Binary Options “Trading” (more than Gambling)
(p.s. There are different types of scammers, however, my article is primarily related to brokers, who do their “job” on small-timeframe charts.)
Well, I wanted to write a topic about this unfaithful business and to warn readers of this blog. Probably, some of you have ever heard about “Binary option” trading ( like websites: IQoption.com or similar) or ever wanted to try it, because you have watched or read or heard, that there exists a “considerable” way to earn some money and get rich. Well, yes, it is a simple method to earn money, but not for you, but for those “brokers”.
What is Binary Option Trading
I wont start explaining about that. It’s well explained in this Wikipedia.com article. You will see here different types of scammers… To say shortly, it’s not a trading actually, but it’is a sort of game, where you can watch the previous history of price movement, and you should predict if it be UP or DOWN (from the current point) after specific time. If you will predict correctly, you win i.e. 90% of your bid, if you wont – you loose 100% of your bid. In the most lucky cases, the profit/loss proportion is 90%/100%. You might think, that you have enough chances to win, but…
Official sources always mention that as a type of Gamling, not actual trading,and what’s more, mentioned as “SCAM“!
The famous New-York Stock Exchange, London Stock-Exchange and some other worldwide exchanges are REAL REPUTABLE institutions, that provide the link between the real-trading world and people, with the help of the 3rd party BROKERS. Here comes the main part. You should find the brokers, that are REGULATED, this means that they cant make obvious tricks or do any manipulation, which will affect customers (btw, some exceptions happens in history, i.e. FXCM bankrupcy). I dont recommend to trust to unregulated brokers, they are SCAMMERS! Even “REGULATED” is not enough, look the base of the company, is that US company, or somewhere in non-reliable country?
Binary Option trading, is commonly, unregulated part of the “trading” world.
Most risky areas – Smaller timeframe charts
While talking about small timeframe charts (i.e. 1 min or so), in general, “Binary Option Brokers” does :
- manipulate with “real-time” data. Sudden spikes will work against you whatever position you take. You take “buy” position? Price will quickly go (at least on your chart) against you in last seconds. Dont bother yourself to think “ouh, why i haven’t chosen the opposite position?” – it doesnt matter,if you have chosen opposite position, you still lost it – “real-time” data will do things in seconds, and then the chart gets back to it’s direction.
- Also, there are frequent “delays” during last seconds of expiration, where broker (chart) intentionally delays the price-movement to your direction.
- And what’s important- noone can find out if those movements were real or not. Everything happens in seconds, and you cant prove anything.
The result is that your account is wiped out quickly. And you might be surprise, how aggressively does the chart make you to loose the money.
Robot is manipulating a chart against you
As all people say, it is not a trading, it is a GAMBLING and what’s more, not faithful gambling from a broken, because virtual broker wont let you to win you. Because you are trading against company’s budget, and it wont let you to loose their money.
In gambling you may have more chances, for example, roulette, because you watch the real event, where you really have chances… But in the BinaryOptionTrading, you watch the virtual chart, which works against you actually, especially if you participate in small timeframe (several minutes) charts, where the “real-time” price data is being manipulated, and you think that price goes as you watch, actually, that “real-time” data has fake movements in many cases (chart and program algorithms are written to read client’s positions) and the sudden SPIKES and “changes” in price will work against you. You can easily ensure that you there is a robot behind the platform, which plays the chart only against you ! It specially holds the price during last seconds if it goes for your win, and it specially drops the price too much, if it makes you to loose! 70% / 30% is your chances, not 50/50.
Maybe I am a looser?
Maybe the losses are caused because you are a “unlucky newbie trader”? I dont think so. Actually, my observation makes me to believe that it is not reason. I know Maths well enough for me. When you expect that in a box there are 50 BLACK and 50 RED balls, by default, from 100 tries, appx. you catch 50 black and 50 red balls… But when you try and you get 20/80, then try another round and get 15/85, then another round and get 22/78 (and so on for several times) – Then you can be sure, that there are not 50 red/50 black balls, but probably 25 red/75 black balls.
So, you have damn small chances to be lucky in binary trading for smaller timeframes and especially weekends. With my observation, algorithms aggressively trade against you on such charts.
Weekends – The luxurious days for “Brokers”
In real trading world, trades happen from Monday to Friday. You can watch the live price-movements over the official exchanges… But in weekends, you cant access those data in general. And that’s the time, when HUNTING BEGINS! Weekends are the most lovely days for “Binary Option Brokers” (like IQ OPTION). On weekends, real markets and exchanges are closed, and you dont know the real price movements in-live, with high-speed accuracy. Thus, your BO broker‘s chart will do what they like to do. You will quickly loose everything.
But…. I want to earn money, what I should do?
Once again to say – we should call Binary Options a gambling, not a trading. Instead of BinaryOptions, I unquestionably recommend the real trading at stock-exchanges. The easiest,free and well-known software you can use, is Metatrader, where you can get a demo account immediately, and can see the FOREX charts there. What’s more, you can connect MetaTrader to different, desired brokers. However, lets jump over testing, and I will list the real and more trustworthy brokers, who have even their advanced platforms:
For small or large traders (you can choose broker which has minimum requirement, some of them have $50, $500 , $2000 or even more):
So, stay away from BinaryOptionTrading and never participate in it, if you dont want to loose your money finally. It’s better to try your fortune in real stock-exchange trading, with above listed brokers.