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 December, 2024:
| Country | Broker Info | Best Broker | |
|---|---|---|---|
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Regulated US Binary Broker | ||
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For Most African/Asian traders | ||
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Regulated AU Binary Broker | ||
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Alternative: trade stocks, indices, currencies. | ||
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Alternative: Trade Forex and more. |
*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 IQ Option.
- 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 top rated options trading platform on our website. It’s a perfect pick for new traders.
- 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.
- Step1: Sign up with 24Option
- Step2: Make a first deposit
- 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.
How To Be Successful with Binary Options Trading?
One of the keys to success in this type of trading is to understand the various types of binary options available and the strategies that can help you profit from them.
Technical Analysis
One of the most popular strategies in binary options trading is to use technical analysis to identify trends in the price movements of underlying assets.
This can involve studying past price movements, looking for patterns that suggest a particular asset is likely to rise or fall in price, and using tools like Fibonacci retracements and pivot points to pinpoint entry and exit points for trades.
Pick The Right Broker
Another key element of successful binary options trading is selecting the right broker.
With so many brokers out there, it can be difficult to separate the legit binary options brokers from the scams. Look for brokers that offer a variety of binary options types, including high/low options, one touch options, and range options.
It’s also important to choose a broker that offers other financial products, like digital options, FX options, and CFDs, which can help diversify your portfolio and reduce risk.
- When selecting a broker, make sure to consider the broker’s reputation, regulatory status, and customer support.
- Look for brokers that offer a rewarding deposit bonus, low minimum deposit requirements, and a user-friendly trading platform.
It can also be helpful to look for brokers that offer a social trading platform, which allows you to follow and copy the trades of other successful traders.
Trading Plan
Once you’ve selected a broker, it’s important to develop a trading plan that includes a clear set of rules for entering and exiting trades.
This might involve using technical analysis tools to identify trends and pivot points, or it might involve studying the fundamentals of the underlying assets to make informed decisions about when to buy or sell.
It’s also important to understand the expiration of binary trades, which can range from as little as 60 seconds to several hours or even days.
Keep in mind that the shorter the expiration period, the more volatile the asset is likely to be, which can increase both risk and potential reward.
Bankroll Management
Finally, remember to be conservative with your bankroll and avoid betting more than you can afford to lose.
Binary options trading can be a great way to earn a side income, but it’s not a get-rich-quick scheme.
It takes time, effort, and discipline to succeed, so make sure to do your research, develop a solid trading plan, and stick to your strategy even when the market gets choppy.
Alternative Investments
In addition to binary options trading, there are other financial products that can help you diversify your portfolio and earn a steady stream of income.
For example, muni bonds are a type of municipal bond that are issued by state and local governments to fund public projects like schools, roads, and hospitals.
These bonds typically offer tax-free interest payments and can be a good option for investors who are looking for a low-risk, long-term investment.
CFDs, or contracts for difference, are another financial product that can help diversify your portfolio. These contracts allow you to speculate on the price movements of underlying assets without actually owning the assets themselves. This can be a good way to profit from a variety of markets, including stocks, commodities, and currencies, without taking on the risks associated with actually owning those assets.
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 |
|---|---|---|---|---|---|
|
1
|
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$100 | YES | + CRYPTO TRADING | |
|
2
|
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$200 | YES | + ASIC LICENSE |
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.
- 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.
- 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.
- 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.
- 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.
- 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:
- 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.
- 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.
- 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.
- 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.
- 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
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
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.
You have to know what you are doing. There is no quick way to get rich, sorry. You need dedication and patience.
I’m a beginner. Have just deposited the money but I don’t know where to start. Everything is like foreign to me
If you are new to binary option trading then check out this article: https://www.howwetrade.com/new-to-binary-options-start-slow/
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!
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.
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.
Similar thing happened to me on buyerbank.com and they have a really bad customer service. They placed my first trade with $250 and the “experienced trader” still lost my money and it’s been impossible to reach them ever since
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!
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?
I also lost a good amount in trading and it’s more frustrating cos I was assigned to a broker who entered a trade with every cash in my account and he lost. Now I’m trying to make sure I get a better understanding of how it all works so I won’t need any more brokers
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.
Hello John,
I would definitely be happy with $200-$300 a day, any advice? I’ve never done any sort of trading…
Thanks,
Brian
Hi John
I am a new trader. I just started with binary and I would love to make 200 to 300 usd a day; can you share with me the strategy that you are using man? Please.
$200-$300 a day is really not that much to make in binary trading.
John. What web site are you using? ” with a website containing info made simple”
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.
Wayne
Hi John
I am also new to this trade. Can I keep in touch just to seek advise time to time?
thank
Wil you help me in earning 200 usd daily?
Thank you for your tips. I have a lot of experience trading binary options manualy, but I am still learning and reading every day..
What’s the web site and blog?
Hi John,
Just read your comment and I am pleased you are making 200 – 300 USD per day, which I would say as a newbie is happy money, but the question I put to you is, do you use one broker or more?
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.