The Truth About Binary Options – Legit Trading or Scam?
You can’t read an investment blog without coming across posts about binary options. There’s a lot of money in binary options - for users, brokers, and advertisers - so this won’t change overnight. Binary options trading is legitimate, but incredibly risky. You’ve got to understand the the industry and the risks involved - and you might be better served staying away entirely.
Don’t believe reviewers who pitch binary options as a quick fix for your financial problems. In reality, nothing can be farther from the truth.
How does Binary Options Trading work?
Binary options traders invest in future movement of assets such as gold, stocks, markets, etc. Simply put, binary traders try to predict whether the value of such assets will increase or decrease during a certain time frame.
If your prediction comes true, online casino you will win and earn a commission on your investment. If the value doesn’t change as you predicted, you will lose all the money invested to lock in your prediction.
Presented this way it becomes obvious that binary options trading is more like sports betting than real investing. Binary options is nothing more than betting on financial assets, much like you would bet on the outcome of a sports game.
So, Is It a Scam?
This doesn’t make binary options a scam. It’s just not an investment.
The majority of binary options brokers are legit businesses. As legitimate brokerage houses, your money will not be stolen and you won’t be defrauded.
The problem is that the majority of brokers promise unrealistic expectations . The average user does not get results like these.
The most common way binary brokers attract new traders is to show them cases where simple people managed to win huge amounts of money by just trading low amounts on gold and other popular assets.
Sure, cases like that do exist, but they are the exception not the rule . The same way some sports gamblers manage to win extremely large sums, skilled/lucky binary options traders occasionally make bank. However, this happens extremely rarely.
Not knowing this, a lot of people sign up with binary options brokers that offer unrealistic winning promises. In the end, lots of people end up losing all of the money they put into the system.
But can you really win?
The biggest factor in winning at binary options is LUCK. But yes, you can really win.
The thing brokers will not tell you is that you will have to put in a lot of effort and research if you want to win consistently. And even then, luck is the most powerful variable.
Like in sports betting, if you want to win you will have to have a great knowledge about the sport in question and about the teams that are playing. You will have to understand the game, the strengths and weaknesses of the teams, and the skills of the players. You will have to know about historical performance, fitness levels, injuries, and dozens of other variables. Even then, things might not go your way.
If you factor in all these variables then you probably will win in the long run. It’s exactly the same in binary options trading. There are countless variables and risks that you will have to consider in order to accurately predict the future development of an asset.
Issues like time of the year, state of the economy, political developments, economic performance of key market makers, recent business news and events are constantly influencing the movement of stock prices and commodities.
In order to be able to accurately predict the movement of an asset, you will have to be up to date with all of this info. Also, in order to be successful you will have to understand a variety of technical data as well, such as being able to read charts, use technical indicators, understand sports betting statistic calculations, and much more.
As you can see, binary options is much more than just investing $100 on gold and then getting $300 back 10 minutes later. If this is your approach, then you will lose 100% of your investment sooner than later.
But That Sounds Hard!
Yes indeed! That’s exactly what solid binary trading requires. I know most entities advertising binary options make a lot of bold promises, but in reality it’s much more complicated. In order to really make money you will have to invest significant amounts of time in market research and learning about the technical aspects of this business.
No matter what anyone promises, you will never be able to make easy money by placing random bets here and there. Brokers count on you doing exactly this because they know that this way, you will be paying the price of becoming a losing trader (meaning brokers will be making money off of you).
So, this is the truth behind the binary option business. There isn’t anything inherently wrong with this form of online trading (or, better said, betting), except that brokers are artificially hyped up and are dishonestly presented as something they’re not.
So one more time, is binary options trading a scam?
Binary options trading isn’t a scam, but it’s financial gambling that will only work well in the long term for the most devoted and knowledgeable users.
Update: Binary Options Industry Changes.
If you read our thoughts from 2014, you know that binary options is legit, but extremely risky and difficult to take part in profitably. But that was back in 2014. Things have changed quite a bit since then.
As mentioned above, sports betting there is still no easy shortcut to binary options trading success – you will still need to learn the basics of this trading form and do lots of market research to make real money. That said, some new developments have appeared in the industry which might make it easier for you to make a living through binary options trading.
More Welcoming To New Traders.
For one, social trading has finally become a major aspect of binary options trading. Newbies who would like to start making money without having to fight against a gnarly learning curve can look to the practices of seasoned veterans. Some brokers even offer in-house social trading platforms that let you profit from the trading experience of highly successful binary option traders within the company.
Of course, there is the risk that the trader is going to fail, in which case you risk losing money just the same. So, you will have to choose your signal providers very carefully to avoid disappointment.
We now have binary options robots as well, which purport to automate winning trades for users. Unfortunately, many of these bots are scams, which is why you would be better off avoiding them altogether (unless in cases where your broker is offering their own auto trading services).
Even then, you cannot really count on a broker to give you a highly profitable automated trading tool. Why would a broker give you the tools to take their money? You will have to do your own research first to see if the auto trading system is worth its salt. And should you choose to use an independent binary trading robot company, you will have to be extra vigilant to avoid getting scammed.
More Tools For Advanced Traders.
It is easier to access quality financial information needed to make intelligent trading decisions than it was two years ago. Premium binary option brokers now have great platforms that provide excellent data for comprehensive technical analysis on the assets you are trading, helping you to make better trades.
Additionally, there have been cases of brokers introducing robots that scour financial newswires, giving you the latest events so you can anticipate market fluctuations. All these advancements make binary options trading easier (for people willing to put in the time to learn the system inside and out).
Still Legit?
Yes, sports betting binary options is legit, and growing. But you will still have to jump through lots of hoops to make it in the industry as a beginner. There are also plenty of scams to take advantage of helpless new binary options traders who don’t know how the industry works. At the same time, we now have a broader selection of trustworthy brokers and signal providers than we had a few years ago.
Furthermore, better information and technical analysis makes the industry more lucrative for dedicated users. Even so, you will have to be a lot more watchful of who you get into bed with when entering the industry to keep your money from falling into the wrong hands. If you are willing to put in the work, learn through trial and error, and develop better methods than the average binary options trader, you can actually make money with binary options.
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75 thoughts on “The Truth About Binary Options – Legit Trading or Scam?”
Do not take any Bonus offer from your broker or your manager, do not allow your broker manager trade on your behalf. That is how they manipulate traders funds. If you need assistance with retrieving your lost fund from your broker or Your account has been manipulated by your broker manager or maybe you are having challenges with withdrawals due to your account been manipulated. Kindly get in touch with me and I will guide you on simple and effective steps to take in getting your entire fund back.
Hello Sir, i wrote to your email cos im having the same issue you stated above, please help me sir i lost 70,000 Euro to Titan trade and i could not withdraw my money.
Did you try chargeback through your credit card provider?
Amazing article about binary options and scams in the industry. Here is my quick opinion: If you avoid all unregulated binary options brokers and robots trading binary options can be real fun!
Do not take any Bonus offer from your broker or your manager, do not allow your broker manager trade on your behalf. That is how they manipulate traders funds. If you need assistance with retrieving your lost fund from your broker contact the email above.
Binary options are not a scam themselves, but there are a lot of bad brokers out there, and don’t get me started on the auto trading apps/software. Find a regulated broker, pick a solid strategy and you CAN make money.
It is interesting to see different peoples’ takes on the trading game, and I am particularly fascinated with the practice of Binary Options. Some have posted here that they have made profits and have been able to withdraw those. My experience has been very different from that.
In June last year (2016), I received a phone call from a very friendly, well-spoken young man. He said his name was Kevin, although now I’m not so sure. “Kevin” is obviously very good at what he does, and facilitated a very fast and seamless process of setting up a trading account for me. When I first met Kevin (on the phone) we had a lot of regular contact. He would call nearly every day and made very sure that I felt important, looked after, and as though my financial growth mattered to him. He presented me with very attractive options, convincing me that I would have high returns with very low risk and that this would be quickly proven because I would see how fast my investment would climb.
Kevin’s excellent interpersonal skills and attractive offer were followed through with quick and easy profits and within days, I thanked my lucky stars that I had stumbled across such an opportunity for fortune. This continued for some time and Kevin encouraged me to continue to make trades over the next four months while I watched the balance in my account rising.
In October 2016, my husband was involved in an accident which left him badly injured. He was unable to work and he required special medical care which was costly. This led to profound consequences for my family and our finances. In this devastation, I was relieved to know that I had co-incidentally created a safety-net for our family and I thought that this must be confirmation that I had made the right decision – I was meant to meet Kevin. When I made a request to withdraw some of my savings, Kevin contacted me to convince me that it was perfect timing to do some last minute trades to maximize my withdrawal. After that last trading session, I tried for weeks to get in contact with Kevin who was suddenly never available to talk to me. Eventually it was explained to me that since I signed a bonus agreement at that point, and only then were the terms and conditions I was agreeing to clarified. After bonus money was pushed into my account, no funds could be withdrawn from my account. I was told that my investment would have to climb to an impossible amount before my funds would become liquid again. Basically, the savings that I believed I was accumulating were locked away from me as if they had been stolen. It took me some time, but after I did a bit of research, it seemed that my suspicions that I had been taken for a ride were more and more likely. I needed to start to accept that I had lost a lot of money and start making plans for my next move. The financial pressure was on and I was forced to take loans from the bank as well as family in order to deal with our situation at home. To add to our load, we also started to accumulate debt. Those were the most stressful months of my life. It was impossible to protect my family from the impact of the crazy mess we our lives had become. We started 2017 feeling exhausted, and worried about how to face more expenses and sports betting how to ever pay off so much debt.
In February this year, a close friend of mine introduced me to her cousin who had an experience with Binary Options that was similar to mine. He went through lawyers who helped him claim back his money. I wasn’t feeling very hopeful about being able to do the same. I had been made to feel like it was my fault and as though I had signed away my money fair and square. However, this was not in fact the case. The law firm that assisted me helped me to forgive myself for my losses by explaining how Binary companies manipulate the people that they call their “clients” and use scam tactics to get people to give them money. The moment I deposited money with Kevin, it was stolen from me without my even knowing. I am so thankful to be able to say that last week Thursday, all of my stolen funds were paid back. The organization that represented my case talked me through the process and kept me updated every step of the way. It took about 8 weeks for the entire legal procedure which ended in the company who were revealed as scammers reimbursing everything that I had lost.
My story could have ended very differently if I had not decided to fight back. I hope that more and more people will become more aware and not be as easily manipulated as I was by Kevin. I also hope that people will not just allow people like Kevin to get away with such heartless and greedy crimes. I hope that my story is a warning to be cautious. In my mind, I keep going back to something my father always used to day – If it sounds to good to be true, it’s probably not true. Wise words.
My advice is try a decent site that has a demo. You can spend a good few months there and learn from mistakes. It’s childs play to lose a good few 1000 when dealing with a demo, but it also makes you think, work out patterns and learn for when you ever do decide to really invest.
If you can stay patient and calm on a demo account, you will learn a lot. Just never listen to anyone else, especially any account managers (Who are really just salesmen) when it comes to your own money. Try for yourself first and wait until you have an understanding of as many aspects as possible, and your demo track record is as safe as you feel comfortable.
Honestly, Binary Options can be a great way to make some extra cash, but if you’re a beginner stay away from it till you learn the basics. For beginners, I would highly recommend starting a demo account and learning the fundamentals until you feel comfortable enough to invest with real money. Thank you.