Hello,
I’m new to forex and noticed that binary options are getting popular these days but still have a bad reputation as people see it as “gambling.”
Since most retail forex traders use technical analysis, wouldn’t binary options worth a try with its set possible loss? I’d assume that if a trader is excellent in technical analysis, binary options may also be a good investment.
So basically, what are the downsides of binary options that make Forex traders are eery about?
My view on it is there are many shady companies offering binary options trading. Unless the company or firm was regulated I would never trade with them.
If a company has a vested interest in me losing then the odds are stacked against me. I don’t like those odds! In the spot market I have more control of my money.
As has been said binary options are not regulated and there are a lot of hidden “catches” and scams with the people and companies who provide them.
Its easier to stay away from it and stick with the regulated markets.
Great advice - except they are regulated! Now whether they are a good investment is a different question…
it doesn’t matter if they regulated . the money you put is money you bet against the broker . you win he loses .
The system is bad as it time limited and not profit limited . you are actually betting that at certain time your bet will be above or below. but each broker use its sources, and the opening rate they sell you what they want and not actual market .
just for convince you more open 4 different binary brokers and compare same currency closing at same times .
you will se for each broker is little different . you will lose eventually as the basic of those companies is the loosing of their investors. they no have commissions they no have spreads so think what they make money from. stay away it worse then casino .
The binary option trading has become more popular with the passage of time as now forex traders have started thinking that it is pretty easier from forex and even a newbie trader can do it with small efforts… So far every trader make losses in start but that does not means that we start discouraging this type of trading. I would like to quote that trading is no doubt very easier but making money with any type of trading requires some time and also involves learning of all the odds. I guess they are good investments as you can make around 80 % by trading binary options.