Binary Options Vs…
Trading in binary options has been a great method to make money online for many people. But binary options trading is not the only system online that a person can use to build their bank accounts. I have discovered that people are always interested in knowing many ways to make money online so I am going to do a bit of comparing. That is what I mean by Binary Options Versus.
- Binary Options versus Online Roulette
- Binary Options versus CFD Trading
- And Binary Options versus Sports Betting
- Plus Binary Options versus Poker
We will look at the pros and cons of each and try to determine which of these are the best opportunities to make money online.
Binary options trading pros and cons
Since I am measuring each of these against binary options trading, I will start by giving you what I see as the pros and cons of binary options trading. I believe many traders think the pros outweigh the cons, but that is your judgment call.
Binary options pros
- Short term trades allow investors to profit in 30 seconds, 60 seconds, 2 or 5 minute increments making payoffs quick.
- You don’t need a large budget to start trading. Most binary options brokers require a minimum deposit of only $250. Many stocks are far beyond that just to purchase 1 share.
- Binary options trading is really quite simple. Just pick if a certain asset will rise or fall in the time period.
- There are no fees. When you make trades on binary options generally, the broker is the “house.” The broker makes money when traders lose. This is why they do not charge fees usually. Now there are a few such as the United States Nadex where traders are trading against other traders. In this case, the broker takes a small “cut.” These are normally considered CFDs which we will look at further on.
Binary options cons
- The odds favor the brokers. Just think… You are making a 50/50 call; the asset will either go up or down, but the broker only pays out a percentage on a win. It could be 70, 80 or even 90%, but if you lose, the broker takes 100% of your trade amount. So on average, you will have to win 6 of 10 trades to break even.
- There are not a lot of trading tools. I do see where many brokers and private carriers are changing this pattern but historically, there just are not many binary options trading tools available.
- Bonus programs can be deceptive. Many traders do not read the terms and conditions before they accept a bonus. The trader does well and attempts to withdraw only to be told they can’t until… Brokers have terms stating that to withdraw bonus money or the profits made while the bonus is effective, the trader must make a certain volume of trades. That could be 20, 30, 40 times or more the amount of the bonus.
- The high rate of unlicensed and unregulated brokers. While many unlicensed brokers still operate a reputable service, there are many others who don’t.
Now keep these pros and cons in mind as we look at some other ways to make money online.
Online roulette pros and cons
Gambling online in the table game of roulette is another source of making money. But roulette carries its level of pros and cons too.
- Roulette is easy to play.
- You have control over the speed of play because you tell the system when to spin the wheel.
- There are a wide range of betting options in roulette with various odds.
- Roulette can be played 24 hours a day, 7 days per week.
- Odds are quite good of winning certain bets in roulette.
- Depending on the online casino in some cases, roulette tables can be full with you having to wait.
- Roulette is random. There is no system that can accurately call roulette outcomes based on measurements. Most systems use an “it hasn’t come in lately, so it is due” mentality.
- Roulette can be highly addictive.
Binary options Vs. Roulette
There are advantages and disadvantages on both sides of the equation. It can be more predictable what can happen in a binary options trade where roulette is random. But a nearly 50/50 bet in roulette gives you a 100% payoff. You may get 80% in binary options.
Binary options can only be traded while markets are open. Roulette never sleeps.
I call it a draw and I believe you can feasibly make online money with both methods. Be sure and read to the end so I can explain how.
CFD trading pros and cons
Known as Contracts For Difference. You can speculate on positions of assets and use that speculation to purchase a huge range of CFDs.
- Leverage. You can purchase much more than you have in money.
- No fixed expiry dates.
- CFDs mirror the actual assets.
- Leverage. Yes, I have it listed as a pro, but it can also be a con. You could discover that asset “tanks out” and you suddenly owe a lot of money.
- Taxation. You will be taxed on profits made from CFD investments.
- Fees and interest are charged. You are borrowing money to leverage which does result in interest charges and there are fees on trades.
Binary options Vs. CFDs
Unless you are a master trader and understand how to manage your finances carefully, I highly suggest you stay clear of CFDs. There is a good reason they are completely illegal in the United States. People have committed suicide because they mismanaged CFDs.
I believe Binary Options trading is much safer.
Sports betting pros and cons
Betting on sports has become hugely popular. From soccer to baseball, basketball and many other sports, we wonder if this is a good way to make money online.
Sports betting pros
- Easy and convenient. It really is not difficult placing a bet on your favorite sport’s pick.
- Quick returns. You will know if you made profits soon after the game is completed.
Exciting. This is the biggest pro if you ask enthusiasts. There is nothing like watching a sporting event when you have money riding on it.
Sports betting cons
- Some of the points, spreads and odds can be confusing.
- Sports betting can be highly addictive.
Binary options Vs. Sports betting
Not everyone enjoys sports, but I have yet to meet a person who does not like making money. It is difficult putting a versus between these 2 methods of making profits; I truly believe you can do both.
The biggest thing with both systems is to bet or trade on assets that have a good chance of winning.
Online poker pros and cons
Online poker pros
- You can play online poker 24 hours per day, 7 days per week.
- It is exciting.
Online poker cons
- Highly addictive.
- Losses can come fast.
- Distractions. From the telephone ringing to a dog barking, your mind can be taken from the game at hand.
Binary options Vs. Online poker
With online poker, you are playing against other people. The play can change drastically depending on the players. You need to be completely trained in the poker playing rights and wrongs if you want to be on the winning side more than losing.
With binary options, you are only playing against the house… the broker. It can be easier to win against 1 than win against several.
Truly, I see no reason you can’t use all these methods to make money online, but I suggest that you pick one and master it.
I mentioned Roulette earlier, and I would like to say that I have discovered a winning method. And it can run while you are making binary option trades.
Try RouletteBot and allow the robot to follow your settings and make the bets that will make you huge profits. You can find RouletteBot here.