Should I jump over from binary options to forex | Forex Factory

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Should I jump over from binary options to forex

  • #1
  • First Post: Jun 10, 2019 7:53pm Jun 10, 2019 7:53pm
Hi all,


I have been lurking around forex factory for the past few days and this questions has always been at the top of my head.

Should I change from binary options in forex to normal forex trading?

A little bit of background information, I have been trading binary options in FX for 2 years, on and off. It was just a game to me and I blew my account multiple times until some time ago, I went to study about FX intensively and am making a profit consistently in binary options now. I started small and have grew my account 4000% with purely profit since then.

My question is, I feel that it is not sustainable because binary options isn't as widely accepted as compared to FX. The main thing is, it has been hard on the currency conversion and withdrawal conversion charges because the broker does not offer in my currency. So I incur an exchange charge and withdrawal charge every time i make a withdrawal currently.

Would love advice from experts that has been in both fields.


Thank you.
  • #2
  • Jun 11, 2019 7:52pm Jun 11, 2019 7:52pm
Bumps.! Anyone has any insights?
  • #3
  • Jun 12, 2019 12:28am Jun 12, 2019 12:28am
Quoting CrescentL
Hi all, I have been lurking around forex factory for the past few days and this questions has always been at the top of my head. Should I change from binary options in forex to normal forex trading? A little bit of background information, I have been trading binary options in FX for 2 years, on and off. It was just a game to me and I blew my account multiple times until some time ago, I went to study about FX intensively and am making a profit consistently in binary options now. I started small and have grew my account 4000% with purely profit since...
Dear CrescentL,

Very interesting question, and very difficult to answer without some details as it all depends on your strategy and psychology. Well done for taking a step back to work out your mistakes and turning it into consistency. Please note I am biased towards binary options due to the "Math" behind it, rules + regulations and had a friend who participated in binary options. So my response should be taken with a "grain of salt" so to speak.

Math: You never get a "Risk: Reward" greater than 0.8 (So, your average win rate must be 65%+++)
Regulations: Hard to find a regulated binary options broker that can be trusted and will allow you to scale.
All of those gave me reason to leave and stay away. However, we are all different.

Best Advice I can share is to just have a go in normal forex. You have nothing to lose in terms on funds, by opening a demo account and applying your strategy you can start to get an idea. You also don't need to target just forex, you can also apply it to metal cfd's or futures like gold (Metals Mine) is a good place to look for other options. Are you able to backtest your strategy?

Finally to help, I will put a short list of considerations you can think about to help make your choice after testing how your strategy does in normal Fx:
-Can I maintain >65% accuracy over the next 1000 trades?
-Will the strategy remain consistent?
-Can I scale the account equity? How far can I scale? (100 to 1,100 = +1000%, but only 1,000 profit, while 10,000 to 11,000 = +10% with the same end profit metric.)
-Are withdraws always honored, can I withdraw? if 1,000-10,000? if 10,000-20,000+...?

You can always start a thread and share your experiences regarding approaching normal Fx from the binary side.

Hope this post helps,
Kind Regards,
Tzamo
"Work hard, put in the effort, and follow your dreams..." -Me
  • #4
  • Jun 12, 2019 12:32am Jun 12, 2019 12:32am
Trading takes years to learn... Don't expect to make any money any time soon.. But if you put in years of watching charts you can make money in fx
The only system that will work is one designed by and for yourself.
  • #5
  • Jun 12, 2019 1:43am Jun 12, 2019 1:43am
Quoting tzamo
{quote} Dear CrescentL, Very interesting question, and very difficult to answer without some details as it all depends on your strategy and psychology. Well done for taking a step back to work out your mistakes and turning it into consistency. Please note I am biased towards binary options due to the "Math" behind it, rules + regulations and had a friend who participated in binary options. So my response should be taken with a "grain of salt" so to speak. Math: You never get a "Risk: Reward" greater than 0.8 (So, your average win rate must be 65%+++)...
Thanks for the reply tzamo. I understand the bias as there are many people who are biased towards binary option also because of all the reasons you already know of. 80%, just specifying a direction like gambling, and many more. Already used to it, so no worries there.

Thanks for the advices too. I would certainly try out forex using demo accounts on a reputable broker in future. I am not able to backtest my strategy now, because there are too many components to it as my strategy changes depending on the current market. Will require some time to code it out if I wish to backtest it.

But the main problem is in binary, I find the areas where i am certain of the direction in the short amount of time (5 ~ 15 mins) and I can earn 80% of my trade size. So I wont be affected too much by long term trends, fundamental analysis, etc. Which is the main difference with forex, where I need to predict for a longer period of time whether to go long or short to be profitable in the pips. Not sure how that plays out, i guess i can only try.

I think i will try that out in my free time, while continuing binary for now to earn a larger capital before jumping into normal forex.

Cheers
  • #6
  • Jun 12, 2019 5:02am Jun 12, 2019 5:02am
Yes, Of course, you should, usually, different traders have different reasons for choosing the Forex market. The truth is, Forex has a lot to offer for all types of traders, and there are plenty of reasons to trade Forex online. One of the biggest reason is 'Volatility', in the Forex market is great, and you can regularly expect to see a price move for around 50-100 pips on one of the major currency pairs on almost any day of the week.
  • #7
  • Jun 12, 2019 7:57pm Jun 12, 2019 7:57pm
Quoting zuinjimi
Yes, Of course, you should, usually, different traders have different reasons for choosing the Forex market. The truth is, Forex has a lot to offer for all types of traders, and there are plenty of reasons to trade Forex online. One of the biggest reason is 'Volatility', in the Forex market is great, and you can regularly expect to see a price move for around 50-100 pips on one of the major currency pairs on almost any day of the week.
Yes you are right. I been reading up on calculations of forex since I didn't need to care about what does a pip equals to in value last time. Especially margin and leverage.
  • #8
  • Jul 13, 2019 11:17am Jul 13, 2019 11:17am
Quoting CrescentL
Hi all, I have been lurking around forex factory for the past few days and this questions has always been at the top of my head. Should I change from binary options in forex to normal forex trading? A little bit of background information, I have been trading binary options in FX for 2 years, on and off. It was just a game to me and I blew my account multiple times until some time ago, I went to study about FX intensively and am making a profit consistently in binary options now. I started small and have grew my account 4000% with purely profit since...
I've been trading for for about 10 years, mostly forex and futures. Just now opened practice account with NADEX binary options broker. I really like it so far...

I'm still learning binary, but to me, it is much simpler than regular trading. With BO trading, you can profit in the market regardless of what is going on. Is it flat, you can profit just as much as when it's volatile. Regular trading requires just the right market conditions to be profitable. If price is only moving 10 pips all day, regular trading would not do well, but with BO trading, you can profit just as much, maybe more so compared to a volatile market.

Plus with BO, market spikes won't kill you. You don't need a perfect entry, and you don't need an SL. But you can still close your position early to lock in profit, or limit loss.

You have way more "control" with BO trading. So, as far as trading goes, strictly speaking only about the trading aspect, I'd not see any reason to leave BO to come to regular trading, as it is much more complex, and harder to make money with regular trading....
  • #9
  • Jul 15, 2019 12:23am Jul 15, 2019 12:23am
Quoting benaiah
{quote} I've been trading for for about 10 years, mostly forex and futures. Just now opened practice account with NADEX binary options broker. I really like it so far... I'm still learning binary, but to me, it is much simpler than regular trading. With BO trading, you can profit in the market regardless of what is going on. Is it flat, you can profit just as much as when it's volatile. Regular trading requires just the right market conditions to be profitable. If price is only moving 10 pips all day, regular trading would not do well, but with...
Very interesting perspective. Thanks for sharing! My only concern is binary options market are usually not the renowned brokers. Thus theres a level of risk you will get stopped if you start earning too much.
  • #10
  • Aug 9, 2019 10:04pm Aug 9, 2019 10:04pm
Quoting CrescentL
Hi all, I have been lurking around forex factory for the past few days and this questions has always been at the top of my head. Should I change from binary options in forex to normal forex trading? A little bit of background information, I have been trading binary options in FX for 2 years, on and off. It was just a game to me and I blew my account multiple times until some time ago, I went to study about FX intensively and am making a profit consistently in binary options now. I started small and have grew my account 4000% with purely profit since...
I'm thinking of going the other way, from FX to options, primarily as a way of limiting risk. I was only thinking of normal options and only ever buying puts or calls. I'm more a position trader (medium to long term view).

Can I ask what broker you use, are there any others you are familiar with and why you went with binary options rather than normal?
Hope for the best, prepare for the worst.
  • #11
  • Oct 16, 2019 6:40am Oct 16, 2019 6:40am
[quote = CrescentL; 12321377] Xin chào tất cả, tôi đă lẩn quẩn quanh nhà máy ngoại hối trong vài ngày qua và câu hỏi này luôn luôn ở trên đầu tôi. Tôi có nên thay đổi từ tùy chọn nhị phân trong ngoại hối sang giao dịch ngoại hối thông thường không? Một chút thông tin cơ bản, tôi đă giao dịch tùy chọn nhị phân trong FX được 2 năm, bật và tắt. Nó chỉ là một tṛ chơi với tôi và tôi đă thổi tài khoản của ḿnh nhiều lần cho đến một thời gian trước đây, tôi đă đi nghiên cứu về FX rất nhiều và hiện đang kiếm được lợi nhuận một cách nhất quán trong các tùy chọn nhị phân. Tôi bắt đầu nhỏ và đă tăng tài khoản 4000% với lợi nhuận hoàn toàn kể từ đó. Câu hỏi của tôi là, tôi cảm thấy rằng nó không bền vững v́ các tùy chọn nhị phân không được chấp nhận rộng răi so với FX. Điều chính là, đă rất khó khăn trong việc chuyển đổi tiền tệ và phí chuyển đổi rút tiền v́ nhà môi giới không cung cấp bằng tiền của tôi. V́ vậy, tôi phải chịu một khoản phí trao đổi và phí rút tiền mỗi khi tôi rút tiền hiện tại. Rất thích lời khuyên từ các chuyên gia đă được trong cả hai lĩnh vực. Cảm ơn bạn. [/ Quote]
Hello. As you said you traded BO and made a profit. Can you share how you did it? A method or a robot for example. I have been trading BO for over 1 year but I still have not made a profit. Sorry for my english, I use Google translate
  • #12
  • Last Post: Jan 5, 2020 9:37am Jan 5, 2020 9:37am
In my opinion, these directions are really different and each of them has its own specifics. And I have traders I know, who deal with only one of these directions and are absolutely not successful in the other. In my opinion, binary options are more suitable for those who like to work in dynamic mode, who are ready to earn here and now. Forex implies a calmer and more restrained approach, where you can better control the situation, although for a greater payback you will need to learn to conduct more competent and serious analysis, here you will not be able to simply limit yourself to the fact that you understand that the price of some asset will rise. I think anyway, if you have this question, you should try it. You can always refuse and go back to the usual trading format. Especially since there are demos everywhere now, so you can test everything without risking your money. And commissions are everywhere, it's a direct income for brokers. So that's okay.
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