Binary options in Singapore are a relatively new trend in speculative investing. In this Binary Options Singapore guide we inform you in detail about this quite new type of financial product. We will explain what binary options are, how binary options trading works and what binary options brokers have to offer investors and traders.
You can also do a binary options broker comparison with us to find out who is the best binary options broker for your needs. All information and help is of course free of charge, so you can only benefit from the service. But first, let’s start by answering the question of what binary options actually are.
Best Binary Option Brokers in Singapore
What are binary options?
You may already know about the types of options you can use to bet on the price of stocks or other things, like call or put options. If you already know how to use these instruments, you may not have been brave enough to use them because the classic options aren’t as clear as they used to be. Here, there are a lot of important things to keep in mind. Various key figures play a role here and the time value of the option, depending on the remaining term, also has an influence on its price. A binary options broker comparison is therefore advisable for every trader.
The classic options are not similar to binary options. In comparison, the binary options are mainly characterized by their simplicity. Binary trading is very popular with many traders, mainly because of its great transparency. As a speculator, you only have to decide whether you believe that the price of an underlying asset will have fallen or risen at time XY. Any key figures or time values are not to be considered with binary options. If you want to trade binary options, you “only” have to decide whether the price development is positive or negative. The underlying values, the so-called assets, are stocks, indices, currencies and commodities. For example, anyone who assumes that courses or prices will rise speculates with a call option on an increase in the price of the underlying asset within the term of the binary option.
Essential features in the binary options broker comparison:
- Simple and transparent product
- Trading is often possible from just a few dollars
- Profits of up to 500 percent, risk of loss limited to capital investment
- No key figures or time values to consider
- Speculate on falling or rising prices
- High losses are possible
Important: Choosing the “right” broker is also important for trading in binary options as successfully as possible.
Best binary options broker in Singapore – what are the characteristics?
The various binary options brokers sometimes differ quite significantly in terms of their services and conditions. That is why it always makes sense to carry out a binary options broker comparison.
There are some characteristics that can distinguish a very good broker.
We list here for you exactly what these are:
- One selection feature is the minimum deposit. It is particularly important for beginners that only a small amount of capital has to be paid in at first. Therefore, a very good broker is characterized by a low minimum deposit, which can be as little as $10, for example, as with IQ Option.
- Another positive feature is the lowest possible minimum trading amount. Because anyone who trades binary options for the first time naturally does not want to invest a lot of money directly, but rather approaches the matter cautiously. The best brokers enable trading from just a few dollars per trade.
- Professional traders often want to be able to trade from anywhere. Therefore, they want a broker that offers so-called mobile trading on the smartphone. Especially in this point there are still clear differences between the brokers.
- The use of a demo account also distinguishes a very good binary options broker. Unfortunately, many brokers do not yet have such a demo account . For beginners, however, this account is important because trading in binary options can be tried out so risk-free.
- Regulation: Binary options are financial products recognized in the EU and most brokers are regulated in Cyprus by the local financial regulator CySEC (Cyprus Securities and Exchange Commission). Under no circumstances should you trade with providers without EU regulation in order to protect yourself from fraud and rip-offs. So far, there are no Singapore binary options brokers or providers with headquarters in Singapore and MAS regulation – but brokers regulated in the EU (e.g. by the CySEC) are of course also allowed to legally offer their services to Singaporean clients.
- A high bonus can be tempting. However, it is not necessarily one of the characteristics that make a binary options broker stand out in comparison.
In our review of the test winner IQ Option , we briefly present the broker and the arguments that led to our conclusion “Best Binary Options Broker”.
Binary options: 5 important questions and answers
Beginners in certainly still have a few questions on the subject of digital options, which we would like to answer at this point. In our binary options broker comparison and the test of the best brokers, these questions came up again and again:
1. What is the minimum amount to deposit into a binary options account?
Depending on the broker, you can trade binary options from just a few euros per transaction or trade. The minimum deposit to open an account is usually 100-200 dollars.
2. What gains and losses are possible?
Depending on the type of trade, you can even achieve a profit of up to 500 percent, for example with so-called one-touch high-yield options. Profits of 70 to 91 percent are possible with the simple call and put options. If you are wrong in your market assessment, you usually suffer a total loss. In general, the following applies: the higher the possible return, the higher the (loss) risk. With binary options, the loss of the initial capital is limited. But you can always know before you trade the maximum amount you can lose.
At BDSwiss, for example, the maximum return is around 89% per successful trade.
3: What are the terms of binary options?
There are different terms between which you can choose flexibly. Depending on the broker, these range from 30 or 60 seconds to several months. BDSwiss offers a large selection of terms. In principle, however, binary options are more suitable for short-term speculation (“financial bets”) than for long-term investments.
4. Can I only trade binary options from a PC?
No, because some brokers now offer mobile trading (“mobile trading”). You can then, for example, trade via mobile internet access via netbook, laptop, tablet or via iPhone or smartphone. This then works either via a binary options app or web-based via the browser.
5. What can you speculate on with binary options?
There are essentially four different categories of underlying assets on which you can speculate with binary options: stocks, indices, currencies and commodities. The selection within these categories differs significantly between brokers. In Forex, traders can hunt for pips on the major forex currency pairs such as EUR/USD, GBP/USD and USD/JPY. Commodities such as gold or crude oil are also standard offerings from binary options brokers such as BDSwiss.
Tips for successful binary options trading
If you want to be a good trader, there are a few things you can do when you’re trading binary options. For example, when you trade forex or CFDs, there are a few things you should know.
- To start, pick a strategy that you want to use to trade, then start. It’s up to you whether you want to use traditional trend-following strategies or strategies that look for big changes in prices.
- An emotional response rarely leads to the success that you want. It is important to stay with the strategy even if you lose while you’re doing it. Even if you lose while you’re doing it.
- When starting, you should only trade on a demo account or with small amounts. Eventually, the amounts will keep going up, and hopefully, so will the profits or returns that come with them. Important: Past profits are not a guarantee that you will make money trading in the future. You should always use money that you can afford to lose when you trade.
- Another good thing to do is not to trade with all of your money. You should only use 1% to 5% of your total capital for each trade, depending on how much risk you can take. There are ways to avoid losing the whole amount of money you have in your trading account when there are long dry spells, or “drawdowns,” like this.
Trade successfully with binary options strategies
Basically, binary options are financial bets that are placed on the price development of underlying values (assets). Even if binary options are often gambled on, professional traders know that the consistent pursuit of a strategy for lasting profits is essential. We highly recommend a strategic approach for binary options trading. However, binary options strategies can also help beginners to find a reasonable entry point. In the following we present possible trading approaches for binary options trading, which you can as a starting point.
The most commonly used strategies in binary options trading include:
- Trend following strategy – “The trend is your friend” is a popular saying among stockbrokers. So, the trend-following strategy is probably the most commonly used strategy on the stock exchange.
- Volatility strategies – In volatile markets, not only can you buy a call or a put option, you can also invests in both directions.
- Hedging strategy – Traders can use hedging with binary options for short terms. In doing so, options on falling prices are used, in order to protect shares held in the portfolio for a long time against a temporary drop in prices.
There are a few providers of binary options who give you a bonus when you make your first deposit. A bonus makes it easier for new people to trade binary options. To all our readers in Singapore we can conclude by saying the safest broker for binary options trading Singapore is IQ Options. If you want to use IQ Option to trade, you don’t have to make a deposit first. Instead, you get a free and unlimited demo account, which you can use without making any money.