Reputable binary options or scam? How risky is trading in binary options?

While other investment products are losing their appeal due to lower interest rates, trading in financial products continues to grow. Many private investors are now willing to take on more risk for the chance of higher returns. Inexperienced customers are often attracted to binary options. This promises high profits in a short time. However, there are also many negative reports about binary options trading on the Internet, and even the user center states a clear warning here.

But what exactly is risky about an easy-to-learn form of trading for beginners? Are binary options scams? Or not, the criticism only understands how to eliminate the risk of binary options ? We got to the bottom of the most important questions on this topic.

 

 

Are brokers cheating on binary options?

Many former users doubt that trading in binary options is legal, because they have lost all their trading capital. Most of these cases are not binary options scams, but traders are taking risks and not expecting the amount of binary options losses to be so fast. However, some users have actually been cheated out of bad money by dubious brokers and thus have no chance to trade profitably.

There are many possibilities for binary options fraud by brokers. Since the price is provided by the provider himself, it can be said, as a deliberate manipulation here and the broker causes much higher losses to the client than would have happened without price manipulation.

Another problem is the broker, who simply does not pay the client profit. The customer asks for payment and nothing happens for a long time. Maybe, the customer service is still calling the trader and trying to convince him to cancel his payment and choose to continue using the money to trade, maybe one day the broker will just disappear from the scene. With many vendors overseas, such scams often make it difficult for merchants to get their money and rights. Therefore, care should be taken from the beginning to choose a broker, only reputable providers to entrust their own money. What you will recognize this will be explained later.

Why is binary options trading so risky?

Not only is the high risk of binary options fraud making trading dangerous. Even with a good and reputable broker, binary options trading is not recommended for every investor because of the threat of heavy losses. Although a lot can be gained on each trade, the potential loss is even higher, usually affecting the number of shares. With a good trading strategy and a targeted technical analysis of the price development, trends can be identified and thus the price development can be predicted more accurately, However, this method has a narrow limit on binary options and can usually give the client a small increase in the amount trades they have won. Even the best traders lose a lot of their trades and therefore have to reckon with sometimes high losses. Although professionals make profits on average by making good decisions, that does not mean they are safe from harm. Even with them, the variance can attack, so that in binary options absolutely every trader threatens total loss.

Since binary options are strictly financial bets, there may be an addictive nature. Winning trades trigger extremely high levels of happiness and fast trades stimulate those who are threatened. Therefore, attention should always be paid here for possible danger signs.

Now open a trading account on IQ Options 

 

 

Are binary options riskier than stocks?

Binary options are among the most long-lasting investments in the financial market. While stocks are traded on a stock exchange, binary options trading is an external exchange and thus takes place directly between the broker and the client without any further stations in between. Of course, this opens up many opportunities for fraud for brokers and has been exploited by dubious providers in the past. Since the broker can design the course itself, the client here is very dependent on the fact that it offers binary options seriously and does not manipulate the course so that this is to lose the client who is more worried.

Another thing that makes binary options a more risky asset is the threat of losing any losses. As for equities, it is only in absolute exceptional cases that shares lose their entire value. Even sick companies still have residual value from which investors can later sell their shares. Binary options, on the other hand, are an “all or nothing” business. Here either the profit is paid, or the whole job is lost. Therefore, the credit on the client’s account is usually subject to high volatility and depends on great luck, Another common argument is that binary options do not buy real value. Only bets are placed, where the trader’s profit is paid a predetermined amount. In the case of stock trading, on the other hand,

 

What measures are taken to protect traders?

It is important for traders to know both their data and their money well. Therefore, trading is only required if binary options can be traded with a broker seriously, without fear of fraud or unprofessional dealings with the client’s security.

When binary options came on the market and quickly became very popular, there were many bad or even unregulated brokers. At the same time, it is only allowed to offer retailers for Malaysian customers who have the appropriate license to do so. This can be issued to brokers based in Malaysia by the Federal Financial Supervisory Authority (BaFin). But also a license from the country of origin is allowed. Especially many brokers based in Cyprus. This is related to the local tax advantage, because Cyprus has good conditions for online brokers who can pass on cost advantages to their clients and thus can offer excellent conditions, which certainly represent a competitive advantage. At the same time, Cyprus is also a member of the EU, that’s why brokers are regulated there under strict EU laws. This is an advantage for clients and also makes Cypriot brokers popular.

Often it is considered a binary options scam and successful trading is impossible. In fact, the majority of traders are not able to make significant profits in the long term, and many also experience large losses. On the other hand, there are traders who trade with binary options successfully. This must work hard for long-term success, continue to educate themselves and take consistent risk management to cover the high recurring phase. Is it possible to trade binary options successfully?

In many promotional videos of brokers, these professional traders are hailed as some kind of heroes who make a lot of money every day without much effort. At the same time, interested newcomers agreed that they could quickly become equal with little effort and perhaps even live off the trade. Here it is hidden that professionals also expose their assets with binary options of great risk and can only succeed because they do not invest their entire free capital.

In the binary options scam forum, we read several reports from failed traders who have chased the dream of becoming a trading professional while investing too much money. Of course, before entering the retail world, customers need to be fully informed, so that users can know that binary options trading does not lead to long-term success overnight. But also the brokers are here. As long as it is delivered by misleading ads that even put people with binary options can quickly make big money, traders will fail again and again.

Now open a trading account on IQ Options 

 

 

Are the bonuses promising serious?

For many brokers, new customers can get a bonus. The broker then credits the trading account with the first deposit of additional money. This is a very nice addition, which of course is easily carried by traders. However, the terms and conditions should be read exactly on the bonus offer, after all, one also needs to know in the contract, what is there before signing it.

For bonuses, the rule is that you must first place trades for a certain amount before releasing the bonus and paying it to the account. The exact conditions for the bonus offer at the respective broker are often very hidden and can be found only after a few searches. Also with bonus promises it happens that the positive side is often emphasized, while the negative side is completely omitted.

The customer is happy about the extra credit on his trading account and starts trading straight away. With luck, he might even make a profit. The desperate if he wants this then can pay, because either complete payment is locked until the bonus conditions are met, or else the bonus expires in payment. Only when the customer has reached the required turnover, the bonus is fully withdrawn and converted to real money credit.

What are the benefits of a binary options broker?

Brokers for binary options make the statement that traders on trades win less than they lose to. Therefore, on average, the provider makes a profit. Clients should not be blinded by the euphemistic statement that “trading is completely free” in broker searches. It may be true that there are no fees charged for keeping an account or placing a trade. The cost resulting from the lower payment price compared to the potential loss. If one compares the providers here, one can recognize in some cases a large cost difference.

 

How do I behave properly as a beginner with binary options?

We hope that this post will help readers make the right decision about getting started in binary options trading. Binary options are only suitable for some investors and only need to be traded with capital, losses that traders can easily overcome, because even the amount of losses must be calculated.

Anyone who wants to sign up with a binary options broker should make sure their binary options options are good and fair. The terms and conditions need to be read carefully, because here often hide the situation that the broker is not suitable for serious Trading make.

Comprehensive training in chart analysis is important because it can increase your chances of winning. Many brokers offer free training materials.

Even those who have found a reputable and reputable EU broker cannot be sure about binary options. A total of possible losses every day and their own profits and losses are difficult to assess. Therefore, all traders should only use small amounts because they can lose without much financial or mental stress.

Now open a trading account on IQ Options