Binary Options Millionaire
The question of whether a trader can become a millionaire by trading binary options is one of the controversial questions that dominate marketplace discussions on online forums and review sites. When you consider the fact that people like George Soros and Warren Buffett made their fortunes almost entirely from trading financial instruments, then the answer to this question feels like “Yes”, but with substantial caveats. For one, these well-known figures did not use binary options.
And note, that while it is possible on paper to become a binary options millionaire, the practicality of it is something that many traders will find very hard to achieve. But we can nevertheless walk you through what it would take, and you decide whether it appears possible for you or not.
Building wealth from binary options trading, or indeed, any form of trading for that matter is not a day’s job. It takes huge patience, lots of time and a well-structured plan, probably over a number of years. As with many investments, a strategy to get rich on trading will be based on “compounding”.
Take a look at this Excel document (which has been modified from the original by forexoma.com). It details a 5-year plan on how to technically become a binary options millionaire with a starting capital of $500 (the reality and journey of course is much harder than it appears on paper/excel).
By the way, the excel spreadsheet is built in such a way that you can play with the numbers as you wish. You can adjust the initial capital, adjust the time frames, the percentage returns you wish to make per month, etc.
While this might feel doable, this is a plan which demands immense patience and lots of discipline – something that alludes most retail binary traders. If the figures look achievable, why are many traders not there yet? There are several reasons. One, many traders do not mitigate their risk. They aim for home runs in their trades, looking for that one huge payday. They look at the glamorous cars they can buy with the huge payouts, or the things that money can buy and cannot deny themselves the lure of instant gratification. Slow and steady often always win the race when it comes to trading.
Also, they don’t factor in that the structure of payouts, especially on over-the-counter (OTC) platforms, requires traders to win more than half of trades, as payouts are often less than 100%. So your edge needs to be better than the broker’s built-in edge. This is not an easy feat, and partly why the majority of binary options retail traders lose money, let alone become millionaires.
Compounding Builds Wealth
The hidden principle to achieving what you see on the spreadsheet is compound interest. Albert Einstein called it the 8th wonder of the world, and he was right. Compounding means that a little can be turned into a lot, and the higher the amount you have to compound, the greater the corresponding percentage of increase that amount will bring.
Look at the spreadsheet again. The starting capital is $500, and the rate of return per month is 15% which is $75 for the first month. There are 20 trading days a month. But the key point here is risk control and realistic expectations – beginners are extremely unlikely to jump into binary trading and start posting double digit percentage returns consistently each month.
And while you could in theory become a binary options millionaire, we’d suggest starting in a demo account and only using real funds when you have an effective edge, plus disciplined risk and wallet management.
You are free to customize the plan as you wish, but do not negate the principle of controlling your risk factor.
Recommended Brokers
Obviously, any plan to amass millions is no better than the quality of your broker. Below is the top brokers we recommend trading with, but you can also compare all trusted binary options brokers.
| Broker | Min Deposit | Expiry Times | ||
|---|---|---|---|---|
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Capitalcore | $10 | 1 minute - 1 hour | » Visit |
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AZAforex | $1 | 30 seconds - 1 day | » Visit |
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Crypto.com | Varies by payment method | 5 minutes to event cutoffs, can be hours, days and longer depending on contract | » Visit |
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Binarium | $5 | 60 seconds - 3 months | » Visit |
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BinaryCent | $250 | 5 seconds - 30 days | » Visit |
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