There are two major categories of binary options, cash or nothing and asset or nothing binary options.
Another name for binary options is Fixed Return Options (FROs, s called because the amount to be paid out is fixed and set at time of trading.
The trader just needs to decide if the asset will increase or decrease in price. Trading in binary options is thought of as a very plain form of trading.
Traders know what the profit or loss will be on a trade as the payout is fixed. Due to this there is a limited amount of risk and the potential to earn money is huge, making binary option trading very popular.
There are two variations in every method of binary option trading, the call option and the put option. Traders use the call option to purchase an asset at a set price and the put option allows the trader to sell an asset at an agreed amount.
Best Binary Options Brokers Australia
|Broker||Min. Deposit||Max Returns||AU Regulated||Features||User Rating||Review|
|AU$50||200%||+ AU$50 CASHBACK|
|AU$250||90%||+ FAST WITHDRAWALS|
Binary options is one of the simplest forms of investing. You can start with a low budget and without any prior experience in trading or finances. We will only recommend the most trusted Australian brokers on this page.
Best Bitcoin/CFD/Forex Broker
|Forex Broker||Min. Deposit||Trade||Regulated||User Rating||Review|
|AU$200||Forex, Bitcoin, CFD|
How to get started?
If you don’t have experience with binary options brokers, don’t worry, because signing up is very easy. Just follow these 3 steps to get started:
- Pick on of the binary brokers from the list above
- Register a new account (it takes 1 minute)
- Fund your account
HighLow – Top Rated Broker
Highlow is the best binary options broker with an Australian license. They have a low minimum deposit and a great support team.
- Up To 200% Returns
- Only AU$50 Minimum Deposit
- Easy Deposit/Withdrawals for AU Traders
How To Pick The Best AU Broker
When looking for a binary options broker you should take following aspects into consideration:
- Country restriction: Does the broker even accept AU traders? The brokers on this page all accept AU traders
- Preferred Currency: If you are from Australia, you probably want to trade binary options using AUD. All binary options brokers that we have ever tested accept your currency.
- Minimum Deposit: Don’t want to invest too much? No problem – most brokers will accept a minimum deposit of only $50 – $250.
- Trade on your smartphone: If you consider trading on your smartphone, then choose a broker that offers a trading app (most do).
- AU Payment Options: Depositing and withdraw payment options are very important when looking for a new broker. You should always check out the broker homepage to find out if the accept your preferred payment method. The binary options brokers accept the most popular AU payment options including: Credit Cards (Visa, MasterCard, JCB, Discover), Debit Cards (Visa, MasterCard, JCB, Discover), Bank Wire
That’s it! Now you can start trading binary options online.
Can Beginners Make Money With Binary Options?
On the surface, the answer to “do you need to be a professional to execute binary options trades” is incredibly simple. This is because the reply to this question is, no.
In fact, one of the best things about this form of trading is that you do need to be an expert or experienced trader. Beginners can also trade binary options.
This is because the concept behind the trading process is relatively easy to understand. As such, you can pick up on the various systems and strategies quite quickly. Here are some tips for newcomers who are getting started:
Choose Your Broker Wisely
You may not need to be experienced but your broker does. One of the biggest allies that you can have binary options trading is your broker. Therefore, it is important to choose one that is reliable and has been in business for a long time.
It is a good idea to do some research and read reviews before you decide on any one particular broker. Look for a binary options broker that has services that can offer you the guidance that you may need once you begin trading.
This includes trading signals, tutorials, meetings with consultants, and more. When considering a particular broker, it is also important to look at their trading platform. For instance, is it easy for you to use or is it geared to more veteran traders?
Practice Before You Trade
If you have never traded binary options before and you are a beginner, you are going to need some practice before you start risking your own money. This is when demo platforms come in especially handy. Instead of using your money, you are able to use virtual cash.
Apart from this, everything else is identical to a real trade. This includes the news, cues, and the payouts that you are offered. The demo platform is also quite similar if not indistinguishable from the real trading platform. Therefore, you get the opportunity to get comfortable with the platform before placing authentic trades.
Beginners Should Take Their Time
Just because you have set up an account does not mean that you have to be in a rush to place a trade. You should not do anything until you feel absolutely comfortable about the decision you are about to make. Remember, binary options trading is not gambling.
Therefore, you cannot simply place money on a trade that you simply perceive to be a good idea. You need to be able to back up your final call with conclusive evidence that favors the decision that you are about to make.
Be Prepared to Fail
Sometimes the only way to become proficient at something is to fail a few times especially if you are a beginner. By making blunders, you are able to learn from your mistakes and become better as a result. You will learn what you are supposed to do as well as what you should avoid doing. While it may seem like failing is a disadvantage in the beginning you should utilize it as a learning tool.
In the end, you really don’t need to be a professional to execute binary options trades. You simply need to be willing to learn and to be able to make wise judgments.
Things to Avoid when Trading Binary Options
Have you been trading for a while and are unable to make a profit? Well, one of the reasons is that you may be making some widespread mistakes. Although you may not be noticing them, they could be impairing your ability to succeed.
Investing Too Much or Too Little
Yes, there is a danger in both investing too much or too little with binary options trades. This is considered to be poor money management for a few reasons. Now, placing as little as possible on each trade may seem like a smart move. After all, you are minimizing your risk.
However, if the trade is particularly good, you are actually preventing yourself from making a much larger profit. Now it is easy to see how investing too much can be a bad idea. If you simply place large amounts, regardless of the trade, it is inevitable that you are going to lose more than you win. If you feel as though a particular trade may fall through, make sure to place less money on it. Otherwise, you are going to find yourself draining your account quite quickly.
Focusing on Too Many Assets
Even the best traders will tell you that you need to dabble only in a limited number of assets. Now, you may be opting for a larger amount of assets as a way to curtail risk. You may be trading with assets that tend to behave in a manner that is completely different to one another. This is a great way to minimize loss as long as you don’t take too many on.
It is important to completely understand the assets that you are trading with. You essentially need to be an expert on each of them. It is quite difficult to do this with a large number of assets. As a result, you will find yourself dropping the ball on more than a few occasion. Instead of trying to hoard everything that may seem like it will make a profit, focus on a choice few.
Overcompensating for Losses
This is something that gamblers are known to do. It is an urge that can overcome even the most level headed trader. It stems from that innate hatred of losing. Some traders feel that the best way to overcome a losing streak is to double down and place even higher trades. However, this is precisely when trading turns to gambling. At one point in any trader’s career, there is going to be a time when you experience a series of losses.
This means that you need to start placing trades more carefully rather than erratically. Also, as your account may have less in it than before, you should limit how much you place on each trade, especially if you are not very sure of the outcome.
Being Overrun by Emotion
It can be quite dangerous to go with gut feeling or place trades that are ruled by emotion. This is because they are not based on anything. They are either a result of adrenaline and endorphins or merely a knee-jerk reaction to a situation. A good way to keep your emotions at bay is to have a plan and stick with it. You shouldn’t deviate from it, regardless of how you may feel.
It is also important to be able to identify when your emotions may take over and to step away. You should only ever trade with a cool head.
These are the common pitfalls of binary options trading to avoid. As long as you know how to identify them, you will have an advantage above the other traders.
Start Trading Binary Options
Binary options are very simple but a crucial element is time. Also you should analyze the market as this will give you a greater chance of making money, while lack of knowledge could be very expensive.
The major features of binary options trading are that the payout can be the same as the price of the hit, but can also be more or less.
Some money lending businesses may want to evade a certain level of high interest so they get a binary option with the hits at the level they want to evade. So the business will receive a fixed payment if the interest rate goes above an agreed level.
It is very important to understand binary option prices before investing in them. Generally, the binary options trading prices indicate the chances of a contract ending with the trader being in profit or loss. Clever traders will see that a contract is about to expire outside their favor and will quickly respond to this.
Make sure you pick a binary options broker has a license in Australia. Unfortunately less and less brokers are regulated. If you do opt for an unregulated broker, try them out with a minimum deposit first.
Remember never to invest more money, than you can afford losing.
Binary Options Signals and Robots
New binary options traders may consider trying out binary options trading robots or signals providers. While signals can work, we do not recommend any auto trading robots.