Trading binary options is safe overall because the markets and exchanges are usually regulated in some countries like the United States, Japan, and the United Kingdom. But that does not mean the odds at binary options exchanges favor the investor or trader. The opposite is true.
In many respects, binary trading is like gambling. When trading binary, you are essentially betting or wagering that the value/price of an underlying asset like stock index, foreign currency, or commodity like gold will go up or down in the next specific period.
The outcomes of binary options are usually unpredictable and random since the underlying assets are subject to changing market forces.
In saying so, binary options products available for trading typically come with high risk and high reward. That means you can make or lose a good amount of money in a short period. For example, 60-second binary options allow you to make or lose money in as fast as a minute.
On the other hand, trading binary options cannot be considered safe since the risk is too high and does not match the reward. The math behind binary options shows that the chances are high that you lose while trading most asset classes.
Moreover, some binary options trading sites are fraudulent and operate as pump & dump scams. That means they entice you with wins first, then make sure you lose your money once you become comfortable making more deposits.
It is also worth noting that binary trading is the closest you will get to betting. The element of chance means that trading binary options requires little or no skills. You cannot improve your winning strategy or use your skills over time, making them unsafe for retail traders.
Are binary options worth it?
Yes and no. Binary options are worth trading if you know what you are doing. If you are an experienced gambler looking for a quick fix in the online trading scene, you will find binary options worth your while. The returns are quick, better than average, and the risks are capped to your initial.
So, binary options are an excellent way to possibly make a profit from an expected move in the asset value or price. If you understand the market dynamics, such as the movement of forex prices, then you will enjoy trading on foreign currency exchanges via binary options.
However, binary options are generally not worth it for most retail traders. First of all, there are numerous reports or complaints of users being taken advantage of by binary options brokers. Some trading websites also use fraudulent tactics like pump & dump and manipulated markets. Most brokers and exchanges also set prices that favor themselves over the trader.
Shady traders may also conspire to commit identity theft and online fraud. Some may compromise your sensitive bank or credit card details.
Meanwhile, some unscrupulous online trading sites and brokers may refuse to pay you even if you make successful trades.
There have been cases where brokers have used personal information and financial details on file to take back money cashed out by their clients. All these negative cases make binary options unpopular and not worth it.
Can I trust binary options?
Again, the short answer is yes and no. You can trust binary options only if they are traded on a regulated exchange and through registered and legitimate brokers. They are usually safer and more credible than the majority of other high-risk investments.
Trading via binary options is typically uncomplicated and straightforward. You know the amount of money you stand to lose or win before you place your trade. Besides, you don’t have to know a lot about binary options before you start trading since they require little or no experience and skills.
To summarize, you can trust binary options because…
- Binary options offer above-average returns in specific markets
- The risk involved in trading via binary options is fixed and known beforehand
- Losing more than the cost of the trade is impossible
- Trading binary options are easy and uncomplicated
On the flip side, you may not want to trust binary options if an untrustworthy broker offers them. The same goes for trading binary options in unregulated markets. Since the brokers have no one to answer to, they can easily commit fraud and use your sensitive information to commit identity theft. In some cases, the brokers may refuse outright to pay your winning trades.
To recap, you should not trust binary options because…
- They are high risk, highly speculative trading products
- Outcomes of binary options contracts are highly unpredictable and random
- It is challenging to develop a good trading strategy
- The binary options industry is replete with scammers and shady websites ready to steal your money
- Some binary options platforms can and are manipulated
- Binary options brokers skew the odds in their favor
- Some untrustworthy binary options brokers can steal your funds and financial information
- Most binary options traders lose money than those who gain profits
If you ask yourself whether you should trust a legitimate, registered, and regulated binary options broker, then the answer is a resounding yes. However, if trading binary options is not regulated in your country, you are better off with other investment options like stock markets.
How can I recover my money from binary options?
There are multiple ways to recover your money from binary options…
- Chargeback – This is the most direct and effective way you can use to recover your money from fraudulent binary options brokers and trading platforms. Your bank and credit card issuer will simply reverse the deposit transaction with this option. You won’t have to deal with the binary options broker directly, and, in case of fraud, third parties hired by the bank will handle the issue.
- Asset recovery & financial forensics firms – Many law firms and wealth recovery companies can help recover money from binary options brokers and trading sites. You can get the same services from recovery specialists and financial forensics.
- Contact regulators – If you have reached a dead-end and have lost a lot of money (fraudulently) to binary options companies, you can get in touch with the regulator in your country. In the US, the SEC can help with dispute resolution and may speed up the recovery of your money.
How good is binary trading?
Binary trading is a mixture of good and bad news. On the one hand, trading binary options is simple and uncomplicated since you know the amount you will lose or win before you invest. It is also impossible to lose more than the cost of the binary options trade plus the added commission or fees.
More than that, binary trading has been known to deliver higher than average returns compared to other high-risk investments like cryptocurrencies, hedge funds, and forex trading. No minimum deposit is required for binary options trading, making it a good choice for investors and traders with limited capital.
On the other hand, binary trading is not so good for some traders because…
- It is challenging to earn a profit if the asset price is not moving
- The maximum amount you can make from binary trading is fixed
- Binary options are based on unpredictable underlying assets which you don’t have any control over
- Binary trading is prone to scams, identity theft, and online fraud
- Bad brokers can manipulate binary options trading
- Bad brokers can refuse to pay your winnings in unregulated binary options markets.
Is binary.com a trusted broker?
Yes, binary.com was a trusted broker, and with good reasons…
- It is a well-established binary options broker that has been around since its launch in 2000
- Binary.com is regulated by multiple agencies and regulatory jurisdictions, including The Malta Financial Services Authority (“MFSA”), the Vanuatu Financial Services Commission (VFSC), the British Virgin Islands Financial Services Commission, and Labuan Offshore Financial Services Authority (LOFSA).
- Binary.com payouts are secure, safe, and fast, often processed within 24 hours.
- Labuan Offshore Financial Services Authority (LOFSA)
- Customer support is offered via email and toll-free phone in multiple languages, including English, Spanish, French, Polish, Chinese, and Italian.
- The broker has handled more than $2 billion worth of binary options trades
- Binary.com keeps all customer deposited funds in separate bank accounts for added security, safety, and transparency
- Binary.com has won numerous awards for excellence in service and safety
Is binary options trading safe?
Binary options trading is generally safe, especially if it is done through trusted and legitimate binary options trading platforms and brokers. For instance, binary options trading is safe in the US on a regulated exchange like Chicago Board Options Exchange (CBOE) or the North American Derivatives Exchange (NADEX).
You must ensure the broker is registered, licensed, and regulated by respected regulatory agencies like the SEC, CFTC, or CBOE. Meanwhile, in Japan, trading on the binary options market is safe and legal if it is done through a broker registered and regulated by the Financial Futures Association of Japan (FFAJ).
On the other hand, binary options trading may not be safe if your broker is unregulated, unregistered, and illegitimate. These bad brokers may not only manipulate the trading system to favor them but can also refuse to process your payouts even if your trades win. Also, you have to worry about online security issues, such as identity theft, financial fraud, and other online scams.
Is binary real?
Yes, binary is real, although binary options trading can pose a very high risk to your investment. It would help if you understood the risks involved in binary trading before you get into it. Remember, binary options trading is more of gambling than it is an investment, so inexperienced retail traders might want to stay away from binary options trading altogether. It is also crucial that you work with a legitimate broker.
Is binary trading safe?
Binary trading is safe if you trade on a regulated platform. Ensure your preferred binary options broker and trading platforms are regulated by respective agencies.
Is investing in binary options a good idea?
Yes and no, depending on your level of trading experience and the market you belong to.
If you know what you are doing, investing in binary options can be a good idea. Trading via binary is usually simple and non-complex. Besides, the gains and risks are fixed and known, so you know what you stand to lose or earn before you invest.
On the contrary, investing in binary options can be a bad idea because the profits are usually capped, and there is a limited choice of legitimate brokers and exchanges. You also have to be concerned about online binary options scams and fraud.
When should you not trade binary options?
You should not trade binary options because…
- The gains or profits are capped, so you will get a fixed payout no matter how high the price.
- Binary options are based on unpredictable, random, and volatile underlying assets like forex, stock indices, and commodities such as gold, silver, etc.
- There are very few trustworthy binary options brokers
- You can easily fall for online binary options scams and identity theft
- The odds of binary trading favor the broker over the trader
When was the binary option founded?
Binary options are a relatively new trading market that can be traced to Chicago. It was founded in 2008, and the first binary options trade was offered on the Chicago Board of Exchange (CBOE).
Why are binary options risky?
Binary options are risky because they are yes/no propositions based on highly volatile underlying assets like stock indices, forex prices, etc. When a binary options contract expires, you will get paid a fixed amount or lose your investment. Unlike stock trading or commodity trading, binary options are highly speculative yet you don’t have much control over the underlying assets. They are also quick-fire trading options, meaning that you can lose or make money in a short time.