Is Binary Options Trading a Scam? Can You Actually Make Money?

The only thing that differs is that you are time limited by the expiry, meanwhile with other investment tools you are limited by price movements stop losses, take profits. And even then, luck is the most powerful variable. So, alternatively, I found a company called ScamConsulting SCC, that specializing on withdraw stolen funds from those conmen. Capital de Binary got somebody who is close to me into big trouble. For most high-low binary options traded outside the U.

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 .

How does Binary Options Trading work?

These brokers are never fake and never a scam and as such can be trusted by traders. As hinted above, online trading is at this moment regulated in a number of countries such as the USA, the United Kingdom, Cyprus, Japan and others. What this means is that the authorities of these countries have openly admitted and recognized in law that binary options are not a scam. Why would governments of the mentioned countries explicitly legalize something that is a scam? In the mentioned countries, legitimate binary options brokers have the possibility to apply for a license.

Licenses will only be awarded to those brokers that have been rigorously evaluated by the governments that determined that they do not offer fraudulent services.

Brokers that have managed to acquire a license in the mentioned countries are also safe for traders who do not live in the mentioned countries. This is because if those brokers would deliberately scam traders not living in the country where they have acquired their licenses the governments that issued their license would still consider them fraudulent and withdraw their licenses. So, by now you know that binary options are not a scam and that most brokers are even legally allowed and approved by various governments such as that of the USA and the United Kingdom to offer online trading services.

And like said above, you should also choose these brokers in case they are not specifically licensed in your country. If this is the case, it means that the respective broker is also legal and safe and not a scam in all other existing countries as well.

But as explained, stay away from those brokers that do not have any license at all. These brokers ARE scams! So, keep this is mind next time you want to trade on financial assets. In short, binary options are not a scam if you only trade at legit service providers.

Likewise, if you browse our site you will find additional information about the legal status and legitimacy of financial betting. Besides this, you will also be able to find various guides and instruction material that will teach you how to trade financial assets successfully. Ever wondered what the truth behind binary options risk free trades is? 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. 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. 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. 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 statistic calculations, and much more. 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. If you read our thoughts from , you know that binary options is legit, but extremely risky and difficult to take part in profitably.

But that was back in Things have changed quite a bit since then. As mentioned above, 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. 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.

They enable you to adapt or adjust your position according to many market situations that may arise. For example, options can be used as an effective hedgeagainst a declining commodity to limit downside losses. Options for the first time were used and created by farmers in order to hedge the price of their crop. Here is a simple example:. Farmer produces 5, bushels of corn but is worried about the falling price. He wants to create a "price floor" so if prices do fall, he will be able to sell his corn at a minimum price.

Therefore he purchases one put option each option controls 5, bushels. What if grain prices decreased over the six months since purchasing the option? The farmer was able to mitigate risk by owning the put option. If he had not purchased the option, he would have been forced to sell his corn at the lower price.

What if the grain prices increased over the six months? We have now seen how Options can limit farmer's risks and can be very beneficial, but what about Binary options, what are they? Binary options trading is legitimate, but incredibly risky, you are better staying away from it.

So, is it a scam?

Binary options trading is the newest way of making money online but like in the case of anything that’s new, people still aren’t completely sure that it’s legitimate or not. For this reason, many people are asking the question if binary options are a scam or not. Binary options trading is legitimate, but incredibly risky, you are better staying away from it. This sort of trading was created for gamblers, betting on future movements of certain asset classes, such as gold, stocks, forex etc. Simply put, binary traders try to predict whether the value of such assets will increase or decrease during a certain time frame. The Truth About Binary Options –Dare to Gamble? The first time I heard about binary options, I was super excited. It sounded so easy that I overlooked the truth about binary options and the doom that follows after I get obsessed with it.