Thought I should add my two cents to the topic. Hopefully it’ll help at least someone save their time and cash.
I used to work for a binary option broker. Two of them, in fact. Makes no difference, they all work the same way. Any BO firm is nothing but a holder of the funds of its “clients”, which, in exchange for their deposits, get a chance to make bets on the movement of the price of different assets. Bets. Nothing more.
Unlike other markets, which should be carefully considered as well, but that’s a completely different subjects, “binary option market” doesn’t exist. There’s nothing to “buy” or to “sell”. The moment you purchase your option, you’re betting against your broker. Mathematically, the odds are against you: for every $1.00 you bet, in the case of a correct bet, you get back 70, 80, 90, 95% - but never the full amount. That means that on average you’re going to lose more than you gain, but of course - you wouldn’t want a mere 50/50 chance of placing the right bet, would you?
So you start to research, to investigate, to test different strategies. And hopefully you find one before you blow a whole bunch of money on experiments with real funds. So you decide to bring it in in order to finally start cashing some profits. Your account begins to grow. And you’re in exctasy - you’ve finally got it!
You did. But in your exstatic state you’ve forgotten to ask yourself whose field are you playing your little game on. And after a couple of thousand dollars you’re more than likely than start receiving much more messages and calls from all the different kinds of representatives of your broker. Account Managers, Financial Advisors, it doesn’t really matter how they’re going to call themselves - what matters is the purpose of their contact. They might congratulate you with your results, praise the work that you’ve done, and all would be simply wonderful if they were actually paid for this. But their incentives lie in the exact opposite direction - if they weren’t able to get in touch with you before, now that your “balance” is growing they begin to be pressured by their supervisors to get in touch with you no matter what.
The reason? Simple. They’re afraid you’re going to withdraw. And that’s understandable, right? You’re “trading”, you’re generating some “volume turnover” for them, you’re bringing them “commissions” they might have told you about. They gain nothing from your deposits, do they?
I’ll answer that question in a second, but you might want to consider first the experiences of people who have traded with their account managers, advisors and consultants, as provided by the company. I’d challenge you to find one review on the Internet (and I’m talking about real reviews, written by real people) where people have traded with their managers and haven’t traded their money away. Go ahead, try it. My post can wait. Unless it’ll be deleted as soon as the moderators discover that I’m writing something they’ve decided not to mention in their “introduction to binary options”. They might, of course, be completely unaware of what’s going on in the industry, but given their extensive experience I highly doubt it.
So, hopefully you’re back. And maybe you’ve even found out some posts of people claiming to have made some money while trading with some of their advisors from their broker. And you feel the wrath of justice, tearing you apart, making you ask yourself “how dare he put all of the hard-working people, working for all of these wonderful companies, together and implying that all of them do nothing but help people get rid of the money they’ve worked so hard to accumulate?”. Well, if your desire to keep your rose glasses on doesn’t complete cloud your judgement, there is a quite simple explanation for that: some managers, advisors and consultants of the company actually feel so bad about what they’re doing they can’t help themselves but try to genuinely help the people they’ve assigned to. Of course, that’s not a guarantee that they’ll actually manage to achieve this worthy goal, as most of the managers have no clue as to what trading is really all about. Only a handful of them have a real account at some reputable broker they use to trade on their own. But some of them at least try. And they might actually succeed. For a while. Before they get fired and another less righteous manager comes along and squeezes the people they’ve been trying so hard to help completely dry of their cash. Oh, well.
I hope you begin to see what the BO Business Model is all about. In which case I won’t have to advise you to stay as far out from it as you can. But in case you don’t, let me help you see a bigger picture:
- No BO broker is a broker
- There’s no “trading” in “trading binary options”
- Whenever you “trade” the BOs, you’re betting against the company you’re “trading” with
- The moment your “trading” becomes profitable, you become a menace to the company
- The only source of income for any “binary option broker” is represented by the deposits of its clients
- All withdrawals respresent nothing, but “an expense” for such a company
- Their managers get paid for making people deposit as much as possible
- And they get less bonuses when the “clients” they’re working with withdraw their money
For any of you, brave warriors, who shall desire to plunge your head into the sand in order to ignore somewhat uncomfortable facts I’ve just mentioned, you might want to keep in mind the biggest fear of your deeply righteous and caring companies you know as brokers of binary options. Chargebacks.
I won’t got into much detail as to why exactly they’re scared, and not just mildly annoyed, but suffices to say that they might incur a much, much more big expense on their balance sheet if they happen to surpass a certain percentage of transaction recalls. Chargebacks are usually linked to credit / debit card transactions, but there are also ways to reverse invoices from a bank account to another bank account as well. So you might at least consider limiting your transfers to your card exclusively. Just in case. Who knows, maybe tomorrow the company you’ve believed into so much will deem you unworthy of their services and decide to block you without any explanations. If you’ve only used card transfers and are able to formulate coherent explanations to your local lawyer and/or banker, you might actually get your money back. I’ve got to put an emphasis on might. When it comes to bureocracy, there’s almost never a 100% chance. But it’s definitely reasonably high. In constrast, you can say goodbye to your beloved cash if you’ve decided to transfer it in BTC or any other cryptocurrency to your beloved broker. Crypto-transactions are not reversable. And if you ever manage to fall for some sweet and feminine or confident and masculine tone of the voice over the phone as to why you definitely should do it and are going to wonder as to why you can’t get in touch with anyone in your beloved company, you’ll definitely know the reason why now.