4 Reasons to Stay Away from Binary Option
March 25, 2020
If you are considering trading, DO NOT fall into the Binary Options trap.
Here is why:
1- Binary Options is a new platform (since 2008) designed to attract gamblers online.
2- The broker doesn’t send the orders to the market. However, the orders are kept at the broker end => so just like a casino, if you win, the broker has to pay you. Thus, the binary options broker tends to do tricks to make you lose.
Never trust a broker, who constantly calls you and pushes you to deposit more, manage your account or send you signals.
3- The RRR (risk-reward ratio) is negative, when you win, you win 80% of your chosen investment and when you lose, you lose 100% of the investment so you don’t have an edge in the market as your losses are bigger than your wins.
4- The broker can easily manipulate price, especially for trades with less than 5 mins expiry, as only 1 point/pip can make the difference between a losing or winning trade.
If you are new, they will give you an edge by making you enter below your actual entry (in case of a buy) and when you start making good profit or if your account is big, they will make you enter higher than your actual entry, freeze your platform, and will not let you withdraw your money.
In brief, if you are serious about trading / full time, you need to approach it the right way, through Forex / CFD or stocks.