Binary options themselves are not a scam. There are just plenty of unscrupulous brokers who have used binary options to lure in unsuspecting victims.
The act of making trades on whether a market will be above or below a certain price point is, in and of itself, a perfectly legitimate activity. Binary options were available to large institutional traders for a long time. They’ve been available to the general public since 2008.
They’re flexible, easy to use, and offer a pretty decent payout percentage of 70% to 80% once you learn the ropes. Of course, it may take you time to work up to those kinds of win percentages. While binary options are easy to learn, they take a little time to master.
Where are binary options legal?
It’s legal for binary options brokers to operate in the US, the UK, Australia, New Zealand, and the EU, except for Belgium. Some brokers also operate in Belarus, Ukraine, Moldova, and Russia. They’re legal in Mexico. They’re highly regulated throughout South and Central America.
It’s legal to purchase binary options as a citizen if you’re in Canada, but brokers are not allowed to operate there.
Of course, legality isn’t the only thing you, as a binary options buyer, want to look at. You also want to look at how tightly any given broker is regulated before you choose to start trading with them. Under-regulation is a common reason why people fall prey to scam brokers.
How can you choose a legitimate binary options broker?
First, check the regulatory body that’s overseeing that broker. Many legitimate brokers list that information right on their website, along with their license number.
Second, look for brokers who have been around for a long time. Brokers who behave badly tend to end up on blacklists, and sooner or later people stop using them. You can also check broker blacklists like the one maintained by the International Financial Commission.
You can check consumer reviews, too. If you’re not comfortable with a broker, move on.
How successful are binary options traders?
There are binary options traders who make their living on binary options trading alone. Some traders use binary options as part of an overall trading mix, and, again, they make their entire living that way.
There are also hobbyist traders who use binary options to make a little extra money every month by only trading what they can afford to lose.
Your success depends on your knowledge of the markets you choose to trade on, your ability to choose a strategy, and your ability to exercise the discipline to stick to that strategy. It also depends on your ability to manage your money and to keep track of how much you’re winning and losing.
Where can I trade binary options?
Binary.com, Deriv.com, or Binomo.com are three places you can get started. They’re easy to use and you can get started with a very small investment. Try your hand at binary options trading today. You might just find a new career!