Is Binary Options Trading A Scam?
Binary options are a relatively new investment vehicle. In fact, retail binary options weren’t first made available until around 2008. Any time a new investment vehicle comes out, we hear stories that the investment opportunity isn’t an investment, it’s a scam. After all, look at all of the stories that popped up when currency investing became a big thing. Nonetheless, currency investing proved to be profitable over time. With that said, there are several people that argue that binary options are a scam. However, I beg to differ. Today, we’ll talk about the two big arguments that those who say it’s a scam have as well as the importance of educating yourself to ensure that you make a profit when trading with this investment vehicle.
Gambling vs Binary Options
One of the biggest arguments that experts have when arguing that binary options are a scam is that binary options are nothing more than gambling. While I understand where this argument comes from, I have to say that it’s completely false. With binary options, investors need to predict which direction the values of financial assets are headed over a predetermined period of time. When doing so, the investor puts up a specific amount of money for the opportunity to earn a predetermined amount of money. This is quite a bit like sitting at the poker table. The amount invested and the potential earnings are predetermined. However, there’s a big difference here. Binary options traders have the ability to research what’s likely to happen in the market, giving them the ability to be incredibly accurate on predictions. This is basically what investing speculation is all about. However, when you’re sitting at the poker table, there’s no way to predict what cards you’re going to get in your hand. To compare gambling to binary options, binary options trading is like sitting at the poker table, knowing exactly what cards are going to end up in your hand!
Beware Of Scam Binary Options Brokers
Another big argument from those who oppose binary options trading is the fact that there are tons of scam binary option brokers out there. This argument is actually very true. The reality is that because binary options are so new, there’s not much regulation associated with using this investment vehicle. This opens the door for con artists that want to take advantage of popularity in the binary options trading industry. However, there are ways to avoid the scams. One of the best ways to do so is to ensure that you only trade with a regulated broker. While they are few and far between, they are out there, and they add a level of protection for the binary options trader.
It’s Important To Educate Yourself
Here’s the key to being a profitable binary options trader. First choose a regulated broker. Second… EDUCATE YOURSELF! The reality is that no matter what type of investment vehicle you choose, if you don’t choose to educate yourself, chances are that you’re not going to do very well! The most profitable binary options traders have educated themselves with regard to how the market moves, strategies to expand profits, and strategies to reduce risk. Ultimately, there are tons of educational resources out there for you to take advantage of. All you need to do is jump at the opportunity! The bottom line here is that education is the key to profits when trading binary options!
Is Binary Options Trading A Scam? – Final Thoughts
The bottom line here is that binary options can be a great trading vehicle. As with any type of trading for profit, please ensure you are only risking money you can afford to lose! When used properly, binary options trading can prove to be incredibly profitable. While there are plenty of nay sayers out there, the reality is that binary options are far from a scam! If you choose to take the time to find a regulated broker, and educate yourself with regard to how to expand profits and reduce risk, you can earn quite a bit of money using this trading vehicle! Contrary to the belief of many, binary options are definitely not a scam!
For more reading on Binary Options, check out the Modest Money article: The Truth About Binary Options.
