How safe are binary options?

Some web site say that Binary Options can make you a great deal of money. Other say it is just like gambling, and that most people loose money. Is there a reality.

isn’t just comproble to forex trading

Hello, ronerown,

I have found a wikihow page explaning how to choose the correct trading option as to make it as safe as possible.

Artical can be found here www.wikihow.com/Choose-the-Right-Binary-Options-Platform

Hope it goes well for you :41:

Its all depends on you - if you gamble then most chances are you will lose, if you base your trades on analysis and charts - you can earn a lot. Same as any other type of trading…

It depends upon you. Binary options are great product if you use it rightly and if you use wrongly it you can loose entire money. But I say if you have technical and fundamental knowledge you can win. If you don’t have knowledge then everything is gambling. Before start live account you have to practice in demo account.

From what I have read from both online reviews and previous threads on BP it is not binary options which are the issue, rather it is the broker which you are using to trade these binary options.

For example, to understand binary options you need to know that your betting and the broker always takes the other side to this bet (note it’s not a trade in the conventional sense of margined FX trading). You may also get confirmation that binary options is classed as gambling by looking at the relevant authorities who the broker/bookmaker is registeraed with.

In the UK for example, before the reform of authorities came into play recently, Binary Option providers were regulated by the Gambling Commission and Margined FX Trading was regulated by the Financial Services Authority (FSA). This obvious split in regulation is clear enough evidence that something is not quite right, regardless of the brokers trying to cover it up via advertising claims such as “Easy money with Binary Options…”.

I’m not suggesting money cannot be made with Binary Options, but the house (the broker) always has the edge. In fact you can place the same Binary Option Bet by speculating it on a Margined FX account and get a more favorable payoff with the option to reduce your risk at any given time. Binary options don’t allow this, they are black and white, just like a casino bet, once you place it no amendments can be made and your fate is in the outcome of the bet.

So this then asks the question “If you can get better, or identical odds with a Margined FX account yet with the ability to reduce risk at any given time; why do people even use Binary Options when they are the inferior choice?”

The answer is because Binary Options are easy, they are simple to use by the uneducated trader who lack enough knowledge to see why what they are doing is gambling. Ask yourself; who takes the opposite side to the bet? what are the legalities of what the broker can get away with? and finally what alternative favorable options are around that should have been chosen as an alternative to Binary Options?

This is of course just my thought.