Binary options making the news

Binary options are becoming celebrities in their own right, and often not for the right reason. You’ll hear stories of scam brokers that simply refuse to give traders their money back. You’ll hear other stories about people losing their entire life savings. That’s simple to remedy, never trade more than you can afford in the first place and fully expect to lose your capital. That way if and when you start seeing profits it will come as a nice surprise and not the other way round. Trading in the financial markets always comes with a level of risk. But like all things, with enough practice and work you can master the art.

So how do people view binary trading? That really depends on who you’re talking to. Some call it gambling and others say its skilled trading. It can be both. When you simply guess on UP or DOWN, this is a pure gamble. When you start incorporating trading strategies, like analyzing price charts, implementing trend lines and trading news events, suddenly you’ll come to understand where the skill is involved.

You’ll find many review and scam websites talking about different brokers. In fact most brokers, whether good or bad will have a scam review somewhere on the internet. Don’t believe everything you read as some scam review websites are scams themselves, set out to destroy brokers who wont pay them money in advertising! Additionally bad reviews and good reviews can be created to suit the publisher’s interest. When you see a broker with awards its worth considering that actually the awards are often bought in exchange for advertising. It’s hard to find a good broker based on what you find on the internet. That’s why you can consider a site like BinaryTrading.org your friend in the Wild West of the internet.

In order to decide for yourself, you will be required to conduct due diligence to the variety of brokers available. This can be time consuming though which is why we have conducted all the research for you as you will discover in our recommended broker table above. If you also want to do some research yourself, here are the factors you should look out for:

1. Regulation
2. Trading conditions
3. Account types
4. Customer support
5. Platform usability

In order to “try before you buy” there are currently a handful of brokers offering demo accounts. Well worth trying a demo to both test out the broker and also to test out your own trading strategies.

Binary Options Scams

With trading platforms becoming more easily available over the internet, it has now become harder than ever to tell a legitimate brokerage from a scammer.

What is a scam and how can I identify it?

The most important thing to thing to do before putting your money into binary options is to know the most attributes that tell it apart from a scam. Here’s our top tips for spotting a scammer.

1.  A scam or the ‘facilitator’ of the scam will not provide proof of regulation by any authority in the country where it operates. Trading binary options is illegal in quite a number of countries therefore it is important to first find out the policies around the country you wish to trade from.
2.  The scammer will promise unrealistic returns and will in most cases assure you that you will make these returns within a ridiculously short amount of time; and of course with very little effort on the ‘investors’ part.
3.  Scammers will often ask for upfront payment of unnecessary fees and sometimes even go as far as asking for private financial information. So it is also important to know where to draw the line between a broker requesting for KYC (know you customer) information and phishing which could ultimately result in identity theft.

What are Binary Options?

Have you come across binary options on the internet yet? It’s likely that you have at some point. The reason that Binary options are such a popular online trading type is that they are extremely simple to understand. A person with no prior knowledge can literally sign up for a new broker account and begin trading within a matter of a few minutes.

Here’s how it works. In short, a binary trade is where you have to decide if the price of an asset like Google stock or Gold will go up or down by the expiry time. Expiry times can range from just 30seconds right up to a year. If you think the price of the asset will go up by the expiry you will simply press UP or PUT on your trading platform, if you think the price will go down though, you’ll press DOWN or CALL. Simple so far? In honesty it doesn’t get much more complicated than that.

There are alternative options contracts though like:

One Touch/ No Touch

Where you select if the asset price will touch a certain strike price by expiry or not.

Binary Options Regulations

As you’ll come to learn as a regular visitor at BinartyTrader.org, working with a regulated broker is one of the most important decisions you’ll ever have to make as a trader. A regulated broker must comply with the local regulatory authority to provide a service that is fair, transparent and one which protects your interests in every eventuality. Many regulatory licenses come with a level of trader compensation, which protects your deposits up to a certain level, should the broker become insolvent or expose himself to more risk than he can handle.

Different jurisdictions are monitored and authorized by different regulatory bodies. If for instance you are a U.S. based trader you will be required to trade only with a U.S. licensed operator. As a trader that works with a European licensed broker you will have the option to trade with brokers from any other member state, where EU licensed brokers may passport their services.

The main regulators you’ll come across again and again are the FCA in the UK, ASIC in Australia and CySEC in Cyprus.

While it is recommended to trade with a regulated broker, that’s not to say that non-regulated brokers are all scams. Not at all, but it does mean that your best interests are not protected and you will find it very hard to lodge a complaint. Additionally there will be no one to turn to should the broker not be forthcoming in processing your withdrawals.

If you are trying to decide between a regulated and non-regulated broker, we would always say go regulated. If however you like the facilities and service of a non-regulated broker you can start by depositing a low amount to test out their product and service first.

Binary options making the news

Binary options are becoming celebrities in their own right, and often not for the right reason. You’ll hear stories of scam brokers that simply refuse to give traders their money back. You’ll hear other stories about people losing their entire life savings. That’s simple to remedy, never trade more than you can afford in the first place and fully expect to lose your capital. That way if and when you start seeing profits it will come as a nice surprise and not the other way round. Trading in the financial markets always comes with a level of risk. But like all things, with enough practice and work you can master the art.

So how do people view binary trading? That really depends on who you’re talking to. Some call it gambling and others say its skilled trading. It can be both. When you simply guess on UP or DOWN, this is a pure gamble. When you start incorporating trading strategies, like analyzing price charts, implementing trend lines and trading news events, suddenly you’ll come to understand where the skill is involved.

You’ll find many review and scam websites talking about different brokers. In fact most brokers, whether good or bad will have a scam review somewhere on the internet. Don’t believe everything you read as some scam review websites are scams themselves, set out to destroy brokers who wont pay them money in advertising! Additionally bad reviews and good reviews can be created to suit the publisher’s interest. When you see a broker with awards its worth considering that actually the awards are often bought in exchange for advertising. It’s hard to find a good broker based on what you find on the internet. That’s why you can consider a site like BinaryTrading.org your friend in the Wild West of the internet.

In order to decide for yourself, you will be required to conduct due diligence to the variety of brokers available. This can be time consuming though which is why we have conducted all the research for you as you will discover in our recommended broker table above. If you also want to do some research yourself, here are the factors you should look out for:

1. Regulation
2. Trading conditions
3. Account types
4. Customer support
5. Platform usability

In order to “try before you buy” there are currently a handful of brokers offering demo accounts. Well worth trying a demo to both test out the broker and also to test out your own trading strategies.