While lower interest rates are making other investment products less appealing, trading in financial products continues to thrive. Many private investors are now ready to take on more risk for higher return opportunities. Especially inexperienced clients are often interested in binary options. This promises high profits in a short time. However, many people can find negative reports online trading binary options and the consumer centers about it talking about it in a clear warning.
But what exactly is the risk in this easy-to-learn trading form for beginners? Is it a binary options scam? Or do critics not understand how to de-risk binary options? We got to the bottom of the most important questions on this subject.
Is your broker negating binary options?
Many former users doubt that binary options trading is legal because they have lost all their trading capital. Many of these cases are not binary options scams, but traders misjudged risk and did not expect the total loss of binary options to be so fast. However, some users did not have the opportunity to trade profitably because they actually cheated dubious brokers to raise money.
There are many possibilities for brokers to commit binary options scams. For example, since the price is provided by the provider itself, intentional manipulation has been made here, and therefore the broker may think that it has caused significantly higher losses from customers than in the absence of price manipulation.
Another problem is brokers who simply do not pay back the profits of their customers. After a customer requests payment, there is no response for a long time. Perhaps customer service still prefers to call the merchant to cancel the payment and continue trading the money. One day the broker will disappear from the scene. Since many suppliers are based overseas, it is often difficult for the seller to scam the right to himself and the money to come to him. Therefore, when choosing a broker, you should pay attention from the beginning. Reputable providers who entrust their own money. Recognizing this will be explained later.
IQ Option is considered an absolutely serious broker.
Why is binary options trading so risky?
The high risk of binary options scams makes trading so risky. Even with a good reputable broker, binary options trading is not recommended for all investors due to the threat of large losses. You can gain a lot from each trade, but the potential loss is higher and usually affects your total stake. A good trading strategy and objective, technical analysis, and the fact of price trends can accurately predict performance because of trend recognition, but these methods have narrow limitations for binary options and can generally provide clients with only a relatively small increase in the number of winning trades. can . Even the best traders lose a lot of trades, so sometimes you have to consider high losses. Even if experts make a profit on average by making the right decisions, it does not mean they are safe from risk. Even with them, divergence can occur, so in binary options practically every trader threatens total loss.
Binary options are strictly financial betting, so there is a risk of addiction. Yuan trading addresses a particularly high level of feeling of happiness and stimulating the vulnerable, especially fast-paced trade. Therefore, you should always pay attention to possible danger signs.
Are binary options riskier than stocks?
Binary options are one of the riskiest investments in the financial market. Whereas stocks are traded on the stock exchange, binary options trading is non-exchangeable, so the trade is directly between the broker and the customer, with no more stations in between. Of course, this opens up the possibility of fraud to the broker and has already been exploited by many dubious providers in the past. Because the broker can do the process itself, customers rely heavily on binary options here to ensure that binary options offer serious, and that the price is not so high for the operation A worry about the high loss of customers.
Another point that makes binary options a much riskier asset is the ubiquitous threat of total loss. In the case of shares, it is only in exceptional circumstances that the shares lose their full value. Even ailing companies still have residual value that allows investors to sell their shares. Binary options, on the other hand, is an “all or nothing” business. Here, either the profit is paid or the entire employment is lost. Therefore, the credits of client accounts are usually highly volatile and depend to a great extent on luck. Another common argument is that binary options do not buy real value. Only bets are made, and accordingly, the merchant is paid a pre-determined amount. On the other hand, in the case of a stock transaction, the customer acquires stock in the company and thus holds real estate, so the trader may gain or lose value if he or she is not currently active.
What steps do you take to protect your dealer?
It is important for traders to be savvy with data and money. Therefore, trading is only desirable if you can seriously trade binary options with your broker without fear of fraud for your security or unprofessional trading by experts.
When binary options entered the market and soon became very popular, there were numerous bad or not at all regulated brokers. In the meantime, we can only offer retail to Korean customers with appropriate licenses. It may be issued to Korea-based brokers by the Federal Financial Supervisory Authority (BaFin). However, licenses in the country of origin are also acceptable. Especially many brokers are based in Cyprus. Since Cyprus has good conditions for online brokers, this is related to the province’s tax advantage, which allows customers to pass on the cost advantage to their customers, offering very favorable conditions, which of course represents a competitive advantage. At the same time, Cyprus is also an EU member state, so brokers are regulated by strict EU laws. This is advantageous to clients and popular with Cypriot brokers as well.
Trade on a demo account first.
Can you successfully trade binary options?
Often binary options scams are assumed to be his and successful trading is impossible. In reality, most traders are unable to make significant profits in the long run, and many suffer significant losses. On the other hand, there are traders who are successfully trading binary options. This requires working hard for long-term success, continuing to educate yourself, and following consistent risk management to be able to cope with recurring high-loss phases.
In many promotional videos of brokers, this professional dealer is famous as a kind of hero who makes a lot of money every day without much effort. At the same time, interested newcomers are persuaded that with less effort they can quickly become equally successful and even get out of the deal. It is hidden here that experts can be successful because they use binary options to expose their assets to great risk and not invest their entire free capital.
In a Binary Options Scam Forum we read several reports of unsuccessful traders who, while pursuing their dreams of professional trading, have to invest too much money. Of course, before entering the retail world, users should provide enough information so that users know that binary options trading does not lead to long-term success overnight. But brokers are here too. Even those with binary options traders continue to fail as long as they are delivered with misleading advertisements that will make big bucks quickly.
Are the bonus promises serious?
Many brokers allow new clients to receive bonuses. The broker then deposits it into your trading account as a first deposit into your additional account. This is a very nice addition, and of course traders are happy to bring it. However, please read the terms and conditions exactly in the bonus offer. After all, before you have to sign a contract, you need to know what it is.
In the case of a bonus, the bonus is credited to your account and you must first trade a certain amount before the bonus is paid out. The exact conditions for each broker’s bonus offer are often very hidden and can only be found after some searching. Also, with bonus promises, the positive aspects are often emphasized and the negative aspects completely left blank.
Customers are satisfied with the extra credit to their trading account and start trading directly. With luck, he might even make a profit. Disillusionment If he wants these to be repaid then either because of Fixed Completion Inclination until the bonus conditions were met, otherwise the bonus payment expired. Only when the customer achieves the required turnover rate, the bonus is fully unlocked and converted into real credit.
What are the advantages of binary options brokers?
Binary options brokers are in fact able to make traders on trades win less than they lose. So, on average, providers benefit. In your broker search, you should not blind your clients with the stubborn statement that “transactions are completely free”. It may be true that there are no fees charged for maintaining accounts or trading. The cost comes from the low payout price compared to the potential loss. Comparing the proposers here, you can recognize significant cost differences in some cases.
How do I behave properly as a beginner with binary options?
We hope this post will help readers make the right decision about starting binary options trading. Binary options are only suitable for a small number of investors and should only be traded with capital. Since even the total loss has to be taken into account, there are losses that the trader can easily overcome.
Anyone wishing to register with a binary options broker must ensure that the binary options terms and conditions are sound and fair. Terms and Conditions should be read carefully because here can often hide those broker terms and conditions that are suitable for serious trading make up.
Comprehensive training in chart analysis is essential as it can increase your chances of winning. Many brokers offer free educational materials.
Even those who have found a reputable and safe regulated EU broker are not sure about binary options. Total losses are possible on a daily basis and it is difficult to evaluate your own gains and losses. Therefore, all traders should only use small amounts of what they can afford to lose without much financial or mental stress.
