Let’s start with the easier - Binary options trading. It is faster to get started with binary options, as you don’t have to soak up as much knowledge as in FX trading. The process itself is pretty easy to digest and/or learn. You are betting on various currencies trying to predict whether their price will go up or down - if your prediction was right, you win, and if it was wrong, well, then you lose. This trading method makes making money pretty easy, if luck is on your side..
Forex trading is a whole other field of trading. You basically trade foreign currency in pairs. The market is liquid, and the trades happen on a worldwide scale with trillions of dollars per day.
That is why the differences are quite unique.
The greatest thing in binary options is that you can always anticipate the maximum gain or loss before you make the trade. A lot of binary option plays are only available at certain times of the day or week, and quite often the striking prices are set by the broker. With binary options, you are not limited to only currency pairs, you might have the opportunity to trade your ideas on a limited number of individual stocks, stock indices,etc. The other virtue of binary option trading is that there are only two possible actions you can take - you either call or put.
FX brokers are mostly regulated, ensuring fair and ethical business behavior. FX trading teaches you how to trade properly. It is a long way, and you have to learn a lot of this market, but in the long run, this could yield a lot more and constant success.Forex markets are open 24 hours a day, so it does not matter if you are a night owl, unlike with binary options.
It depends very much on the trader preferences - if traded long term and using fundamental and technical analysis, Binary Options can also be profitable.
However, generally speaking, Forex trading is obviously much better.
One of the Binary Option supporters' arguments is that in Binary Options you know the maximum profit and loss in advance. However, when trading Forex, you have the chance to control the risk by placing Stop Loss and Take Profit orders.
With Forex trading there are more strategies and custom indicators. Yet the main advantage of Forex is that there is no Expiry Time and you can exit the market whenever you want. Also, the profit and loss value is dependent on pips distance, which is great. The trading process goes quite naturally - you have a control and you can handle the situation.