Today we will be comparing Binary Options vs Roulette to find out which is REALLY more profitable.
Many people consider Binary Options, as well as most financial trading, to be a form of gambling. I have decided to do a comparison of Binary Options with different gambling venues to try and get an understanding as to how similar or different they may be.
The Binary Options Advantage
The 3 Key Differences:
- Yes/No bet only (no hidden “zero”)
- House edge implemented in different ways
- Your actions increase probability to win
There is a type of option called “60 Seconds”. This is the trading type that is closest to Roulette and in fact much better for several reasons. To understand how to use it and increase your winnings, we’ve created a short training guide that you can download here.
For the purposes of this comparison we will look at roulette Red-Black bet as this most closely corresponds to a Binary Options trade. The main difference between them is in how the house or broker benefits. In roulette the odds of winning are  not actually 50-50 as the house wins on a zero, but the payout is 1 – 1. In other words if you bet $100 on red your odds of winning are slightly less than 50% depending on how many 0’s, but your payout will be $100 if you win.  In the case of Binary Options the odds are 50-50. The broker has the advantage in that he collects more if you lose than you collect if you win. So if you invest $100 on an 85% option you have a 50% chance of winning, but you collect  $85 if you win, but lose $100 if you lose.
Binary Options Profit vs Roulette Winnings
In Binary Options trading you need to be successful around 60% of the time in order to be profitable, whereas in roulette you need to be successful slightly more than 50% of the time to profit. The biggest difference between them is that in the case of roulette it is a pure game of chance. In the actual bet you have no advantage over the house. In fact over time you will lose as the house will win more than 50% of the time as they win if you land on the losing color as well as “0”. In effect roulette is not truly binary as there are 3 possible outcomes: red, black and 0.
In the case of Binary Options it is not a pure game of chance. You have the opportunity to apply strategies based on fundamental or technical analysis which potentially give you an edge over the broker on each trade. Furthermore, you have the advantage of selecting the conditions of the trade such as asset class and expiry time. It is true that even with the most sophisticated trading strategy you cannot win 100% of your trades as there are always uncertainties with trading; however, If you implement a basic trading strategy with an asset that you are familiar with you should be able to win 60-70% of your trades. This swings the advantage to your favor over the broker and can allow you to profit consistently. With fixed odds games of chance such as roulette you will never have an advantage over the house and ultimately you will lose your money.
| Binary Options | Roulette Red-Black | |
|---|---|---|
| Investment/Bet | $100 | $100 |
| Odds | 50% | Less than 50% |
| Payout% | Less than 100% | 100% |
Wow, thank you for opening my eyes! I was spending so much money on roulette!
Hey Julia, you are welcome! We wish you all the luck in the world on your new bet ;). Can we recommend you a broker to start trading?