Binary options and online stock trading are both similar and different, but we feel that binary options provide a distinct advantage over trading in the traditional stock markets. For one thing, binary options are a more efficient way to profit from price movements in stocks. Because of the leverage provided when trading binary options it is much easier to realize substantial profits in a shorter period of time versus buying and selling the actual underlying stocks.
Binary brokers offer hundreds of different individual stock options, spanning all the major industries, and from all corners of the globe. You will find technology companies such as Google and Twitter, telecommunications firms such as Vodaphone, entertainment companies like Disney and Sony, and financial stocks such as JPMorgan and Citigroup. Indeed, there are many advantages to binary options versus online stock trading.
One of the benefits to choosing binary stock options over other assets is the ease with which you can do your research. Information about all the companies offered as binary stock options is no more than a click away. When you combine this fundamental analysis with a solid understanding of charting and how stock prices move historically you have a formula for success in binary stock trading. Anyone can learn how to do this, and once you become proficient it is a skill that can be applied to any stock, or any asset you would like to trade.
Trading binary options is also much easier than trading the actual stocks. It is quite easy to follow a stock’s price and make a prediction of whether it will rise or fall thanks to the wealth of information available from analysts, financial publications, company reports, and many other sources. This access to information makes trading stocks easy, but when done through binary options it becomes even easier as there is no need to worry about liquidity in the binary options markets.
Because stocks are linked to their industry group, a binary option trader can take advantage of broad moves much more quickly than an online stock trader can. They can also do so with a much smaller base of capital, since binary options are available for as little as $1 each. A move by one stock in an industry often leads to similar moves in most if not all the other stocks in that industry. In this way, a binary options trader can profit from news in stocks that aren’t even offered by the binary broker, as the news is likely to affect all the other companies in the same industry.
Binary options also provide a benefit in that they are not linked to any specific country. Traders in Japan can easily trade U.S. stocks as binary options, just as U.S. traders have access to German stocks. This simplifies the trading process greatly, and also avoids any currency risk that might be inherent in trading foreign stocks.