Are binary options scam? One thing to avoid in the online world these days are the binary options websites. They have become popular over the past few years with new ones appearing all the time. The sites appeal to the same type of people who play poker online.
But they somehow have an aura of being more respectable because they represent themselves as offering a form of investing. These are gambling sites, pure and straightforward. It’s probably just a matter of time before regulators move in on them. Until that happens, they seem to be doing great business.
What is Binary Trading?
It is a kind of online trading where you select any traded commodity online. Then you have to bet if the price of that commodity will go up or go down. You can buy these options, which are also known as all-or-nothing options, digital options, or Fixed Return Options (FROs), on stocks, commodities, indexes, foreign exchange, and other derivatives. In fact, you can place a bet (which is what it amounts to) on just about anything that is publicly traded, depending on which website you use (some offer a wider range of choices than others).
Some sites provide free guides to binary options trading to get you started. You use dummy cash at first; then they will ask you to use real money. Some offer all or nothing options. If you are right on your predictions, you get it all, but if you are wrong, you get nothing. The problem is you won’t get the same amount of your bet if you win. Some websites give you 70% some as low as 55% of your bet. Same as in casinos, it is very hard to beat the house.
Can you Make Money on This Investment Scheme?
A lot of people claim they do but a whole lot more lose their hard earned money. Personally, I would bet on one condition, I should win at least 90% on top of my bet, not 70% and surely not 55% as some binary options websites are offering. This is actually just like playing poker online. If you just want to gamble your money, you may like this kind of scheme, but if you are serious to make money then you should avoid binary options at all cost.
Conclusion
If you want to gamble, do it in casinos, not in this online gambling scheme, which is called the binary options. If you want to invest online, try something that can be considered investing for your future. Real online business, require some work and some skills. The amount of money involved is so small compared to what you would be betting on the binary options.
Setting up an online business requires some training and a lot of community support. There is one platform that provides all the necessary training and provides community support. My recommendation as the real deal to make money online is Wealthy Affiliate.
Feel free to ask questions, post comments or subscribe to my mailing list to be the first to get the updates and offers. You may visit me so I can answer your questions directly at Wealthy Affiliate.com (my profile page)
I am Den and I am the owner of this Website. I finally quit my job in Aviation to do my online business full-time.
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I would not call it a scam, but I understand what you are saying. Once someone sign up with any of these binary options sites there is not anything that is being kept from the member and he is not lied to. To be fair, the websites usually offer material to understand how the whole thing works along with a little training. Being offered the chance to trade on a dummy platform also helps the member’s understanding, so if anyone were to be completely clueless I do not think you could really place blame on the site.
What these Binary Options websites should stop doing is promote in a way that makes them appear to be an investing company. All of these sites reel people in by using terms like investment and trades or trading, but “bet” and “gamble” would be more accurate. As you mentioned, the payout from a win is terrible, and it does not matter what the bet is on. Gambling is gambling.
Hi Ramon,
I agree with you on a lot of things. The only problem with this kind of platform is that they entice people to think this is a form of investment wherein it is plain gambling. This should be categorized as online gambling and regulated as such.
Thanks for the comments,
Den
Very interesting subject matter. I was not familiar with binary options so I found this article very informative. It seems like a huge gamble with very little chance of creating sustainable success. Not exactly how I want to invest my hard earned money. It does not look like an investment anyway, you just have to place your bet and that’s about it. Thank you for the article Den.
Leroy
Hi Leroy,
Yes you do not invest on these platforms but rather just bet if the figures go up or down. That’s all there is to it.
Thanks for the comments,
Den
Hi Den,
I’m really disappointed to hear you say that as I was preparing to give Binary Options a try myself. I’ve come close to doing it a few times but could never part with the high starting fees. Maybe I’me lucky that I held onto my cash.
Have you given Binary trading a try before?
Hi Ryan,
Binary options is not an investment option. It is gambling. I have tried it myself on Demo Account, where you are provided with dummy currency. I have also tried on real money and lost. This is not even a fair way to gamble as you will only get 55% up of your winnings, though some are offering as high as 70%. You lose the bet they will take your money if you win they will only pay you 55% to 70% of the winnings. Both ways they make money, not you. Tough luck.
Thanks for the comments,
Den