capital needed

How Much Capital Do You Need for Binary Options Trading?

It can be a little confusing to determine how much money you need when trading with binary options.

On one hand, there are brokers who ask for little to no money to sign up with them. Then, you have others that ask for considerable sums so that you can make a greater profit.

This can make you question how much capital you need for binary options trading.

While the answer isn’t straightforward, some of the information below may help to give you a better idea of what you will require:

The “Just Right” Amount

It is important not to think in terms of extremes when deciding on how much capital you will need. Traders tend to start off one of two ways – they either have a lot of money in their account or very little. Both these options can set you up for failure, unfortunately. Take having the bear minimum in your account, for instance. This means that you will only be able to make the smallest investment in your trade.

In return, if the trade ends in the money, you barely make a profit.

If you continue in this manner, you will lose only small amounts but you may gain even less. Therefore, it won’t really make sense to trade at all.

Now let’s look at having a large amount of capital in your account. As you now, there is a certain amount of risk with binary options, and that you will lose money every so often. The more money that there is in your account, the more you will be tempted to trade with and then eventually lose it.

This usually happens when you are chasing losses. As you can see, somewhere in the middle, is your best avenue. Of course, what this middle ground is depends on how much money you have at your disposal.

What is Your Financial Goal?

Before you start trading, consider how much you want to make out of this venture. Of course, it can be difficult to difficult to decide on an absolute number but you should try to come up with a realistic goal. Let’s imagine for a moment that you want to make a thousand dollars by the end of the year. During this time, you hope to place twenty trades.

What you need to factor into this equation is the payout rate of your broker. This will determine how much you stand to gain from any one trade.

It is a good idea to remember that you are likely to lose at least half of the trades that you do place, just to be on the safe side. So, for the sake of argument, let’s say that you have about ten trades to make thousand dollars, with a payout rate of 80 percent.

This will give you a good idea of how much you will need to start with if you hope to meet your goal.

Tailor the Amount as You Go

The truth of the matter is, however, that it can be difficult to pinpoint just how much capital you should start with.

It is only once you have begun trading that you have a better idea of how much you need. Therefore, it is quite alright to either increase or decrease the amount that you initially started with.

You should never trade with more than you can afford, nonetheless. Also, don’t make any drastic changes to the money in your account. Also increase or reduce the money you are trading with slowly.

This should give you an idea of how capital you need for binary options trading. Remember, it varies from trader to trader so you should only use as much money as you are comfortable with.

small investment ideas australia

Can I Be A Full Time Binary Options Trader?

Can you really make a living simply by trading in binary options?

Can you just sit at your computer at home on a weekday, refer the charts and your broker and rely exclusively on them to sustain you better than a regular day job? In theory, yes, absolutely.

If you have the right temperament, instinct and timing, you should be able score very well as a full time binary options trader and make a comfortable living from it.It’s the same as in forex trading.

If that happens to be your desired career, we have some information here that you might find useful.

However, bear in mind that it is strictly theoretical. Reality is not so straightforward unfortunately.

What is important to know is that it is not impossible. Therefore, you can pull it off.

The formula for making a profit in the binary options industry is simple, just make the right option so you will land in the money.

However, no one is prepared to tell you that is an easy thing to accomplish. The first step is in being a realist and not being tempted by some candy coated advertising that ultimately leads to the witch’s house where you will be eaten.

Below, we have detailed some helpful information to get you started as a full time trader.

Learn Different Types of the Trade

There are types of trades you can rest your predictions on based on how well you assess the market you are trading in.

The first you will be familiar with – high/low trades, the simplest form. Your objective with this type of trade is to accurately predict whether the price of a certain market be either higher or lower than the strike price before the trade expires. An accurate prediction will yield you a profit while an inaccurate one, a loss.

Next is the touch/no touch option.

Here, you are saying that the price of an asset will be at a certain amount before the time of expiry. You can even claim it the other way around, that the price will not be at a certain level. You can also make a double-touch trade, where you pick two levels and claim the price will hit either of the levels before time.

Finally, there is the boundary option, also referred to as the range option. In this type of trade your prediction is based on whether or not the price of an asset will be within a certain price range at the point of expiry.

Manage Your Money Well

This is imperative if you want to make the grade as a binary options trader.

It is important to remember that despite all your research and all your experience. Trading in binary options is still a risky business and investing too much into a trade can yield a tremendous loss and land you in serious trouble.

Commit just a tiny tiny percentage of your bankroll – we’re talking as tiny as 1 percent here – to get you started in training and later as your knowledge and confidence grows, you are bound to have better luck with larger amounts. Do not let the risk factor climb over 10% at the most.

Going full time on binary options trading can make you a very wealthy man. However, it is indeed a very big decision. After conducting some thorough analysis however, you should have a good idea of whether you should go for it.

Be realistic and pay due respect to the risks involved and be careful not to be in a position where you stand to lose more than you are prepared to.

binary options terminology

Binary Options Brokers with 90% Payout

There are several things that traders need to consider when trying to find the right binary options brokers.

Among these is the payout rate that you can expect to receive from a particular trade. The payout rate is essentially the profit that you can make on the money that you place on a trade.

Of course, this is dependent on whether or not the trade is in the money or not. Also, with most brokers, the payout rate tends to change depending on the binary option type that you have chosen. However, below you will be able to find binary options brokers that have a payout rate of up to 90 percent on certain trades.


There are many reasons that traders decide to set up accounts with MarketsWorld.

One of these, however, is certainly that traders are offered 90 percent payout rates if they make in the money trades. In addition to this high payout rate, MarketsWorld also has one of the lowest minimum deposit requirements as well.

You can register for an account with this broker for just $10. Traders are able to choose from a wide variety of assets falling under categories ranging from stocks and forex to commodities. If you are looking to make a large return on your investment, this is the broker for you.


CTOption is another binary options broker that offers payout rates that can get as high as 90 percent.

This broker offers an easy to use platform in addition to a 100 percent bonus, dependent on certain terms and conditions. There are also many educational opportunities and assets that traders can choose.

For the privilege of having access to all of this, all you need to do is register for an account and deposit just $250. This really is a great option for brokers who are looking for a user-friendly platform that also offers great returns on investments.

IQ Option

If you have been looking for binary options brokers, you have doubtlessly come across this particular name. Of course, this is due to the incredible reputation that this broker has created for itself.

IQ Option offers all of its traders fantastic assets as well as opportunities. This includes the chance to make back up to 90 percent of the original investment that they placed on a trade. This is not even taking into consideration that you can make up to 50 percent of your deposit back as a bonus.

This broker really is full of advantages.


Finpari is often touted as one of the best binary options brokers around. Here is our honest finpari review.

This is because they have infused excellence into every aspect of their service towards their traders. This is including but not limited to the trading platform, the assets, and the contests that they hold each week.

Then there is the possibility of being able to make a 90 percent profit on an in the money trade. This just sweetens the trade. Therefore, if you are looking for great payout rates, Finpari should definitely be on your list of potential brokers.


These are some of the best brokers and the payouts that they offer. What you should remember, however, is that not every trade is given this payout rate. This often depends on the asset, the type of trade, and the broker in question.

What Is The Minimum Amount in the Australian Share Market

You don’t need to be a financial expert to get involved in the share market in Australia. The minimum amount you have to invest to buy your first shares on the Australian stock market is often a lot lower than most people think.

Getting Started with ASX Shares

Since buying and selling shares is considered a form of investment, you will need to understand just how it is you can make a profit from them.

minimum investment shares market

Capital return – this is where you buy the shares at one price point and then sell them when the value of the company and shares have increased. Then, there are dividends, which are profits paid out to the investors of the company. You can expect to get paid once or twice a year and the exact amount will depend on the number of shares you own. has the perfect definition here:

A dividend is defined as a payment made by a corporation to its shareholders. Usually these payouts are made in cash (called “cash dividends”), but sometimes companies will also distribute stock dividends, whereby additional stock shares are distributed to shareholders. Stock dividends are also known as stock splits.

Minimum Amount Needed For The Australian Share Market

Especially if you are a new investor, you will probably want to start out with a lower amount of money.

  • What is the minimum investment in share market – This really depends on what type of trading you prefer. If you want to trade on the stock exchange then the minimum amount to buy shares is $500. But this varies from broker to broker. However you can start with only AU$50, if you like binary options investing. For binary options we recommand Highlow. Here is our honest HighLow review.
  • What is the minimum amount of shares I am able to purchase? – The minimum order size on the ASX is $500 for the first trade. After that you can make lower purchases. This is considered one of the best small investments in Australia. Of course you can buy as many shares as you want as long as the first trade is at least $500 (asx minimum trade).

As you can see the minimum you can invest in stocks is $500, but some brokers like Interactive Brokers require $10.000 minimum to open an account. And this amount goes down to $3000 in case of students.

Now lets see how you can buy and sell shares, even if you are a beginner.

How to invest in shares with little money?

1. The Different Ways You Can Buy Shares

There are four main ways you can buy shares, especially if you are a rookie Australian investor.

  • On market share buying is perhaps the most common avenue as it involves purchasing shares on an exchange. Here, you decide what shares you want to buy and place the order with your broker. Your broker is then obligated to find you the best price available.
  • There are some companies that decide to offer new shares in the market as they are hoping to raise capital. This is known as an initial public offering (IPO) or a float. First of all, you don’t necessarily need a broker to buy these shares. Oftentimes, sending in documentation along with a cheque is sufficient. Furthermore, your investment in a company isn’t guaranteed. For one thing, you may not actually receive the number of shares that you asked for. Or, you may find that the shares have already been sold out. In this case, it may be some time before you get your money back.
  • When investing in a managed fund, however, things are a little different. This is because you don’t actually buy shares from a particular company and therefore, don’t have claims of ownership. With a managed fund, you buy units in a fund that is handled by financial experts. These individuals will pool your money with other investors and then use this money to buy bigger chunks of asset classes or asset funds.
  • Finally, there is the employee share scheme. This is when you are an employee of a particular company and they present you with an opportunity to buy shares in the same organisation. In certain instances, you may be provided with a discounted price.

2. Open a Brokerage Account in Australia

Australian Share MarketMost people prefer to buy shares on market, which means that you will need to open up a brokerage account in order to place trades. So, one of your first tasks will be to find a broker that is suitable for you. Now, in Australia, you have two choices – to opt for an online broker or to go with a full-service broker.

How much minimum money is needed to buy shares? The minimum amount required for share trading can vary from $500 to even $100.000. Of course we will focus on online brokers that require a minimum amount for the Australian stock market.

Online brokers tend to be rather popular with individuals who are only just starting out with the share market. They are also good for people who don’t have a great deal of money to invest. Understand, online brokers typically charge around $15 to $20 a trade. However, they are only involved in the execution aspect of the trade and will not offer recommendations, advice, or any other type of assistance.

Full-service brokers, nonetheless, take a more hands-on approach with their clients. First, they will help you with any paperwork or documentation you will need to complete when getting started. Then, they will provide you with various recommendations about the type of shares that you would invest in. Finally, they will place the trade on your behalf. Due to this wide range of services, however, you can expect such brokers to charge at least $80 per trade.

3. How To Compare Brokers That Require Minimum Investment

Regardless of whether you want an online or full-time stockbroker, there are a few things that you will need to during the selection process. These are as follows:

  • Compare the brokerage fees to ensure that you are getting the best deal possible
  • Understand whether or not there will be ongoing fees attached to the account
  • Know what you can trade and if you can trade shares locally as well as internationally
  • Be aware of the minimum and maximum trade limits imposed on you
  • Check if there are additional educational and research services available and if they cost extra
  • Determine how easy the platform is to use
  • Find out if there are flexible and advanced trading options available

4. Selecting the Shares You Want to Buy

The next step in the process is to narrow down the companies from which you would like to buy shares from. Perhaps the most important piece of advice that you can receive is to buy shares from an industry or sector that you actually understand. After all, when determining when to buy and sell the shares, you will have to go through lots of material associated with that particular sector. This becomes a lot easier for you to do if you have some vested interested in the subject matter.

Typically, though, you will find that there are three main ways to select which shares to buy. They are fundamental analysis, technical analysis, and stockbroker research. Of course, there are some individuals who solely rely on stock tips but this isn’t a reliable method of choosing.

Fundamental analysis requires you to go through the financial statements of a company. This gives you an idea of how the company has been faring in various situations and an indication of how it may perform in the future as well. With technical analysis, you will use various information and analysis tools to understand how the share prices of the company have been performing in the past. Here, you will work under the assumption that these prices will be mimicked in similar situations, in the future.

5. Combine both fundamental and technical analysis

For the best results, combine both fundamental and technical analysis. Alone, you may not be able to get a complete picture of how a particular company is performing. However, when you put both types of information together, you will be able to make a more informed decision. We hope you will share your trading success story with us soon.

In case you don’t want to do all of the work yourself, you can rely on the third option – stockbroker research. Here, it is about creating an account with a stockbroker that offers you access to their research and analysis. Before choosing such individuals, though, you should know what type of analysis the stockbroker is dealing with.

6. Managing Your Portfolio

In between buying and selling your shares, you will need to manage your share investment portfolio. One of the best things you can do to limit the level of risk you are exposed to is to diversify your portfolio. This means investing in companies and sectors that often work inversely proportional to one another. By doing this, you will be able to ensure that at least a portion of your investments will maintain their value at any given time.

Another thing you should do is to take a long-term approach to the shares that you hold. The shares need to appreciate in value so playing the waiting game can be useful to you in the long run. At the same time, you should avoid constantly monitoring your shares as the prices do rise and fall minimally rather frequently.

It is also vital that you comprehend the brokerage fees involved every time you place a trade. This is especially significant if you want to make smaller trades on a regular basis. The cost of these transactions alone can make some of these trades a poor choice. So, always be aware of the cost versus profit of any trade.

7. How to Sell Shares

At some point or another, you will decide that it is time to sell the shares that you hold. Now, if you hold the shares directly – for instance, through a broker, IPO, or employee scheme, then the process is fairly simple. You will need to either contact your broker or place the shares online. It is then a matter of waiting for someone to purchase the shares. As with buying shares, this type of trade also incurs a brokerage fee.

Once you have sold your shares, the title of ownership changes from you to that of the purchaser. This ownership transfer and the settlement of the sale will be completed after two business working days in Australia. This is when the money from the sale will be transferred to your account.

If you don’t own the shares directly but rather, in a managed fund, you will end up selling the units you own. Of course, in a managed fund, there are certain regulations that you are held to. As such, you may incur a withdrawal fee if you sell the unit before a specific time period.

Of course, when selling your shares, you want to take advantage of the rate at which the share value may be increasing or decreasing. Nevertheless, you may also want to think about the tax implications of any given trade. Now, any profits you make from share investment are taxed via the Capital Gains Tax regulation. However, if you sell your shares a year or more after you initially purchased them, you can receive a tax break. This is because you will only have to pay CGT on 50 percent of your profits.

8. Understanding the Types of Orders

As an Australian investor, when you have decided to either buy or sell shares, you will need to place an order. There are several kinds of orders and they each have their uses contingent upon a particular financial situation. The orders typically relied upon are: market orders, limit orders, stop-loss orders, and conditional orders.

Market orders are placed to get the best available price for shares at that particular time in the market. This means that these orders take place quite quickly. The downside, of course, is that the share price can change from the time you have placed the order to when it is actually executed. So, during this time the price may have increased or decreased.

A limit order is set to ensure that you end up with a share price that you find suitable. This means that if you are buying shares, the order will only be executed if they fall to a certain price or go even lower in value. On the other hand, a limit order when selling shares means that the trade will only take place when the price reaches a certain value or goes higher. If neither of these conditions are met, the trade becomes unfulfilled.

A stop-loss order is used when you are selling your shares. This is employed to ensure that your shares are automatically sold if the share prices drop to a certain amount. By doing this, there is a chance to limit how much you could lose, if those share prices continue to decrease.

Should I invest only the minimum on the Australian Stock Exchange?

This is your call. Only you know how much money you have, and how much you are willing to risk. Don’t forget that all types of investments involve some degree of risk.

As you see the minimum investment in shares is around $500 and the minimum share purchase on the asx is not important.

Now you know how to get started, if you are a beginner investor who is eager to try their hand at the share market. The information presented here will be more than enough to teach you how to buy and sell your shares so that you can make a profit.

If this is an area you are interested in, you should definitely take the necessary steps to start trading stock. This is because it is one of the best ways to make a considerable profit, over the course of your lifetime. Below, you will find all of the information you need to get started with buying and selling shares.


IG Markets Australia

ig markets australiaThe broker known as IG Markets is actually owned by the IG group and they accept Australian traders. This group which was formed in 1974 and originally traded gold.

Now though, it is a global enterprise serving close to 140,000 traders from all over the world. It has set up 17 branches internationally and racked up billions of dollars’ worth of profit in the market. Especially in Australia this broker is very trusted.

IG Markets Australia:

What We Liked

  • Low minimum deposit
  • Customer support available 24/7
  • Regulated by the ASIC
  • Demo account offered

What We Didn’t Like

  • Slim amount of options with deposits and withdrawals

Is IG Markets Available To Australian Traders?

Subsidiaries of IG Markets have been set up in Australia and New Zealand. The Branch in Australia is strictly regulated by the Australian Securities & Investments Commission.

This is an important feature for any trading broker operating in Australia. It reassures prospective traders that their selection of a broker is licensed and regulated by the government. This eliminates the possibility of the broker being a scam.

Traders in Australia can access the ground-breaking trading platform offered by IG Markets online.

It is a cloud based trading platform that does not require traders to download additional software to gain entrance to their accounts.

Instead, they can enter their accounts from just about any modern browser. All subscribed traders have access to over 10,000 trading instruments on the platform. There is also the availability of mobile apps that can be used to place trades. The platform streams and displays prices in real time.

This assists traders in conducting an accurate analysis to better their chances of being in the money.


IG Markets accepts a minimal deposit of $200 for a new account and for the first couple of years, it does not penalise a fee for inactivity. There isn’t a specific pay-out rate guaranteed at IG Markets. A rough estimation can be made by considering the time period allocated to the trade and the assets involved. However, the IG Markets trading platform will give you a potential pay-out once you have selected a trade and a time period for it.

IG Markets uses as simple and straightforward a system as possible with their trading accounts

  • Apart from the free demo account, all traders can use just one live account which is entitled to every kind of trading instrument the broker has to offer.
  • There are two types of  trading available: traditional and sprint markets which is a more recent opportunity.

It offers extremely fast trades with a time limit ranging from a minute to an hour. The main difference is that in sprint markets, users cannot close positions which have been opened. With traditional binaries, the positions can be closed before the appointed time of expiry.


Moreover, the types of trading are more with compatible with traditional binaries than they are with sprint markets. There are trading types like Hi-Lo, Up/Down, Ladder, Tunnel and One touch which are not available with sprint markets.

  • When it comes to making deposits, you will be charged 1.5% of the funds transferred from your VISA credit card and 0.5% on your VISA debit card.
  • With MasterCard however, no fee is charged and for Australia based traders, BPay is also a free option.
  • A bank wire transfer to IG Markets’ Westpac Bank account is the preferred method for international clients.

Unfortunately, the options remain fairly limited for both foreign and domestic traders, with the withdrawals as well. Australia based traders can only use BPay or VISA or MasterCard credit cards.

Happily however, there is good news to learn about with the customer services of IG Markets. There are several ways for clients to reach customer support.:

  1. There is a help desk that can be accessed via email.
  2. Representatives of the broker can be reached by telephone.
  3. You can also engage in a live chat on the IG Markets official website as well get in contact on Twitter.

A good alternative to IG Markets is Highlow – This broker also accepts Australian traders and they still offer binary options trading.

Is IG Markets A Good Choice For Australians?

IG markets is a well reputed broker in Australia, New Zealand and much of South East Asia. Being strictly regulated and licensed by the ASIC, traders should have little to worry about entrusting their funds to the broker.

The only real downside with IG Markets is the uncertainty of the payout rate and the minimal number of deposit and withdrawal methods.




Winning Strategy for Binary Options Trading

You will not last very long on any online trading platform without playing by a careful and effective strategy.

While it may not promise you a 100% hit rate, it will still help you land in the money more often than not on a regular basis. With binary options, a trader’s strategy often revolves around variables of the market such as expiry times, moving averages, breakouts, systems etc.

What really matters here is coming up with a winning strategy. Some strategies are more suited for new traders while others such as Forex and MT4 strategies can be executed by more experienced and informed traders.

Why Come Up With A Trading Strategy?

A trading strategy is more or less the code by which a traders responds to the behaviour of the market. It helps in directing them to trades that carry a high profit potential as well as the techniques of how to secure them. It also sets traders on a sort of rhythm where they can rely on certain responses to work in certain circumstances.

Coming Up With an Effective Strategy

In very simple terms, a good strategy for binary options is one that assists a trader to accumulate more profit over loss with a pay out that compensates well over any loss.

On average, a good broker offers a pay-out rate that is just under 100% of the investment so just being in the money more than being out the money may not guarantee a long term profit. Your trading can strategy can either be simple or complex… as long as it works.

The Advantages of Having a Good Trading Strategy

With binary options trading, time is a crucial factor and a great way to use it is by streamlining a lot of the work such as decision making and thought processing behind the placing of options. A good strategy should be able to accomplish this and make the work of a binary options trader that much simpler and efficient.

A strategy requires discipline and intelligent use of funds to be executed properly. While it is not entirely impossible for a trader to reap a profit without the help of a good strategy, the task would prove to be a lot more difficult.

New strategies are developed all the time. It is not always the best idea to simply borrow techniques of other traders under the shaky assumption that you will then gain the same sort of profit.

Sometimes, it pays off to do your homework and come up with a trading strategy of your own. Not only will this increase your knowledge and experience with the trade but you will have also built a strategy that caters to your specific financial interests as a trader.

To carry out a risk free operation of different trading strategies, make use of a demo trading account if it is available from your broker. You will have one with a certain amount of capital already installed so you start trading freely and hone your skills as best you can before using real money.

Basic Features of an Effective Trading Strategy

For the main strategy to work, three minor strategies have come together first. They are:

  1. A strategy for trading
  2. One for managing funds
  3. A strategy for analysing and improvements

All three are equally critical aspects of the main strategy. One cannot do without the other.


Coming up with an effective strategy is key to achieving continued success as a trader in binary options. It streamlines the workload and decision making involved. It can be relied upon to turn in profits at a very healthy rate.

how brokers make money

Managing Your Cash Flow with Binary Options Trading

Any experienced trader will tell you that if you want to continue trading with binary options, you need to know how to manage your money.

This will help to ensure that, on average, you are making more than you are losing. It will also make certain that you don’t develop any bad trading habits that could cause you to spend all of your money.

Here is a guide to managing your cash flow with binary options trading:

Living Expenses are Primary, Trading is Secondary

You should never give binary options trading more importance in terms of expenses that you need to take care of. When you get paid each month, the first you need to do is to set aside money for you rent, utilities, food, transport, etc.

Think of this as an untouchable fund. Under no circumstances should you ever take money from this fund.

You should also never take out loans or borrow money from people to trade with. This is because there is always the possibility that you could lose that entire money. There is also no guarantee that you will be able to make it back. It is vital that you think of trading as secondary income – it should always make you more money than cost you.

Calculate Affordable Losses

The first question you will need to ask yourself with binary options is, how much can you stand to lose? Now, this is not based on all of the money that you have in total. Instead, it is dependent on how much money there is in your trading account: you can use indicators.

The money that you have there, should be able to last you for a good number of trades.

Also read:

For accounts with higher amounts, you can decide to place no more than one percent on each trade.

If you aren’t starting off with a lot of capital, you can increase this number to around three percent. Whatever you choose, there should still be a healthy sum left in your account.

Adjust Investment According to Strategy

Each strategy has its own level of risk attached. The risk is usually offset by the profit that you stand to make.

The strategies that have only minimal risk may not be able to make you as much of a profit. At the same time, the riskier strategies can also result in you losing all of your money. A good way to balance the risk and your strategy is to increase investments for the less risky endeavors and reduce money for the riskier ones.

If you are wondering how to determine the risk involved with your strategy, just look at its win percentage. How much of the time does your strategy end in in the money trades?

Be Flexible with Your Trades

It is foolhardy to continue to only place a set amount of money on each trade. You need to know when to increase your investment or to decrease it.

If you are in a rut and happen to be losing trades consecutively, you should decrease how much money you are placing on the trades. However, if you do see a good opportunity, you should elevate the investment somewhat.

It is important to avoid being too extreme in either of these directions, however. It is important to analyze each trade and to determine whether your original formula works or if it can stand to be tweaked.

This is a good guide to managing your cash flow with binary options trading. Don’t be afraid to reevaluate your money management system every so often, however, if you feel as though it is not working for you.

binary options indicators

Binary Options Indicators

If you are one of those traders that go all pear shaped when asked about binary options indicators and how to use them, you have come to the right place.

Probably the reason for this is that there actually are quite a lot of binary options indicators to refer so much so that traders are liable to be overwhelmed by a lack of information and invariably end up using the wrong set of indicators. Definitely an inconvenience.

The indicators are typically used for stock markets or the Forex but they are equally applicable to binary options as well. Binary options indicators are for all intents and purposes, arithmetic values on charts.

The values in question are obtained from formulas centered on price which has four categories here: the Open (opening price), the High Low, and Close (closing price) which can be abbreviated to OHLC.

Types of binary trading indicators

As we delve deeper into binary options indicators we will find that they branch out into a number of categories and sub-categories. Here the main ones:

  • Cycle indicators – These tend to be confused often with oscillators since they appear similar to each other and invariably traders pass them up as overbought or oversold. The slight complexity of this indicator lies in the fact that it tends to plot the retracement dips, rallies, peaks and troughs of the price in cycles. They are often employed to identify the beginning and end of retracements. The most famous example for this type of binary options indicators is the Schaff trend cycle indicator.
  • Oscillators – As the name suggests, these indicators tend to oscillate between certain levels. Plotted in a separate window, they are used to verify retracements in price and usually to denote overbought or oversold conditions of stocks. The most common examples for oscillators include but not limited to Stochastics or MACDs.
  • Volatility indicators – These indicators are plotted on the chart and are typically used to find the High and Low and sometimes the Open and Close prices too. Once plotted on the chart, they are overlaid on price. The most common examples for this kind of indicator are Bollinger bands, envelopes and other bands based indicators.
  • Trend indicators – This type of binary options indicator is also plotted on a chart and overlaid on price. The norm this type when the existing price is either above or below the average price; either the existing price is a trending up or down. A typical example of a trend indicator is a moving average.

No one really knows for certain where the market will go. It is speculated that for less than a fifth of the time the markets trend while for the rest, they range or move sideways. So what does this mean for a trader trying to select the best indicator in binary options?

Of course if the markets are trending, the trend indicators are your best option. For instance an accurate idea of the existing price relative to the average price can be obtained from a moving average indicator.

Similarly, a market that is going sideways warrants an oscillator to pinpoint overbought and oversold levels so they would be the preferred choice of traders in that scenario.

Sometimes it is possible for a trader to find themselves at a loss to decide which binary options indicator to use. The most common solution here is to select an indicator that is specific to the purpose.

As mentioned earlier, these are only the main categories of binary options indicators. Afterward they branch out into various subtypes. However keeping an acute memory of them will better your chances of making accurate predictions and receiving a profit.


Binary Options Brokers with ZuluTrade

ZuluTrade is a binary options trading platform that is quite unique. Here, traders have the choice of following some of the leading experts on the market.

They are then able to mimic the trades that these traders are making, thus increasing their probability of being successful as well. ZuluTrade focuses on the trades taking place across the forex market.

This particular platform is ideal for individuals who are only just starting out with binary options trading. It is also useful for those who are unable to constantly monitor the market and observe emerging patterns.

However, due to its uniqueness, there are not all that many brokers that offer this platform. Here are the few binary options brokers that actually do:


AAAFX is one of those brokers that has a wide variety of options when it comes to trading platforms. One of these includes the ZuluTrade platform. One of the advantages of this broker is that it is based in Greece and regulated by the EU.

For those who wish to begin trading with binary options, you can open an account for as little as $100. Once this is done, you will then have the option to begin copy trading with ZuluTrade. Additionally, you can actually make up to 30 percent on each deposit that you place in your AAAFX account.


OptionTrade was actually one of the first binary options brokers to be licensed by the CySEC. As such, it is a trustworthy broker in addition to offering ZuluTrade as a trading platform. You will be able to register for an account with just $100. With this, you will actually have the opportunity to take part in some risk free trades. You will also be given a cash match bonus.

Also, you will have many different assets to choose from as well. Last but not least, the potential payout is about 83 percent.


CapoTrade is yet another regulated broker that allows traders full use of the ZuluTrade trading platform. For 200 in either US dollars or Euros, you can open up a standard account with this broker.

While this is a little higher than the other brokers, there are plenty of benefits that come along with this minimum requirement. This gives you access to numerous educational literature and videos to enhance your trading skills. You are also given a welcome bonus of 10 percent. The payout rate with this broker is an impressive 82 percent.


CBFTrade is another great choice if you are looking to trade with the ZuluTrade platform. Here, you are able to open up a Mini Account for between $100 and $999.

In addition to many binary options guides, you will also get your own account manager and even have temporary access to a trading coach. There are also bonuses offered of up to 50 percent. There are even webinars and various other learning tools.

All of the above binary options brokers are not only regulated, but they also offer ZuluTrade as a trading platform. There are plenty of other advantages to signing up with any of these brokers, especially if you are looking to take part in Copy Trading on ZuluTrade.

Australian Binary Options Trading

Once you aware of the fact that there is more than one type of trade, you may find yourself with an entirely new question. This is probably how to choose the right type of trade for you. As you can imagine, the type of trade that you choose can greatly affect whether or not you will win a trade.

In turn, this will determine just how much of a profit you make in this venture. All in all, it is an important decision to make and one that should not be made lightly. To help you with this verdict, here are some things to consider:

Your Preferred Strategy

One of the more important things to take into consideration is the strategy that you, as Australian trader, prefer to use. This is because the strategy has an enormous impact on the type of trade that you can choose. For example, imagine that you like to use the straddle strategy so that you can minimize the amount of risk involved.

Due to the specificities of that strategy, it is the boundary trade that will most likely be of greatest use to you. This is because the broker will provide you with the outermost prices of the asset. This makes it easier for you to take the two opposing positions to ensure that you come out on top.

How Much Risk You Can Incur

The next question that you need to ask yourself is whether you want to opt for the safer route or choose something a little riskier. This is because some Australian trade types automatically carry more risk than others. Imagine One Touch trades, for example. This is because you have to now factor in a price point as well and determine whether or not it is a viable value for that specific asset. As you can see, there is an increased level of risk. At the same time, there is also a chance to make more money.

Therefore, although you may lose more often with such a trade type, you can stand to make more money as well. In terms of simplicity, the Call/Put or High/Low trade is probably the one with the least amount of risk. This is because you have to decide if the price is going to go up or down. As the payout is considerably lower, you stand to make less amount of money.

Your Own Emotions

Many traders fail to factor in their own emotions, moods, or emotional wellbeing when deciding on a trading type. Although it may seem unusual, it is actually quite important to take a look at this aspect as well. As discussed above, with High/Low trades, you have a greater chance of winning. This ostensibly means that all things being equal, you win more times than you lose. With the One Touch, however, you are probably going to lose more. If you are the type of trader that gets anxious, especially after losing a couple of trades, it is best to stick with the High/Low option. This is because you will not be able to stand the thought of losing despite the fact that you will be making a profit. If you are the type of trader that can keep their eyes on the price, however, you just may be able to bear the brunt of One Touch trading.

It can be tempting to choose a trading type solely upon the simplicity of it or just how much money you may make. If you are planning on being a binary options trader for quite a while, however, this is not a tactic that will work. You need to carefully look at the points above to decide how to choose the right type of trade for you.

Australian binary options traders have the possibility to choose from many ASIC regulated binary options brokers that have a legit Australian license. Look here for more info.