I know most people do not like them and think they are a scam, I have met a few who had success with them. I am aware that most binary option brokers are nothing more but a lousy scam, but what about the market leaders who are currently seeking regulation?
I have been trading binary options since last year and my broker has never scamed me or acted funny when I requested my profits in a withdrawal. I think most people who scream scam have either lost money, accepted a bonus and did not bother with the requirements or do not understand how to succeed trading binary options.
I look forward to read your opinions about them. Would be nice if you give your reason as well.
I think its an interesting way to trade - how do you know price will be over/under a certain level by a certain date? I suppose you can hunt the market looking for binaries that pay out well and are unlikely to be broken, but its something I would have to look into.
Seriously talking, many binary options brokers are scams, also many Forex brokers are super scams, so what?
Don’t trade with them! Always read reviews, read forum post, ask questions in forums etc. before you deposit for any broker in any industry.
I trade binary options for a while and I make nice profits, so I don’t think you can say that the whole industry is a scam, but I agree that the percent of crooks brokers in this industry is a bit higher than in the Forex market.
Make a mistake and win big and your trouble starts.
Not FSA regulated…Many are shell companies with no physical office and running insecure flashy websites
Its all a big gamble right? You win, the broker looses and vice versa…Question why don’t you play online poker with your cash. Trading is a business and not a gamble… Remember: the house never looses…
Prove this wrong: The top brokerage banks do not offer binary trading…reason? well lets not go there…
I’m just starting out, but I can’t imagine all of the binary companies are scams. I mean, they run a business, sure, but there’s no way if a company’s been around a while that they’re just ripping everyone off, right? I mean, it doesn’t take too long for people to figure out that a company’s no good. But I don’t really know how to make that kind of judgement yet.
I found some websites that list a few brokers that they say are okay. Do you think that’s right? Should I go and open an account with one of those brokers? The whole setup sounds pretty interesting, but I don’t want to go in if there’s really not a single company you can trust.
I just wanted to know why you think they are a scam, not to convince you otherwise. I am not here to defend binary option trading. I only trade a small amount of my capital there.
Before you deposit with any broker try to find as much data as you can about it by searching binary forums and google. After you found a broker, try it with a small amount, not all brokers are scams…
I agree with you. Be careful as most will scam you especially when you generate profits and ask for withdrawals. There are a few where you can trade with and not experience any problems. Some have applied for regulation just like forex brokers have. I would not recommend to deposit more than the minimum, regardless of your skill level. Binary option trading is nothing like forex trading and you need a different approach. In case you can figure it out, you could generate profits but as with every traded asset most will fail and blame the asset for it.
Some binary options are really a scam. For example, Banc De Binary. I posted an article about it on Trade Opus websitewarning people because they are being charged By The SEC and CFTC. In the press release the CFTC alleges that Banc De Binary unlawfully solicited and permitted U.S. Customers to buy and sell options betting on the price of commodities, foreign currency pairs and stock indices.
They also claim that Banc De Binary operated as an unregistered FCM from July 2011 – March 2013. Finally the claim alleges that they allowed US customers to trade without requiring information about their trading history or net worth.
The civil complaint was filed in the in the Federal District court of Nevada. The CFTC seeks monetary penalties. an injunction preventing Ban De Binary from engaging in certain options activity with US traders as well as other monetary restitution.
Conclusion: Before trading binary options, make sure the broker you are using is safe and trustworthy
Basically you are saying that the US is pissed because an offshore company decided to allow US citizens and residents to trade (similar to the US being pissed that offshore gambling sites allows US citizens to play online poker). Did Banc de Binary scam traders is what I would be concerned, not that they disagreed with US laws. Binary option brokers are just now seeking regulation so the market should change this year. I would not dislike an option brokers because the CFTC is on their menstrual cycle.
That doesn’t make them a scam. But I do agree with your advise “Before trading binary options, make sure the broker you are using is safe and trustworthy”
“Prove this wrong: The top brokerage banks do not offer binary trading…reason? well lets not go there…”
Hmmmm wrong! I work in a front desk of one of the major investment banks (Commodity desk), and we do offer binary options to our clients. Actually, if you go to your retail bank and are offered an investement payiong coupon if gold is above its current level in 1Y/2Y… those are binary options!
Theoretically, binary options brokers can hedge themselves on the market with vanilla options if they do have good traders and risk control. But I personnaly think that most of them are scams / Casinos / taking so much margin on every trade that in the long run only a few people can win. But of course, on binary options, you do know how much the margin is as you would need a proper pricer and access to volatility data to be able to get the “true” market price!
I tried to open an account with 24option, but I got a message that they do not accept US traders. I think it’s a new policy of them and I’m pretty sure that they did accept US customers few months ago. I think that this is a strong sign for their US customers to withdrawal their funds while they can. It seems like if you will not withdrawal your money now, you will not be able to do it later…