Binary Option Trading vs. Forex Trading

Before we take a look at comparing binary options with forex trading, it would be very interesting to take a recap of how binary option trading works.
At this point in time, you must have known that binary option is a kinda “all-or-nothing” trade.
Just by a push of button to a call or put options, the payoff has already been known by the investor. It is usually calculated by adding or subtracting the closing price at the expiration date from the "strike" price of the contract minus the cost of the option position (aka premium paid).
In binary option, it’s like a contract where the investor chooses whether or not the market will be at, above, or below a certain price level at a particular date and time. The price of the underlying asset will either be in-the-money, for the full reward to be paid to you, or out-of-the-money, which means you lose the premium paid to enter the option.
Binary options contain several underlying assets to trade with, e.g Currency Pairs, Stocks, Metals, Commodity, etc.

Ok, now what's the difference between Forex Trading and Binary Option Trading?
You should understand that in both trade, there is a component of analysis and speculation as needed to form an idea of where the market may be heading to at a particular point in time.
The main difference comes in the form of profit and loss calculations, and the trade duration.  

Let’s look at it with an example;

In binary options trade, your profit or loss is pre-known as soon as you pick up a contract. And it does not matter where the market goes, what you stand to gain is constant and loss your staked premium, should market goes against you during expiration.
For example;
Jojo bought a binary CALL option on GBP/USD with a strike price of 1.5200, expiring in 2 month time by staking $500. In this case, he believes the GBP/USD will be at or above 1.5200 at the end of the contract, and the broker’s payout for this contract is $2000. This implies that at the end of the two months, and if GBP/USD is trading at or above 1.5200, Jojo will make $2,000 - $500 = $1500. On the other hand, if it GBP/USD is NOT at or above 1.3500, he lose the premium amount ($500).

Conversely, in forex trading, your profit or loss calculation is carried out by multiplying the numbers of pips you are up or down by the value per pip, and it is bases the size of your position. In this case, the profit or loss is changes steadily as the market moves until you close the trade.
For example;
Let's assume Jojo opened up his trading chart and after careful analysis, decided to go LONG on GBP/USD on 1 lot size as the market is at 1.5400.  
Let’s also say Jojo was right and the GBP/USD at 1.5400 jumped to 1.5500 in a day, and he decided to close out position. I think this is a huge profit. This means Jojo have made 100 pips, giving him a profit of 100 x $10 = $1,000.
This is calculated as; Nos of pip gained X Lot size.

Let’s also take a look at the negative point of view. Supposing that the market immediately turned against Jojo and he decided to close the position at 1.5350, he would have lost 50 pips x $10, or $500.
Or to be on the safer side, if he closed the position at 1.5400, he would have broken even (no gain and no loss).

You see, the major differences between the two types of trading are the maximum potential profit / loss and the duration of the trade.
In forex trading, the profit and loss can be huge with strong trends and there is not really an expiration time factor attached to it. You can close position whenever. But in binary options, risk and reward is known and can be taken only if the contract expires. 

You have your decision to make on which one to choose. And this depends on your trading personality.