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Are binary options a scam?

If you are currently reading about us, then the binary options subject interests you and you are hesitant to get started for fear of facing a scam … We will try to give you insight so that you can confidently invest and above all, have a full knowledge of this financial product, i.e. binary options.

See also the list of regulated brokers (guaranteed without any scam !)

I suggest you begin by clearly defining what this recent financial instrument “the binary option” is, before explaining the reason why some people have assimilated binary option and fraud, and then we will give you our informed opinion on this subject and provide you with all the keys for making money with binary options without being a victim of scam. 

Binary options and scams: two very different methods to easily earn money

We believe that the only common point between binary options and scam is that the two products are very lucrative! Their main difference is that the profit does not necessarily benefit the individual investor … Start by defining these terms in order to see things more clearly. 

What is a binary option? 

Options are types of financial contracts. Investors or “traders” who practice them refer to this action as the “trading of options”. The number and complexity of options available on the market is very important and varies completely from one contract to another. Let us consider the options that we call “binary” and that have been accessible online to any private individual for a few years now: we are here talking about “online binary option

Binary options are probably the simpler and more accessible investment method to internet users. As its name suggests, it is a question of “binary” option for which only two outcomes can be delivered at the end of the contract. This one is closed automatically when its expiration time is reached: we are therefore talking about an expired contract. At this time, either the objective of the contract has been achieved and the contract carrier wins a gain, whose amount has been predetermined at the opening of such contract (also known as “rate of return”), or the objective has not been achieved and the owner of the option incurs a loss, and the initial investment amount percentage is returned to him (we refer to it as “return on loss”).

The websites that offer online binary option trading are commonly called “brokers”. There are many binary option brokers who offer deals, promotions, and a panel of financial instruments, quality of execution and customer service. These features can greatly differ from one broker to another. Few years ago, when binary option was first launched to the general public, some brokers have been accused of “fraud”, “swindle” or “scam”.

What is a binary option scam? 

A scam is a fraud that leads the investor in error, through the use of fraudulent means. Scam is the result of an organized and of course deliberate will to deceive.

As you might have obviously realized it, the Internet is literally THE hub of fraud: a place for the development of scams and all kinds of fraudulent activities such as; (phishing, spam, misleading methods for making easy money, agiotage … etc.).

Scam is particularly developed in the financial sector, where many are in search of THE “good deal”. The targets that are fond of the perfect investment (guaranteed gain, simple, reliable and secure investment …) are numerous: actually, we are all part of it…

In our particular case dealing with binary options, scam generally consists of misleading you on the return on investment, and promising you guaranteed gains or assuring you the professionalism of financial advisors and brokers. The different financial supervisory authorities have published a black list of the broker to avoid. 

In fact, as we have previously discussed, it is necessary to go through a broker in order to invest in the binary options market.

We have therefore raised the question to know whether this speculative binary option product has been created for the sole purpose of deceiving the investor, or if he has quite simply fallen prey to unscrupulous brokers. 

Is binary option really a scam?

You have already been able to read on forums or in numerous articles, some of which raise doubts about the reliability of the binary option product itself.

The binary option is a speculative product par excellence, and the term “option” does not hide that the outcome can be unpredictable. Anyone wishing to invest in the financial markets should be aware that significant gains are possible, but a loss is also possible. It is here that the scam has crept: to believe in a guaranteed gain, a very attractive and daily gain “how to earn 7000 euros per day with our infallible method to gain in the stock market”…

Many brokers have rushed into this flaw presented by the novelty of this product that has recently been opened to individuals. But we did not stop at this façade; the appeal of binary options are much more important! Dig beyond these unscrupulous brokers and learn how to safely make money with binary options. 

Our best method to earn money easily: binary option without fraud!

Like many others, binary options are financial investments that do not present more or less risks than other products based on the market. In fact, markets are based on speculation and it is also thanks to this hazard that they yield as much!

To say that this “binary option” investment is a scam would be to quickly conclude that the financial markets are a huge scam themselves … Although some still believe it, these markets bring in returns and we have taken advantage to benefit from it! 

Binary options, a serious regulated product: 

A very important guarantee of quality of binary options is the increased regulation of this product. In fact, the regulation of binary options has evolved a lot and has become a guarantee of a secure investment and increased protection of the investor. This is a quality market which is implemented at high speed.

Thus, the control authorities have established a license for the best binary options brokers. We cannot do anything on this market and it is also a proof that binary options do not constitute a scam in any case: regulation is a guarantee and transparency mark for the investor. (For more details, read our article on binary options brokers regulated)

You are aware that the binary options market is now well regulated, so it’s up to you to take advantage. Like any investment, to benefit from the gains offered by binary options, it is sufficient to bet intelligently. Here is a small summary of the perfect binary option trader: 

How to take advantage of the gains offered by binary options: a reminder of the basic rules:

Know your product: knowing binary options:

We must begin by knowing your product and market well. Know how binary option functions, learn about the current market, and what the preferred positions are…

Binary options were a poorly known product of individuals, but now we have enough hindsight to offer all the reliable tools to understand how binary options function, and more and more tools are developed to advise each investor. You can particularly document and read the market analyses offered particularly on our website under the analysis section.

To help you fully understand all this data, the choice of a reliable broker is required. Its customer service and the advice of its financial professionals make it an indispensable ally for a serene experience in binary options trading. 

Choose a serious broker: stop the scam

The first anti-scam rule par excellence is primarily to avoid the grossly enticing proposals of brokers: “Becoming rich in 10 lessons”, “Earn money easily with binary options function: guaranteed daily gain!” “With broker X, satisfied or your money back!” 

To better choose your broker, we recommend to you that you define your investor profile and to know exactly what you expect from the broker. Then you can simply compare their professionalism. To help you in this process, we advise you to explore the comparative of the broker that allows you to easily compare the advantages and disadvantages of each broker. This will break down the information for you and will undoubtedly prevent you from getting lost in a large number of data to compare in order to find your binary options broker.  

Another criterion for choosing one’s broker is to read about him, particularly to read the reviews. The reviews on the binary option brokers are numerous and it is necessary to read them with hindsight because it is often easier and more common to criticize than compliment … (see our article on binary options reviews).

Finally, another criterion is regulation. In fact, choosing a regulated broker is undoubtedly a guarantee of quality, even though a large number of serious binary options trading brokers are pending regulation approval. Therefore, this criterion should not be restrictive but rather complementary.

In conclusion, a scam would not be in the binary option product itself but rather in the investment intermediaries that were able to prove unscrupulous in the past … Today, with the regulations of authorities or institutions such as the AMF or the Bank of France, a scam has no place among regulated binary option brokers.

Is binary option a scam or not ? Post your comment !

  1. Ben Ford said: 02/02/2015

    Hi, I am from Canada. I have a question abought Citrader or they used to be called ciTitrader. There are lots of “warnings” abought them, even in some Canadian provinces; not all. The main peapal running it also are involved in TradeQuicker, that one got warnings on it fast. From USA,as well as France. I already doughbt their honesty and integrity. But I have never figured out if they were actually registered or what regulatory agency they answer to. AS far as I can figure there based out of Cyprus or Israel. Mabey you could figure that out. Thanks in advance and thanks for your time.

  2. Mike said: 10/04/2015

    Please beware that Opteck.com is also another scam broker. When you wanted to withdraw your profit or close your account (to get your whole money back), they will find ways to deny your right. They will get angry with you. Emails, phone calls and live chats are all falling on their deaf ears. They will not expedite your request. Once you deposit your money with them, don’t ever dream to get back even if it is your profit, what more your own money that you deposited. Take note my friend. I experienced it.

  3. Ana said: 23/06/2015

    Ivory option is also a scam.
    On the first day when I deposited money their so-called broker called me and said that I put all deposited money on one position. I did not want to do that, it was really strange, but he began to shout to do that and it was a gift from Ivory option no matter what happens. The money were lost that day and they play dumb, or better to say they make me foolish. What should I do?

  4. barez said: 13/09/2015

    Any experience with Greenzone option? Especially follow the pro?

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