Today I got a “comment” from someone working from a cashback company saying basically that binary options are a scam in any case, whether the broker is regulated or not, whether it acts fair or not, simply because the price structure is made to make you lose. In this article, I will argue that this statement is as misleading as the one saying that it’s easy to make a lot of money in binary options (it’s not easy at all, I know it myself).
Impossible to make money in digital options?
The comment said, quote : “Don’t ever think you can trade successfully in binary options, they are designed to steal your money.“ This statement is as bold as saying that anybody can make money in digital options. Some people might accuse me of concealing the truth because I am openly promoting Spectre ai binary options trading platform (that is broker-less, which means they cannot scam you). So I will quote the Australian regulator, who cannot be accused of colluding with any binary option broker or whatever. Actually in this article ASIC warns CFD, FX and binary options brokers about unsound practices.
According to ASIC, 20% of traders make money with binary options
You can read the article for yourself, it is in no way in favor of binary options. But here they give us a clue about who is successful or not when trading digital options:
As you can see for yourself, there are 80% of unprofitable traders. So it means that there are 20% who are making money! Again, I’m not saying it, it’s ASIC. If you want to accuse them of lying, fine. Given their stance on the sector I think we can trust this is the higher end of the percentage. You will also notice that margin FX, which is a way bigger market (21 x binary options), has 63% of unprofitable traders.
Binary options or any kind of form of trading : act responsibly
I don’t think I need to go much further to destroy the myth that it is impossible to make money in binary options when you trade with a fair broker. But it is not for everybody, as I said countless times on this website. Most of the “traders” that get “rekt” are people with almost no experience starting to play with accounts of a few thousand dollars, sometimes more. What do you expect?
I completely agree that the scammy brokers that harass customers to push them to play more money, to refuse their account while they blew it up because of their ignorance, should be stopped. But, on the other hand, you cannot prevent 20% of people who like binary options and make money out of it to trade this product. And to conclude, I always find it mind-boggling that people focus on those losses, as said that they are, while people blow much more money on other products such as sports betting, lottery games, poker, etc. In 2015 Britons lost more than 12.5 billions pounds in gambling, for example.
Digital options: the tiny tree that hides the Amazon forest
It’s up to the people to manage responsibly their money. I refuse to have my freedom limited in any way because of the failures of other to manage their life. If you start excluding retail traders from trading because they might lose money, then why not having some commission to review any financial decision of people because it might be unsound. Many people are over indebted around the word. This is certainly not because of binary options.