Consumer advocates have long criticized the binary options. The accusation: would not be a serious investment, but pure gambling and the providers would not sufficiently point out these risks. Customers would be ripped off with false promises.
Is there really such a binary options trap? Are the traders here cheated and in the end have no chance of making permanent profit with binary options? We have dealt with critical questions on this topic and would like to answer them for our readers.
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Are binary options advertised with false promises?
Indeed many brokers lure with high profits. "Up to 90% profit in a minute" is, for example, a typical statement by which beginners can easily be misled. This statement only refers to a single trade. Of course, a corresponding profit is possible here. That in the same time also threatens the total loss of the investment, of course is not mentioned. In this respect, this is actually a relatively dubious advertisement. Roulette could also be advertised under the same conditions, here the "profit" is even over 90%.
Due to this and similar information, many beginners unfortunately assume wrong conditions tab. You can see the possible profits, but that a very many trades are lost, is hidden.
Another, very effective one Advertising strategy is that the brokers often do not advertise directly, but supposedly "successful traders" should convince customers. These report high profits, which they would have made in the shortest possible time. For this no previous knowledge and no particularly high effort would be required. Since everyone can get rich with binary options, the customer should of course register immediately with the appropriate broker and make a deposit.
Here too it quickly becomes clear that it is exaggerated promises. Where there is a winner, there is usually always a loser. Since the broker also makes a profit that is certainly not small, there must be more losers than winners when trading binary options, otherwise this system would not work.
Be You therefore suspicious of promises to be tempted. Here the advantages are exaggerated and the disadvantages concealed.
Are binary options fake?
We didn't have to look far to find out to find reports on the internet from frustrated (former) traders who say they have been ripped off about binary options . Her criticism: Binary options would ultimately only make the brokers win. These would manipulate the prices at will and pull the money out of the pocket of the customer.
In the past, there were indeed brokers who traded with binary options have defrauded. Therefore, the provider should always be selected with great care. However, a general "binary options fake" cannot be assumed. It is true that there is a very high risk and only a few traders manage to successfully trade with binary options, but it is still possible. The fact that there are so many losers may actually be due to the fact that not all brokers are serious, but the reason is mainly different: due to the highly speculative structure of the binary options have this very strong gambling character. This can only be avoided by a very disciplined risk management. In order to trade binary options successfully, appropriate expertise is also required. The promise that anyone can immediately start trading and become a successful trader within a few days is, in fact, a dubious obscurity of the real facts.
Profit from movements in currency
Is trading binary options dangerous?
There are various dangers associated with binary options. The possibility of getting to a dubious broker has already been mentioned. But even with reputable providers, there is still a very high risk for trading with binary options. It is the aim of all traders to be able to predict how the courses will develop by analyzing the courses as well as possible. Accordingly, trades can be placed that lead to profit. However, the course of the course can never be predicted exactly. Too many factors exert an influence here and precisely because of the extremely short time span typical for binary options, unpredictable fluctuations are normal. Therefore, very good analysts can only predict the price performance with a certain probability. It is therefore possible to make a statement about which course is more likely by a good analysis and then to rely on this. But the less likely course will occur again and again and thus lead to loss of investment. Binary options trading is characterized by a high variance, so that even with a good analysis, losses can be expected. In the worst case, the entire deposit will be lost.
Can you learn to trade binary options successfully?
Many brokers offer a kind of "binary options training". With the generally free training material, customers should learn to analyze the course of the course with different techniques to and thus become a successful trader for binary options. In fact, it is possible to make statements based on the course of the course so far as to whether the course is more likely to rise or whether it is more likely to fall. However, the possibilities are within a very small frame. This means that even with very good analysis, only a few more trades can be won. Professional traders have enough additional trades to make a total profit. However, they too repeatedly lose in the meantime and have to live with high fluctuations of profits.
To really learn to trade binary options and successful in the long term To be able to operate it is not enough to watch a three-part video series at an online broker about binary options training. This may be a good start, but really successful traders learn every day and are familiar with the functions of the market. They are also fully informed on the subject of " Risk Management ".
To learn to trade binary options and implement new content without risk, all traders should enter Use the free demo account. Here all strategies can be tried out risk-free. Beginners can familiarize themselves with the binary options without directly risking their own money. But also the professionals know about the value of a demo account and use it regularly.
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the brokers the courses manipulate?
A frequent criticism of the critics of binary options is that the traders manipulate the prices and thereby gain an advantage. In the long run all traders would lose and only the broker makes a profit. Therefore, it is often advised on the Internet to stay away from interest in binary options and to opt for a more serious form of investment.
We looked at how the trading prices came about. As a rule, these are mostly provided by the brokers themselves. While there are many STP brokers available in addition to the Market Makers, who forward the inquiries of customers directly to a large pool of participants, when dealing with Forex or CFDs the providers of binary options almost exclusively around market makers. In theory, these actually have the possibility to manipulate the courses in their favor. In practice, this should not happen with a good and reputable provider. For market makers, the prices are also based on the official trading prices of the stock exchanges, but due to the time delay may differ from them. Here too, the choice of the right broker is crucial. Reputable brokers have no need to manipulate trading prices and are also monitored by a regulatory authority, so that manipulations would be noticed and the license of the broker would be withdrawn.
Can I avoid the risk with binary options?
The risk can be completely eliminated not, because binary options are and remain highly speculative financial products. However, there are certainly ways to significantly reduce the risk.
Even if criticism is repeatedly spoken of in the usual binary options that this form of trading is fraud, there is nevertheless many reputable brokers on the market. Here it is important to choose a provider that is reliably regulated by an authority, ideally within the EU. The ratings of previous customers should also be included in the decision-making process. We have gathered many customer reviews in our broker comparison to help our readers find the right provider.
Is the right broker found?, it must still be ensured that the required expertise is available. Prospective traders should deal intensively with the course analysis and train with a free demo account until the required skills are available, the knowledge also with real money use profitably.
risk management is also an important point, without which successful trading with binary options is not possible. You should only deposit as much money as can easily be lost without having any major impact on the customer. Of this balance, only a previously defined percentage per trade is used, so that individual lost trades do not have too great an impact on the account balance. The lower this percentage, the lower the risk of losing the entire deposit. Unfortunately, this risk cannot be switched off completely.
What are the alternatives to binary options?
Binary options are not suitable for every investor. Only those who have sufficient free capital and can also live with the risk that this could be completely lost should risk trading binary options under certain conditions. For other traders there are many good alternatives.
The most similarity to binary options is forex trading with Forex and CFDs. Here, too, prices can be set to rising or falling, but the profit or loss also depends on the amount of the price change. With this form of trading, there are significantly more options available, which reduces the luck factor somewhat compared to binary options. Nevertheless, this is also a highly speculative form of investment, in which a total loss or in certain cases even a obligation to make additional payments must be expected. The trade in shares is much safer, although it should be long-term. For traders with little time there is also the option of investing in a equity fund, in which the buying and selling decisions do not have to be made themselves. For a particularly high level of security, an investment can be made in a time deposit account. Here, however, earnings are rather low due to the persistent low interest rate phase .
Is the binary criticism option justified?
It is true in principle possible, despite all criticism, to trade binary options profitably, however many prerequisites have to be fulfilled. These include the following points:
- An absolutely reputable and reliable broker must be selected
- The trader must acquire extensive specialist knowledge
- Comprehensive risk management must be strictly adhered to.
Binary options are by no means suitable for every investor. They are highly speculative and contain a high happiness factor. Therefore, they should be understood to a certain extent as "gamble". Traders who have a major problem with a total loss should choose another form of investment, because this can always occur, even if all essential criteria for successful trading are observed.
Before trading with a broker, please read their general terms and conditions, because only these are binding for trading. Only invest capital that you do not otherwise need. So a win is a welcome additional financial extra, and a loss can be compensated for without problems.
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