Why binary options are the worst “financial” products ever and why you should absolutely avoid them?
In the last 5 years, we saw a boom of the binary option offers.
Testimonials of average people, saying that they got rich by pressing a simple button on their smartphone by betting on the prices of EUR/USD or gold.
“I became millionaire at 19 with binary options. I wasn’t very confident but I’ve started with 300$ and after 7 days I decided to quit my job! And refund all my credits…”
“I’m making money by trading in the bus, I started on Monday with 300$ on Friday I had 736 000$ on my account, with my wife we resigned from our jobs and decided to do the trip that we have always dreamt about…”
Who have never seen such a dumb ad??
Not dumb enough, because it works … for their marketers!!
Point of view of regulators:
So, why the regulators like FCA in UK, AMF in France or the CYSEC are warning and editing impressive blacklists of websites providing binary options??
They estimate at several BILLIONS of $ lost by binary options gamblers last year ONLY in Europe!!
The regulators warn about these so appealing marketing campaigns that deliver false promises to make EASY MONEY with only 50 or 100 $ of initial deposit. After having thousands of complaints of fooled customers, the CYSEC decided to sanctioned the following firms:
– Interactive option – Hellobrokers
12.10.2015 Sanction of 300 000€ + agreement suspension
29.02.2016 UFX : Sanction of 123 000€
29.09.2016 : FXGM Sanction of 233 000€
We could continue with a list of dozens of sanctions for Cyprus ONLY!
And this is only the visible part of the iceberg, we don’t have any information about companies.
Without any regulations registered in Belize, Anguilla or other tax havens … In case of dispute there is no way to complain to the authorities.
But with binary options I invest on the markets?
Actually NO, a Binary option is a simple bet placed on a platform (it could be a casino – no difference) , not an order on the market, you bet against the broker, and that is the most dangerous, because your interests are not the interests of the broker. If you lose the broker gets 100% of YOUR MONEY for free…
Even if it’s not theoretically impossible to make money with a good strategy and knowledge, the experts that would be able to realize this miracle will prefer to work directly on the forex or stock market. Professional traders work on regulated markets, with real charts and tools. Charts provided by binary option platforms gives you the less info as possible to have the best chances in their hands to win the bet.
Risk reward is the scam inside the scam! You are not the one who decides, brokers decide for you! And they decide what is good for them – bad for you! Unlike the forex market where you decide of the risk by determining your stop loss and take profit, Binary Options brokers decide for you: You get one unique deal – If you lose, you lose 100% of your investment – if you win you get only 60/70% – Like this, if on the long run you don’t make more of 80% of winning bets you are losing money – even for a professional trader – that’s very hard to accomplish.
A marketing calamity
We can see that these “marketers” are targeting clients especially without knowledge about financial markets, selling them hope of easy money to help them finish their difficult month-ends. That’s the ugliest in these businesses – selling hope to credulous people!
Why do we see so much ads? Because with the affiliation programs, the promoters of these websites receive up to 50% of the deposits – easy to understand where is the conflict of interest, the guys that wants you to enroll will earn half of what you will lose!
This is the real way to get millionaire with binary options!