Its a fact that there are more and more ways to make money online all the time these days. But one method has had a mixed response over the last few months and that’s binary options trading. Binary trading, also known as options trading is a method of getting involved with stocks, shares and commodities. The process is very simple and even a complete novice can be up and running within minutes of signing up with a trading broker. But there is a problem. In fact there are several problems… The binary trading trend has really caught on, and where there is money to be made there are always scam artists looking to take advantage of people.
In this article we are going to discuss binary trading and how easy it really is to lose your money. We’ll be asking “is trading binary options a scam” or can you do it safely?
As usual we have a comments section at the end of this article where you can ask questions or leave a comment if this post has helped you in any way. I really do appreciate your support!
Lets get started…
What Is Binary Options Trading And Is It Safe?
If you are not already aware, binary trading is a very simple format. Put quite simply you register with an online broker and deposit some funds into the trading account. You then choose a stock, currency or commodity that you would like to trade. The binary broker shows the current value of the commodity and you simply say if you think the value will increase or decrease within a given time frame.
For example you might guess that gold will increase in value over the next hour, day or week. If at the end of the term you were correct, then you walk away with some profit. If you were wrong, then you lose your money. The amount that you trade with is entirely up to you, but there is generally a minimum trading amount.
In a nutshell, trading binary options is not a scam. However, there is a lot that you should be aware of before you get involved with online trading. I would urge you to read the entire page here before deciding to part with any money. Binary trading is currently a massive target for online scammers and they are getting more convincing by the day.
Is Auto Trading Binary Options A Scam?
One thing that you will see a lot of online is “auto” trading systems. These methods of trading binary options are very risky to say the least. There are lots of online scams based on binary trading but auto trading is right at the top of the pile. Whilst I’m sure that there might be a legit service somewhere online, I have yet to find one!
Automated binary trading is where you put some money into a trading account and let someone else trade it for you. This is extremely risky as you really don’t know who is taking control of your money. And then there are the websites that claim that they have developed a piece of software that can successfully trade for you. Again, very high risk and this area is full of scams.
We have covered quite a lot of these auto trading systems within this website. After you have seen a few of them, they become very easy to spot. So let me go through some of the tell tale signs for you…
Before You Start Trading Binary Options You Should Know This!
Most of what you see and hear online about binary trading is fake. If you have been looking around the internet for an easy way of making money online, then no doubt you will have seen lots of these systems. Many of the scam artists like to make trading online seem like a really simple process. And it actually is… But the sad fact is that most of these systems are not designed to help you trade. They are simply designed to take your money.
As we have already said, setting up a trading account is easy. Anyone can get involved with online trading these days. But the binary options brokers are making an absolute fortune. This is a billion dollar industry that just keeps on growing. And you need to ask yourself, is it growing because the average person is getting rich? No, the brokers are getting rich because people are losing their money. And the scam artists are only too happy to help with this. Here’s how the average scam works…
How The Average Binary Trading Scam Works
Most of these scams will start by convincing you that making a fortune is quite possible. Many of the systems will state that you can make a huge amount of money in a very short space of time. The websites look very convincing and they even employ actors to convince you even further. They usually make huge claims of riches, automated trading and so on. Many scams will tell you that the software will take care of your trading or that the system will copy an expert trader.
Once you are convinced that its the real deal, you are directed to a binary broker where you are asked to deposit some money. The average is $200 to $300.
When your money is placed into the brokers account, the scammers get paid a commission for getting a brand new customer. This is where the scam artists start to make their money. The money that you deposited is usually used up with a couple of hours. Of course the results won’t be good. You will lose your money.
But then, things just get worse…
How Binary Options Scams Drain You Of Every Penny Possible
The worst thing about many binary options scams is the fact that they attempt to get more and more money out of you. Once you have lost your initial deposit, the scam artists might claim that there was a glitch in the system or that something went wrong. They will then encourage you to place more money into your account so that you can try again. Many people fall for this and lose even more money in the process.
And then there is the binary brokers themselves. Many brokers are not regulated and therefore run some pretty shady deals. Its not unusual for the binary trading brokers to contact their customers, offering training or assisted trading “opportunities”. Many of these special offers cost a lot of money. We were contacted some time ago by someone who was offered “guaranteed results” from a training course that cost in excess of $10,000. They paid the money and ended up losing every single bit of their investment.
What To Do If You Really Want To Try Trading Binary Options?
The best advice that I could give someone who is looking to make quick profit with binary trading is to walk away. Trading binary options is not easy, no matter what anyone says! The binary brokers are going from strength to strength because people are investing and losing money. Don’t believe for one minute that an auto trading system will bring you riches and don’t believe that trading can be copied either. There are so many things that can go wrong, even with a legitimate site. You are always at high risk of losing your money.
But what if you really want to trade? Well, first of all I would recommend that you only start out with money that you can afford to lose. If you are investing your last $200 on this method, then again you should walk away. The best advice that I could give anyone looking to trade online would be to learn the ropes of trading manually. Find a legit online course and learn about predicting the fluctuations within the markets.
I have spoken with real people that are making good money with online trading. Yes, they do exist! But I have spoken to a lot more people that have been ripped off by online scams.
Let Me Know About Your Binary Trading Experience
Please leave a comment in the section at the bottom of this page if you have had any experience with trading binary options. You are also very welcome to ask any questions that you may have.