Binary Options. Beware!

Trading Discussion Binary Options
249

I was interested like topic starter, and opened couple BO accounts. Just take simple calculations:

  • You can’t contoll your loses size, so every loss is very high compare to position size (maybe 50% dont remember exact)
  • You can’t contro time when position will close (this is most important), so positions often closed in losses, even if you play by trand.
  • You must win in 60% of trades to keep account size and win in 70% trades to gain profit.
  • Spikes and strange chart jumps are very often, looks like “normal” currency charts are modified to simulate “market activity”.

This “binary options” are online game you can’t win, just like “online casino” but in “finansial like” form.

250

I agree. Binary options are always rigged against you, even when you’re working with a broker that’s not supposed to be a scammer. They’re all there to make money off your gullibility. Take EZTD, for example. The US Securities and Exchange Commission (SEC) said on Thursday it has charged Israel-based binary options and forex broker EZTD Inc. with misleading investors and has ordered it to pay more than $1.7 million. The broker has lured investors into trading binary options over the Internet without disclosing them the associated risks.
EZTD has agreed to forfeit approximately $1.5 million in revenues obtained from US customers and to pay a $200,000 penalty.

If they’re doing that, what just how dishonest are the smaller, unknown entities on the market?

251

I have started with binary options and am finding it tricky but I have been watching the realtime market with the bollinger bands and the MACD lines and I’m not earning a fortune but it is interesting. I knew nothing of any of the forex and am still learning but I think if you don’t look into it it is just a gamble.

252

The UK Financial Conduct Authority (FCA) recently issued a warning against unauthorized binary options broker Sigma Option, a brand of BR23 Ltd. They weren’t authorized to operate in the country and yet they were soliciting clients. More importantly, the broker didn’t provide any kind of information about registration and regulation. Don’t ever trust brokers - binary options and otherwise, that is licensed and regulated, and whose information you cannot double check with the regulator.