Why do many traders quit using binary options?

quit binary options trading

Do you know people in real life or online who have decided to permanently stop trading in binary options brokers and you wonder what pushed them to make such choice? Below, we show you some reasons why certain traders decide to completely give up on binary options.

Brokers with aggressive marketing

Sometimes traders do not manage to trust brokers or they become progressively fearful of binary options. In some cases, the cause may be the aggressive marketing of some binary options brokers. In fact, it is not uncommon to encounter binary options brokers that take extreme measures to attract new clients. Thus, they will not hesitate to pay for online advertizing in order to solicit potential clients by phone or e-mail, and they generally insinuate in their messages that making money on the financial markets is a childish thing.

Teasers such as “how I earn $ 550 per day” or “I tripled my salary in 2 weeks” are the kind of sentences that can be used on the web by aggressive brokers in their ads (banners, etc. …). It is very uncommon for regulated binary options brokers to adopt this kind of behavior, as financial regulators generally prohibit such practices that are designed to conceal the real risk of speculation through binary options and that suggest easy money. The aggressive marketing of certain binary options brokers (unauthorized) will sometimes push investors away from binary options in general, and even from licensed brokers. Investors who are scared off by this advertizing will no longer distinguish between good and bad brokers and will simply stay away from binary options trading.

Results that are below expectations

Traders who fall into the trap of brokers with aggressive marketing or who imagine that binary options is easy money and that they will become millionaires in a few weeks will indeed experience disappointment when they will find out that this kind of miracle rarely happens in trading. By depositing the sum of $ 100 or $ 200, some traders think that they will manage to generate equivalent profits each day.They inevitably experience a jarring of their expectations and quickly become hopeless when they finally open their eyes and realize that they are earning few tens of euros at best per trading session. Binary options will not make you rich overnight, so stop believing in myths and be realistic. If you want to regularly win substantial sums of money in this activity, you need to grow your capital gradually and at the same time reinvest your gains by gradually increasing the size of your trades and therefore your potential returns on investment.

Binary option scams

In binary options, scams are a real scourge. They multiply at the speed of light and take a certain t in this industry. The reason why the number of binary options scams is growing is that more and more individuals are interested in trading in order to supplement their monthly income and generate additional revenue from their homes. The crooks who try to ruin honest investors will generally amount to false brokers. The websites and platforms of these brokers are just façades or what we might call “empty shells” because once money is deposited in the trading account, the broker will never pay back money and will simply keep it.

It is very difficult to recover one’s money once cheated by a broker because in almost 100% of the cases, fraudulent brokers are based in tax havens. The company that houses the broker is a company valued at € 1, with anonymous bank accounts and directors. These companies can go out of business overnight and do not have any license to offer binary options trading. Financial regulators try to fight against scammers by issuing warnings and publishing blacklists of binary options brokers. Here, presentation is better than punishment because the scammers who establish fraudulent brokers are not generally traceable.

Losses of money

Many novice binary options traders think that trading is a game. Fans of sporting bets, casino games and horse racing who are bad in this area and who tend to be addicts and who lose money are the kind of traders who will not continue in binary options. The little money invested by these traders is likely to be lost in a few hours or a few days at best. In fact, the problem of this kind of traders and beginners is that they do not have a serious approach to binary options trading, they have a “gambling” (betting) frame of mind and they do not have an investment frame of mind.

When they start to practice trading, they will have no strategy. For example, they will speculate randomly, they will say they “have a feel” for the market and they trade based on “feeling” and in addition to that they have no money management a risk management skills. By practicing trading in this way, traders have little chance of making money in binary options; they will usually lose it and think that binary options are “rigged” and prefer to give up when the real problem comes from themselves.

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