in review : Is binary legit or a scam?


It is claimed, rightly or not, that there is a lot of money to be made in binary business. Well, for what it is worth, this article will look closely at Forex transactions with a view to finding out whether there is any justifications in these popular conceptions about Forex or they are just bogus claims. For one, binary options are, in all prudity, very legitimate but highly risky. It is thus only logical that you should first, understand the industry and how it works before you venture into it. After all,  a popular adage posit that: whatever is of any value, is worth doing well and we can’t agree more. Whatever the case maybe, it is highly inadvisable to pitch tent with anyone who claims that binary options are a sort of quick fixes to your financial problems; they are not, especially since nothing valuable should be hurried unnecessarily.

In binary options, traders are required to invest in certain assets such as gold, stocks, markets and so on. In simple layman’s terms, binary traders actually try to predict whether the value of certain assets will either increase or decrease within a specific time frame. Should their prediction come clean, they will win and by so doing, earn a commission, and if not, they will lose all the money invested to lock in their prediction. Consequently, if you view this closely, it can be deduced that binary options are more like sports betting than real investments. However, this possibility does not still make it a scam, or does it? Absolutely not, I dare say.

Is binary options a scam?

For all intents and purposes, binary options is not a scam but only an investment which may or may not come clean. Majority of binary option brokers are legitimate businesses and we all know that at legitimate brokerage houses, your money will neither be stolen nor is there any fear of getting defrauded. The major problem is only that many brokers are prone to promising very unrealistic expectations, whereas the average user hardly get such phantom results which he/she has been promised. Binary brokers tend to generate or attract customers through  showing them previous cases where ordinary people managed to win huge amounts of money by simply trading small amounts of money  on items like gold and other assets, for instance. Actually, instances like that exist, but they are only an exception and certainly not the rule. In other words, you may not be as lucky as those who hit it big; it happens extremely rarely. People sign up hurriedly with binary option brokers that mostly promise very unrealistic winning promises. In the end, they may lose all their money invested in the system. This does not still make it a scam.

Can one really win in binary options?

The one factor that determines whether you lose or gain is pure luck, just like in sports betting, but yes, you can win and a big win too, if you are lucky enough. One thing the brokers will mischievously fail to tell you is that, for you to win consistently,  you must put in significant effort and research too. Even at that, you still have to be very lucky to win. In fact, with binary options, what you need most is luck and more luck. Reminiscent to what happens in sports betting which necessitates you to know the strength and weaknesses of the teams playing, know about the skills of their players, understand the game, historical performances of the teams, the fitness levels of the players and so on, binary options also require a similar in-depth knowledge too. Even at that, something can still go wrong quite unexpectedly. There are other variables you must take into account too, if you want to stand any chance of winning in binary transactions you must certain things  like: time of the year, state of the prevailing economy, political developments, economic performance of major market markers, recent business news and indeed all other events that constantly influence the movement of stock prices and commodities. For short, there are a lot of odds stacked against you. For you to keep abreast of the movement of assets, you will have to unavoidably receive up to date information on it. You will equally need to understand a variety of technical data such as reading charts and tables too, if you must succeed. It must be obvious to you by now that binary options are much more than just mere investments. If you invest, say one hundred dollars on gold, for instance, and you expect to get five times your investment in mere minutes, then you are in for a big surprise. It just doesn’t work that way and certainly not that fast either.  So, watch out.

How difficult is binary options really?

Indeed binary options are pretty damn difficult and that is exactly what solid binary trading requires too. It is not in any doubt that most agents  who advertise binary options make bogus and  unimaginable claims of monumental profits and gains, but in reality, the situation is not quite as they present it, not even by a long shot. For you to really make any money in binary investments, you must commit a significant amount of money in market research and also learn about all the technical aspects of the business too. Regardless of whatever anybody may tell you, you will never make much money, or any money at all, by simply placing random bets arbitrarily. This haphazard investments is actually what the brokers count on you to make, because in that way, you will only be paying the price of becoming a losing trader, while they make money off you. There isn’t anything inherently wrong with binary options, but it still remains a financial investment which will only work perfectly in the long term for mostly the highly devoted and well informed users, but not those who invest and go to sleep.

Binary options may be used in theoretical asset pricing and are really susceptible to fraud in their applications which explains why it  is banned by regulators in many jurisdiction as a sort of modified gambling, not to talk of the fact that many binary option outlets have been found to be complicit in fraudulent practices. Regardless however, binary options have been found to be safe for trading,  just like in most other trade markets. For instance, the United States Security and Exchange Commission has approved binary options recently and by that, traders worldwide now consider this sort of trading as very safe indeed.

Is binary options receptive to new traders?

Trading in binary options is actually opened to all interested persons. For one, social trading has now become a major part of binary options trading. New comers who wish to begin making money without having to fight against numerous odds in learning curves have the opportunity to seek for help from seasoned veterans now. There are brokers who are even ready and willing to give in-house social  trading platforms, which is likely going to benefit you in the long run. Though there is always the risk of the trader going to fail, which may cost you any investment there-in, you are therefore advised to choose your signal provider very well to avoid any disappointments. Furthermore, there are now binary option robots, which serve to automate winning trades for the users. Regrettably, many of these robots are scams, and hence, you are better off avoiding them altogether, unless in certain instances where your broker is offering their personal auto trading services. Even at that, you must not count on any broker to give you any highly profitable automated trading tool. After all, why should anybody give you the tool to help you in taking their money? Do your own research and find out whether any auto trading system is worth it or not. If you must use one, do be careful, lest you get scammed of your hard earned money.

What other tools are there for advanced traders?

Nowadays, it is much easier to access quality financial news and up-to-date information which will  enable you to make intelligent trading decisions than was the case few years back. Many premium binary option brokers now have exquisite platforms at their disposal that provide excellent data for use in any comprehensive technical data analyses on assets you may want to trade in, which is a great help in making better trades. There are also instances where brokers who  introduce the use of robots have scour financial news wires, thus feeding investors with the latest events to enable them accurately anticipate events which will eventually enable you to also anticipate market fluctuations. These innovations and developments certainly make binary options trading easier for newbies who are willing to invest time in order to study the system properly and how it works.

By now, we have established that binary options trading is certainly legit and is rapidly growing too. What still remains realistic and incontestible is the fact that you still got to jump through a number of hoofs before you can succeed in the industry, especially for beginners. While doing this, be wary of scammers who are always keen to take advantage of your naivety, if you are not very conversant with how things work. Luckily, there is now a broader selection of reliable and trustworthy brokers and signal providers than was the case a few years back. Improved information quality as well as excellent technical analyses make the industry more lucrative for dedicated users. Even at that, you will have to watch who you go to bed with, should you venture into the industry. Doing this will guard your money from getting into the wrong hands. If you are willing to put in hard and relentless work, learn through repeated trials and errors, develop better methods more than the average binary options trader, then you can rest assured that you will make money, and possibly lots of it too, with binary options. Either you face this reality or you are solely on your own. That’s it.

How does one avoid online trading scams?

It is really not an easy enterprise to spot an online scam from a legit activity. Usually, these schemes are so convincing that they may sound or look like the real thing. Despite this deception, there are still marked differences which this article will explore adequately. If you take your time to conduct in-depth research on the matter, you will be able to easily identify those trading brokers and services that are legitimate and those that you should not transact with. In order to get the best out of your trading experience, you should acquaint yourself with how to differeciate between a scam and the real thing. In summary, verify any broker before you set up an account with them, check whether they are licensed and avoid any company that does not have an active demo account too. Research any brokers online using their name on the Google platform, check for reviews and check their track record for anything suspicious or out of place. In fact, check everything you can about them and by being so careful, you may really be doing yourself more good than you are actually aware of. Most binary options scams are done online while some, though fewer, take place over the phone, and for every genuine company, there could be as many as ten or more fake websites who claim to be genuine. They operate mainly as websites that provide real services with all the terminologies, graphics, customer testimonials and reviews as well as social media profiles, which are all bogus. They encourage you to sign up to their trading platforms by making a deposit, and after that, your money is gone for good. Others may go to as far as calling you on the phone while posing as senior advisors and encourage you through every means to make a higher deposit. Though it may appear that they cannot get away with this for very long, they actually manage to do just that most of the times. They set up under multiple names and identities so that they will be able to scam as many people as possible in as short a time as possible. There are really simple steps one can adopt to avoid getting scammed most of which have been discussed earlier in the article. Ensure that any broker, robot software or signal service that you plan to use is reputable. This you can ascertain by scrutinizing their license through making sure that they are registered with the Cyprus Security and Exchange Commission ( CySEC), Commodity Futures Trading Commission(CFTC) or any other recognized licensing body. Check out how they fare in online reviews, feedback and whether there is any history of unethical trading deals that trail them. Find out also whether they offer any free demo account. If you happen to sign up to a broker account previously and traded using a demo account before depositing any funds, so much the better, as that will give you a good idea as to whether it is a real broker or just a dummy website set up for fraudulent reasons. In cases of any phone calls that you may receive with someone claiming to be a senior advisor, be very wary, especially if they are offering you deals that are simply incredible, in most instances such phantom claims are indeed incredible, and you will do well to avoid them. The preponderance of scammers does not mean that you shouldn’t deal in this trading business. It is only a wake up call to be extra careful how you go about things. Essentially, choose your broker wisely by making sure that they are a licensed firm with good reputation behind them. Finally, there are reputable websites that will help you to avoid being defrauded such as: BBC iWonder, Neighborhood Watch, Action Fraud and so on. Visit these sites and get more information to evade pilferers on the internet and elsewhere, particularly in deals relating to binary options.

Why do binary scams still exist?

Basically, all scams exist and flourish because they are made to look like methods through which unwary and greedy people can make quick and easy money. From the inception of binary trading, many people have set up fraudulent websites using which they con potential users out of their money. In so far as people are willing to part with their money, there will always be others who want to take it from them. The gains are incredibly big ( atleast so are the victims made to believe) when you trade online which makes them willing to take avoidably high risks. If you are so dishonest as to want to make huge financial gains without any morals when it comes to ripping other people off, the fraudsters will use every trick at their disposal to make it happen. This industry is an easy target especially since the bulk of their transactions are conducted online, are not very regulated and quite often, people don’t know how to spot crooked deals from the real thing. Rogue binary options brokers are known to ring you up on the phone offering unbeatable deals if you trade with them, especially if you are making a deposit using a credit card or bank transfer. Should you agree to make such deposits, you lose your money forever. In worse case scenarios, they may even use your personal information in identity theft scams thereby causing you additional headache. 

How do you spot a binary options scam?

For the umpteeth time, you are please advised to know as much as possible about binary trading before you venture into it, if you know what you are looking for, it becomes easy to spot a scam quickly. If any deal sounds too good to be true, it is a red flag, so watch it. For instance, consider a situation where someone promises you a return of say, one thousand pounds in a few minutes for doing nothing, you should watch it and please find out some more, because there got to be more. Verify the credentials of any company, and if you can’t find the broker listed anywhere on popular reviews  or there happens to be few or no evidence that it is indeed a real company, then the chances of dealing with a scammer are pretty high. Watch it. Keep away from companies that offer to trade binary options via signal providers or management services. By simply typing the name of any broker into a search engine, you will find out whether the broker has been hitting the headlines for the wrong reasons or even whether they are operating under false pretenses.

Frequently asked questions (FAQ).

Is binary trading safe?

Though binary options are used in theoretical asset pricing, they are all the same susceptible to fraudsters in their applications and consequently, are banned by many regulators in different jurisdictions as gambling. To further corroborate this assertion, many binary option outlets or platforms have been exposed as dubious and fraudulent. On the whole, trading binary options can be quite safe just like any other trade market. For example, the United States Security and Exchange Commission approved binary options trading some thirteen years ago, and as a result, traders worldwide started considering this form of trading as one of the safest on the market, albeit with the need for strict carefulness in every step of the way. So, yes, binary options trading is as safe as any other, you just got to watch your back every step of the way and always too. That’s it.

Does binary options really work?

It is, first and foremost, a legitimate trading strategy, but which is incredibly risky as well. You just got to understand how it works and know the risks involved in it, other than that, you do not have anything else to fear. If the risks are more than you can condone, nobody will blame you if you keep away entirely. It is certainly not a financial quick fix medium. Do not be deceived regardless of any bogus claims from brokers who maybe  just out to make a living off you.

How do I get my money back from a binary options scam?

Believe me, much as you may want to avoid being defrauded, it still happens. In fact, it is happening even right now as you are reading this article. Essentially therefore, how do you recover your money which is taken by fraudsters in binary options trading? You can get your money back through a Charge-back. One sure way to get your money back is through Charge-back, which is a way of reclaiming your money back directly via your credit card issuer or bank, and what is more, this process of fund recovery is very effective.

Is binary option legal in  USA?

Yes, it is. This is further attested to by the recognition of this trading strategy and its Registration with the American Security and Exchange Commission as well as other regulatory bodies. So, yes, binary options trading is legal the US.

What is a binary trade transfer?

All options in binary trade are kind of fixed odds betting. Conversely, any trade involves a situation where an event may or may not really occur. If it does, you have a profit to make, but if it doesn’t, your money is simply gone down the drain. The events we are talking about here are the kind about which you have no influence whatsoever, such as the price of an asset either increasing or decreasing within a particular timeframe. Only two options are really open to you here: either yes or no, and what happens to your investment solely depends on this outcome. This is the binary trade transfer in layman’s terms. 

Where can someone trade binary options?

Binary options trade take place on Nadex, an acronym for North American Derivatives Exchange. These trade options are also available through the Chicago Board Options Exchange (CBOE). If you happen to have an options approved brokerage account, you can always trade CBOE binary options through their traditional  trading account.

Is binary options banned in the UK?

Yes, it is because the  FCA ( Financial Conduct Authority) confirms a permanent ban on the sale of any binary options to particularly retail consumers in the UK. To lend more credence to this stand,  after much consultation and feedback, the FCA is presently confirmng that all firms acting in or from the UK are indeed prohibited from either selling, marketing or distributing binary options to any retail consumers in whatever guise.

How does one trade Nadex binary options?

There are mainly five basic steps involved in how one trades the Nadex binary options and these are:

(1). First, know the market trends and how it fluctuates.

(2). Choose the market in which you want to deal.

(3). Choose a select price and its expiration.

(4). Place your trade or bet, if you want.

(5). Then finally, wait for it expiration, or alternatively, you may close out your marker early, if you wish.

What is the minimum deposit for Nadex trading?

The minimum investment in Nadex trading is two hundred and fifty dollars for all prospective users. To lodge your investment, simply start by selecting your bank, and thereafter click the ‘Add Funds’ button on your system or any compatible android devices. Should your bank not be domiciled in the US, or even if you prefer not to use the Plaid, you can alternatively click the ‘No’ button before hitting the ‘Continue’ button. However, you must ensure that you add a personal checking account which correctly matches your Nadex account details such as name and other information.

What does Nadex charge per trade?

If your position settles in the money at expiration, for instance, but your settlement  payout is only about half a dollar, Nadex is liable to charge you another half dollar as against one dollar in fees. The information given here is the standard trading and settlement fees for all Nadex members only, such may not be the case with non members.


Though as was explained earlier that binary options trading is most certainly not a scam, but the prevailing circumstances have really given fraudsters the much anticipated opportunity to play you a sleight of hand with your money. When you are eager to make colossal gains even with very little investments, you are truly greedy, and that will make you very vulnerable to fraudsters. So, watch out when you are told about any prospect of making incredible returns while doing nothing. Such bogus or bloated figures are in most cases a ploy to rip you off. Luckily, there are measures to take that will protect you from these shylocks and what is more, the article has also dealt comprehensively with how you can recover any stolen funds through a very simple process. To avoid all these nasty developments and any hard luck stories afterwards, the article has regaled you with strategies to apply and things to watch out for as a panacea against scammers. Essentially, you must not deal with any broker who exhibit certain identified trends or behaviors. For instance, should they promise you unimaginable prospects of monumental returns, you have every reason to be wary on account of this. The moment you think the red flag is up, adopt other measures that will further inform you of whether you are dealing with a dubious broker. You are also advised to check them up and find out whether they are genuine or not, and even if they are, you should still find out online whether they have any history of wrong doing trailing them and also look out for any consumer reviews. If they come clean on all these counts, I mean all these counts, then and only then  should you consider dealing with them. Remember that, despite all this valuable tips and information on how to avoid cheats, if you get defrauded, you should promptly approach your bank or credit card authorities so that your lost or stolen money can be recovered. All in all, binary options trading is not a scam in itself, but it attracts lots of scammers to itself, so do be warned.

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