How brokers make money with binary options?

Finally if you trade with reliable broker such as Optiontrade, you make final decision what price direction to bet on. Losing money is your mistake, because swindle means when somebody abuse your confidence to rip you off. Understanding it will clear out everything associated with financial betting.

One day somebody called me from +44 country and the next day from +744country, both of them are from the same broker, I registered and deposited 1500usd 3x with in two weeks so total 4500usd, he recommend to buy “oil” and with in 5 days I lose 3000 usd, ===> what can you say about this situation ? please advise

This article gives a brief overview of how brokers profit - How Do Binary Options Brokers Make Money?

Is it real? brokers make money from my loses? this is what I read about it on binary site: bit.ly/1og1YKO

There are basically two ways how a binary options broker make money. The first way is to take away the money invested by traders on lost trades. The second is to charge a commission on a contract purchased by the broker.

In both cases the losing trader will lose the initial investment. The two ways differ from each other from the fact that the money lost will be cashed in by either the broker itself or by another trader in case the broker functions on an exchange-trading model

It is likely as personal trader that join and using pamm account of brokers.
Its different with cassino.

My dear friends,

We can trade Binary Options in the more safest way by combining both the Technicals & Price Action.
We have found a unique strategy for trading 1 Minute expiry trades with 90 - 100 % Accuracy.
I not kidding anymore & you can see the same in the following Screenshot.



The serious people who wants to earn real money through Binary Options trading can contact me at <casper.desina@gmail.com> . I will guide you further until you will reach the financial success & i am 100% sure this will be your final destination for reaching success gateway.

Is there no spread and leverage in binary option trading??

I guess that we should focus on How we traders can make money with binary option brokers, since there are a lot of arguments over it but I think we should focus our goals.

Hi. How do you propose to concentrate and focus on making money?

To be honest, I have no idea how binary options brokers make money and I really don’t care, the main thing for me is that they allow to trade and withdraw easily, and since everything is good with that so far, I’m going to continue on

Well I cannot speak for other brokers but from nadex fees page they make money for just people placing trades. For example if your contract size is 50 they get $1 per contract up to 50. So lets say 100 people place a trade like that they make $5000 and also 1 dollar for closing the trade to i believe so thats $5100. But I do know if other brokers are using the i play the opposite side of your trade everytime scheme.

This is how “brokers” make money in binary options
http://forums.babypips.com/binary-options-and-futures/85172-im-going-steal-everything-you-have-post806559.html#post806559

Are you trying to say that brokers make money on unprofitable deals? That’s nothing new for me.

There is another way brokers can make some money, but probably not much in the grand scheme of things.

I am sure that many banks would be interested in knowing the proportion of traders who are bullish/bearish on various timescales, and how much capital they have invested in their trades. Of course, being banks they already have a lot of data, but never enough. So I am sure they buy trading statistics in real time from various brokers.

if you can trade spot forex with a reputable broker - stay like that. Even if we take all scam away - binary options have one huge killing inferiority to forex - time restriction. Do you need that? - no. Stay in forex.

In my own understand BINARY OPTIONS are market makers and they also trade forex with other institutios so they make money by using the money u deposited in their platform to trade and they always wish that u fail at the end of the day. That’s why it is very hard to find a good BINARY OPTIONS

I think that binary options are scam