Binary options are praised in the highest tones by brokers of course on many online portals, while consumer advocates heavily criticize the trade. In fact, there have been some problems with binary options providers as they are still a recent form of investment. Especially in the early days, due to the lack of regulation, many illegal brokers in the market are cheating their customers in many ways. However, is there anything that usually doesn’t hold you back from trading binary options? Or does it provide a good opportunity to achieve high profits? Under what circumstances can safe trading of binary options be successful? In the following article, we will try to address these and similar questions and get to the bottom of the Consumer Alert Warning.

 

 

Are binary options a good way to start trading in the financial markets?

Many of today’s very successful traders have found a way to trade financial instruments through binary options. For beginners, it has the following advantages.

  • Trading requires only a few steps
  • Possible P&L is fixed from the start, so no complex calculations are required.
  • For many brokers only a small minimum deposit is required, others do not even require a minimum deposit.
  • A free demo account allows you to experience it risk-free with no obligations
  • No additional funds. So traders can lose the maximum amount they have in their trading account

It sounds very positive at first, but with all the advantages, the disadvantages are often hidden. Therefore, advertisements for binary options are usually very one-sided.

Cons of Binary Options:

  • Binary options are highly speculative. Despite good analytical techniques, price trends are difficult to predict.
  • If the price is predicted incorrectly, your entire bet on this trade is usually lost
  • Intermediaries usually offer courses themselves, but fraud cannot be ruled out in the case of dubious providers
  • Binary options, like gambling, can be addictive.
  • Terms are provided for the transaction. No before or after shutdown

You can test whether binary options trading is right for you in a demo account.

 

Are binary options a form of gambling?

Binary options are often compared to roulette or other games with a 50% chance of winning. Brokers, of course, don’t like that, and professional traders are usually interested in better revealing their activities. Binary options are said to be able to influence outcomes by allowing traders to learn price analysis and predict price trends with a probability of greater than 50%. In fact, with good analysis, professional traders can improve their chances significantly. However, this isn’t a huge enough increase to win almost every trade now. Even experts get more than half of their trades, but enough to trade with positive expectations.

Consumer advocates criticize beginners for presenting analytical options that get the wrong idea of what is possible with comprehensive “education”. Even the experts don’t make a lasting profit, but the results can fluctuate wildly. Despite optimal price analysis, the high-loss stage falls into this category and can only be overcome through consistent risk management.

Can you trust the promotion of binary options?

Binary options are becoming increasingly aggressive and sometimes advertised in very dubious ways. Therefore, you should exercise caution when advertising binary options and, when in doubt, always seek further information from independent sources.

As with any other product in the advertising of binary options, the advantages are pointed out while the disadvantages are either played down or completely covered up. You can earn up to 90% profit in seconds when trading. This statement refers to a single trade and does not mention that 100% loss is possible at the same time. Even the best experts can’t win all his trades. Therefore, the statement is misleading and leads to misunderstanding among the target audience, as there is no single trader with an average return per trade of 90%.

What does “prescription” mean?

Binary options are not traded on a stock exchange, but directly between two trading partners. Also, it’s not the “real” product I bought, but I just made a bet. Therefore, some bookmakers may offer binary options. Due to its independence from the stock exchange, trading is not tied to business hours, but can take place around the clock. Exchange fees completely stopped compared to stock trading because the cost is significantly lower. Thus, trading on a stock exchange offers many advantages, but the disadvantages should not be hidden: in off-exchange trading, prices are usually provided by the brokers themselves. As a result, it is not possible to reconstruct the course design because prices vary greatly between individual providers. Reputable suppliers exclusively fix prices on the supply and demand sides, but there is a possibility of manipulating prices in such a way that traders suffer these drawbacks. Therefore, it is of utmost importance to only trade with reliable providers of binary options.

Study thoroughly in the study area.

 

How do you know if you are being scammed for trading binary options?

You need to be very careful when choosing a broker to minimize the possibility of fraud from the start. Make sure the vendor you are considering has sufficient regulation and search the Internet for opinions from other trading partners. Also on our website there are many reviews of various providers to help you find a reliable and reputable broker.

However, if you feel that you are cheating on your trades, do not hesitate to contact the Consumer Advice Center or any other advice center if you have any questions about this particular binary options broker. This is already possible for other users to file a complaint against this provider, so you can file a complaint together against the scam.

However, not all trading losses are due to fraud. Since this is a very speculative form of trading, it is a high loss, until a complete loss of invested capital is not uncommon, even with reputable sellers. Shed no questions asked, contact the broker for customer service. A reputable broker should have a great interest in clearing up uncertainty and get a quick response.

How can I increase my chances of winning?

Critics often refer to binary options as “pure gambling,” but there is a difference. With binary options, traders can actually influence their chances of winning. Through good price analysis, price movements can be predicted with a high probability of arrival. There are other ways to do this. The better you master it and the more methods you combine, the more accurate your results will be. However, the potential of price analysis should not be overestimated. Even very good analysts can take advantage of the chance to win only within a clearly limited framework and win a few percentage points more trades than a beginner who relies entirely on chance. Therefore, price analysis should not be considered as a hedge against losses. This is because professionals often suffer from the high variance of binary options and have to deal with losses on a regular basis.

Do you really get a bonus?

Many providers advertise to give new customers extra credit. However, if you take a closer look at the broker’s general terms and conditions, you will find that this is by no means a gift. Binary options bonuses are almost always related to earnings. Traders earn a bonus balance in their trading account, but cannot pay it off until they trade a relatively large amount. This amount can be broken down into many smaller trades, but even with bonuses, dealers should not act outside their personal comfort zone, but there is a lot of total money that needs to be implemented to pay off a relatively small bonus amount. Here, too, consumer protection accuses binary options brokers of not always clearly presenting their bonus offers. The fact that bonuses and deposited credits are already lost before the bonus conditions are met only on a rudimentary level is, of course, not clear when advertising broker bonuses.

Still, bonus offers aren’t always bad. Don’t convince them to pay more bonuses than is reasonable. If you have money like commercial use and are not amortizing any risk capital, otherwise there is a bonus you need to another good way to get more balance in your trading account.

I lost everything with binary options. Who can I contact?

In most cases, if you have a problem with your binary options broker, it is better to contact a consumer center or something similar. They may not be able to recover their losses, but they can determine if fraud is likely. Even for clients of other brokers, it is important for traders to report unexpectedly high losses. Therefore, it seems that only success stories of brokers can be found on the Internet and make money. Finally, you must show the danger.

For traders themselves, it can be useful to seek advice from consumer advocates. For example, it can determine whether additional losses from similar investments are imminent. Consumer advocates can also advise on how best to deal with losses if they become a serious financial burden.

Of course, it is best to invest your money only in speculative investments. Emergencies can be avoided without restrictions.

Does Consumer Protection Consider Binary Options Rightly Important?

We analyzed binary options trading in detail and got information about different brokers. Criticism of consumer advocacy Understanding and maintaining binary options we can mainly fit. In fact, binary options trading entails very high risks for traders. Because even if you do everything right, high losses threaten. Even your entire investment can be lost instantly. Therefore, you should invest only money that you do not need to buy for money or life or later.

There is also a risk of fraud, so you should choose your broker carefully when trading binary options. Pay attention to the regulation of accredited authorities and research the experience of this supplier and other traders. Be sure to read the terms and conditions accurately before application. Consumer protection is often criticized for not permitting some provisions of Korea’s not-so-serious providers. If you have any ambiguities when reading the terms and conditions or if you have any doubts about the terms, it is best to contact the Consumer Protection Advice Bureau before opening a trading account with this broker.