First Off, What is a Binary Option?
A binary option is a formulated option where a trader makes a bet on the price movement of an underlying asset in near future for a fixed amount. Definition of binary suggests where time involves two or composed of two, in basic terms it can be expressed as true or false and yes and no because there are two outcomes. A binary option trader has to hedge his bet on either one out of two options buy and sell basis two definite outcomes on whether an asset price will fluctuate high or low in the future. If the bet worked out for the trader they will profit a fixed amount.
If a trader’s bet works if an option expires in the money, that is the price of an underlying asset on any future date closes more than the strike price of an option of that particular underlying asset on that specific date. If the option is out of the money that is the strike price is higher than the price of underlying asset on the expiration date or date of consideration, then the trader gets nothing from the trade. Binary options are also described as one touch, all or nothing, fixed return, digital and bet options.
Are Binary Options Scams?
You know what a scam is…duh. This term blankets a broad range of behavior. It is individuals providing you with misleading info to lure you in and in this case dishonest trading advice. However, there are particular brokers out there that technically are not fraudulent but there is that grey area they might fall in to. The main thing is how the services are available. If their platform has a failure to reimburse money in a timely manner or they have a high and unreliable up-time then you should be very skeptical of those brokers.
Basically, it’s like anything you need to do your homework before you commit to any platform. There’s this product called the ‘internet’, you may of heard about it. Use this to help you do your due diligence by looking at reviews, blogs and scam reviews. Whatever you do stay away from the testimonials published by the broker’s website because they of course could be padded! Keep your eye on the date of the blogs or testimonials are up to date because things change daily. A lot of these sites have been shut down due to fraudulent activity by the SEC.
Check List for Legitimacy
- Blogs with many comments
- Up-to-date comments
- Scam review sites
- Quick up-time
- Reimburse funds in a timely manner
- Stay away from broker’s testimonials and blogs
- Be leery of trading or broker blogs
- High pressure tactics
- JUST BE CAREFUL!
The act of making a trade should be straightforward. However, the more user friendly of a platform the more appealing it is to use as a selling point for brokers. Binary options are marketed as simple by the claims of profits being guaranteed like all of these get rich quick schemes that promises millions.
Perfect example of a marketing tactic, you receive a phone call from a telemarketer preaching that if you invest with them you will be guaranteed to make 90-95%. “Holy shit,” I’m in! Well, if it is guaranteed wouldn’t everyone be doing this! I mean come on guys.
The example above is telemarketing and is not the only form of recruitment. There are so many other shapes and sizes to the way these people solicit you. I myself get so many emails everyday and because of that I have created so many additional gmail accounts to get away from spam. If I look at something online I will see a banner pop up or if I’m playing a free game on my phone I will see an ad on it because it’s not the paid version. See, there are so many marketing tactics and it can be overwhelming.
In summary, if you hear such exaggerated claims and returns that are unrealistic these are false claims. It’s a sign that a broker may be shady or less credible. If you get a call, email or whatever like this and they sweet talk you in to dealing with a certain broker make sure you explore the check list of legitimacy above before investing any of you hard earned money.
No Demos, No Thank You!
If you had the ability to test something out for free would you? You’re damn right you would and if you don’t you should! I like to live my life hassle free or at least try. Since I don’t like dealing with stress I want to be able to test something for free and have the ability to terminate service at anytime without penalty. Plus, I don’t want to piss my money down the toilet I want to see if it works. If I take the product/service for a test drive and I lose money every single time then common sense definitely tells me this is the wrong platform for me. So don’t just test once, play the law of averages. I trust my family and sometimes my friends, but when it comes to outsiders I am always leery and you should be to.
Binary Options Scam Summary
In essence, yes Binary Options are a scam. There are to many false claims about earnings. I’ve tried it myself several times and it is a dead opportunity! To many people have been burned and the SEC is really cracking down on the binary option industry because of it. They are also making claims that they are shutting them down because they are classifying them under gambling.
Their are just to many other ways to make money out there than investing your hard earned money in to the unknown. Yes, I’m absolutely positive you have the opportunity to make money in options it just you would have to find a reliable broker and be ready for losses even with a legit broker. If they don’t let you know upfront about themselves as well as make elaborate or inflated promises you should go with them.
Better Choice, Better Life – Check It Out
Well my friend, if your looking at the Binary Options online because you want to make some money I would look at other avenues. I was telling you to do your due diligence on Binary Options which is 100% important, but before you commit to any kind of online business you need to check out other opportunities. There are so many scams out there which is why you are looking at this website.
I have done my due diligence on 100’s of money making programs on the internet and the best online opportunity I have come across is Wealthy Affiliates. It is a legit online money making opportunity and the best thing it is FREE! Remember earlier I said it’s best to always take a test drive of the product, well this you can for as long as you want. You owe it to yourself and your family to check out this online opportunity!