Binary options is one of the world’s newest forms of trading on the financial arena. Binary options give traders with no previous financial experience the opportunity to enter a new market with the ability to make profit with a small initial investment. This market is unique in that it is exclusive in enabling you to trade the way you like.
There are many advantages of this type of trading, including web-based, potential for high profits and suitability for new traders. Most brokers do not charge their traders any commissions, which is in contrast to regular market brokers that charge their customers high commissions.
Since January 2011 estimates put the number of binary options platforms at about 50. This is proof of just how quickly the market is expanding. As of now there is a lack of regulation in the binary options market, but the introduction of regulations in the next few years is imminent.
Traders that decide to trade binary options have a choice of 4 types of underlying assets, which are currency pairs, indices, commodities and stocks. The high choice of underlying assets has attracted new investors. Within each of these 4 categories there is also a high choice of sub-categories.
To increase your flexibility while trading it is best to educate yourself as this is the means of becoming profitable in the long term. Traders with the least experience can start trading binary options on a demo of their choice, which most leading brokers already offer free of charge.