Hello.
Well not to upset anyone here but from my experience (testing / demoing a few of them) some time ago: MOST Binary Option Brokers are the FOREX Broker equivalent of a “bucketshop”. You lose: they make. Simple as that. To make matters worse: take a GOOD look at the Binary Option Broker i.e. do a “trace” and you’ll find that they’re nothing more than a “front” for one of only two or three “behind the scenes” BIG Binary Option Brokers or “bucketshops”. Kinda like your FOREX Broker equivalent of a “White Label Partner” (they’re called “Affiliates” if memory serves me correctly). I started a thread around here quite a while ago about these things (look for it if you’re interested). The BIGGEST “move” that they “pull” is to NOT CLOSE (“expire”) the option “dead on time”. MANY times in my testing / demoing did I find, for example, that had the option expired EXACTLY on time I would have been “in the money”. But thanks to the 45-second (at LEAST) delay AFTER the option was supposed to expire I ended up “out of the money”. That type of thing. One would THINK that at very LEAST they’d ensure that you WIN on the DEMO!!! LOL!!! And just you TRY to “call them on it”!!! Good luck with that!!!
I also seem to remember somebody working out “mathematically” that the risk/reward ratio and/or “mathematical odds” are not in your favor (I think it’s somewhere on the thread that I mentioned that I started some time back but I could be wrong).
ALL of this (the above) being said though: I HAVE noticed that, of late, some “alright” FOREX and CFD brokers are offering Binary Options as well. Hell: there’s even a REGULATED (USA) Binary Option Broker now i.e. “NADEX” if memory serves me correctly!!! Is it “trading”??? It’s debatable ACTUALLY. I mean let’s be honest (and “all things being equal”): how DIFFERENT is it from trading a 15-minute chart with a SL and a TP in place??? Don’t get me wrong. I wouldn’t get “involved” with these things with somebody ELSE’S money LET ALONE mine. But think about it is all. ONE thing that you WILL notice (well that I noticed anyway): a few of the HIGHER PROBABILITY types of Binary Options have been “done away with” e.g. those “Once Touch” Binary Options (well: at the “bucketshop” level anyway). Why??? It’s PRETTY SIMPLE and a NO BRAINER that during a news data release there WILL be a “spike” and of course your “One Touch” Binary Option will immediately expire “in the money”!!! Go figure.
Anyway: “each to their own” as they say.
Put another way: if they work for YOU then great!!! I have this “argument” ALL of the time (well: at LEAST once per week). Everybody that’s been around here for a while knows that I wouldn’t trade FOREX if you PAID me to do it. I trade only equities and commodities and that works FOR ME (and others that “see the light”)!!! LOL!!! My argument (that could be applied here): WHO CARES WHAT you’re trading just as long as you’re making money. Alright: it does help if you’re trading a particular market where the “odds” are stacked MORE in your favor than another of course. But as I said: “each to their own”. A quote from “Floored The Movie” (a documentary actually): “Always be making money”!!! That about “sums it up” I guess.
Regards,
Dale.