Binary Options vs Swing Trading – Key Similarities and Differences

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NETELLER VS Skrill – Similarities and Differences

Neteller and Skrill are among the most widely used e-Wallets in the world today, especially in the area of depositing and withdrawing online casino, and betting site accounts. In this Neteller vs Skrill article, I will demonstrate the in depth differences between both of them.

Both companies are registered in the United Kingdom and are overseen by the United Kingdom’s Financial Conduct Authority. Bothe having been authorized with licenses to operate.

NETELLER vs Skrill | About NETELLER

NETELLER is one of the safest and easiest e-Wallet payment system in the market today. Founded in 1999, Neteller has its headquarters in the UK and the Isle of Man. They are well experienced in various kinds of financial transaction, which is the secret of their success and, has made them very reputable and well trusted by many clients.

NETELLER provides its customers with safe and secure transaction by applying a high level standard of security encryption through the use of the most sophisticated software technologies.

NETELLER is a one of the best platforms to manage your money easily and safely alongside with successful funding of your online casino, betting poker site accounts.

It’s free to sign up for a NETELLER account. Some deposit options such as bank transfer are also free.

There are two types of accounts which you can operate in NETELLER:

The Express account and the Extended account (VIP account).

The “Express account” is the easiest to open and it is possible to provide transactions through it in many currencies. It has depositing limit of 2,500 Euro.

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The Extended account is an account that gives the owner the opporunity to make higher deposits as it has higher deposit limits.

Key Features of NETELLER

  • Opening a NETELLER account is easy and free
  • NETELLER has a high level of security encryption
  • Transaction are safe and speedy.
  • NETELLER is best used in casinos, forex, binary options, stocks and trading sites.

It is worthy to note that there are charges and fee involved while using NETELLER for payment/withdrawals and other transactions.

NETELLER vs Skrill | About Skrill

Skrill started as Moneybookers in United Kingdom in the year 2001, The Company was given permission to issue money transfer in 40 different currencies. With over 36 million users, skrill have attested to its trustworthiness.

To ensure the safety of its customers, Skrill will require you to scan your passport or other form of identification as well as show proof of address if customers reach a certain limit.

They also require you to give a thorough account verification before funds are released to you.

They do not allow cash deposits.

Opening a Skrill account is free and easy. The funding of your account is likewise safe, fast, and easy.

One outstanding advantage of Skrill is that withdrawal of funds from your account is free. Furthermore there are no delays except for bank withdrawals on weekends and holidays.

However, there are charges and fees when exchanging different currencies using Skrill.

Skrill has a standard account and a VIP account.

They are very good in online casinos, betting, gambling, forex, binary option etc.

Neteller vs Skrill | Similarities and Differences

There are similarities as well as differences between NETELLER e-Wallet and Skrill e-Wallet. We will like to delve into both e-currency payment platforms and dissect them both.

It is imperative to note that both payment platforms features and operations are usually affected by either country of usage or the type of online transactions done. With that in mind you can easily make a choice based on your geographical location or type of business engaged in.

Similarities between NETELLER and Skrill e-Wallets Accounts

  • Both payment platforms has being in operation for over a decade
  • Both are of UK origin
  • Both are recognized by the United Kingdom FCA
  • Both feature a free account sign up
  • Both has presence in more than 200 countries
  • There is a 1% Bitcoin Payment fee using either of the accounts
  • The mutual transaction involving both accounts attract the same 3% transaction charges
  • There is a 1.9% Sofort Payment fee using either NETELLER or Skrill
  • Both payment platforms attract a 1% P2P/transfer transaction fee
  • There is a free P2P Receive funds transaction charge on both accounts
  • Manual bank transfer are free on both accounts
  • Both NETELLER and Skrill are best used for online casino, betting, poker, binary options, forex, stocks, and trading payments

Differences between NETELLER and Skrill e-Wallets Accounts

NETELLER Payment Method Fees Skrill Payment Method Fees
Bitcoin 1% Bitcoin 1%
Fast Bank Transfer 1.5% Rapid 0.5%
Bank Transfer/Fast Transferr Free Bank Transfer/maestro/fast bank transfer Free
Maestro 2.5-4.95% Sofort 1.9%
Sofort 1.5% NETELER 3%
Skrill 3% Swift Free
Euteller 2% American Express 2.5%
Eps 2% Dinners club/JCB 2.5%

NETELLER vs Skrill | Further Comparisons

NETELLER

The methods highlighted above were just to compare NETELLER to Skrill for better clarifications. However, NETELLER has more deposit options compared to Skrill. To know more about deposit methods, visit the transaction fee’s page on the site.

  • Choosing a bank draft for your withdrawal will attract a fee of 7.5-25 Euro
  • If you choose to withdraw through bank transfer you will incur a fee of 7.5 Euro
  • A member wire withdrawal costs 10.5 Euro
  • Withdrawing to merchant site is free
  • Money transfer costs 1.9% of the amount and the fee is capped at $20

Additional transaction Fees

  • Transactions that require currency conversion attracts extra 3.99%
  • A VIP member gets a lower exchange rate of 1% in foreign exchange fees
  • Your NETELLER account must not stay inactive for more than 13 months or you will be charged and administrative fee.

Skrill

  • There is a variation between local and International withdrawal transactions.
  • Bank transfer in local withdrawal transaction attracts a fee of 5.5 Pounds
  • When it comes to global withdrawal transactions we have Swift which requires a transaction fee of 5.5 Pounds

  • Receiving money on your Skrill account is free
  • Sending money to other Skrill users attract a fee of 1.9% on the amount you are sending. The fee has been capped at 17.32 Pounds
  • Transactions that require currency conversion using Skrill will add a fee of 3.99% on the exchanger rate to the money you transact. The exchange rates to the currencies you transact might vary and will be applied immediately without any notice.
  • If your account is not active for more than twelve months, there will a service fee of 3 Pounds or equivalent that will be deducted from your account.

NETELLER vs Skrill | Verdict

If you are looking for a payment platform that suits you best in your online transaction, then I believe these comparisons between NETELLER e-Wallet and Skrill will help you make the best choice based on your geographical location and type of transactions you wish to do.

Day Trading vs. Swing Trading: What’s the Difference?

Day Trading vs. Swing Trading: An Overview

Active traders often group themselves into two camps: the day traders and the swing traders. Both seek to profit from short-term stock movements (versus long-term investments), but which trading strategy is the better one? Here are the pros and cons of day trading versus swing trading.

Day trading involves a very unique skill set that can be difficult to master. Investopedia’s Become a Day Trader course provides an in-depth overview of day trading, complete with more than five hours of on-demand video. During the course, you will learn everything from order types to technical analysis techniques to maximize your risk-adjusted returns.

Day Trading

Day trading, as the name suggests, involves making dozens of trades in a single day, based on technical analysis and sophisticated charting systems. The day trader’s objective is to make a living from trading stocks, commodities, or currencies, by making small profits on numerous trades and capping losses on unprofitable trades. Day traders typically do not keep any positions or own any securities overnight.

The biggest lure of day trading is the potential for spectacular profits. But this may only be possible for the rare individual who possesses all the necessary traits, such as decisiveness, discipline, and diligence, required to become a successful day trader.

The U.S. Securities and Exchange Commission (SEC) points out that “days traders typically suffer financial losses in their first months of trading, and many never graduate to profit-making status”. While the SEC cautions that day traders should only risk money they can afford to lose, the reality is that many day traders incur huge losses on borrowed monies, either through margined trades or capital borrowed from family or other sources. These losses may not only curtail their day trading career but also put them in substantial debt.

The day trader works alone, independent from the whims of corporate bigwigs. He can have a flexible working schedule, take time off whenever needed, and work at his own pace, unlike someone on the corporate treadmill.

Day traders have to compete with high-frequency traders, hedge funds, and other market professionals who spend millions to gain trading advantages. In this environment, a day trader has little choice but to spend heavily on a trading platform, charting software, state-of-the-art computers, and the like. Ongoing expenses include costs for obtaining live price quotes and commission expenses that can add up because of the volume of trades.

Long-time day traders love the thrill of pitting their wits against the market and other professionals day in and day out. The adrenaline rush from rapid-fire trading is something not many traders will admit to, but it is a big factor in their decision to make a living from day trading. It’s doubtful these kinds of people would be content spending their days selling widgets or poring over numbers in an office cubicle.

To really make a go at it, a day trader must quit his day job and give up his steady monthly paycheck. From then on, the day trader must depend entirely on his own skill and efforts to generate enough profit to pay the bills and enjoy a decent lifestyle.

Day trading is stressful because of the need to watch multiple screens to spot trading opportunities, and then act quickly to exploit them. This has to be done day after day, and the requirement for such a high degree of focus and concentration can often lead to burnout.

For many jobs in finance, having the right degree from the right university is a prerequisite just for an interview. Day trading, in contrast, does not require an expensive education from an Ivy League school. While there are no formal educational requirements for becoming a day trader, courses in technical analysis and computerized trading may be very helpful.

KeyTakeaways

  • Day trading, as the name suggests, involves making dozens of trades in a single day, based on technical analysis and sophisticated charting systems.
  • Swing trading is based on identifying swings in stocks, commodities, and currencies that take place over a period of days.
  • Neither strategy is better than the other, and traders should choose the approach that works best for their skills, preferences, and lifestyle.

Swing Trading

Swing trading is based on identifying swings in stocks, commodities, and currencies that take place over a period of days. A swing trade may take a few days to a few weeks to work out. Unlike a day trader, a swing trader is not likely to make trading a full-time career, though a trader might choose to be a day trader AND a swing trader.

Anyone with knowledge and investment capital can try swing trading. Because of the longer time-frame (from days to weeks as opposed to minutes to hours), a swing trader does not need to be glued to his computer screen all day. He can even maintain a separate full-time job (as long as he is not checking trading screens all the time at work).

Trades generally need time to work out. Keeping a trade for an asset open for a few days or weeks may result in higher profits than trading in and out of the same security multiple times a day.

Since swing trading usually involves positions held at least overnight, margin requirements are higher. Maximum leverage is usually two times one’s capital. Compare this with day trading where margins are four times one’s capital.

The swing trader can set stop losses. While there is a risk of a stop being executed at an unfavorable price, it beats the constant monitoring of all open positions that are a feature of day trading.

As with any style of trading, swing trading can also result in substantial losses. Because swing traders hold their positions for longer than day traders, they also run the risk of larger losses.

Since swing trading is seldom a full-time job, there is much less chance of burnout due to stress. Swing traders usually have a regular job or another source of income from which they can offset or mitigate trading losses.

Swing trading can be done with just one computer and conventional trading tools. It does not require the state-of-the-art technology of day trading.

Key Differences

Day trading and swing trading each have advantages and drawbacks. Neither strategy is better than the other, and traders should choose the approach that works best for their skills, preferences, and lifestyle. Day trading is better suited for individuals who are passionate about trading full time and possess the three Ds: decisiveness, discipline, and diligence (prerequisites for successful day trading).

Day trading success also requires an advanced understanding of technical trading and charting. Since day trading is intense and stressful, traders should be able to stay calm and control their emotions under fire. Finally, day trading involves risk—traders should be prepared to sometimes walk away with 100 percent losses.

Swing trading, on the other hand, does not require such a formidable set of traits. Since swing trading can be undertaken by anyone with some investment capital and does not require full-time attention, it is a viable option for traders who want to keep their full-time jobs, but also dabble in the markets. Swing traders should also be able to apply a combination of fundamental and technical analysis, rather than technical analysis alone.

Binary Options vs Swing Trading – Key Similarities and Differences

Futures and options are types of contracts that allow investors to trade underlying assets at specific prices. Both of these contracts are sold in exchanges, so they are financial products. Investors use these products to turn a profit or to hedge current investments. Both futures and options come with the unlimited potential for profit, but the potential for profit loss with futures could be greater.

If you are considering buying a futures or options contract, you need to learn about the differences between these contracts. You also need to consider the advantages of futures over options contracts, as well as the disadvantages of buying futures.

Here are the key takeaways:

  • Both types of contracts are connected to specific dates.
  • The counterparties are only obligated to act on one futures contract.
  • An options contract gives investors the right, as opposed to the obligation, to buy and sell shares at a specific price at any time during the life of the contract. An options buyer could even sell the option at any time before the expiration date.
  • Options contracts could have futures as their underlying assets.
  • Futures contracts have unlimited risk, but the risk for options are limited.
  • The time value of money is crucial to an options contract.

What Are Futures and Options?

A futures contract is an agreement in which two parties will trade an underlying asset at a future date and at a pre-determined price. The buyer is obligated to buy the asset and the seller is obligated to sell it. Buyers must pay fees in futures trading, which includes commissions on the trade.

An options contract gives investors the right, as opposed to the obligation, to buy and sell shares at a specific price at any time during the life of the contract. There is an expiration date connected to the option, so the buyer must decide to buy an asset any time during the life of the contract. In options trading, buyers must also pay a premium or buy the contract at a discount that the seller offers. However, these fees are never fixed, and they are determined by the volatility of the financial product and the volatility of the market.

Types of Options

There are also two types of options: call options and put options.

A call option is an offer to buy a stock at the strike price before the option’s expiration date. This can benefit the buyer if the price of a stock jumps above the strike price while the options contract is still in effect. The buyer can exercise their right to buy the stock at the strike price and make a profit. Alternatively, the option buyer can make a profit by selling the call. However, the option is worthless if the stock price falls below the strike price and the buyer thus loses their premium.

A put option is an offer to sell a stock at a set price. This can be beneficial to a put buyer if the price of a stock falls below the set price. The put buyer can lock in a profit or loss and close out their position by selling their option, and they may sell at the strike price if they want. The put writer can guarantee a profit and loss and close their position by buying the option.

Put options are riskier than call options. The seller of the put option is liable for the stock’s underlying price. The buyer of the call option is only liable for the cost of the premium. However, the premium fluctuates during the life of the options contract due to factors such as the time remaining on the contract and the difference between the strike price and a stock’s current price.

Futures Options Contracts

In some cases, the underlying asset of an options contract is a futures contract. When someone buys this option, they may choose whether to buy the futures contract before a specific date. If the futures options buyer exercises their option, they will assume the position of the seller as the holder of the futures contract.

Trading Futures vs. Options

Futures and options have a few similarities:

  • Options and futures are financial products.
  • These contracts are traded on exchanges.
  • Both a futures contract and an options contract are standardized.
  • Futures and options are applied to margin accounts.
  • Both categories of contracts have daily settlements.
  • These contracts are governed by underlying assets such as currencies, commodities, stocks, bonds, and other financial products.

Here are the key differences between futures and options:

  • A futures contract binds the counterparties to buy and sell a financial product on a specific date and at a specific price. An options contract allows investors to buy and sell a financial product before the expiration date; neither party is bound to exercise that right.
  • The buyer does not need to pay anything upfront to secure a futures contract beyond a commission. Buyers who secure options contracts must make premium payments.
  • Unlike with futures contracts, options contracts allow buyers and sellers to exercise their rights any time before the expiration date.
  • With a futures contract, there are no limits placed on the profits or losses investors can receive. Options contracts provide no limits to profits, but cap losses.
  • The time value of money is crucial to whether an options contract will be executed. This is not a concern with a futures contract since its execution is guaranteed.
  • The fees associated with futures trading generally remain constant, but the fees connected to options trading are volatile.

Advantages of Futures Contracts vs. Options Contracts

Futures contracts have a few outstanding advantages over options contracts:

  1. Futures give more investors access to certain markets. Futures markets were originally meant for commodities traders, but they are now open to investors and speculators who don’t want to take physical possession of commodities.
  2. Futures have fixed trading costs. The margin requirements for many commodity and currency futures are relatively stable from year to year, so traders generally know how much they will pay upfront. By comparison, option premiums can vary due to the volatility of an underlying asset or market.
  3. Futures can protect investors from price fluctuations. In a matter of months to a year, the costs of producing certain commodities can rise or fall, and so could the bids for those commodities. By purchasing a futures contract, a seller could lock in an acceptable price to sell those commodities at a future date.
  4. Futures contracts have no time decay. Options are known as wasting assets because their value declines over time. By comparison, futures contracts have a set value.
  5. Futures markets have high liquidity. Since there are many investors in certain futures markets, the flow of money is high. There are narrower bid-ask spreads and traders can enter or exit their positions when they need to.
  6. The pricing of futures contracts is easier to understand. Investors know that they will have to pay fees like commissions on trade, fees to the exchange and broker, and any expenses tied to margin calls. These fees generally remain constant.

Disadvantages of Futures Contracts

Here are the disadvantages of futures contracts:

  1. Futures contracts are susceptible to uncontrollable events. Certain events can remove the profitability of an investment, even if the price for a sale is locked in. For example, crops are especially vulnerable to changes in weather or natural disasters.
  2. There are leverage issues connected to futures contracts. While leverage can be an advantage (a trader can buy a futures contract for a fraction of its value) and the daily increases in futures are reflected in that trader’s margin account, daily price changes can negatively impact margin accounts. Sometimes, the quick drop in futures prices may cause investors to put more money in their accounts to meet minimum requirements.
  3. Futures contracts are complex. Although the pricing for these contracts is relatively simple, the terms of the contracts themselves are complex, as are all related variables that can affect the prices of futures, like weather, political upheaval, and changing financial conditions.
  4. The potential for profit could decrease over time. Even though futures contracts are not subject to time decay, the profitability of futures could still suffer over time as investors lose interest or confidence in certain underlying assets.

When Should You Purchase a Futures or Options Contract?

Here are a few scenarios when you should consider buying a futures or options contract:

  • Futures contracts are well-suited for investing in commodities, currencies, and indexes. Investors who purchase these contracts want to lock in certain prices before they rise, while sellers are hedging against price drops.
  • Investors and speculators who want to profit from price changes can purchase futures contracts, then sell them before the expiration date. They do not want to take actual possession of the underlying assets.
  • Options contracts are better suited for trading stocks.

As you can see, there are vast differences between options and futures contracts. Although futures have more advantages and options are volatile, there are great risks associated with both types of contracts, and futures can have a greater risk in certain situations. If you would like to know more about futures and options contracts and setting up an account for either, look to the experts from Raging Bull for their valuable insights. You can also join one of our free webinars to help answer all your questions.

One of the best traders anywhere, over the past 20 years Jeff’s made multi-millions trading stocks, ETFs, and options. He is renowned as an incredible trader with a deep insight and a sensitive pulse on the markets and the economy. Jeff Bishop is CEO and Co-Founder of RagingBull.com.

Even greater than his prowess as a trader is his skill and passion in teaching others how to trade and rake in profits while managing risk.

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