1.The make money online scams need to stop
A significant percentage of binary options traders got to binary options from so-called make money online affiliates. These marketers will send people interested in making money online to shady binary options brokers and scam binary signals in order to gain affiliate commissions.
This advertising method is extremely lucrative for the people involved, as the traders coming from the make money online funnels usually always lose all of their deposits. This can be either because the promoted brokers are scams or because the new registrants aren’t actually real traders.
Often cases the make money online affiliates will get people to sign up at binary brokers by offering them a free binary options robot. They claim that the robot will trade by itself and that traders would not have to actually do anything at all.
This is obviously completely false and in the end all the registrants will end up losing their money.
In order for binary options to be finally taken seriously, the make money online sales funnel will have to die. People coming from this funnel might be profitable for the brokers and the marketers but the while scheme is almost a borderline scam considering that virtually any trader coming from this funnel loses.
The make money online funnel is also pretty much the biggest supplier of traders for the shady binary brokers. Some even argue that without this type of traffic the majority of the currently existing shady brokers would not be in operation.
The good thing is that the legit and licensed brokers have recently distanced themselves from this type of traffic. In 2015 you don’t see the big brokers such as 24Option, AnyOption, etc. being promoted by the scam binary signals anymore.
2. The fake binary signals need to stop
This is very closely related to the point above. Scam binary options signals are the main tool the make money online people use to get people to register at the brokers they promote.
However, traders will have to finally learn that they will not get rich by using robots and automatic trading tools; it simply does not work that way. Sure, there are some signals that do actually work but no signal will help you become a millionaire or anything like that.
Once traders learn that most of such signals and robots are fake and are just a scam then these products will cease being promoted. Until this happens however, the concept of binary options will be tainted.
3. More countries need to regulate and license binary options
The more courtiers regulate binary options, the better. However, regulation needs to be done properly so that legitimate companies will have a fair chance to compete on the market.
It’s beneficial for the business to have a lot of countries with binary options regulations but only if these regulations are similar to each other so that companies don’t have to spend time and resources with complying with contradictory regulations in different countries.
Many European countries are interested in regulating binary options with the goal of cashing in tax money. This can be great if the regulations are fair and harmonized across EU borders.
If, however, there will be many conflicting regulations in many countries then many small brokers could go out of business leaving only 2-4 massive companies on the market, which would deteriorate the quality of services.
The complicated nature of binary options regulations is also why there are so many shady brokers operating in the USA. Since it’s very hard to acquire a US trading license, many non-scam brokers simply decided to leave the market. The scam brokers however continued to accept US traders, as they didn’t care about breaking the law in the first place anyway.
4. Brokers need to be more transparent about their bonus terms and conditions
Bonuses are a great way to increase your initial trading capital however they are not for everyone. If you are a beginner or someone who makes a low deposit then accepting a bonus is almost never worthwhile.
The big drawbacks of bonuses are the bonus clearing requirements. These exist in order to prevent bonus fraud, which is a practice when someone signs up only to trade with the bonus money and in case the bonus money is lost to withdraw the deposit.
The requirements will ask you to invest your bonus money at least a certain number of times (usually 30) before a withdrawal is permitted. If you are a beginner or a low deposit trader then it will be extremely hard for you to meet these requirements.
A lot of beginners however are not aware of these requirements and quickly jump in to accept the bonus believing it’s just fee money. They then end up not being allowed to make a withdrawal.
There are several ways that could solve this problem. The first is to always make is very clear to the trader what the bonus requirements are before awarding the bonus. Another is to only offer bonuses for larger deposits. Some have even suggested to completely eliminate bonuses altogether but thus might be too drastic as bonuses can actually be helpful for large volume and experienced traders.
5. The USA needs to relax its binary options regulations
A principal reason why so many shady and scam binary options brokers exist is because the US has very complicated and crippling online trading regulations. These regulations prevent the legit and non-scam brokers from accepting USA registrations.
It however does not prevent the shady and scam brokers from accepting USA registrations. Its being argued that if USA regulations would not be that crippling, then the European based legit brokers would be able to acquire US licenses.
And finally, once US traders would be allowed to register at the legit European brokers, the scam brokers would go out of business.
Unfortunately it’s extremely unlikely that this last point will ever see the light of the day, mostly due to political reasons.
And these are the issues that I believe need to be solved before binary options could finally become mainstream much like Forex trading. I believe that the first four points will most definitely take place within 2 to 3 years. Point 4 however is very unlikely to ever come into fruition.