You randomly found binary options on the internet, in an advertisement or maybe a friend told you about them, but you are wondering what exactly are they? We are going to explain them in this article, how to safely practice trading and how to avoid being caught by binary options scammers. This investment product will no longer be unfamiliar to you in just a few minutes !
Binary options are a type of investment product through which traders (investors) speculate on the evolution of markets’ trends aiming to make profit. Binary options are so called “binary” because they basically offer two options : put (buy) and call (sell). They also have two possible ends : profit (winner) or loss (loser), but in some rare cases the trader can be neither winner nor loser.
Binary options offer quite a high rentability because when you realise a speculative operation on binary options, the profit you may make if your prediction on the direction is accurate will range between 65% and 89% of the invested amount. Therefore, investing €100 on a binary option with a displayed return on investment of 85% will bring you back your €100 plus €85 in the case of accurate speculation, and you will lose your €100 in the case of wrong speculation.
As you can see through this simple example using binary options, you are able to earn money very easily with trading and that’s why a lot of people decide to begin trading them. However you shouldn’t only see easy money because even if they seem to be easy at first look, binary options are really risky if you don’t respect the money management (don’t risk investing more than 5% of your capital per trade for example) and if you haven’t completed any training on binary options. Therefore, it’s really important to keep your feet firmly on the ground when trading binary options and really start treating them like a true investment product and not like a casino game.
Scams are really common in the financial and investment industries, in particular in binary options. As mentioned previously, thousands of people start trading binary options every day like starving dogs eat bones. Individuals who begin trading have the bad habit of considering binary options as a way of becoming rich and earning a lot of money very quickly, so scammers use that to their advantage to commit their scams and steal money.
To practice their scams and con individual investors, scammers create unauthorized binary options brokers. On the face of the site these brokers seem legitimate and their salesmen promote the quality and the safety of their product, so they don’t hesitate to lie and pretend to be a regulated binary options brokers. Naive investors believe in the words of these scammer salesmen and are convinced to deposit huge amounts (several thousands of euros) that they will never recover.
Binary options are an easy way to earn money if you are trained on the subject, but only if you keep your wits about you and avoid scammers. Contrarily to unauthorized binary options brokers, there are legal and authorized brokers. For example, the broker 24Option (as well as TopOption) is regulated by the european regulators such as FCA (United Kingdoms), the CySEC (Cyprus) and the CNMV (Spain).
It’s the type of broker to use if you wish to invest your money using a safe broker to be protected against frequent scams in this industry. Opening an account at a broker partner with our website will also entitle you to receive a bonus on your first deposit as well as the BonusBinaryOptions.net guarantee. If you register on 24Option for example, you will receive a bonus of 100% on your first deposit, instead of 20% if you don’t use our affiliate links.