Is binary options a new form of gambling?

Binary option has supposedly taken Forex and stock trading to a completely new level. With new and improved technologies, brokers are providing platforms that claim to make trading super fun, quick, and effective. If binary option is an actual trading instrument and is not gambling then it has successfully taken out all the boring elements from normal trading and have replaced it with a fast and interesting platform.

Is binary option Gambling?

There are two sides to this story. If you ask this question to a broker, then most of them say no i.e. they will claim that it is not gambling. On the other hand, there are several clear indications that suggest binary options is gambling. Just for the record, it is my personal opinion too i.e. binary trading is 100% gambling.

Broker’s stance:

Majority of brokers will tell you that options is not gambling, and they will defend their position by giving different reasons. An account manager once told me during a phone conversation that their website is connected to some network by which their site get real-time trading data from the markets, and when a customer wins a trade, a third party pays the profit. “His company wants its customers to win as many trades as possible; on each trade customers execute, our company receives a small commission by a third party,” he added . He further explained that when a trade ends in a draw then they don’t get any commission; they receive commission only when a trader either wins or loses a trade.

Binary option brokers lie!

The account manager continued the story and said that they want traders to win and make money so that the company can continuously get commissions. “If a customer loses all his money and stops trading, we stop getting commissions,” he said.

If what the account manager said is true then all of this could make sense. Traders win trades and make profit while the broker gets commissions; it seems to be a workable system that actually does exists in ECN Forex Trading. Another thing they brag about is being a licensed entity. Most brokers reside in Cyprus and they get their trading license from Cyprus Securities and Exchange Commission [CYSEC]. They ask traders to trust them blindly because they are regularized by CYSEC.

Reality:

Binary brokers are trying really hard to give the impression that what they do is same as Forex Trading and I must say they are doing a great job, however; there are several unanswered questions like, who exactly is this third party? Moreover, if majority of traders make money then how is it surviving? How does it make money for itself?

Broker want to make, not lose money

Companies do business to make money for themselves; they don’t do it to make other people rich.

If you search on Google, you will find tons of withdrawal related complaints against majority of brokers. Traders who are able to make profit are not getting their money from brokers; they make up numerous excuses for not paying. Why do they have such a hard time paying profits to the traders?

You will find countless complaints against famous brokers who spend thousands of dollars every day on advertisements. They will make up all kinds of lies to hide the truth.

Nevertheless, there is hope. There are few honest companies in this otherwise awful business, one of which is MarketsWorld. This broker is famous for paying profits without any issues. Unlike other dishonest ones, they operate under the law.

MarketsWorld or MW is the only financial betting site that operates in Isle of Man, UK.

Gambling Supervision Commission [GSC] regulates this company. Gambling Commissions do not regulate currency-trading companies, so if binary option is not Gambling then why does GSC regulate MW?

In online casinos, if you play and win, the casino owner pays you the money from his pocket. You win and the casino loses. Binary trading operates in the same way; the real name of this business is “Financial Betting.” Binary options trading is completely false label for this business.

A live chat representative of MW gave the following statement:

“However since all trades you buy are against the company, we view it as a conflict of interest to offer trading advice directly.”

Here is a screenshot of the live chat discussion:

mw-chat-image-1-22541

It is up to you to decide whether this is gambling or not. Additionally, you should know that making profits in this business is only possible if you can come up with a good trading strategy otherwise, you will lose all your investment. Brokers advertise this as an opportunity that you can use to get rich quick; these are all lies. Without a solid working strategy, you cannot make profits.

 

Following is an example showing how financial betting, aka binary options trading, work:

Step 1: Select An Asset

binary-options-trading-example-image-1

 

Step 2: Select An Expiry Time

binary-options-trading-example-image-2

 

Step 3: Select Direction

binary-options-trading-example-image-3

 

Step 4: Select Investment

binary-options-trading-example-image-4

 

Step 5: Start Trade

binary-options-trading-example-image-5

Featured Comments:

Author: Garuni
Date: 2016-12-10 14:10:41
Said: If you analyze it carefully, you will know Binary Option is a scam.
1) how binary option brokers make money?
2) they make money from your every losing trade. But they put it beautifully that they only earn commission if you make money.
3) life is full of challenging, it is very difficult to tap on traders who knows how to trade,
4) thus they turn to big big very big market of those who does not know how to trade.
5) they offer “hold hands” strategy so that inexperienced traders are willing to pump in money.
6) to make it even more attractive, brokers even offer 100% bonus top up for every dollar you pump in
7) Account Manager will call you and follow his signal to trade,
8) hey remember, who pays his salary? Broker, not you!!
8) he will make sure you lose every cents so that all your investments are “transferred” to broker’s account rightfully n cleanly.
9) broker makes money is good job for Account Manager, thus they can’t be bothered how you feel. They don’t call you any more!
10) in order to squeeze further from every drop of your blood, recovery Account manager will call you, sympathy your case and say that your previous Account Manager has been sacked! Because they made the company lose an important customer like yourself..
11) Recovery manager will “promise” recovering your investments in 3 to 6 months. They will entice you to pump in more money to trade conservatively.
12) after you pumped in your money, they will slice you stupidly for the second time….
13) because you are more conservative this time, you will win & lose your trade, more lose trade of course! your investment will drain off slower until you realize that you are real stupid in this world !!
14) this tactics is the best scam on earth, you are being sliced twice and still do not know who they are!!
15) brokers and Account Managers now listen…I am not sure if you believe in retribution, karma and hell. Those money that you scammed successfully are peoples’ hard earn money. Believe or not, I know many has committed suicide because of your scam! They will haunt you down. You will not have good death!! You will never enjoy rest in peace!!!

Author: jason
Date: 2016-10-26 14:32:44
Said: I invested in a Cyprus company called Opteck…
and they lost all my money in two hours…

Opteck said they matched dollar for dollar. I invested 126,357 US dollars and Opteck made an even 300,000 US dollars. And all gone with out a guilty conscience.
DO NOT INVEST WITH OPTECK CYPRUS.

Author: Kamila
Date: 2017-07-31 08:36:20
Said: In my comment I want to touch a few subjects.
First of all, I am also a victim of binary options; do not mistake for a second- it a well oiled machine operation from the middle east and has millions of victims and devastated lives behind them.
I had worked with a company named 23 Trade, I trusted them and let the broker know that I’m a single mother that is in strangulation to raise her children and needs money, my bad. I was manipulated to invest 12K in 4 months time. All gone to the garbage and the explanation I got is that “this is trading. Sometimes you win sometimes you loose.”
My luck is that my brother worked in IT, and know his way throw computers. Once I explained to him what had happened, we started to search online to get more information and about the industry, we consulted a few law firms and decided that we are not going to let them to get away with it. After consultations with a few companies we did choose one (MBL) and we started to work to get my money back. I must say I was so broke that my brother actually gave me money for the process- it was devastating . In the end of this story, in a few mounts time I managed to get the funds back. Now I got to have a happy ending, but a lot of people are actually loosing they’re lives in the industry.
Bottom line of what I wanted to say- ALL BINARY ARE FRAUD. period. No good companies.
If you are, a victim like myself, do know that you can solve this situation. Go, read online, consult with lawyers. Just DONT let them get away. If i can- so can you too get your money back…

11 Comments on "Binary Options Trading is Gambling… or is it?"
  • Debra Bennett

    Throw your money down the toilet instead of wasting time in binary “TRADING”….

  • Angela Bailey

    After losing lot of money, I finally was able to make some profits. I lost $10,000 then invested 5,000 again. With some claim trading, I made 500 dollars and requested BANC-DE-BINARY to send me this profit. Before this request, different a** ho*** were contacting me and were always telling me that I need to invest more and more money.

    When I requested a withdrawal all calls stopped and they did not respond to my emails. It has been 2 months now and they have not sent me the profits. I also tried to get my $5,000 back but because no one is replying to my requests, I am trapped in a dead-end.

    Live chat will sometime simply disconnect after knowing what the issue is. Sometimes, they tell me wait.

    BANCDEBINARY IS SCAM

  • Umair

    I live in Pakistan, I tried to deposit money with my broker, but my credit card company called and told me that they are going to reverse the transaction. They also warned me to never use my card for business purposes. Can someone suggest a work-around? How can I deposit funds with if I live in Pakistan? Please help!

  • Ervin

    Hi, this is a trading scam period.

  • Copeland

    I agree.

  • Ahmad

    Sir I am a Muslim and I want to trade, but some people say it is gambling, so what should I do?

    • Raul Simpson

      This certainly is betting, stay away from it. Not only your religion denounces it, but also avoid it as it is gambling, 99% of the time, you will lose all your money at the end of the day.

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