Recently, a number of traders are of the opinion that binary options are risky and investing in them is the same as asking to lose money. Actually, this is impossible because binary options were invented to help traders hedge their investment portfolio and reduce risk on other investments. This exciting financial tool is meant to give you a generally low risk and easy method to make good profits by predicting the near future movements of the market. There might be cases when you incur a loss but that doesn’t happen all the time. Therefore, online binary trading should be able to provide a safe and secure environment for participating investors. But, still, it’s better to understand the possible risks associated with these assets. First off all, choose a top notch Binary Options trading platform below:
In this relatively new financial market, there are unfortunately some sketchy and dishonest brokers that always try to trick you by impressing you with claims of excessively high profit margins, which are also fake claims. Much as these promises seem attractive, keep your distance from these brokers and their unfair and inconsistent methods.
On the other hand, there are still a good number of legitimate binary brokers who have guaranteed trades, rated software which is also secured by PCI compliant software. If you need to place a big transaction, check out some large brokers that provide direct wire transfers to your business or personal bank account, which has a high level of safety and security. Smaller brokerages also have safe and well-known payment and banking platforms, mostly common visa or master card, Paypal, Moneybookers (now changed to Skrill) as well as other popular e-wallets. Moreover, to even better manage your portfolio’s profits and losses, a separate trading account is a good idea.
In the specific case of South African traders, it’s advisable to use credit cards or directly transfer money in and out of your broker’s account. This direct deposit and withdrawal service is now offered by Standard bank, Absa bank or First National bank, which requires much lower commissions in comparison with credit cards. Especially with off-shore websites, going over your FICA requirements will help ensure safety for your trading. However, if you want readily available funds at all times to be transferred via simple wire transfer or directly in and out of your credit card, get yourself an e-wallet account. We consider this to be the best way to manage your money and you can create your own virtual account like this with Moneybookers (Skrill).
Binary options are considered a safe investment for many reasons, one of which is the certainty of each trade’s results. It doesn’t matter whether you take up a put option or a call option in the first place, there will be only two possible scenarios: either you make a considerable profit or you get nothing (or in some cases a partial refund). Therefore, binary options can be used to reduce your risk exposure when you trade commodities, indices or other safer binary options. Moreover, binary options are a good choice for day traders, who prefer making secure and balanced investments in a short period of time.