Are binary options a scam?
Binary options first appeared on the French market in 2011. They represented a new way of trading, by speculating on the increase or decrease of an asset’s price, whether it is a raw material, an index, a stock or a currency. Certain detractors labeled binary options as a scam, so the team at top10binaryoption.com has reviewed some of the notions that exist around binary options:
– Binary options are like online casinos: Binary options are radically different from online casinos. Binary options detractors equate the act of “betting” on the direction a stock will take to the act of betting money on the chance to win more money, but this notion is false in so far as binary options are a valid trading tool like the Forex and cfds.
– Binary options are online betting: Trading binary options is not just the act of randomly picking the direction that an asset’s price will take in the future. To properly trade binary options, you must implement a winning strategy by practicing with a demo account, for example, and learn technical analysis.
– Binary options brokers are not trustworthy: In the beginning, few brokers were regulated and there was confusion between honest and dishonest brokers. Now, regulatory authorities like the AMF (Autorité des marchés financiers) and CySec (the Cypriot regulatory authority), recognize certain binary options brokers which have good practices and which respect criteria such as ensuring segregated accounts, holding accounts in large financial institutions, and implementing measures to combat fraud and money laundering. This way you can be assured that you are trading safely with a regulated broker that is recognized at the European level.