There are so many Binary Options platforms out there and most of the Binary Option claimed that you can use that to get rich fast!!!.
The platform is cashing in on the human greed to lure people to the platform basing on the basic human desire of Who Does Not Want To Get Rich.
How many people have been using Binary Options and learned a painful lesson that they will never forget?
There are Binary Options who claimed you can make a lot of money and easy to get your investment back.
FREEBIE IN BINARY OPTION
Some Binary Options even provide one for one investment, that is if you invest USD $2,000, they will top up the account with USD $2,000 and you have $ 4,000 Capital to trade using Binary Option, however the platform administrator did not tell you at that time if you take the option of getting the free top up, you are not able to withdraw your initial Capital until you make certain numbers of transactions.
In the internet, there are so many advertisements about Binary Option and video showing how people have made a million within a short time using the same actors or actress to lure you to believe this is THE WAY to make money.
WHAT IS BINARY OPTION?
According to Wikipedia definition
"A binary option is a financial exotic option in which the payoff is either some fixed monetary amount or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The former pays some fixed amount of cash if the option expires in-the-money while the latter pays the value of the underlying security. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and fixed return options (FROs) (on the American Stock Exchange)."
so in layman term, it is a yes or no, and head and tail type of game, it is like a game of chance, right or wrong.
When you want to find out more about the platform, initially the customer service is so friendly and helpful, but when you are winning using the Binary Option, they will have people making calls to you to show you how to make more money and encourage you to trade more and in no time, you find out your winnings are gone and then they will call you to put in more money and tell you again if you put in USD $5,000, they will top up USD $ 5,000 and here you are, you have now USD $ 10,000 to trade.
What Are Offered In Their Website?
Some websites even offered training on trading of binary option and claimed to provide good trading support, some even claimed to offer good tips and sure win trade if you pay certain amounts of money.
Therefore I would suggest if you really want to trade binary option, do so with the local platform where you can meet the administrator of the platform in person and understand more about their operation, even that also may not be good enough, however do trade with good conscience.
DO YOU KNOW WHO YOU ARE DEALING WITH?
The main issue is -- the trader does not know who he is trading with and how many players/traders are involved, for all you know, you may be trading with the platform's software and being manipulated by them and what you see on screen was supposed to be the real trade in the financial market, but there could be some lag in the data which indicated you may be trading with the platform back end who is just eating up your money/capital slowly.
WHAT HAPPENED IF YOU GUESSED RIGHT AND WIN?
If you happened to trade right and win, then the customer service will call you the next day and tell you to trade more or play more, depending on what you are trading, whether it is forex, stock, indices or metals and someone will call and tell you that they have some research done and good time to do certain trades and they would guide you and so on.
The next thing was you realize your winning were gone after a few trades and as the trades were for few minutes, so you would know your trade results within minutes and then they would call and said you should bet in certain amount as the probability was higher with higher amount and so on.
WHAT HAPPENED IF YOU WANTED TO CASH OUT YOUR WINNINGS?
When you called or log in to your account and indicated you wanted to withdraw your winning, you would not get any reply at all and when you called or emailed them, you would be informed that since you had taken the top up from the platform, you were not able to withdraw as you had not done enough trade transactions
They would ask you to continue trading and you soon knew the game was a scam as there was no chance you could win as it was just a program set up by them to ensure you put in money and so on.
Are Binary Options Regulated?
If you go to their websites, you would notice that they claimed they were regulated and they even offered you to check their credential with the relevant authorities, however, if you really check and read the reviews by some other who always monitor the scam and fraud, you would find that a lot of them are really scam and operated by some fraudsters who hide behind the internet and computer to thrive on human nature of greed of money and get rich quick.
If you really want to trade, do so with the local platform where you can meet up with the administrator and the company and understand their operation and get some assurance and check with the local relevant regulatory authorities.
If you are not well versed in financial market, do stay away from this instrument.
It will be better to trade in something which you know well instead of looking for some quick short term gain.
If you have any questions or wish to share your experience on this topic, please feel free to leave your comments, questions and your experience in the feedback space below and I would be glad to get back to you and thank you for your feedback, comments and sharing of your experience.