Binary Options FAQ
Binary Options Basics
What are Binary Options?
A Binary Option is a financial instrument, a derivate, enabling traders to speculate on the price movement of an underlying asset without actually owning the asset.
What is an Underlying Asset?
An underlying asset is the currency pair, commodity, stock or indices that a binary option is connected to. The price movement of this asset is what determines the result of the binary option.
What different kinds of Underlying Assets is there?
Underlying assets are usually divided into these four categories:
Currency Pairs - EUR/USD, USD/GBP, USD/ZAR, EUR/ZAR etc
Commodities - Gold, Oil, Wheat, Sugar, Copper, Coffee etc
Stocks - Apple, Facebook, Google, BMW, Netflix, IBM etc
Indices - NASDAQ, S&P500, DAX, NIKKEI, JES etc
Can I Loose More Than My Stake?
No. With binary options your entire risk is your stake, meaning the size of your investement per trade (or simply the size of your bet). If your investement for a single trade is $25 then you can never loose more than $25.
Is Binary Options Hard To Learn
No. The theory behind how binary options work is very easy. But this does not mean that making money on Binary Options is easy. In order to make money on binary options you have to study your underlying assets hard and this means a lot of work.
Is There A Free Trading Account Option?
Yes there is. At all the brokers presented on this site you can open a free demo account and try out binary options trading without risking any money.
Do the Binary Options Brokers accept traders from South Africa?
Yes. All brokers presented on this site accept traders from South Africa.
What is CALL Option
A CALL option is the option you buy if you think the price of the underlying asset will go UP. A Call option is sometimes also referred to as a Buy option or High.
What is PUT Option
A PUT option is the option you buy if you think the price of the underlying asset will go DOWN. A Put option is sometimes also referred to as a Sell option or Low.
How Do I Start Trading
You trade binary options through a binary options broker. All brokers on this site offers a free demo account where you can try binary options trading without risking any money. You’ll find a list of safe and regulated binary brokers here
What’s the Minimum Investment per trade?
The minimum investment per trade depends on which broker you choose to trade with. It varies between $1 up to $25 per trade.
What’s the Max Investment per trade?
The maximum investment per trade varies a lot between the brokers. You will find this information for each broker at our best broker page. The max investment varies between $1 500 up to $75 000.
Deposit / Withdrawals
What different Deposit and Withdrawals Methods are there?
This depends on the broker you choose. But most brokers offers credit and debit card deposits, as well as bank wire and online solutions like Skrill. Most brokers offers withdrawals by the same method as you’ve made your deposit with.
Do I Need To Supply Any Documents In Order To Make A Deposit/Withdrawal
Yes you do. Most brokers ask you to verify your identity bu supplying a copy of your ID or Drivers License. You will also be asked to verify your physical address by supplying a document like a utility bill with your address on it.
What’s the Minimum 1st Deposit
The minimum first deposit depends on which broker you choose. It varies from $10 up to $200.
Legality and Regulations
Is Binary Options Trading in South Africa Legal?
Yes it is. However binary trading in South Africa is not yet regulated. Meaning that the brokers that offers binary option trading to South African clients are based outside of South Africa, mostly in Europe. These brokers are licensed to offer binary option to clients living in South Africa. You can learn more about the legal situation of Binary Options in South Africa here.
Can I Trade With A Regulated Broker?
Yes you can. All brokers on this site are fully licensed and regulated for binary options trading and they are licensed to offer their services to traders living in South Africa.
However, binary options trading in South Africa is not yet regulated. Most brokers that offers their services to clients living in South Africa operate out of Europe with a European License that also includes countries outside of Europe. This license is given by CySEC and you can find out at the CySEC website if this license for a particular broker also includes South Africa. Now we have done this job for you, meaning all brokers on this site are licensed to accept traders from South Africa. But in the end it’s your responsibility to make sure the broker is fully licensed. So, always check the license information at both the brokers website as well as the regulations authority website. You’ll find more info on how to do this here.