I wonder if its the other way round. People go into binary options trading because they believe all existing forex trading is a scam.
Let's say there are 10 ways to trade the markets and a new struggling trader believes all of them are scams. Then someone offers an eleventh way to trade. All the firms in the first 10 and their regulators and all their clients say option No.11 is a scam. But why believe them? - they are all involved in one of 10 scams already operating.
From that standpoint, option 11 now doesn't look like a bad idea. It may turn out to not be a scam, because the existing "scammers" are against it, and why would they be against scamming? If it does turn out to be a scam, then that's no worse than all the other "scams" and all the other"scammers" and there's at least a chance of making money. So why not?
I wonder if this unconscious psychological process is part of the explanation for what draws apparently intelligent people into the most stupid scams like binary options?