The truth about binary options – legit trading or scam?

You cannot read an investment blog without getting posts about binary options. There is a lot of money in binary options – for users, brokers and advertisers – so this will not change overnight. Trading binary options is legitimate but incredibly risky. You must understand the industry and the risks involved – and you might be better off staying out of the way altogether.

Don’t believe the reviewers who offer binary options as a quick fix to your financial problems. In fact, nothing could be further from the truth.

How does binary options trading work?

Binary options trader Investing in the future movement of assets Such as gold, stocks, markets, etc. Simply put, binary options traders try to predict whether the value of these assets will rise or fall over a given time frame.

If your prediction comes true, you will win and earn commission on your investment. If the value does not change as you predicted, you will lose all the money invested to secure your prediction.

When presented in this way, it becomes clear that binary options trading is more like sports betting than an actual investment. Binary options are nothing more than betting on financial assets, as if you were betting on the outcome of a sports game.

So, is it a scam?

This does not make binary options a scam. It’s not just an investment.

The majority of binary options brokers are legitimate companies. As legitimate brokerage houses, your money will not be stolen and you will not be defrauded.

The problem is that the majority of brokers It promises unrealistic expectations. The average user does not get results like this.

The most common way binary brokers attract new traders is by showing cases where simple people have been able to win huge sums of money just by trading low amounts on gold and other popular assets.

Sure, such cases exist, but they are The exception, not the rule. In the same way that some sports gamblers manage to win extremely large amounts of money, skilled/lucky binary options traders sometimes bank. However, this rarely happens.

Without knowing it, many people sign up with binary options brokers who make unrealistic promises. In the end, many people end up losing all the money they put into the system.

But can you really win?

The biggest winning factor in binary options is LUCK. But yes, you can really win.

The thing that brokers won’t tell you is that you will have to put in a lot of effort and research if you want to win consistently. And even then, luck is the strongest variable.

As in sports betting, if you want to win, you must have a great deal of knowledge of the sport involved and the teams that play it. You will have to understand the game, the strengths and weaknesses of the teams, and the skills of the players. You’ll have to figure out historical performances, fitness levels, injuries, and dozens of other variables. Even then, things may not go your way.

If you factor in all of these variables, you will likely win in the long run. It is exactly the same in binary options trading. There are countless variables and risks that you must consider in order to accurately predict the future development of an asset.

Issues such as the time of year, the state of the economy, political developments, the economic performance of major market makers, and recent business news and events constantly affect the movement of stock and commodity prices.

In order to be able to accurately predict the movement of an asset, you need to be up to date with all this information. Also, to be successful, you will have to understand a variety of technical data as well, such as being able to read charts, use technical indicators, understand statistical calculations, and much more.

As you can see, binary options is much more than investing $100 in gold and then getting $300 back after 10 minutes. If this is your approach, you will lose 100% of your investment sooner rather than later.

But this looks hard!

Yes really! This is exactly what powerful binary trading takes. I know most of the entities advertising binary options make a lot of bold promises, but in reality they are much more complicated. with a purpose Is that true To make money, you will have to invest a good amount of time in market research and getting to know the technical aspects of this business.

No matter what anyone promises, you will not be able to make money easily by placing random bets here and there. Brokers count on you doing exactly that Because they know that in this way, you will pay the price of becoming a losing trader (meaning that the brokers will make money from you).

So, here is the truth behind the binary options business. There is nothing inherently wrong with this form of online trading (or, better to say, betting), except that the brokers are artificially inflated and dishonestly presented as what they are not.

So again, is binary options trading a scam?

Binary options trading is not a scam, but a financial gamble that will only work well in the long run for the most dedicated and knowledgeable users.

Update: Binary Options Industry Changes

If you read our thoughts from 2014, you know that binary options are legit, but very risky and hard to engage in profitably. But that was in 2014. Things have changed quite a bit since then.

As mentioned above, there is There is still an easy shortcut to successful binary options trading – You will still need to learn the basics of this trading model and do a lot of market research to make real money. However, some new developments have emerged in the industry which may make it easier for you to make a living with binary options trading.

More welcome to new traders

for one, social trading It is finally becoming a major aspect of binary options trading. Beginners who want to start making money without having to fight against an intrepid learning curve can look to the practices of seasoned veterans. Some brokers even offer in-house social trading platforms that allow you to take advantage of the trading experience of highly successful binary options traders in-house.

Of course, there is a risk that the trader will fail, in which case you risk losing money in the same way. Therefore, you will have to choose signal providers very carefully to avoid disappointment.

We now have binary options robots as well, which aim to automate winning trades for users. Unfortunately, many of these bots are scams, which is why it is best for you to avoid them completely (except in cases where your broker offers their own automated trading services).

Even then, you cannot really count on a broker giving you a highly profitable automated trading tool. Why does the broker give you the tools to take his money? You will have to do your own research first to see if an automated trading system is worth the effort. And if you choose to use an independent binary trading bot company, you will have to be very careful to avoid being scammed.

More tools for advanced traders

Accessing the high-quality financial information needed to make smart trading decisions is easier than it was a couple of years ago. Premium binary options brokers now have great platforms that provide excellent data for comprehensive technical analysis of the assets you are trading, helping you to make better trades.

Additionally, there have been cases where brokers have introduced bots that search for financial news, giving you the latest happenings so you can anticipate market fluctuations. All of these developments make binary options trading easier (for people willing to take the time to learn the system inside and out).

Still legit?

Yes, binary options are legit and growing. But you still have to jump through a lot of hoops to make it in the industry as a beginner. There are also a lot of scams out there to take advantage of helpless new binary options traders who don’t know how the industry works. At the same time, we now have a wider selection of trustworthy brokers and signal providers than we did a few years ago.

Moreover, better technical information and analysis makes the industry more profitable for dedicated users. However, you will have to be extra vigilant of who you fall into bed with when entering the industry to prevent your money from falling into the wrong hands. If you are willing to work, learn through trial and error, and develop better methods than the average binary options trader, you can actually make money with binary options.

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