It is interesting to talk about mutual funds here because the goal of  fund like this is usually to make a decent rate of return over a long period of time, so the comparison to binary options is kind of difficult. Under most circumstances one would not be considering both of these investment tools as distinct opportunities. What you might do is have a mutual fund for the long term, and use binary options as a short term thing.

So how does a mutual fund work? Well the term mutual basically means that there are a group of investors who are mutually interested, and invested in the fund. What the fund is can depend, but it can consist of a combination of stocks, and bonds, or other securities. There may be some commodities involved, but the idea is generally to stay diversified. So lets have a look at the advantages, and disadvantages.

To compare mutual funds and binary options does not make much sense. One should not pick one over the other, but use them complimentary to one another. I would certainly recommend a mutual fund for the long term, but that is not to say you should not use digital options long term as well. It simply requires a very different strategy to be successful.