These days we hear a lot of financial terminologies thrown around and that can get quite confusing for the financially illiterate or inexperienced. One thing that’s quite popular and is still growing in popularity is online trading. The landscape of this endeavor is as competitive as it can be with many platforms and trading instruments springing up by the day.
How can a newbie navigate this financial terrain without getting burnt or with minimal damage? The focus of this article is reviewing the Quotex Binary Options platform. But before we delve into the analysis of this platform, we feel a burden of duty to address two basic subjects and these are online trading and binary options.
We will explore the basics of online trading and binary options so that when we get to the review of the Quotex Binary Options platform, you will not be lost at any point and you will be able to appreciate every detail shared in this review. Let’s go!
What is Online Trading?
Online trading is the process of buying and selling financial instruments through web-based platforms that are provided by brokerage firms. These financial instruments include currencies (forex), cryptocurrencies, commodities, and derivatives. Click here for more information on financial derivatives.
This method has become increasingly popular because it is easily accessible and convenient. It also gives people the opportunity to trade no matter where they are on the globe.
Key Features of Online Trading
The following are the major components of online trading:-
- Brokerage Platforms – Brokerage firms provide platforms for people to trade on; traders can place orders, manage their portfolios in real time, and monitor market prices on these platforms. An example of this is the Quotex Binary Options platform.
- Order Types – Different order types are offered on trading platforms and they include market orders, stop orders, and limit orders. These orders specify when trades are to be executed and how they are to be executed based on already laid out conditions.
- Financial Instruments– Online trading allows traders to trade various classes of assets such as stocks, foreign exchange (forex), commodities, cryptocurrencies, and derivatives.
- Market Analysis Tools – These tools are technical and basic analysis tools that are used to evaluate market trends and also spot prospective trading opportunities and make decisions based on this information.
Pros of Online Trading
- Lower Costs – Online trading is typically cheaper than traditional trading because of the lower commissions and brokerage fees,
- Accessibility – The financial market can be accessed at any point in time as long as the trader has an internet connection.
- Wide Range of Asset Choice– With online trading platforms, you have a wide range of assets to choose from. This wide range of assets enables traders to diversify their portfolios.
- Real-Time information – Traders can access news, market data, and analysis in real-time which helps them make decisions faster.
- Flexibility and Control – With these platforms traders enjoy flexibility and control; they can buy and sell at any time without depending on middlemen and have full control over their trades.
Cons of Online Trading
Much as online trading platforms have many advantages and benefits, they also have some disadvantages. Find below some cons of online trading: –
- Leverage – Trading instruments such as derivatives provide leverage. This amplifies potential profit but also comes with heightened risks.
- Market Volatility – Financial markets tend to be quite volatile which means that traders can make profits rapidly and also incur losses the same way.
- No Regulation– Traders can be exposed to serious risks when they trade in unregulated markets or with unregulated brokers.
What are Binary Options?
Binary options are a type of financial derivative that provides traders with the opportunity to speculate on the way underlying assets will move(price-wise) within a specified period. There are 2 possible outcomes with these speculations; the trader either gets a fixed payout or nothing. The fixed pay-out happens if the trade ends ‘in the money’ while the trader loses their initial investment if the trade ends ‘out of the money’.
How Does Binary Options Work?
The basic concept of binary options includes the following:-
- Underlying Assets – With binary options, traders do not own real assets but they rather speculate on the movement of the price of the assets. These assets include forex, stocks, indices, and commodities.
- Time Frame– Every binary option contract works within a pre-determined time frame. This time frame ranges from minutes to hours and days. So traders must speculate whether the price of eh asset will rise or fall below a certain price before the time frame elapses.
Types of Binary Options
There are different types of binary options and they are as follows:-
- High/Low Options – These are also known as call/put options and are where traders speculate whether the price of an underlying asset will rise above the strike price at the end of the time frame or it will fall. When the price is above it is also known as call and when it is below, it is known as put.
- Touch or No Touch Options – This is where traders speculate whether an underlying asset will touch a predetermined price before the end of the time frame or not. That is why it is called ‘Touch or Not Touch’.
- Boundary or In/Out Options – This is where traders speculate on the price of an underlying asset whether it will remain within the boundary of a fixed price range or it will go outside it.
You can visit this site https://www.investor.gov/ for more details on binary options.
Process of Trading Binary Options
The following are steps in the binary option trading process:-
- Select the Asset and Time Frame (also known as Expiry)
- Set the amount for the investment
- Speculate on the price movement
- Place the trade
- Outcome – This is the result that comes at the end of the above steps. If the speculation is accurate, the trader gets a fixed payout. This pay-out ranges between 60 and 90% of the initial investment sum. If on the other hand, the speculation is inaccurate, the trader loses the sum invested.
Key Features of Binary Options
The following are the characteristics of this option:-
- Fixed Payout – There are pre-defined pay-outs with clearly stated potential returns and risks so that the trader can make an informed trade.
- Simplified Trading – These types of trading options are accessible and pretty straightforward for traders on any level of experience. This makes it popular for both newbies and veteran traders.
- Limited Risk– Individuals involved in this trade already know ahead of time the amount which they stand to lose which is usually the initial sum invested.
Risks
Just as with every investment or human endeavor, there are some risks involved in this trade and they include the following:-
- Traders don’t have ownership
- Market volatility
- Dependence on brokers
Now that we understand the concepts of online trading and binary options, let’s go on to the review of the Quotex Binary Options platform…
Overview of Quotex
Quotex trading platform was launched in the year 2019 with the sole mission of providing traders with a binary options trading platform that is not only powerful but also straightforward. This platform is easily accessible through mobile apps and web browsers and it allows traders to carry out their trades seamlessly on their desired device.
Quotex is regulated by the International Financial Market Relations Regulation Centre (IFMRRC) which ensures compliance with the standards of the industry, thus providing a secure trading environment for traders.
Trading Instruments
This platform offers a wide range of trading instruments that include the following:-
- Stocks – The platform features a wide variety of stocks from globally recognized companies that are listed on major exchanges.
- Cryptocurrencies – Many cryptos are available on the platform including popular ones such as Litecoin, Ethereum, and Bitcoin.
- Forex – Traders can access minor and major currency pairs which enable them to take advantage of the fluctuations in the currencies market.
- Commodities – The platform also provides access to commodities such as crude oil, silver, gold, and agricultural products.
Features of the Platform
The features of this platform are as follows:-
Simplified User Interface
The Quotex platform user interface is easy to use because of its simple and functional design. Individuals can navigate every facet of the platform to access tools and carry out trade efficiently. Its intuitive layout is a hit with newbies and veteran traders alike.
Charting Tools
These are tools that help traders perform extensive technical analysis. The charts can be customized by individual traders with different time frames and overlay technical indicators and are also used to analyze price movements in order to make informed decisions in their trading.
Asset Index
Quotex features an extensive index of assets that cover a wide variety of financial markets. This variety enables traders to explore opportunities from different classes of assets thereby diversifying their portfolios
Education and Analysis
The platform provides educational resources such as webinars, tutorials, and market analysis. Individuals on the platform can stay updated with trends in the marketplace. They can also learn new plans of action and improve their trading skills all thanks to the educational resources on the platform.
Customer Support
Quotex has a very responsive customer service that can be reached through phone calls, live chats, and emails. Traders can always reach out to the customer service team to assist them resolve technical issues, inquiries about their account, or any question in general.
Types of Accounts
There are different tiers of account that provides for the needs of different traders. These account tiers are as follows:-
- Demo Accounts – This is the practice account that lets newbies learn how to trade with virtual funds. This means they do not stand the risk of losing real money.
- Standard Account – This account is appropriate for the average trader as it provides access to the basic functionalities and features needed for trading.
- VIP Account – This is best for high-volume traders because it offers optimum benefits such as potentially cheaper fees, exclusive trading insights, and customized support.
Deposits and Withdrawals
Deposits and withdrawals can be made using different payment methods such as bank transfers, debit or credit cards, and e-wallets such as Neteller and Skrill. The platform ensures that transactions are secure and fast to enable traders to fund their accounts and withdraw their profits without hassles.
Security and Regulation
Quotex does not in any way joke with security and complying with regulations. The platform employs advanced encryption technology to ensure that the personal details and funds of traders are well protected. In addition to that, the brokerage is under the oversight of the International Financial Market Relations Regulation Centre (IFMRRC) which ensures that they maintain fairness and transparency in every facet of their dealings and transactions.
Advantages and Disadvantages of the Platform
The following are the advantages and disadvantages of the platform:-
Advantages
- Simplified and intuitive interface which makes navigating the platform easy for traders. In addition, traders can easily apply any Quotex promo code without hassles. You can either get an exclusive 50% deposit bonus or a 25% deposit bonus depending on the amount invested.
- Diverse Asset Index
- Comprehensive charting tools
- Educational resources
- Responsive customer support
Disadvantages
- Limited binary options compared to some competitors
- Account features may vary based on the type of account selected
Conclusion
Quotex Binary Options provides a solid platform for individuals to engage in trading binary options in a simple and secure manner. They are focused on providing a seamless and hassle-free experience for traders on their platform. Despite the disadvantages pointed out, Quotex still is a viable option for individuals who desire a reliable and straightforward trading platform.
We have given you a comprehensive review of Quotex binary options but it is also important that you do your due diligence before committing to the platform. You should also consider your trading objectives and preferences. Additionally, it is recommended that you carry out thorough research and also use the demo account to test the platform. This will give you an insight into how the platform operates and the kind of trading experience to expect.
