Binary Options: a Scam or Not?

Published: 26 November 2015 Updated: April 23, 2023

As soon as binary options The Internet was no longer exotic, and offers from various sites flooded the Internet, and heated arguments arose. Some argued that it was an independent and very good way to earn money. Others argued that binary options are just a A kind of virtual casinoThe problem is that in this case, the broker is the only one who makes a profit, and ordinary traders are doomed to lose. To make sense of it, we will have to compare casinos and options.


True and Fake Options

There are only two true binary options (on indices VIX and S&P500). Transactions on them are officially registered and regulated. At the same time there are up to 200 so-called "fake options", transactions on which are not regulated by anyone. The owner here is the site (site) on which the bets are made. Count on the fact that such a site is ready to give a virtual profit is not worth it. Only a small fraction of such sites have a license of a non-profit partnership and comply with certain regulations.


Fair play or roulette?

Most often, binary options are compared to roulette, referring specifically to virtual casinos. It must be understood that the outcome of the stakes - the falling out number and color - is not determined by a random choice, everything comes from the built-in algorithm of the owner of the online casino. So if we're talking about a "scam" it's about online casinos. After all Binary is directly dependent on currency quotes and market fluctuationsNo algorithm can be adapted to them, since it is impossible to accurately predict the price of oil, gold or currency at a specific moment. Successful traders always know exactly where to get information and come to binary trading with certain knowledge. In addition, most of them keep their own transactions archive in order to control the situation and not to fall into deficit.

Another An argument for binary options - a long time of work of the best brokers. Not only do they pay out profits honestly, but they don't outlive the luckiest traders, willingly continuing to let them on the site. This will not happen in a casino, nor will it happen in a bookmaker's office.

Healthy competition between binary brokers only improves the climate for traders. Brokers have large annual turnovers, so profits are also quite high. All this provides a constant large cash flow through the site. And the brokers have a vested interest to keep it that way in the future. Only we must realize that the real and actual profit on the options can't exceed 70-85%, if the broker promises up to 95% - this is a clear reference to the pyramid projects.

Many people complain about turbo options - and the quotes there are rigged, and the jumps are sharp, the prices are irrelevant, and in general it is a complete scam. There really is no place for beginners. Only those who have at least some knowledge should work at such sites. Then it will be possible to increase the initial deposit rather quickly and return the "body" to the broker, but to trade constantly and on your own money there is rather risky. Although it is not easy to put aside the idea that it is possible to make money on turbo options. It is possible to recommend to the most reckless to use Martingale, different averaging, indicators-tips. Then there is a chance to take a little nibble of the broker's pie. Just don't get carried away.


Broker - friend or foe?

And yet, a broker must initially be considered as a certain enemy on the financial front. His task is to get both the invested deposit and to make him pay for all sorts of strategies and training. Of course, at the beginning some things are given free of charge, and this must be used for all 100%. Learn the information, try it out on a demo account. That's how it's born. personal strategy. But it's worth remembering: it's all just bright bait. It is possible that the broker will allow to earn something. But in the end the "deposit" will still be "drained". And the broker will sweetly shake his hands, saying, "it's the market, bro!".

One kind of brokerage "drug" is the bonus system. After depositing the funds the broker offers a certain sum in the form of bonus, but there is a condition: to make a certain amount of deals. And this volume is not insignificant; sometimes it is thousands times more than the deposit amount. For example, on the deposit of 250$ we offer 50$ bonus with a small stipulation - a trader must make transactions not less than ... 50000$. That is, at an average transaction value of 10-20$ they have to make as much as 2500. Now you can say goodbye to the idea to "repay" even your own deposit. Insurance, education, promise of instant enrichment, bonuses - all this is designed to draw the trader into a network, the only way out of which is to completely drain the "deposit".


The legal twists and turns of options

For the most inquisitive, we can say right away that the law on forex or binary options trading has not yet been passed. It is still only The law on Forex activity is planned to be adopted from January 2015. But even if binary options are not legally regulated, they cannot be considered a "swindle". With the exception of outright fraudulent platforms, the organizers of which can only be fought with the help of the Criminal Code (Art. 159). However, so far this kind of judicial practice has not been observed. But the brokers themselves are personally interested in compliance with certain rules. That is why regulators like CYSEC (in Cyprus), The CRFM (in Russia). For the most part, these are non-profit partnerships, having become a member of which the broker is obliged to comply with the regulations of the partnership. Complain to such a broker should be a partnership. But even in this case it is not always possible to get guaranteed protection. And how to check the presence of a real license, the icon of which proudly shows up on the main page of the trading platform? This will go on at least until the law on the regulation of brokerage activity in the country is passed.


A little bit about taxes

Not a single normative act in Russia describes the procedure for taxation of income from trading binary options. Consequently, no one pays any tax on this money. In Russia the tax authorities are not yet interested in such an opportunity to fill the state treasury. Belarusian tax authorities are keeping their hand on the pulse. Once you withdraw even a small income from the platform or Forex and do not pay income tax, a citizen will immediately receive notice of the penalty, which is many times higher than the income received. Residents of other countries will also have to carefully study the tax code to avoid such mishaps. In some parts of the world trading options is equated to gambling, with the consequent high rates of income tax on winnings.


Opportunity to make money or a scam?

Read Binary options are a scam for suckersThe professional opinion is that people who are lazy and have no initiative and hope for a good uncle and manna from heaven can do that. Trading does not tolerate people without a goal and without the desire to make time for study and work, even three or four hours a day.

Only goal-oriented people who are ready to work only for success can achieve success. Setting yourself realistic goals - even if not dominating the world market, but only 15% of profit per month to start - it is necessary to master market analysis, spend time studying different strategies and choose a suitable one for yourself.

The dual nature of binary options will make their supporters and opponents argue for a long time to come. Yes, they are somewhat similar to the online lotteries, but no one denies the possibility of making a decent profit from them. The one who learns how to avoid all the traps of the brokers, who shows his abilities and attaches his knowledge, will be able to give the final answer for himself.
It is to be hoped that the possible tricks and pitfalls of option trading are described quite clearly. As well as the evidence of the legality and respectability of this kind of activity.

5.00 / 3
Leave a review