This page offers you answers to the most frequently asked questions on binary options that I receive every day to my mailbox. I hope you’ll find everything you need and everything that interests you.
I am new to trading and would like to start. Can you give me some advice?
My best advice is: Always try to learn something new. This webpage may serve as your inspiration or source of learning materials. Alse I recommend to have a look at the tips for beginners.
I don’t want to invest just yet, but I would like to try binary options. Can I open a free demo account?
Sure, it is also highly recommended! You should never trade with unless your strategy was proven in test conditions at a demo mode. This can be accomplished on our demo account which is available for free and does not require registration. Just open this page and start trading!
Also, a complete list with brokers who offer a demo account is available here: Binary options brokers with demo.
What is MetaTrader and why do you keep talking about it?
Metatrader 4 is a program that shows us nice graphs of price movement in stocks, commodities and currency pairs. This program is very clear (much better than the broker’s one) and that’s the reason why you’ll be able to recognize and estimate the further development of the prices. More on this program in our MetaTrader 4 Show. In general, it’ll make you a better trader and that’s why I keep talking about it. 😉
Where do the money that traders earn come from?
It’s simple: From the people that don’t.
A little bit more complicated: Let’s say that a broker has 100 traders. 50 of them will choose the exact same option CALL and 50 choose PUT. Everyone invests $10. Broker then has all together $1000 from his 100 traders. Only 50 will be successful, so then the broker has to give 50*$10* payouts (for example 80%) = $900, but he’s still left with another $100.
Can I start with options even though I don’t know much about stock market or Forex?
Sure, you can, but you’ll need a bit of a practice and study. You can start by reading our tips for beginners and I also suggest reading some ebooks that can be found on our website, including our own articles.
What is the best “binary option strategy”?
If you are looking for strategy that will guarantee you great results, then you are wrong. There is no super indicator thanks to which we’d be able to win all of the trades (that would be awesome though 🙂
It is important to learn to analyse the chart and our Technical analysis show can help you with that and always, even though you are sure that your strategy is the best, use your head.
What is the minimum amount of money I can try to invest?
Minimum deposit in broker TopOption is $100, but prices differ within different brokers. Minimal amount to trade is than $5 for short-term option (60 seconds, 90 seconds and 120 seconds) and $10 for the middle and long-term ones (5 minutes up to even a month).
So, if you’d like to try binary options trading, you could try our binary options demo completely free of charge. All you need to do is follow the steps on your screen.
What about taxes? Is my income taxable?
Yes, all our income is subject to an income tax, which is 15% tax for physical person.
I’d like to trade binary options. Do I have to be 18 years old?
Yes, if you want to trade binary options you have to be 18 years old. Without confirming your age (ID, for example) you won’t be able to withdraw any of your earnings.
TopOption doesn’t have 5 minute options?
TopOption options expire precisely at a given time( e.g.: 12:30 or 14:00), so you can have 5 or 11 minutes until it expires and can’t really choose. Other broker’s options(e.g.: stockpair) will expire always AFTER the given time, so you can easily, at 14:57, be sure that it’s always going to be 10 minutes.
How much can I earn with binary options?
I get asked this question quite a lot, but unfortunately there is no answer to that. How much will you earn using binary options? That depends completely on you. The amount of your earnings depend on how much time have you spent and how much you understood the particular binary options.
What’s the maximum I can earn?
I really don’t know the exact amount and it’s not given anywhere. Let’s say, you’d be getting lucky and earning around $6000, that would be a bit suspicious. It’s a lot of money and brokers wouldn’t possibly like that – as I’ve told you above. It’s all just speculation, but it could make sense.