How safe are binary options?I have heard about binary options alot, yet I do not know if they are legitimate. Anyone have experience with them?
as /u/spectrumero pointed out, theyre not financial instruments, but gambling vehicles disguised to look like financial instruments, and as vegas goes, the house always wins in the long term, your expected payoff is always going to be negative.
Binary options are basically gambling dressed up to look like investing. They are a safe way to lose money over the long term. Where I live, binary options are treated as e-gaming and regulated by the Gambling Supervision Commission rather than the Financial Services Commission, which regulates investment firms.
I had a friend that worked for a binary options trading platform once. Well, for a call center that made money on people making deposits to their binary options trading accounts, to be exact.
They would tell those people anything, go above and beyond, so that they make the deposit, which would then be locked on their account. Given terms and conditions that the site ran on, and which every "customer" agreed to upon opening an account, there was literally no way for you to pull the money out once you put them in.
It was his job to know the competition on the market as well, and lovelyhollows.Wiki you can count on the fingers of one hand the amount of legit companies, and you would still have around 3 fingers free.
In most cases what the binary options trading platform does, is it gives you great opportunities, like bonuses and such, and makes it look like making money there is just a walk in a park. What really hapens is you put the money in, you get the bonus and then your money is locked in. Because (you had no idea about it because you didn't read terms and conditions and nobody actually told you that) there is a necessity of reaching the "turnover" before pulling out the money (your investment, your income and bonus).
As much as it would probably be possible to make money on that, just like it is possible to make money on gambling, there really aren't many companies that play fair. What they do is they take your money, promise god knows what and then just take your money away and leave you with nothing.
To him it was always weird that people would fall for that, as every website advertising such platform ranks of scam from a mile, but there still were people who thought that this could be their legit way out of financial trouble. Not surprisingly at all, what it did is it only gave them more trouble.
Stay away from that, stick to the real investing if you are into it but don't you ever invest on any online binary options platform, as you never know if it is a scam or not.