt also. Their traders are just leechers who will eventuaĺly take your money. Check out the guys from Bullish Binary Options on youtube, facebook or their site. They teach you how to trade, how to analize the economic calender etc. Hope this helps.

  9. I’m a beginner. Have just deposited the money but I don’t know where to start. Everything is like foreign to me

  10. most of the online trading are nothing but a front for scams. I have seen online ads about online trading. It sounds good but it is not like they say. It is not like just hit the refresh button and your money will increase. If a hundred people try this then maybe just maybe one will actually make very good money. The other 99 will not make money or not even money to really say that it is worth it.

    1. You have to know what you are doing. There is no quick way to get rich, sorry. You need dedication and patience.

  11. I deposited money to binarynook and i am new beginer, I’m not sure if I’m the rite trading or not now I’m regretting to trade with them coz they need more money to trade for me

  12. I find binary options to be a good way of making money online. Mastering this method of trading is pretty easy, but always trade smart and don’t get too greedy! For any newbies, is a great place to start with their cashback offers.

  13. You should start by saying, “The short answer is: NO.” It should also be noted that binary options are almost always NOT real trading, but amount to betting on the markets. Most of your article is about all the things you should learn before trading — if you really learn them, then you’re not really new, although technically once you start actually trading you will be new. Besides studying information about trading, you should try DEMO trading first, and make sure it reflects actual trading. I’ve heard of sites that made the demo trading much easier to do well at than their actual trading. The most important thing to learn is to have discipline and learn to refrain from trading until you can recognize the proper conditions and timing, and wait until just the right time. You could say the key to being successful trading is learning NOT to trade most of the time. I recommend before you trade, go to CommuniTraders: and learn from other traders. If you want to play a bit with a step between demo trading and live trading with real money, MarketsWorld offers (or did recently) a beginner’s bonus of $10, but you can’t withdraw any real money until you’ve placed 50 times that ($500) in trades – but long before you do, you’ll probably run down the account below the $1 minimum trade. Still, I’d recommend trying that after studying and trying demo trading. It makes a difference if you feel there is some real significance in winning and losing.

  14. I’ve been reading up on this and it seems to me that a lot of sites that promote this stuff pretend they are doing it because they want to help others make money whereas in fact the real motive is that they are helping themselves make easy money from people on the promise of riches. There is no doubt that people do exist who make money from this sort of thing but it seems to me that any new beginner will only learn through losing money. The question is, how much can you afford to lose before you learn how to actually win 60% of the time rather than lose 60% of the time?

    My recommendation would be not to dive straight in but do dummy trading for about 6 months with a particular set of strategies suitable to your budget. If in that six months you manage to turn a 60% win or more, you are ready to play with real money. And don’t be impatient to cut short your learning curve.

  15. Im new to binary options trading. But i invested in stock market and made few money years ago. Now i downloaded iq option android app and trade in demo account. Most of the time i won money. Lost few. my question is can i won money by investing real money. Is there any hidden pits to grab me down. Please help.

    1. Looks like you have a good strategy. Yes the real money version is exactly the same as the demo version so you should be making money if you deposit.

  16. There is a site that offers a genuine free demo account where you can use robots created by other people (ones shown to be the most profitable) and I recently used this facility to test robots I created as well as robots other people created. In the long run they all lost. I only lost fake money because it was all done using a demo account, however it does show that the odds are really against you no matter what brilliant strategy you think you are using.

    Binary options follow the same laws of probability (in the long run) as any other event that has two possible outcomes. So it basically boils down to tossing a coin. If you did it 100 times you would expect to be right about 50 times and wrong the other 50. You might think this isn’t too bad – after all you will simply get to keep your stake money. But you would be wrong. Why? Because your winnings are always LESS than your stake. So if you bet $60 for the USD to go down against the EURO within say 2 minutes and it went up instead (you lost), the $60 is gone. If you guess right you get back at most around 80% which is $48 plus of course your stake. But over 100 bets like that you would lose 50 x $60 = $3000 and win
    50 x $48 = $2400. Therefore you would incur an overall loss of $600 over 100 bets. The 80% margin is probably the best there is – other options can be as low as 50% which is much worse.

    Basically the game is rigged in favour of the agency and not you. There are people who do make money from this but they are few and far in between – they are top experienced traders and we know from the news that even they can sometimes lose and lose big. The considered opinion is that only about 5% of all traders actually manage to beat this system. My advice is to stay away – it is no more than gambling with the computer which is just tossing a coin. You would have to beat the law of averages (i.e. win about 56% of the time just to break even) in order to make any kind of profit in the long run.

    1. Hi Jeff,
      As you said it is all a gamble. I’ve tried that many different platforms with no success on any of them.
      I don’t care what all these brokers promise you, you will never win with binary options.
      So I still looking for that online passive income producer and have yet to find one.

  17. Hi
    I can not understand how you guys sleep at night.
    Option Robot is a scam as are the other so called top Ten robots. These so called AUTO ROBOTS are all from the same software developer. They are then Brand Named and even have some different templates. Brokers then use them to pull innocent people who never traded before.
    They have the so-called demo accounts, that are out of this world, YOU SIMPLY NEVER LOOSE in the demo account. In the mean time between the auto robot owners and the brokers they drive the person with false proof to fund their account.
    Now you actually do fund your account from $200 upward and start trading. Option Robot and all the other same software ROBOTS tell you to sit back and just switch AUTO TRADE. Needless to say, you slowly loose your money!!!!

    The software developer sell the software already with about +25 brokers that are in with the scam. The Branded owner, then pick 5 or more that he deal with.

    All these robot owners have different ways to force you to fund your account. Top Option is famous for blocking access to their DEMO account after a while of testing it out.
    OK The real BIG part of the scam:: You now trade live, in the DEMO your signals come fast, that is why you keep winning more trades than you loose, especially if you do martingale or fabonacci. In the live trade you are now working with slow signals, and also many signals are rejected from the platform. ( They make sure you can not follow the 60sec trend) I have also had both windows open and WHAAAAT !@#$% ME. THE trade is done at a loss, but in the Top Option software it is just finishing. The final result is the same on the platform and in the software. On the platform you can see when the trade started, but in the software it only show you the end Time.

    What all this mean is that they scam you out your Money. I will challenge TopOption and any of their BROKERS to proof me wrong.

    Another example to proof they are all into pure scamming people together. Top Option say you need to Fund your IQ Option account with $200, but in real time you can fund it with freaking $10 minimum trade is $1. So why do TopOption tell you to fund that high and why are their minimum trade not $1.

    The answer is simple. TopOption do not give a shit about you, they just want your money and they get money every time you fund your account.

    Now for the real big question: Can you actually make money with this software???? Yes for sure you can make a good consistent profit if parties on both sides ( That is the Broker and TopOption are true honest entities) If the broker accept all trade requests, and do not do delays. If you combine IQ Option and TopOption together and they allow you to trade $1 trades on auto you will then according to my calculations make a consistent profit of 200 to 500 and more per Day. Even if the broker still are dishonest and delay or reject any trades, you would still consistently make a good income and basically never ever loose.

    How is that possible will you ask: Well with $1 trades and if you trade martingale or fabonacci you will always win in the long run. For first acount funding of $200 and trading $1 you have a 98% chance that you will have $800 plus after 3 Days. After 1 week you draw your winnings and make sure you keep $1000 in your account for trading. With $1 trades and $1000 capital, you will never ever be in the RED.

    The big question you must ask is why do they ( Combination of auto trader software and broker) not allow you to auto trade with this low amount. Because they want you to fund your account with $10 000. Or in the standard case Keep on funding at $200

    Maybe I need to get a volunteer funder, then we get the same software as TopOption and proof if IQ Option will allow $1 trades with the autotrader.

    TopOption will not be honest to answer to the above.

  18. Binary option is something have come to understand that it only takes those that have been into the trade for very long time to know the secret behind the trade, have also found out that brokers and they account manager don’t disclose how they make their money they prefer you lose and they keep gaining. If you find it difficult to withdraw your winning or you have lost big money from greedy brokers who are not licenced I can help you with my method to recover all that you have lost. And also if you are new in binary feel free to contact me on (email)

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