Differences between Binary and Forex

Rate this post

We’ll show you the differences between Binary Options and Forex so you can start making money. This article will be useful for you! We’ll show you the differences between Binary Options and Forex so you can decide which one is better for you! 

What are Binary Options

The first thing you should know is that Binary Options are a form of trading where you can bet on the direction of an asset within the next 60 seconds, 2 minutes, 5 minutes, 15 minutes, etc. Those are short periods of time,. For example, you can say Facebook is going to go down in the next 15 minutes and if it happens then you earn a commission and if the opposite happens you lose the trade!

Why are they called Binary Options?

It’s a 2-option thing, that’s why they are called Binary Options.

What is Forex?

Now, Forex trading is investing in the real market to buy certain assets. And then be able to sell them at a better price. This means you buy an asset at a relatively low price and sell it at a much higher price. For example, you buy some shares of Facebook and when the price goes up you sell them at a higher price. This is the way in which you make profits on Forex, even if it always works with leverage.

Main differences!

Now, the main differences between Binary Options and Forex are that with Binary you will have an expiration time on your trade. You will place trades and you can decide the start. For example, 10-minute expiration time. And you will not be able to do anything to stop that unless you close the trade. But you will still lose your money. Let’s put it this way, you won’t be able to cut your losses.

With Forex, although the trade has an unlimited amount of time, this means that it does not have a period. If the pair continues to go like this for 2 years the trade is going to be there. You will be able to close it manually, that is one of the main differences.

With Binary Options you can make a lot of money in a very short time. This is almost impossible to do with Forex. Because with Forex you earn smaller amounts of trades. So, the biggest risk is in Binary Options. You put $100 into your position, and you make $80. Bt if you lose, you lose the $100. With Forex you will not invest in that way. You can trade with 100 dollars and aim to make 500 dollars. But you will not have a limited time, you can lose the 100 dollars, but the profits are potentially bigger.

Binary Options brokers vs Forex brokers

You must know that the main Binary Options brokers have one or two regulations. Most of the time they are not regulated in the United States, neither in the European union and in most of the first world countries are not regulated.

So, what you really must do to avoid risk is. For example invest 1,000 dollars and after having a profit of 2,000 you will withdraw your initial 1,000 dollars. In this way you will be risk free. Most of the Binary Options brokers are located in remote places where it will be almost impossible to chase them. This, in case they do something illegal.

On the other hand, the Forex brokers are much more stable. They are located in places like the United Kingdom, or Australia. And ome of them the United States or Canada .All these brokers have strong regulations and are being supervised practically 24 hours a day, 7 days a week. This, so that the client is sure to have their money with them.


As you could see, the 2 markets are totally different, but you can earn money with both! This will undoubtedly depend on which one you like more and which one you can accommodate better.

If you are a beginner, we can advise you to go to the BLW Trading Academy. It is totally free, we will leave you the link so you can start your education here: https://blwtradingacademy.com

If you see the videos that are there for you, you will be able to decide if you want to operate in the Binary Options or Forex market. You decide which one is the best for you! We hope that the information in this article can be very helpful for you!