If you are new to this trading culture, especially binary trading, you have gone through multiple blogs of ‘traders’ claiming how binary options trading benefitted them and how they became “billionaires” overnight. But, we both know that things are not as accurate as shown.
So, is binary options worth trying? Let’s find it out below.
Before we get started, it’s essential to know how these candlestick charts drive the trade, and one wins a trade.
How does trading in Binary Options works?
Traders of binary options bet on the long-term direction of assets like gold, equities, and markets. Defined, binary traders attempt to forecast whether the worth of certain assets will rise or fall over a specific period.
Users can achieve and get a fee on their investment if their prediction is correct. But they would lose all of the money you put to lock in their forecast if the worth does not move as expected.
Binary options trading appears to be more akin to sports betting than actual investing when viewed in this light. Binary options are just financial assets on which you can gamble, similar to how you would gamble on the conclusion of a sporting event.
Are Binary Options trading a Boondoggle?
We agree that the lofty claims from the binary options can make anyone scratch their head and question their authenticity.
For the most part, Binary options brokers are legitimate enterprises. Your funds will not be taken or deceived because they are legitimate brokerage firms (regulated).
The issue is that most brokers make promises that are impossible to keep. These kinds of results are not available to the typical user.
The most infamous reason to lure new traders to the chains of binary trading is to barge about the popular trades that occurred in the recent past, like how ordinary individuals made enormous profits out of short-term trading and secured some valuable assets like stocks and gold.
It’s not uncommon for binary trading platforms to hoard about the success of their traders, though it isn’t compulsory.
Skillful binary options traders make money in the same manner that confident sports bettors do. Nonetheless, this scenario occurs infrequently.
Many customers sign up with binary options brokers who make exaggerated earning guarantees since they are unaware. That’s why many people lose all of their money in the end.
Is it possible to win, though?
LUCK is the most critical component in binary options success. But it is possible to succeed.
You will hardly know any broker pushing their traders to know the real deal-breaker to win a profitable trade. Most of the binary options brokers focus on putting money and leaving the most of it on fate. But that’s not true. We have connections to various traders to arrive at a conclusion that apart from fate, one needs to invest a lot of time and research in trading and study the candlestick charts.
For instance, if you want to win a bet, like in a derby, you will need to know everything about the game, players’ capabilities, horses, past performances, health and performance efficiency, etc. Similarly, you will have to check the influential factors of the trade.
Even so, things may not turn out the way you planned.
You will most likely win in the long term if you consider all of these aspects. In binary options trading, it’s the same story. In order to effectively anticipate the future growth of an asset, you must take into account a large number of variables and hazards.
The fluctuation of share prices and commodities depends on a variety of factors, including the time of year, the economic situation, political changes, the economic performance of significant market makers, and current business news and events.
You’ll need to keep up with all of this information in order to estimate an asset’s movement effectively. You’ll also need to be able to read charts, apply technical indicators, grasp statistic computations, and a variety of other technical data in order to be successful.
As you can see, binary options entail a lot more than simply investing $100 in gold and receiving $300 in 10 minutes. If you use this technique, you will eventually lose all of your money.
That, however, appears to be complicated.
Solid binary trading necessitates precisely that. I understand that most binary options marketing companies make a lot of bold claims, but the reality is far more nuanced. You’ll need to devote a significant amount of time to market education and understanding the technical parts of this business in order to generate money indeed.
You will never make fast money by randomly placing bets, regardless of what anyone promises. Brokers count on you to do just that since they know, you’ll end up as a losing trader if you don’t (that’s how brokers make money out of the traders).
So there you have it, the reality behind binary options. There’s nothing intrinsically wrong with this type of internet trading (or, to put it another way, betting) except that brokers are artificially inflated and marketed as something they aren’t.
Binary options trading isn’t a rip-off, but it is a form of financial gamble that will only benefit the most committed and knowledgeable users in the long run.
Industry changes in Binary Options
If you read our 2014 thoughts, you’ll know that binary options are legitimate, but they’re also incredibly hazardous and challenging to profit from. That was in 2014, by the way. Since then, a lot has changed in the world.
As previously stated, there is no easy way to become a successful binary options trader; you will need to grasp the fundamentals of this trading technique and conduct extensive market research in order to make real money. However, some recent advances in the market may make it easier for you to make a living by trading binary options.
New traders are highly welcomed
For one thing, social trading has finally made its way into the binary options industry. Newcomers who want to start producing money right away without having to battle a steep learning curve might look to the methods used by seasoned professionals. Some brokers even provide in-house social trading platforms, allowing you to benefit from the trading knowledge of the company’s most successful binary options traders.
For sure, there’s always the possibility that the trader may lose money, in which case you’ll also lose money. As a result, to avoid disappointment, you’ll need to pick your signal suppliers carefully.
Binary options robots, which claim to automate profitable trades for consumers, are now available as well. Unfortunately, many of these bots are scammers, so it’s best to stay away from them (unless in cases where your broker is offering their auto trading services).
Even so, you should not expect a broker to provide you with a highly profitable automatic trading instrument. Why would a broker provide you with the means to steal their funds? To determine whether the auto trading system is worthwhile, you must conduct your investigation. If you decide to employ an independent binary trading robot company, you must avoid being duped.
For advanced traders platforms advanced tools
It is now easier than two years ago to obtain the high-quality financial data required to make informed trading decisions. Premium binary option brokers today have fantastic interfaces that provide good data for complete technical analysis on the assets you’re trading, allowing you to make smarter decisions.
Furthermore, there have been instances of brokers adopting robots that scour financial newswires, providing you with the most up-to-date information so you can predict market fluctuations.
These tools make trading in binary options efficient and straightforward for beginners willing to churn out profit from binary options trading.
Is it safe to trade on a Binary Options platform?
Yes, trading on binary options is safe as binary options are legal, and they’re becoming more popular day by day. To break into the industry as a beginner, you’ll still have to jump through a lot of hoops.
Scams abound, preying on naïve, inexperienced binary options traders who have no idea how the market operates. Simultaneously, we now have access to a broader range of reputable brokers and signal providers than we did a few years ago.
Furthermore, more significant data and technical analysis make the industry more profitable for loyal customers.
Even so, if you want to avoid your money from falling into the wrong hands, you’ll have to be much more cautious about who you partner with when you first start in the market. You can make money with binary options if you are ready to put in the effort, learn through trial and error, and build superior tactics than the ordinary trader.
Here are some stories of people who lost their money to binary options trading but managed to recover their funds.
How much money can you make from Binary Options?
According to sources like top10binaryoptions, a professional trader can make $10,000 a month from trading on binary options.
However, not every trader is the same. Thus, the rate can fluctuate from person to person. Some sources also claim that one can make $1,00,000 a day.
But in reality, only a small fraction of people (less than one percent) can touch this bar. Having a full-time earning from binary options takes a lot of time, research, and practice.
Even if the idea of binary options trading sounds simple, the chances of losing trades are higher than a winning trade, according to active binary options traders.
Some traders have even claimed that the trading experience in the demo version and that with real money was miles apart.
Most of them claimed that the demo version wasn’t even close to the real one, and winning in the demo version just hyped them to put their money at risk.
Thus, one can only make high profits when their deposit is higher. Traders who deposit a small trading fee cannot get huge returns.
Is It possible to recover your funds?
Yes, if you have by mistake lost your money to a binary options trade. Then there is a slight ray of hope that you can recover your money.
Here are some examples of people who managed to recover their money from the brokers through different means.
#1 Contact the broker, especially to whom the funds got transferred
Mike was a commoner like us who lost his money to some binary options broker based in Israel.
Mike contacted Grey Mountain Management to express his dissatisfaction with the Israeli binary options brokerage. Danielle Earle was the name of the woman he chatted with.
He mailed Ryan Coates and Liam Grainger. However, his mail didn’t reach the other end.
Regardless, he was refunded his funds.
“I pursued them till they were fed up with me. Grey Mountain Management gave me a complete refund.”
#2 Reach out to court
Eugene Williams was a South African back employee who lost his money to the binary options trading in Israel. He came across “Grey Mountain Management” on the bank. His statement made a wire transfer of $27,000 to Edgedale Finance-a binary options website.
He requested information from his bank, Nedbank, on the bank that received his funds on behalf of Grey Mountain Management. The bank, however, was unable to collect this information despite its best efforts.
The Times of Israel requested a response from Grey Mountain Management, but they did not answer.
Mitch from Wealth Recovery International says pressure on binary options salespeople or payment systems does not always succeed.
“There are occasions when you need to go.” If you’re employing an Israeli lawyer, make sure they’re authentic by checking with the Israeli Bar Association and ask for referrals from people whose stories appear genuine,” he advised.
“Too many innocent people have been contacted via message boards by people claiming to be able to recover their funds. That, too, turned out to be a ruse.”
#3 Turn to regulatory bodies and use your higher contacts
Felicia, a single mum from the Asia-Pacific region, returned home one day to discover her adolescent son crying. He had “invested” over $100,000 in what he considered to be a specific binary option trading site, using her credit cards, in the hopes of surprising his mother and making an apparent profit.
However, the company refused to let him take his mother’s funds, even ostensible gains, and he learned too late that he had been duped by one of Israel’s many bogus binary options companies.
Felicia turned to the “Forex Peace Army,” an unofficial consumer monitoring website for the binary options and forex industries, for help.
An unknown individual gave her a private message containing the name and private information of the proprietor of the binary options site, which is often a tightly guarded secret in this market.
Felicia began sending private emails to the proprietor demanding her money back and informing him that she was on her trip to Tel Aviv to see him. She inquired about his pets and his travels in South America, alluding to that she had high-ranking connections in the Israeli Justice Ministry.
The website owner finally gave up after two weeks. He wrote, “I am depressed and want this to be over already,” and promptly reimbursed her entire deposit.
Felicia, who requested that her real name not be used, is among the lucky ones. According to the French securities regulator, nearly all binary options customers lose part or all of their money, the Autorité des Marchés Financiers (AMF).
This is because the corporations’ profits are directly derived from the losses of their clients. Staff members at some companies, especially those regulated in Cyprus, told The Times of Israel that some clients could withdraw cash if they refuse a “reward” — money “granted” to clients by the enterprises.
With many small-print strings attached to motivate them to barter more, and then used as a pretext to block them from transferring their funds — resist compelling marketing pitches, and are adamant in their demands.
Clients are reimbursed only if they risk a credit card chargeback and cause the company significant hassles, which happens only in rare cases.
Former workers of binary options firms told The Times of Israel that the first way to proceed for a duped consumer is to reverse the money transfer from the credit card completely.
According to Adam Nujidat, an ex-staff member of a binary options company in Ramat Gan, even the prospect of a chargeback can sometimes earn a customer their money back.
“If the corporation exceeds a certain number of chargebacks, they may have difficulty processing credit cards,” Nujidat, who appeared before a Knesset committee in January, explained, “so they choose to return a client’s money.” However, few binary options buyers are aware that this could be even a possibility.”
Former industry experts advise that if the firm does not restore your funds, you should contact your card provider or issuing bank and file a chargeback claim, citing forgery, deception, and breach of fiduciary duty as reasons. (Israeli binary options salespeople are notorious for lying about their name, location, and financial background.)
Mitch, an associate with the New York-based company Wealth Recovery International, who assists binary options clients in recovering their assets in exchange for a share of the restored loss, stated that a victim’s initial plan of action should be to seek a chargeback soon as possible.
The current status of Binary Options brokers around the globe
Last March, The Times of Israel published a series of articles exposing Israel’s primarily deceitful binary options industry, beginning with “The Wolves of Tel Aviv.”
The Times of Israel estimates that the market in Israel has over 100 companies, the majority of which are fake and use a multitude of deceits to steal their customers’ money.
These companies deceive their people into thinking they are making beneficial short-term bets, but in the majority of instances, the users lose most or nearly all of their funds.
Thousands of Israelis operate in the area, which is thought to have defrauded millions and millions of dollars from people worldwide over the last decade.
On January 2, the Knesset’s State Control Committee convened a session on the alleged inability to close down binary options scam in response to The Times of Israel’s revelation on the extensively illegal industry.
MK Karin Elharar (Yesh Atid), the commission’s chairman, urged that the cops begin investigating illegal binary options companies within the next quarter and that the Israel Securities Authority pushes through laws to shut down the entire industry as soon as possible.
Anyone who wishes to own a yacht and a seaside bungalow need heck money. A luxurious life needs loads of money in pocket, and that’s where excellent marketing of binary options brokers like IQ Option and Olymp Trade kicks in.
With increasing popularity, more and more people are pulled to earn a passive income that can fulfill their needs. But, this sweet sugar of promises also attracts scammers. Various unregulated brokers on the internet pretend to be regulated brokers and loot people and run away with their money.
That’s why binary options trading is banned in some countries, while those countries that permit it has stringent law to ensure the interests of the commoners.