While other investment products are losing their appeal due to ever-lower interest rates, trading in financial products continues to grow. Many “private investors” are now “prepared to take on” more risk for a “higher” chance of return. Especially inexperienced customers are often attracted to binary options . Promises of high profit in a short time . However, there are also many negative reports about binary options trading on the Internet and the consumer centers also support this warning here.
But what exactly is so risky about this easy-to-learn trade for beginners ? Is the binary options scam? Or do the critics not understand how to eliminate the risk of binary options ? We’ve gotten to the bottom of the ‘most important questions’ on this topic.
Are brokers cheating on binary options?
Many users previously doubted that trading in binary options was legal , as they had lost all trading capital. Many of these cases are not scams binary options , but traders misappreciate the risk and do not expect that the complete loss of binary options will be so quick . Some users have actually cheated suspicious brokers for their money and thus had bad no chance to trade profitably .
There are highlypossible binary options brokers fraud . Since the courses are offered by the vendors themselves, it is conceivable, for example, that a deliberate manipulation taken place here and the broker is very clear higher losses to the customer than the market. where there is no price manipulation.
Another problem is the brokers, who simply don’t pay off the clients’ profits . The customer asks for payment and then nothing happens for a long time. Maybe, customer service still calls the trader and tries to convince him to cancel his payment and prefer to continue using money for trading , maybe one day the broker will simply turn disappeared from the scene. Since many suppliers are located overseas, it is often very difficult to scamfor agents , because of their rights and thus their money . Therefore, in the first place to choose a broker, only reputable providers to entrust your own funds. What you will realize this will be explained later.
Why is binary options trading so risky?
It’s not just the high risk of binary fraud that makes trading dangerous. Even with good and reputable brokers , binary options trading is not recommended for every investor because of the threat of heavy losses . While it is possible to make a lot of money per trade, the potential lossis even higher , often affecting the total stake . With the good trading strategy and technical analysis having target on price development, trend can be recognized, development and thus price development can be predicted more accurately, however, other methods This method has a “narrow” limit to binary options and can usually only provide clients with a “relatively small increase” in the number of trades they have won. Even the best traders lose a lot of trades and therefore have to calculate with high losses . Although professionals earn average profits through good decision making , that does not mean they are safe from dangers . Even with them, variance can attack, so in real binary options every trader threatens with full loss .
Since binary options are staking financially rigorous , there can be an addictive nature . Winning trades activates an exceptionally high level of happiness and fast-paced trading especially stimulates those at risk . Therefore, always watch out here for possible danger signs .
Are binary options riskier than stocks?
Binary options are one of the riskiest investments in the financial markets. While stocks are traded on a stock exchange, binary options trading is foreignand thus takes place directly between the broker and the client without any stations in between. Of course, this opens up lots of fraud possibilities for the broker and has been exploited by many dubious providers in the past . Since the broker can design the courses themselves, the client here relies heavily on the fact that this takes binary options seriously and does not “manipulate” courses to “this” Customers higher anxiety.
Another point making binary options a much riskier asset is the pervasive threat of total loss. As for stocks, only in absolute exceptional cases does a stock lose its entire value. Even ailing companies still have some residual value that investors can then sell their shares for. Binary options, on the other hand, are all-or-nothing” businesses . Here, either profits paid , or all jobs lost . As a result, credits on client accounts are often highly volatile and to a considerable extent dependant on luck, Another common argument is that binary options do not buy real values . Only bets , with a profit that the trader is paid a predefined amount . In the case of stock trading, on the other hand, the client purchases shares in a company and thus has real assets , which can also increase or decrease in value if the trader is currently inactive.
What measures are taken to protect agents?
It is important for traders to know both their data and their funds well. Therefore, trading is only desirable if binary options can be traded with a good reputation by a broker without any fraud or unprofessional dealing with the security of the client.
As binary options hit the market and quickly became very popular, there were still many bad or even unregulated brokers. Meanwhile, it is only allowed to supply retailers to Vietnamese customers who have the appropriate license to do so. This can be granted to brokers based in Vietnam by the Federal Financial Supervisory Authority (BaFin). But also permits from the country of origin are allowed. Especially many brokers are based in Cyprus. This has to do with local tax advantages, because Cyprus has good conditions for online brokers who are able to pass on the cost advantage to their clients and thus can offer favorable conditions. very favorable , which of course represents a competitive advantage . At the same time, Cyprus is also a member of the EU which is why brokers are regulated there under strict EU legislation. This is an advantage for customers and also makes Cypriot brokers popular.
Is it possible to trade binary options successfully?
Usually people assume that binary options fraud is theirs and successful trading is impossible. In fact, most traders are not able to make significant profits in the long term and many even suffer significant losses . On the other hand, there are successful trading binary optionstraders. These people must work hard for long term success , continue to educate themselves and follow consistent risk management so that they can deal with continuous periods of high loss .
In many promotional videos by brokers , these professional agents are glorified as a kind of hero earning lots of money every day with little effort . At the same time, those who are newly interested are convinced that they can quickly succeed with little effort and can even get out of the trade . It is concealed here that the professionals also place their assets with binary options at great risk and can only succeed because they did not invest all of their free capital .
In a binary options scam forum , we read several reports from failed traders who were pursuing their dream of becoming a trading expert while investing too much money . Of course, before entering the retail world, clients need to be well-informed , so that users can know that binary options trading does not lead to overnight success . But there are also brokers who are here on duty. As long as it is transmitted by false advertising that even binary options holders can quickly make big money , traders will fail again and again.
Is the bounty promising serious?
For many brokers, new clients can get a bonus . The broker then credits the trading account with the first deposit . This is a very nice addition, made by merchants of course. However, the terms and conditions should be read correctly at the offers, after all, you should also know in the contract, what is there, before signing.
As for the bonus, the rule is that you must first put a trade for a certain amount before the bonus is released and pay to the account. The exact conditions for bonus offers at the respective broker are usually very hidden and can only be found after a search. Also with bonus promises apply that the positives are often overemphasized , while the negatives are completely erased .
Client is satisfied with additional credit on his trading account and starts trading directly. With luck, he might even earn profit . Then disillusionment will happen , if he then wants to be paid, because either the complete payout is blocked until the bonus conditions are met, or the bonus expires on payout . Only when the client requires turnover , the bonus is fully released and converted into real money credits.
What is the merit of a binary options broker?
Binary options brokers make the fact that traders on the trade win less likely than what they lose to. Thus, on average, the supplier makes a profit. The client should not blind by the flexible claim that “trading is completely free” in the broker’s search . It may be true that no fees are charged for account holding or placing trades. The costs result from lower payout than potential loss . If one compares the offers here, one can notice in some cases a significant difference in cost .
How do I behave like a beginner with binary options?
We hope that this post will help readers make the right decision about starting binary options trading . Binary options suitable only for some investors and should only be traded with capital, losses that traders can easily overcome , because even an overall loss must be taken into account. .
Anyone who wants to sign up with a binary options broker should ensure that their binary options conditions are reasonable and fair . The terms and conditions should be read carefully, because here are often hidden conditions that brokers unfit for a serious transaction do.
Comprehensive training in chart analysis is essential as it can increase your chances of winning. Many brokers offer free training materials .
Even those who have found a reputable and safe EU broker can never be sure about binary options . A completely possible loss every day and its profit and loss hard to measure . Therefore, all traders should use only as small as they can lose without much financial or emotional stress .