If you search for binary options on the Internet, you are inevitably confronted with the term "gambling". You often come across the term "fraud". Why is that?
You could easily explain that the advertising for these products promises a little too much. Phrases like "double-digit returns within seconds" or "binary options are the easiest way to make money" are not uncommon.
The skeptical prospect assumes fraud in this case, the less skeptical of gambling. Experienced people know that they are only financial market products. Whether he wants to or can use it depends on his trading preferences.
The broker BDSwiss, for example, advertises that binary options trading is the fastest and easiest way to participate in the profits of the financial markets, If you look closely at the advertising slogan, there is nothing untrue in it.
- Binary options are very simply structured products and offer the entry into trading from a very small capital
- The quick account opening ensures a quick start, and maturities between seconds and hours can enable quick profits on the financial markets.
Only the loss possibilities become not mentioned in the advertising slogan. But a company that advertises for cars does not have to explain that driving fast can be life-threatening.
Still: It's the nuances that matter. Some brokers overdo it with the promise of returns on trading warrants. But for those interested, this can be an indication of the seriousness of a broker. Therefore, in many cases the broker cuts himself in the leg if he makes such promises - unless he is only out for reckless investors.
Sooner or later, this broker will not be able to assert itself against the competition, because at some point all customers leave him. Either because they have carelessly lost their capital, or have looked for a better and more reliable broker through their wealth of experience.
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Are binary options fraudulent?
Why should binary options be a scam? Slight gains in the financial markets are more normal than unusual. But joking aside, the financial market is not an easy task. It is no coincidence that only the best can operate successfully on the markets in the long term, and that is just 10% of the market participants, with the exception of big players and banks. And the financial industry is taking advantage of that. So the question is: "How can I be among the 10%?" and not if the whole thing is fraud.
Trading is not as easy as the advertising industry would like us to believe. Nevertheless, it is interesting and worthwhile to deal with it in a relevant manner. And that is particularly recommended to be among the 10%. Binary options are financial market products of the derivative type. They enable quick high profits, but also fast high losses because they are leveraged. The leverage increases the risk and every trader has to grapple with it.Derivatives Exchange traded Emits FuturesBinary optionsOptionsCFDsETFsCertificates and warrants
Often the discussion leads to the assumption that products of all kinds of how binary options are to be viewed critically from the aspect of the financial crisis, since they represent gambling and ultimately contribute to the deterioration of entire economies. Say goodbye to such blanket claims. Binary options are aimed at the active private trader and have nothing to do with the machinations of the large banks that were responsible for the crisis.
With binary options, the private trader takes the risk himself and is aware of it well aware. He can win and he can lose. So the whole thing is not a scam if the trader has full control over his capital. In addition, he does not have the sum of capital to cause distortions in the markets.
All financial market products are criticized. Whether it's the futures markets for speculation or binary options for fraud. In trading, the key is to gain an advantage over your counterparty. And that is much more difficult for the private trader than for the institutional ones, who can coordinate with each other. But maybe that's the attraction. Anyone who has made it knows that he can count himself among the few best.
The promising advertising slogans of the brokers should not be viewed too critically, but should be exploited by making the difference between one serious and a less reputable broker. Those who spend a lot of time in the financial industry or in trading know that a lot is exaggerated. The trick is not to be the one who believes everything, but also not the one who dismisses everything as a fraud. Then you can leave it entirely and put your money in a savings account.