Why we believe Binary Options is a scam

[Zuga]

Hi GPWA,

so we just published quite a long editorial on this topic, so if you have time to read check it out at this link : http://www.latestcasinobonuses.com/e...e-online-scam/

cheers
Zuga

[eenzoo]

TLDR ... seriously!

- binary options used by bored housewives to make money without knowledge could be calling scam
- binary options used by a trader with knowledge in risk and money management can be a great tool
- binary options used by an affiliate to diversify his income sources is an great idea

[Zuga]

- binary options used by a trader with knowledge in risk and money management can be a great tool

Binary is NOT trading. and is certainly NOT investing into anything.

[ocreditor]

Binary is NOT trading. and is certainly NOT investing into anything.

Agreed

[eenzoo]

You don't have a deeper knowledge as a future or forex trader right? If you buy a CFD you invest in nothing, if you buy Gold certificate you invest in nothing but paper ... and so on.
And for sure you can use BO´s really good for short term trading.

An example:

You have an €10.000 real money account with IG.com
You are a trader with focus on DAX and an timeframe between 15 min and 4 hours ...
After your own analytics you believe the DAX will go up after the US market open today.
Regarding you risk and money management rules you risk max. 1% of your available money in one trade ...
You think the spread for DAX CFD are to wide and for some other reasons you can´t setup a Stopploss order for your trade pretty close to your entry point but your data told you to do so.

You have two options:
You could trade the CFD´s without a Stopploss order, which is dangerous like hell.
Or you buy a matching (asset, direction, time frame) binary option and invest €100 (1%)

Is you assumption correct your binary option will close in the money. If you are wrong you lose €100 which is 1% of your money and absolutely compliant with your trading rules.

And that are basics of a common trade on financial markets ...

[Zuga]

Binary options is a gamble and it should be called that. Calling it anything else ( trading etc ) is deliberately misleading the people who think they are "investing" .

Granted there are some legit B.O. programmes operating in US and abroad. But also a lot of scams coming from Israel, if it happens that the players actually win . Source : http://www.timesofisrael.com/the-wol...-scam-exposed/

[eenzoo]

Call it how ever you like and i agreed with you in case that dumb people are in focus of BO marketing strategies ... but THAT is not the problem of binary options but the financial gambling industry.

Binary options themselves are not more or less dangerous or scam like the millions of other existing financial derivatives.
What's it called? … guns don't kill people, people do

[-Shay-]

You don't have a deeper knowledge as a future or forex trader right? If you buy a CFD you invest in nothing, if you buy Gold certificate you invest in nothing but paper ... and so on.
And for sure you can use BO´s really good for short term trading.

An example:

You have an €10.000 real money account with IG.com
You are a trader with focus on DAX and an timeframe between 15 min and 4 hours ...
After your own analytics you believe the DAX will go up after the US market open today.
Regarding you risk and money management rules you risk max. 1% of your available money in one trade ...
You think the spread for DAX CFD are to wide and for some other reasons you can´t setup a Stopploss order for your trade pretty close to your entry point but your data told you to do so.

You have two options:
You could trade the CFD´s without a Stopploss order, which is dangerous like hell.
Or you buy a matching (asset, direction, time frame) binary option and invest €100 (1%)

Is you assumption correct your binary option will close in the money. If you are wrong you lose €100 which is 1% of your money and absolutely compliant with your trading rules.

And that are basics of a common trade on financial markets ...

That is a bet, not a trade. There is never anything underlying that you can own.

[eenzoo]

That is a bet, not a trade. There is never anything underlying that you can own.

That is exactly that what professional trader the whole day do
Identify a trend, planing a trade äää a bet. Execute it. Repeat!

But yes, it is always a bet. And maybe you own a underlying (or a part). Stocks of Lehman Brothers maybe, or Enron, or Worldcom ... at that time pretty safe underlyings you could own a part from

[-Shay-]

That is exactly that what professional trader the whole day do
Identify a trend, planing a trade äää a bet. Execute it. Repeat!

But yes, it is always a bet. And maybe you own a underlying (or a part). Stocks of Lehman Brothers maybe, or Enron, or Worldcom ... at that time pretty safe underlyings you could own a part from

There is no maybe in this. With binary options there is zero, nil, nada, none, zilch underlying equity or security for a punter to own or call away or put to someone. It is a bet, not an investment. People engaging in binaries are not trading nor are they investing, they are betting or gambling.

Moreover, any attempt at profiling risk is little more than attempting to make this **** look legitimate.

A day trader, on the other hand, is actually owning equities (albeit for a short time if he sees fit) or has the ability to put an underlying equity to someone or call an underlying equity away from someone. Not the case with binary betting.

[eenzoo]

A day trader, on the other hand, is actually owning equities (albeit for a short time if he sees fit) or has the ability to put an underlying equity to someone or call an underlying equity away from someone.

This is almost correct if we just talking about stocks or futures. Not for Forex, not for CFD´s on Stocks, CFD´s on Commodities etc. etc.
But seriously a day trader is for sure not an investor. He try to participate from ups and downs in prices, the value themselves is quite uninteresting.

[universal4]

Part of the problem is, that most (not all but MOST) affiliates that build sites and pages to lure gamblers to binary options do so with massive amounts of content using keywords such as invest, trade etc.

They give the appearance and lead the player into thinking it is investing and rarely if ever use the words gamble or bet.

Almost all the binary options operators do the same thing.

Rick
Universal4

Even though a day trader usually does not buy a security with the goal of investing into that security, nor do they often have plans of holding that security for long periods of time, but when they make their purchase they DO OWN it and have certainly INVESTED into that security no matter what their motivation is.

[Muppet]

The fact that there is a sub-forum dedicated to these binary options programs on the "Gambling Portal Webmasters Association" tells you everything you need to know.

Those are nice examples enzoo but you know full well that binary options programs are not targeting professional traders that win their bets, they are targeting naive suckers who think that they are investing and when their bets lose, the binary site wins. The industry is an organised scam built on a foundation of deception.

[universal4]

Correct Muppet.....and when they are led to think they are investing, most investors can hold on to the hope that any security that does lose value has the potential to gain that value back in either the near or long term.....and those that join and play at the BO sites do not understand these points.

I took a look at a handful of brokers and most of them have one common theme, convince gamblers they are investors or traders, which to most unsuspecting players gives them the impression they are entering the stock or securities markets as n investor....

Here are some random quotes from operators' sites, every single example is taken from their "about us" pages.

#1

was established as a way for traders to invest in binary options on a platform that is easy to use. It is our goal to make the trading process as simple and profitable as possible.

Your success is a testament of our commitment to any investor who chooses to trade with

#2

offers its traders the best online trading experience on the net. The digital options platform offers a wide array of currencies, stocks, commodities and indices to trade

#3

Trade only the finest binary options from our unlimited liquidity pool. We offer over 100 assets to our global investors that cover all market segments, forex, commodities, indices and stocks. Using our exquisite trading tools, investors enjoy superior payouts, proficient guidance, unique night and weekend options, a stable price feed and zero commissions.

#4

one of the best binary options trading platforms in the industry. Binary options — also known fixed return options, has been increasing in popularity over the last few years. Established in April of 2010, this platform is committed to creating the most user-friendly trading experience for all of their traders while achieving maximum profitability.

xxxxxxx xxxxxxx platform offers a wide variety of currencies, stocks, commodities, and indices to trade binary options.

Did you notice the common theme of choosing to use the word "trader" or "investor"? There is always a healthy use of the words securities, stocks and commodities.....yes players are gambling on the fluctuations in securities, but the general idea is like others have said, misleading and deceptions.

Rick
Universal4

[DanHorvat]

It's a scam.

You gamble on a flip of a coin without any relevant info, you lose 100% but can win only 70% of your stake. Trading and investing, they call it.

Then they shave affiliates, even the top ones. If what I've heard is true, brands also are no strangers to physical threats and even visits to your home.

And then they rent a Ferrari and drive affiliates for 10 minutes on conferences.

Plus they only show respect to each other - not to any outsider. And that's what I resent the most.

[superme]

Any type of investing is a bet, since investing is done with the idea to profit - long or short term. Why we should care if Binary options are called investing or gamble? If people don't have the brain and time to read 5 minutes what exactly is BO then why bother?
BO is same **** as Casinos, Forex CFD and etc.
And yes - shaving affiliates is normal in that industry....but hey lot of casinos shave too right?

[-Shay-]

Any type of investing is a bet, since investing is done with the idea to profit - long or short term. Why we should care if Binary options are called investing or gamble? If people don't have the brain and time to read 5 minutes what exactly is BO then why bother?
BO is same **** as Casinos, Forex CFD and etc.
And yes - shaving affiliates is normal in that industry....but hey lot of casinos shave too right?

We should care because it is not an investment. And if one industry shaves, it does not make it any more right (or any more wrong) for another to do it.

[universal4]

Correct,

And gambling at a casino is clearly gambling....and most often advertised as such....

But advertising BO as investing when it is gambling is false advertising.....(might as well just falsely advertise 1500% bonus when it's really 500%)

Rick
Universal4

[gaffg]

many gamblers are probably getting spammed all over the place with binary options. Gambling should be for most people a fun activity with a legitimate chance to win whether it is a small win playing casino, bingo or sportsbetting or a massive win like lottery. We all know there is some house edge there that in the long run in theory you will lose but it is still the thrill of the big win. Investments and investing might also be a fun activity for people, there is some risk involved but it's meant to be a smart means or using your money to grow it with a positive expected value. Binary options is like more like putting your money in a blender, people looking to invest their money in this manner are just going to get ripped off on multiple levels as it's more like gambling than investing having a negative expected value in place. If you look at the stories of 'traders' trying to cashout and seeing what hell they go through, it seems many companies just don't want to hand money back to any player which would be the equivalent of a gaming company rejecting a cashout without any valid reason. Maybe forex exists in a more regulated environment and it seems some of the forex companies are looking to distance themselves from binary options as well. At Gaffg we decided to axe the forex and binary options directories on the website to focus on gambling affiliate programs and news.

If you want to see what the forex community thinks of binary options

http://www.financemagnates.com/binar...art-new-trend/

http://financefeeds.com/binary-optio...ersonal-risks/

[DanHorvat]

Plus there's no jackpot in binary options.