My trading career, I have seen, people are frightened about any binary option trading, but in order to me, binary option is an easy and effective way to invest money in stocks and make a little extra on the side sometimes in less than 60 minutes. It provides an online platform that allows you to make an investments right from the comfort of your home. All you have to do is relax and watch your investments grow exponentially.
Binary options, in my opinion, carry a significant amount of risk. Much more significant than Forex does. According to a very recent FCA report Brits lose an average of GBP 87 000 a day to binary options scams. (https://www.forexbrokerz.com/news/FCA-Brits-lose-GBP-87000-to-binary-options-scams-per-day) The FCA warned that such fraudsters promise high returns and use images of luxurious items like expensive watches and cars and yachts to lure the people to put money in the scam. After that, they usually distort prices on their website or refuse to return the clients’ funds using all sorts of excuses and citing impossible withdrawal conditions or simply shut down the client’s account and disappear with the money.
The most disadvantage in trading binary options is to trade against the brokers ( ie traders win , brokers lose and vise versa ) . That means that there is no way the traders could win no matter what strategies they use .
i would strongly advice any trader to consider the facts before attempting to trade binary options. There are literally almost ZERO brokers who are trustworthy in their binary offerings , and there is no reliable way to vet them in advance –similar to how trading Forex itself was 10 years ago.
There are a couple (literally a couple) of good brokers. I think binary can be good that is why none of the big Forex brokers offer it. They are scarred they will lose money from retail traders winning
The entire binary options broker industry is deeply untrustworthy. There’s a good reason why Israel, which used to have a very large, thriving binary options broker industry, ended up banning their business altogether. (https://www.forexbrokerz.com/news/Israeli-parliament-bans-binary-options-industry) Those who violate the ban, will be treated as money laundering and offenders (individuals and companies) will face various penalties, including up to one year in jail.
I played around with a demo account. To me it's too much like gambling, but I was only doing 5 minute binaries. And with the volatility of the Forex market the longer binary options don't seem like a good idea.
There has been yet another warning issued by the British regulator FCA against a binary options broker. The FCA has warned that the company Tradeplus Solutions is offering financial services to UK clients without the necessary authorization and that it may be a scam.( https://www.forexbrokerz.com/news/FCA-warns-of-Plusoption-binary-options-broker) According to the regulator, the company has an address in Bucharest, Romania and in UK. According to the company, they are owned by Redfield Markets ltd, with the same UK address as that of Tradeplus Solutions. Usually such changes of company and brand names are an almost certain sign that this is a scam, trying to rip off unsuspecting clients.