Binary options trading represents the purest form of trading. You take a bet on the direction of the price of an asset (currency, commodity, stock, etc.) in a certain timeframe. As the name suggests it, you win or you lose, the outcome is binary. But is binary trading legit? In principle, yes. In practice, too many unethical brokers have put this industry in disarray, attracting attention from the regulators. Fortunately, the unique features of the blockchain offer now solutions to tackle the issues faced by traders willing to engage in binary trading.
Why so many people ask if binary trading is legit or not?
A lot af abuses have been ongoing. Putting aside the binary platforms that are pure scams, some brokers exclude as much as possible successful traders from using their services. There are numerous reports of price feed manipulations leading to trade upcoming favor of the broker. The digital options industry good therefore a very bad reputation, that is quite deserved to be honest. Binary trading has been banned in some countries due to those issues.
This said, it does not mean that binary trading is not legit as such. Honest brokers who fulfill their payment obligations, who provides auditable third-party feeds and behave ethically towards their customers exist. And with the emergence of a groundbreaking technology such as the blockchain, the opportunity for a brand new iteration of binary trading platform to appear is now presenting. With such system your money is never at risk. You get your payout instantly while the price feed is provided by the authority of the sector. It is therefore completely verifiable.
Is binary trading legit? With the broker less model, 100%
Spectre.ai has materialized this revolutionary concept by becoming the first broker less binary trading platform. The liquidity’s provided by the DALP (decentralized autonomous liquidity pool), a reservoir money held in the Ether cryptocurrency. The money you use to trade is held on the Ethereum blockchain, which means the platform can never take control of block your funds. Each trade outcome is immediately reflected on your Ethereum wallet, again out of reach of Spectre. Last but not least, Spectre use xignite as price feed API, the leader in the market data industry. The platform cannot therefore manipulate the price. Xignite is used by finance giants such as Blackrock, Charles Schwab, Ameritrade, Oppenheimer, Mellon, etc.
if you want to start trading binary options but held back because of these question « is binary trading legit », we recommend you to try without obligation the Spectre.ai platform. Soon the obligation to have your own Ethereum wallet will disappear as a system taking care of the fiat to crypto convertion will be rolled out, allowing anybody to trade fairly digital options, binary options, CDF, etc.