Binary Options are a simple & exciting way to make significant gains on short-term movements of the market with the added benefit of limited risk, in most cases. It is therefore important that when trading binary options online that investors are participating in safe and secure trading environment. What most people don’t know about binary options trading is that they were originally developed as a way to reduce risk of other investments i.e. hedging your portfolio of investments overall. Therefore, it seems strange that binary options now have a bad reputation as being risky and a sure way to lose money. This is not always the case but its important to understand the risks of trading these types of assets.

Because this type of investing is still relatively new, there are currently a number of brokers that are not operating in fair and consistent manner. Traders should stay away from the rogue operators as much as possible. Many investors get “hooked” into the more dodgy brokers by the brokers themselves offering unrealistic profit margins for their trades.

Speaking in general, there are a number of safe and legitimate brokers out there and these ones guarantee their trades, their software is rated and secured by PCI compliant software, payment and banking platforms are also very well known and safe, the most popular being normal visa and master card deposits and withdrawals along with the usual e-wallets such as Moneybookers (Now known as Skrill), Paypal etc. For much bigger transactions a number of the larger brokerages offer direct safe and secure bank wire transfers which connect directly to your personal or business bank account. It would be advisable to possibly set up a separate trading account i order to monitor and manage your cashflow and portfolio.

For South African traders the best solution seems to be either credit cards to deposit money directly into your brokers account. Banks such as Standard bank, First National and Absa bank offer the option to transfer money in and out of your brokerage account so that commissions you pay are fare less when compared to credit cards. To make sure you are always on the safe side when investing, please make sure to check your FICA requirements, especially when trading on off-shore websites. In our opinion the best option to manage your funds is to create an e-wallet account with Moneybookers/Skrill, that way your funds are always available and sit in a virtual account where you can transfer funds in and out directly from your credit card or a simple wire transfer.

With the above in mind, Safe binary options are ideal if you want to trade relatively secure and balanced investments in a short space of time, usually known as day trading. One of the mains reason these type of investments are safe is because the trader always knows that there can only be two pre-determined outcomes for each trade. Whether you are putting an option on as a “call” or “put”, you can record a profit or you will receive either nothing or a small refund. Consequently, you can minimize your risk exposure by trading smaller and safer binary options such as commodities or the various indices.