Why some people believe binary options are bad?
When people ask me about binary option I always recommend that stay away from them.
The process of trading them resembles gambling more than it does trading and the binary options broker industry has long become notorious for being full of dishonest companies at best and scammers at worst.
The situation has gotten so bad that even the FBI is issuing warnings against the whole industry and describing the kind of scams don’t trust binary option trading at all.
Actually Binary Option trading could be the latest thing in the market, but it’s not appropriate for everybody. According to me, if you are individual who likes instantaneous gratification and comparatively smaller profits, then it could be a filed worth checking out.
but If you have in interest in Forex as long term career, then standard currency trading may be a better choice for you.
To be honest, Binary Options trading is not for the general traders! It looks like gambling, that’s way novice traders should stay away from Options trading! I started my trading career from stock trading but right now I use only Forex market! I must say, Forex trading business is most flexible one! Here I can moderate my risk percentage with enough defensive rules; that’s way I recommend Forex not Options trading!
Because of unfair ratio of winning/fail, i.e. odds are heavily stacked against you. If you succeed your payout is only 75% but if you are wrong you lose your bet entirely. In the long run, because of that misbalance it will present substantial difficulty for you to maintain profitable position.
Thanks Profitbaby, In forex trading , we analyse and predict the market according to technical or fundamental set up. There is real analysis involve in forex trading which gives logical thoughts without expiry. Since i became professional on binary option i have never notice lost, i have a new amazing software, i also help to recover lost. that is why i ask why some people believe binary options are bad. We analyse and predict the market according to technical or fundamental set up.
I wouldn’t exactly use the term “bad” to refer to them, perhaps, but I would definitely say they have a poor reputation for various and, more importantly justified reasons. In on itself binary options are more gambling than trading, and I think we can all agree that it’s very difficult, maybe even impossible, to make a regular profit off gambling. The other reason is that binary options brokers have become all but synonymous with scammers. That is not to say that they are all scammers, I am sure that there are honest ones among them, but the scams have happened so often and have been so egregious that countries like Israel and Belgium, have banned them altogether, France has banned their advertising, and Canada, which initially left those decisions to its regional regulators, is also preparing to ban them altogether.
I think that if binary options trading was that good there wouldn’t have been so many complaints that would lead to such bans.
Last year July I started a binary trading account. A very warm and friendly young woman used to make regular contact with me to update me on the market status and advise me on attractive trades. During our short relationship, I made a total of 76,250 USD in credit card deposits to this company. In the early months, my trades were going well. I felt looked after and professionally advised. Late last year, my “broker” convinced me that there was very little risk and a very appealing reward to trade in oil. In one single trade session, I lost the sum total of my trading balance. This came as a massive shock after things seemed to be going so favorably for me and I was promised good results. After my account balance reflected 0, I was unable to get hold of my broker. She did not answer my calls or emails and this was very suspicious after she had been the one who made such efforts to keep in touch with me before and then after losing all of my money she was all of a sudden gone! I believe that my money was stolen from me as this company manipulated me into opening a trading account and making larger deposits because of the promises they made. In my experience - I would say that Binary is bad and advise anyone to stay away!
GuyRomeo, unfortunately your money was definitely stolen and I am not sure if you will be able to get them back. This is what such brokers do, at first they contact you all the time convincing you to make larger and larger deposits and once you lose everything, they are unreachable.
Just take a look at these threads: 301 Moved Permanently The terrible cost of binary trading fraud: father of four commits suicide after losing £183,000 - Andrew Penman - Mirror Online
My advice for everyone is just to stay away.
Thanks for your reply Sebastiano, and for the links to those articles. Looking back now, I can’t believe how naive I was. I can’t believe how many people buy into this scam - it’s crazy. How are these companies still operating when it is clear that this is daylight robbery?! I’ve definitely learned my lesson. Thanks for the advice. I hope others take note.
I am also a newbie to trading and actually started off with Binary Options trading in Jan 2017. Over time, I find it is not easy, as you really need to have a high percentage of winning trades to overcome the odds. Either that, you need to be very good at positioning your trade sizes. At this point, I am still learning but I find that for Forex, you can do SL and thus manage the risk-reward ratio, which I find more meaningful and less stressful.
Guys has anyone here qilling to help me or willing to share his her long time winning strategy on iq iption? Guys please help me im stuck on finding my strategy to strart in iq option
Yeah, I’ll share. It’s fairly simple. Close your account. Thats it. Learn to trade the spot market instead.
it happens a lot of times in binary option. i do a put trade and it goes down, but in the last secont it suddendly does up and i lose the trade, why??
You’re most welcome GuyRomeo. Don’t judge yourself too hard. Unfortunately it happens to a lot of people as these “agents” are quite persuasive. The scheme is made just like that - they do everything for you and you just see how the profits grow more and more until “something happens”. I don’t know as well how these brokers are still in business as it is clear that their activities are illegal but obviously they are using some gaps in the laws. Hopefully this will end soon.
I recently read an article which you might find interesting as well - Binary Options: Where it really belongs - Opinion
Binary options have such poor reputation – and justifiably, I think – because people lose a lot of money to them. You’d say that people also lose a lot of money to Forex, that 95% of traders lose, but do they lose as much as binary options traders do? Not only are binary options traders gambling when they trade binary options (and I don’t think that we can call Forex trading gambling, unless one is relying on luck, rather than knowledge), but the amount of scammers among the binary options brokers is really disheartening.
According to recently released statistics by the Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC), Australians have lost AUD 11.5 million to 879 cases of cold calling scams involving investment opportunities in binary options. It’s hard to have a positive view in the light of such statistics.
It depends, I guess. I have had some positive experience too
I have no doubt that some people have a positive experience. What matters more, I think, is what is the percentage of the scammed and disappointed (to put the latter mildly) compared to the percentage of people who had positive experiences?
I don’t found t any regulated Binary option broker at all , that’s why I lost interest to invest here. Actually it all about scams nothing without it.