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Sunday November 6, 2016 - 12:07:35 GMT
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Stocks for Binaries

Picking the right underlying instrument for your binary options is never an easy choice to make, and there are always lots of things to consider. When comparing binary options and stock trading, the advantages and disadvantages are more intertwined than one might usually expect, but we can safely say that binary options would come on top of that argument, every single time.

A viable alternative?

While it is true that some stocks offer potentially more money in returns and dividends – especially in the long run – as well as more choices, as there are more companies out there than all the different currencies, commodities, indices and binary options on all of them combined. None of this can be denied, but the fact is that only a handful of companies get to see their stock on a binary option trading platform, and the fact that binary options traders are not buying their stocks and risking their livelihoods like shareholders are cannot be overstated.

The sheer risk involved with the stocks as well as costs of doing business cannot even be compared. Another reason why the two should not be compared is because only the select few stocks make it to the platforms, so the choice of stocks is already narrow as it is. Furthermore, those that do make it to binary options traders are well-known and analyzed to the fullest extent, such as Microsoft, Facebook or Google. Any method of gauging their strength and market performance can be used on binary options as well.

Not to mention that shareholders have to wait and hope they manage to sell the shares at the right price, whereas their binary trading counterparts conduct their business in a matter of minutes and move on. Having said this, we still need to determine which stocks are the best for binary options traders.

Which stock is the best

Broadly speaking, the best stock for your binaries is the one whose price movement you can predict the easiest. Aside from that, there is plenty of material for research and analysis on almost all the stocks that are important enough to reach the majority of brokerages. This means the largest stocks are also the best ones, although the choice is also to be made on an individual level.


Apple, Inc. is one of the most commonly found stocks across the industry, and it has the late Steve Jobs to thank for that. After managing to establish themselves at the forefront of computer design and launch a plethora of gadgets, they have effectively solidified their stance as one of the most popular stocks both on stock market and on binary option trading platforms. Their symbol is AAPL.

Another stock you are likely to find in every asset index is Vodafone, a giant in telecommunications that operates in more than 30 different countries. They are sometimes marked as VOD.

Google is another famous brand name and GOOG is well-known to anyone dealing with stocks or binary options on them. They competed against Yahoo! for the best search engine for a time (and won) and now they are up against Apple for mobile devices and Facebook in the social network arena.

Microsoft is another name on the list, putting its operating system against Apple's and their gaming device against Sony's PlayStation series.

Other popular names involve Coca Cola and Pepsi, banks like Sberbank and Citigroup, companies like Nike and Adidas, and even energy companies like Royal Dutch Shell or British Petroleum. However, just because they are popular and well-researched, that does not mean they are predictable. Indices are also available, mostly S&P 500 and Dow Jones.


Since all these companies are hard to predict and account for, the process could be a bit tricky. However, most binary options brokers have taken it upon themselves to narrow the selection by eliminating the less appealing ones from their selection, leaving only the strongest names on the list. This is why selecting a stock that caters to your individual tastes as a trader is more difficult compared to, say, a currency pair. It also makes it essential to stay appraised of any development considering any company on the list, regardless of how insignificant and irrelevant it may seem to you at times.


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