Is Binary Options a scam?
This is a very common question I get from new trader, dedicated viewers and spectators. Is Binary Options a scam? Is it real? or is it a real way to make money online?
In this blog post I will address this question and give you my take on what I refer to as ‘false accusations’ and for this matter and to answer this question as best as I can. I decided to upload a video on my YouTube Channel addressing the question “Is Binary Options a Scam?
Watch my complete answer to the question: Is Binary Options a Scam?
Binary Options Scam – On reliable sources such as Wikipedia we find no reference for binay options being a scam or a fraud but the question is “If it’s completely legit or are there brokers we shouldn’t trust? Finding a reliable is not difficult if you conduct a proper background check an screen the companies you work with as best as you can. below I will include a few characteristic that point into the direction of a reliable company.
- Reputation – a trust-worthy company is a company that many people trust, so going with a “Jonh Doe Options” company might be risky as who knows really if this is a real broker or some over-night binary options scam. Identifying reputation can be done by comparing traffic side-by-side on Alexa.com and by simply Google searching or reviews on the company and if everything looks good, your money is safe.
- Customer Service – Binary Options scam operation is not the type of operation that gives ‘customer service’ much weight. The only goal of such company is to get you to deposit your funds. Reliable Binary Options Brokers would have customer service department available via live chat, email an toll free. If you can’t get a hold of our broker before funding your account, just imagine the trouble it would be to reach them for withdrawals.
- Payout Structure – When it comes to cash-back, payout or in other words the ‘potential profit’ we must consider the payout structure offered by the binary options broker. If the payout is at %70 we would expect to receive at least %5 to %15 back on losing trades which if they pay out is around %80 to %85 a %0 refund on losing trades would yield the around the same profit over time. Lastly if a company offers an average of %72 to %75 on winning trades, yet doesn’t refund anything on losing trades, the rate of success we would be looking at is equivalent to %5 to %10 less than companies with a higher payout structure.
- Bonuses – Is binary options a scam because bonuses lock your money with the platform? the answer is no. I personally would never recommend establishing an account with a bonus assigned to it, because it comes with what brokers refer to as ‘loyalty condition’ or in other words ‘volume of trades’ restriction which restrict the customers ability to withdraw his/her fund until reaching a high volume of trade, which depends on the bonus amount. Don’t take a Binary Options Bonus offer.
- Brokers Signals – as the demand for binary options trading increases, many new trading signals companies are surfacing and even some of the binary options brokers are now offering binary options signals for a higher deposit amount.
I encourage you all to signup with an Independent Signals Service!