Binary options are praised in many online portals and of course by the brokers themselves with the highest tones, while the consumer advocates strongly criticizes trade . In fact, there have been some problems with binary options providers in the past , as this is still a  relatively recent form of investment . Especially in the early days , the lack of regulation of the market caused many dubious brokers to deceive their customers in various ways . But what is to discourage binary options trading in general? Or do they offer good chance to get one to achieve high profit ? Under what circumstances is trading safe in binary options successful? In the following article, we want to address these and similar questions and get to the endof the consumer 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 products through binary options . They offer several advantages for beginners :

  • Just a few steps to make a transaction
  • Profit or loss can be fixed from the outset, so no complicated calculations
  • For many brokers, only a small minimum deposit is required, others don’t even require a minimum deposit.
  • With a free demo account trading can be experienced without obligation and without risk
  • No additional funding. Therefore, the trader can lose the maximum amount on the trading account

It sounds  very positive  at first, but with all the advantages, the  disadvantage is often hidden . Advertisements for binary options therefore often present them as very one-sided .

The disadvantages of binary options:

  • Extremely speculative binary options: price trends are difficult to predict despite good analytical technology
  • If the price is predicted incorrectly, a full bet on this trade is usually lost
  • Brokers often offer courses themselves. In the case of dubious suppliers, fraud cannot be ruled out
  • Binary options, like gambling , can be addictive
  • Term for a given transaction. An earlier or later exit is impossible

Is binary options a form of gambling?

Binary options are often compared to  roulette or other games with 50% probability of winning . Of course, the brokers don’t like that and the professional traders  are often interested in putting their activities in  better light . It is said over and over again that binary options can influence the outcome by allowing traders to learn analyze price and thus predict price trends with 50% probability . Indeed, professional traders can significantly improve their chances through a good analysis. But this is not a significant increase that now almost every trade wins. Even professionals only earn more than half of their trades , but that’s enough to trade with a positive expectation .

Consumer advocates criticize in presenting analytical options that beginners misunderstand what is possible through a comprehensive “Vietnamese spear”. Even the professionals don’t make constant profits, but their results are subject to extreme fluctuations. Periods of high loss are part of this despite optimal price analysis and can only be remedied through consistent risk management.

Can I count on promoting binary options?

Binary options are becoming more and more aggressive and are sometimes  advertised with very dubious methods . Therefore, caution should be exercised when promoting binary options and in case of doubt, additional information must always takefrom independent sources .

Like other products, binary options advertising highlights benefits , while minimizing disadvantages or even silently disregarding them. It is really possible to make up to 90% profit in just a few seconds trading . That this statement refers to a single trade and at the same time possibly a 100% loss , is not mentioned. Even the best pros will not win all their trades . Therefore, there is no  one trader with average profit90% per trade, that’s why the Claim is misleading and leads to misconception in the target audience.

What does “Over-the-counter” mean?

Binary options are not traded on the stock market , but directly between two trading partners. It is also not a “real” product to be purchased , but just completed staking . Therefore, binary options are now even offered by some bookies . Due to its independence from the stock market, trading is not tied to opening hours, but can take place round the clock . The fees are significantly lower than stock trading because the exchange fee ceases altogether . Therefore, trading off the stock exchange offers many advantages , but also Disadvantages that should not be hidden : In forex trading, the price often provided by the brokers . As a result, the evolutions in price between individual vendors in some cases diverse significantly and the course design cannot be reconstructed . Although reputable suppliers fix prices exclusively on supply and demand , there is certainly the possibility of manipulating price in a way that merchants suffer this disadvantage . Therefore, it is extremely important to only deal with reliable providers with binary options.

How can I know if I have been scammed in binary options trading?

To minimize the chances of fraud in the first place, you should be very very careful when choosing a broker . Check if the provider you are considering is regulatoryand search the internet for opinion of other traders . Also on our website you will find many reports on various providers, which can help you in finding a reliable and reputable broker .

However, if you ‘suspect’ that you are being scammed when trading , don’t hesitate to contact a Consumer Advice Center or other advice center with your questions about this particular binary options broker . This could have been a complaint by another user  against this provider, so it could be done together against fraud .

However, not every loss in the transaction is due to fraud . Since it is a highly speculative transaction, high loss, until the complete loss of investment capital , even with reputable providers is not rare . No barn Also, with questions to the customer service contact your broker. For reputable brokers, there should be a great care in clearing your uncertainties and you will get quick response.

How can I increase my chances of winning?

Although critics often refer to  binary options  as “pure gambling”, there is a difference. With binary options, traders can really influence their chances of winning . A good price analysis can predict what stock price will be most likely to come. There are various methods for this . The more proficient they were and the more combination of methods , the more accurate the results. However, you shouldn’t overestimate the ability to analyze prices . Even very skilled analysts can use their chances of winning only increasing within a clearly limited range and win only more trades than a several percent than a beginner who relies entirely on opportunity. Therefore, price analysis should not be considered as a hedge against losses , as professionals often suffer from the high spreads of binary options and have to  deal with losses on a regular basis .

Do I really get a bonus?

Many vendors advertise to offer new customers to welcome additional credits . However, if you take a closer look at the general terms and conditions of the broker, you will soon realize that this is not a gift . A binary options bonus is almost always tethered to the revenue . The trader receives the bonus balance even though it is on his trading account but cannot pay it off before trading with the relatively high amount set. While this amount can be split into many smaller trades, so even with a bonus, no dealer has to act outside his personal comfort zone, it just totals a lot money to make to pay a relatively small bonus . Here too, consumer defense criticizes binary options brokers not always clearly presenting bonus offers . The fact that deposit bonuses and credits often lost, before bonus conditions can even only be rudimentary, are of course not obvious when advertising for broker bonuses .

However, bonus offers  are not always bad. Just don’t be persuaded to pay more for a possible than-reasonable  reward. If you only use money for trading which you write as risk capital and don’t need other money, a bonus is a good supplement to get more credit to your trading account.

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

In most cases, it is advisable to contact Consumer Center or similar if you have problems with binary options brokers . Although they may not be able to recover their own losses , they can determine if there is a  potential fraud . For other broker’s clients, it is important for traders to report unexpected high losses , so that not only brokers’ success stories are found on the internet, but also seem to as a profit. Finally,  dangers must  be displayed.

For traders themselves, it can be helpful to seek advice from consumer advocates . For example, it is possible to determine whether following losses for similar investments are imminent. Consumer advocates can also advise on the best way to deal with the loss if it presents a severe financial burden .

Of course, it is best to  in the beginning  invest money only in speculative investments, which can be distributed in an emergency without restrictions.

Is consumer protection considered important?

We have analyzed the trade binary optionsin detail and informed us about a wide range of brokers. Consumer advocates’ reviews of binary options we can ‘understand’ and keep them ‘mostly relevant’. In fact, binary options trading is very highrisk for traders, because even if they do everything right, high losses still threaten . Even  whole investment can be lost in no time. Therefore, it is advisable to invest only money, not necessary for life or purchase later.

There is also the risk of fraud, which is why brokers should be chosen very carefully for trading in binary options. Pay attention to the regulation of recognized authorities and also study the experiences of other traders with this provider. Before an application that should terms and conditions be read correctly. Here is often criticized by consumer protection, that some provisions in the supplier is not clear in Vietnam really should not be allowed. If you encounter any ambiguity when reading the terms and conditions or the conditions should be questionedIt is best to contact the Consumer Protection Advisory Office before you can open a trading account. translate with this broker.