Binary Options FAQ

Getting started with Binary Options may at first seem overwhelming, but with some general information and answers to commonly asked questions, new traders will find that getting started is safe and easy. This FAQ section will be beneficial to all new traders who are starting with Binary Options.

By reading through this section of FAQ, traders will find answers to commonly asked questions and will become well-informed before they begin trading Binary Options online. These questions and answers can be beneficial to any new trader that is just starting and is gathering background information to better prepare them for when they begin to conduct cash trades through an online Binary Options broker.

What is a Binary Option?

This is a type of option for investing that offers fixed payouts and losses. There are only two outcomes, making this an attractive investment option for beginners. Learn more about what Binary Options are click here.

What is the Maximum Amount I Can Invest?

With most Binary Options brokers, there are different levels of investment. Generally, single transactions cannot exceed $5000 USD. However, multiple contracts can be purchased, allowing traders to increase their investment and their chances at earning returns.

What is a Demo Account?

A demo account is a fake account that can be used when signing up with a broker. These accounts will teach new traders how to conduct trades and will allow them the time needed to become familiar with the platform that is being used. There is no risk involved as real money trades will not be conducted. These accounts will also allow traders to try out new strategies to see what will work best.

How Can I Invest?

Investing will start with choosing a reliable broker. The trader will them open an account and make a deposit They will then choose an asset in which to trade and will select one of two options, call or put.

What is the Average Return of a Successful Investment?

Most returns from successful Binary Options investments will range between 60% and 81%. If there is a loss, most brokers will refund up to 15% of the total investment.

Are Profits Taxable?

Brokers will not remove any taxes from earnings that are generated with successful trades. It is up to the trader to manage their accounts and earnings and pay appropriate taxes to their governing body if required.