Table of contents:
- 1 Are binary options a good entry point for trading on the financial market?
- 1.1 Are binary options a form of gambling?
- 1.2 Can I trust the advertising for binary options?
- 1.3 What does “over-the-counter trading” mean?
- 1.4 How do I know if I am being cheated when trading binary options?
- 1.5 How can I increase my chances of winning?
- 1.6 Do I really get money for a bonus?
- 1.7 I lost everything with binary options. Who do I turn to?
- 1.8 Is trading Binary Options safe? – Yes
Yes – Binary Options trading can be safe with the right broker and trading platform. By using a professional trading strategy you can earn a lot of money. The key to success is to learn and educate yourself constantly about the topic.
There is a lot of scam and fraud with Binary Options on the internet. It is very important for beginners to be safe and choose a reliable broker. On this site, I will show you how you can be safer when trading Binary Options. Tips and tricks to multiply your money and not losing it.
Are binary options a good entry point for trading on the financial market?
Many of today’s very successful traders have found their way to trading financial products via Binary Options.
These offer some advantages for beginners:
- Only a few steps are required to place a trade
- Possible profit or loss is already known from the outset, so there is no need for complicated calculations
- Many brokers only require a small minimum deposit, others do not require a minimum deposit at all.
- With a free demo account, you can get to know trading without obligation and without risk
- There is no obligation to make additional contributions. The trader can lose the maximum amount of money on the trading account
This sounds very positive at first, but despite all the advantages, the disadvantages are often concealed. Advertising for binary options therefore usually presents them in a very one-sided way.
The disadvantages of Binary Options:
- Binary options are extremely speculative: The price trend is difficult to predict despite good analysis techniques
- If the price was predicted incorrectly, the entire stake for this trade is usually lost
- The brokers usually set the prices themselves. Fraud cannot, therefore, be ruled out with dubious providers
- Binary options, just like gambling, can be addictive
- The term for a trade is predefined. An earlier or later exit is not possible
Are binary options a form of gambling?
Binary Options are often compared to roulette or other games with a 50 percent probability of winning. Of course, brokers don’t like to see this, and professional traders are usually also interested in putting their activities in a better light.
For example, it is repeatedly emphasized that in the case of Binary Options, the result can be influenced by learning how to analyze the price and thus predict the price trend with a better probability than 50%. In fact, professional traders can significantly increase their odds with good analysis. However, this is not such a significant increase that almost every trade is now won. Even professionals only win just over half of their trades, but that is enough to trade with a positive expected value.
When presenting the analysis possibilities, consumer protectionists criticize that beginners get a wrong idea of what is possible through extensive “training”. Even the professionals do not make a continuous profit, but their results are subject to strong fluctuations. Phases with high losses are part of this despite optimal course analysis and can only be survived by consistent risk management.
Can I trust the advertising for binary options?
Binary Options are increasingly being advertised aggressively and sometimes with very dubious methods. Therefore, caution is advised when advertising binary options, and, in case of doubt, additional information should always be obtained from independent sources.
As with other products, Binary Options advertising emphasizes the advantages, while the disadvantages are played down or even completely ignored. It is indeed possible to make up to 90% profit in a few seconds when trading. But there is no mention that this statement refers to a single trade and that 100% loss is just as possible at the same time. Even the best professional will not win all his trades. Thus, there is no single trader with an average profit of 90% per trade, which is why such a statement is misleading and leads to misconceptions in the target group.
What does “over-the-counter trading” mean?
Binary Options are not traded on the exchange, but directly between two trading partners. No “real” product is purchased either, only a bet is placed. Therefore, Binary Options can now even be offered by some bookmakers. Due to the independence from the stock exchange, trading is not bound to the opening hours, but can take place around the clock.
The fees are also significantly lower than for trading in shares, as the exchange fees are completely eliminated. Thus trading off the stock exchange offers many advantages, but the disadvantages should not be concealed: With off-exchange trading, the prices are usually set by the brokers themselves. As a result, the price movements between the individual providers sometimes differ considerably and the price structure cannot be traced. Although reputable providers set the prices exclusively according to supply and demand, it is certainly possible to manipulate prices in such a way that the traders suffer a disadvantage. It is therefore of utmost importance to only trade Binary Options with trustworthy providers.
On this page, I only recommend trusted Binary Options Brokers. Check out the following list and create a demo account:
How do I know if I am being cheated when trading binary options?
To minimize the chance of being scammed from the outset, you should be very careful when choosing a broker. Check whether the provider you are considering is adequately regulated and also look for other traders’ opinions on the Internet. On our website, you will also find numerous testimonials on various providers, which will help you in your search for a reliable and reputable broker.
If you still suspect that you are being cheated while trading, please do not hesitate to contact the consumer advice center or other advice centers with your questions about this special broker for Binary Options. There may already be complaints from other users about this provider, so that joint action can be taken against the fraud.
However, not every loss in trading is due to fraud. As this is a highly speculative form of trading, high losses, up to the complete loss of the invested capital, are not uncommon, even with reputable providers. Do not hesitate to contact the customer service of your broker if you have any questions. With respectable brokers, there should be high interest to eliminate your uncertainties and you will receive a quick answer.
How can I increase my chances of winning?
Although critics like to refer to Binary Options as “pure gambling”, there is a difference. With Binary Options, the trader can certainly influence his chances of winning. With a good price analysis, it is possible to predict which price trend will occur with a higher probability. There are different methods for this. The better these are mastered and the more methods are combined, the more accurate the result.
However, you should not overestimate the possibilities of price analysis. Even very good analysts can only increase their chances of winning within a clearly limited framework and only win a few percent more trades than a beginner who relies completely on chance. Price analysis should therefore not be regarded as a hedge against losses, because even the professionals often suffer from the high variance of Binary Options and regularly have to cope with losses.
Do I really get money for a bonus?
Many providers advertise by giving new customers additional credit as a welcome gift. However, if you take a closer look at the broker’s general terms and conditions, you will quickly see that this is by no means a gift. A bonus for Binary Options is almost always linked to turnover conditions. The trader receives the bonus credit on his trading account, but cannot withdraw it until he has placed trades for a relatively large amount.
Check out the bonus conditions before you are using a bonus.Andre Witzel, author of day-traders.org
Although this amount can be divided up among many smaller trades, so that even with a bonus no trader has to trade outside his personal comfort zone, a lot of money has to be wagered to be able to pay out a bonus amount that appears relatively small in comparison. Here too, consumer protection criticizes Binary Options Brokers for not always clearly presenting bonus offers. The fact that the bonus and also the paid-in credit balance are often already lost before the bonus conditions could even be fulfilled to any extent is of course not clear when advertising a broker bonus.
Nevertheless, the bonus offers are not fundamentally bad either. Just don’t let yourself be persuaded to deposit more than is actually reasonable because of a possible bonus. If you only use the money for trading, which you write off as risk capital, and do not need otherwise, a bonus is a good additional way to get more funds in your trading account.
I lost everything with binary options. Who do I turn to?
In most cases, it is advisable to contact the consumer advice center or similar institutions if you have problems with Binary Options Brokers. Although they will not usually be able to recover losses that they have caused themselves, they can help determine whether fraud may have occurred. It is also important for other customers of this broker that traders report unexpectedly high losses so that not only the success stories of brokers who seem to have managed to make a profit can be found on the Internet. Finally, the dangers must also be pointed out.
It can also be useful for the trader himself to seek advice from the consumer protection agencies. For example, it can be determined whether further losses are threatened by similar investments. The consumer protectors can also advise on how best to deal with the loss if it represents a serious financial burden.
The best thing, of course, is to invest only money in speculative investments from the outset, which, if necessary, can be dispensed with without restrictions.
Is trading Binary Options safe? – Yes
I have analyzed trading in Binary Options in detail and informed ourselves about the various brokers. I can understand the criticism of the consumer protectors of Binary Options and consider it most appropriate. In fact, Binary Options trading involves a very high risk for traders, because even if they do everything right, they are likely to incur heavy losses. Even the entire investment can be lost in a very short time. Therefore, only money should be invested that is not needed for life or for later purchases.
There is also a risk of fraud, which is why the broker for trading Binary Options should be chosen very carefully. Pay attention here to regulation by recognized authorities and also research the experiences of other traders with this provider. Before signing up, you should read the general terms and conditions carefully. Here it is often criticized by the consumer protection that some clauses should not actually be allowed at all with dubious providers. Should you encounter any ambiguities when reading the General Terms and Conditions or should the conditions appear questionable to you, it is best to contact a consumer protection advisory center before you possibly open a trading account with this broker.
(Risk warning: Your capital is at risk)
Read my other articles about Binary Options:
- 15 Rules for Binay Options – Tips & Tricks
- 5 best Binary Options Broker 2020 – Review & Comparison
- Are Binary Options a gamble?
- Are Binary Options a scam?
- Are Binary Options Robots a Scam? – Honest review
- Best Binary Options App – Comparison & Review
- Binary Option Markets
- Binary Options – Call and Put
- Binary Options – Range Options – Boundary Options
- Binary Options – Touch Options
- Binary Options 60 seconds Trading Strategy & Tips
- Binary Options Bollinger Bands Strategy
- Binary Options commodities trading
- Binary Options demo account – Recommended For Beginners
- Binary Options Money Management Strategy
- Binary Options News Trading
- Binary Options regulation – Why is it important?
- Binary Options review – Critic and warning
- Binary Options RSI Strategy
- Binary Options trend following strategy
- Binary Options volatility strategy
- Binary Options vs. CFD Trading – Which one is better?
- Binary Options vs. classic options
- Binary Options vs. Forex Trading – Which one is better?
- Chart analysis for Binary Options
- Forex Trading with Binary Options
- Hedging Binary Options: Can You Hedge Against Losses?
- How risky are binary options?
- How to avoid Binary Options Scam Brokers
- How to trade Binary Options – Trading Tutorial
- How to Trade Stocks with Binary Options – Tutorial
- Is Binary Options Trading safe? – Consumer protection
- Learn to read Binary Options Candle Sticks
- Trade Binary Options with MetaTrader
- Trade Pivot Points with Binary Options
- Warning about Binary Options – A form of betting
- What are Binary Options?
- Why Binary Options Signals are a scam