Is Options Trading Real?
Yes, binary options trading is a legitimate form of investing. In this type of trading, traders have the possibility to predict the future movement of certain assets such as stocks, indices, forex currency pairs and commodities.
In case a prediction made by a trader will come true, then the trader will receive a commission that’s proportional to the investment amount paced by the trader. In case the prediction will turn out to be inaccurate then the trader will lose the investment.
Some people claim that binary options are a scam because financial trading is like gambling since you can’t always 100% know the future movement of the markets. However this is not true because in binary trading people DO have the possibility to predict the movement of markets.
Sure, nothing can be predicted with 100% certitude but using various trading strategies and following clear guidelines such as the ones outlined in our strategy pages can definitely help traders have a competitive advantage over the broker.
In short, in binary trading it’s possible to shift the odds into your favor. In gambling this is not possible no matter what “strategies” you use. Each game was created the way to offer the gaming provider an advantage; no matter what you do, the dealer always wins in the long run.
Financial trading however is not a game that someone just invented. It’s a form of investment based on skill.
Can you really make money?
Based on the description given above, yes, you can indeed make money in binary trading. And you making money has nothing to do with luck and chance. Trading on financial assets will give you the possibility to generate money on a consistent basis completely independent from luck and chance.
This is another reason why binary options are not a scam. In any service that is a scam (like gambling), the participants will never have the possibility to win based on their individual skill (maybe with the exception of poker) and all depends completely on luck.
Are ALL brokers real and safe?
Unfortunately not all financial trading service providers operating these days are legal and safe. There are some brokers that are indeed scams and should not be trusted. Like in the case with all internet based services, it’s people’s responsibility to find the legitimate service providers and avoid the fake ones.
Fortunately there are already a very large number of binary betting brokers that have a valid license issued in reputable countries. These brokers are never fake and never a scam and as such can be trusted by traders.
Laws and Regulations of Binary Trading
As hinted above, online trading is at this moment regulated in a number of countries such as the USA, the United Kingdom, Cyprus, Japan and others. What this means is that the authorities of these countries have openly admitted and recognized in law that binary options are not a scam.
Why would governments of the mentioned countries explicitly legalize something that is a scam? – That would make no sense whatsoever.
In the mentioned countries, legitimate binary options brokers have the possibility to apply for a license. Licenses will only be awarded to those brokers that have been rigorously evaluated by the governments that determined that they do not offer fraudulent services.
Brokers that have managed to acquire a license in the mentioned countries are also safe for traders who do not live in the mentioned countries. This is because if those brokers would deliberately scam traders not living in the country where they have acquired their licenses the governments that issued their license would still consider them fraudulent and withdraw their licenses.
Spotting the right brokers
So, by now you know that binary options are not a scam and that most brokers are even legally allowed and approved by various governments such as that of the USA and the United Kingdom to offer online trading services.
It’s obviously these brokers that you should choose in case you want to trade financial assets online. And like said above, you should also choose these brokers in case they are not specifically licensed in your country.
It’s enough if a legitimate financial service providers is licensed in at least one reputable country. If this is the case, it means that the respective broker is also legal and safe and not a scam in all other existing countries as well.
But as explained, stay away from those brokers that do not have any license at all. These brokers ARE scams! The reason they don’t have a license is because they most likely haven’t even applied for one because they would have been rejected due to the fraudulent practices they conduct.
So, keep this is mind next time you want to trade on financial assets. In short, binary options are not a scam if you only trade at legit service providers. If you want to find out which providers are legitimate then you’ll find a list on the top right menu of this article.
Likewise, if you browse our site you will find additional information about the legal status and legitimacy of financial betting. Besides this, you will also be able to find various guides and instruction material that will teach you how to trade financial assets successfully.