Are binary options a smart investment?

reifallen

Trader
Jan 10, 2014
6
0
12
I have recently been putting some serious thought into my financial situation. I figured that it was time to put a serious plan in place that would allow me to accomplish all of my money goals over the next few years, as well as the end game of retirement. I figured that my strategy had to have 3 primary goals and strategies.

The first part of my plan will include short term, medium term, and long term goals. Obviously the short and medium term goals will ultimately accomplish the long term goals. I also want to look at including strategies for slow growth, medium growth, and long term growth. This means that some strategies will be long term, slow growing, but solid investments. Other investments will be much higher risk, but also have a higher return on investment when it goes properly.

I began looking online for various methods, ideas, and strategies to accomplish these goals. One technique and method that I came across is the use of binary options. I ultimately found this page http://en.wikipedia.org/wiki/Binary_option on Wikipedia. They explain that a binary option has some payoff that is either a fixed amount, an asset of some type, or nothing at all. This means that the payoff will be significantly higher than with other investments, but there is also more risk compared to traditional investment vehicles like a 401(k).

I continued my search for more information about how to use binary options in order to earn money as quickly as possible and to include in my quick and short term financial goals. I found various programs that offered instruction, as well as countless books on the topic. I also found various programs that allow someone to make trades. They ranged from super easy to use all the way to college graduate complex.

My question is whether or not any of you has had any experience with buying and selling binary options. What advice would you offer to help me get the most out of my trades as quickly as possible? Do any of you have any experience in this investment vehicle? I am open to anything all of you can offer me, and any advice you may give.
 

Rambo35

Confirmed PaxForex Representative
Apr 22, 2013
909
24
32
Canada
Binary options are more of a trade than an investment, but besides that it all comes down to the trader (investor). They can be great if you know how to trade them, the majority is clueless and no matter which asset they trade they will fail at it.

I trade them, but only devote about 10% of my trading capital there.
 

eyeball

Master Trader
Sep 25, 2011
164
12
49
Be careful

Be careful and have a sound and proven trading plan/methodology in place before you begin. More so than spot ( normal trading) options are a truly adversarial contest between you and the dealer--they will employ every legal device to separate you from your money.
 

vicknic

Confirmed ProfiForex Representative
Jan 21, 2014
207
7
39
Netherlands
www.profiforex.com
Binary options are more of a trade than an investment, but besides that it all comes down to the trader (investor). They can be great if you know how to trade them, the majority is clueless and no matter which asset they trade they will fail at it.

I trade them, but only devote about 10% of my trading capital there.

Binary is not actually a trade is it? I think it is gambling where you have to bet against/for a pair quotation moving up/moving down. You should stick to forex where your success does not entirely depend on Luck.
 

garena

Master Trader
Jan 28, 2014
243
5
54
Is binary options a better trading way than forex? If it's so, it's a smart investment since a lot of people are trading forex.
 

highpips

Trader
Jan 29, 2014
3
0
12
Is binary options a better trading way than forex? If it's so, it's a smart investment since a lot of people are trading forex.

Can you explain in details how binary is better than forex? I also thought it is a gambling business just as @Vic above had said. I have checked some websites and it talked about predicting and winning. I think it is gambling by predicting price movement.
 

reifallen

Trader
Jan 10, 2014
6
0
12
Thank you for all of the incredible feedback guys. I have also considered forex as an investment vehicle, as well. My long term financial strategy is to invest in real estate and property, precious metals and gems, and other slow but stable investment platforms.

I want to consider learning about a number of different short term investment options such as binaries and forex. I will certainly put a strong/solid plan in place before I make any financial investment, which is why I am here searching for your input and advice. I found [link removed] which I was curious if any of you had any information on. Have you used it in the past or know anything about it?

I know that these types of investments are higher risk, but the return on investment is equal to the risk, as well. I am an intelligent person, and I believe that taking the time to study about the best investment methods and putting a strong plan together could make a huge difference.

Whether it is gambling or investing, the reality is that the return on investment is reasonable. If I am able to earn even a short term gain using these types of methods I could use that money to invest in more solid investments like gold which I can then keep, and sell to invest in other investments, as well.
 

Elmira Nancy

Active Trader
Nov 16, 2009
17
2
32
Binary option trading is a booming trend. Its enthusiasts claim that it can provide tremendous returns on your investment for a controlled risk, and allows you access to a much greater array of markets at a lower cost and initial commitment level.
 

Rambo35

Confirmed PaxForex Representative
Apr 22, 2013
909
24
32
Canada
Binary is not actually a trade is it? I think it is gambling where you have to bet against/for a pair quotation moving up/moving down. You should stick to forex where your success does not entirely depend on Luck.

You are wrong, it is trading but most do not comprehend it and gamble in either case.
 

Gino

Trader
Mar 11, 2014
4
0
17
Scotland
www.fivedollarsignals.com
I think binary is pretty hard.

You have to be right on the direction and the timing and you can't ever win over 100% of risk, meaning you have to be right over 50% of the time.

I would not consider them as a serious way to make money, and I do not personally know too many people doing very well in them over a long period of time.
 

watchidiot

Trader
Mar 13, 2014
5
0
12
just like in forex, if you have a good strategy then of course it is a smart investment for your money. I am new both in forex and binary options but in BO, I use a strategy named binaryholygrail and I am profiting greatly from it.
 
Apr 6, 2014
5
0
12
Binary Trading is one of the smartest and fastest way to be a rich man. But it's not so much easy actually. You've to analysis the market and do the trades very carefully.
I'm using the The Wealthy Trader which gives me a good numbers of right signals. You can also try it as it is a free software for Binary Options :)

Happy Trading!
 

eyeball

Master Trader
Sep 25, 2011
164
12
49
Advantages

For experienced traders there are some distinct advantages in trading binaries.
1- Your risk is limited to the size of your stake rather than to the size of your account.
2-If managed correctly, you can realize greater leverage trading binaries than the 50:1 max offered by American based dealers.
3-Spread cost is eliminated and for scalpers the transaction cost, as represented by the payout percentage, can actually work out to be less than a comparable spot trade , given the variables of price and range.
4- You will never be stopped out. ( There are numerous trades I have made that at some point prior to expiry looked absolutely hopeless, and given a spot trade would have been closed out by me or stopped out , only to see trends reverse and the trade become profitable , not all the time of course but a
significant enough number of times to be meaningful.)
5-With as little as $100 you can actively and profitably trade.Most dealers have a $10 stake minimum and there are some with only a $1 min, giving the small micro type traders an opportunity to realize much larger profits than might be achieved in a similar sized spot trading account.
 

toretton

Trader
Aug 9, 2014
94
0
22
Italy, Milano
Maybe, but u must be very careful not to stumble on the scam, as it was with me. I read that binary options r good hedging instruments. Then learned that they r traded on the Chicago Stock Exchange, and decided to try. Since at that time I was on a business trip on Cyprus, I decided to find a company there, in in case for demanding ma money back. I have to say that I had a definite feeling that i shouldn't try, also cuz at that time I wasn't an experienced trader, but decided to take a chance. I chose the company in Nicosia, I'm not going to tell the name of the company not to be banned for slander, I just share my experience. I deposited money, bought the option, and I was offered to invest a certain amount i.e. a bet. It has become like a casino, but I went ahead. I guessed and got back my bet plus 60% on top, then (don't know why) I decided to stay and wanted to withdraw my money, but I was told that there was not a market situation because of this I can not get ma money. I decided to go to the address listed on the site - and as u can imagine - such company have never been there. So my arguments against the binary options.
First and foremost. You entrust money to people on the whereabouts of which u have no idea. Be careful. Open all sites in the binary options, which will give u a search engine and try to find at least one company, the site of which will be specified with real address. There r none, just none. If u still have the address, don't be lazy to check it out. At least through the same Google. U'll see that this is the nominal address on some island in the best case in Cyprus. (in ma case it didn't work.)
All the sites of the companies work very badly.
The real market traded at least a week-long lifespan. On Web sites, u'll find options scams and minute lifetime.
U'll not find on any website quality documentation with a detailed explanation of all the processes of binary options trading. For example: the methods of compiling a list of available tools and approaches to the formation of expiration dates and etc.
That is why: my advice is trade options on stock market and be happy. Cheers guys
 

toretton

Trader
Aug 9, 2014
94
0
22
Italy, Milano
To everyone who wants to play the Binaries: FOLLOW SOME RULES

a) Don't open an account with any CySec governed entity. If ever, CySec is a bucketshop. They do NOT assist anyone, they do not block funds of fraudulent companies either. They may revoke a license and that's the maximum. This does never give you any money back.
b) If you still open an account with a cypriot Broker, make sure that company is a member of the Investor Compensation Fund, and then limit your investment to the max. compensation amount, which is Euro 20.000
c) Do not ever accept any treats like Bonuses. Decline it right from the start and make sure you are getting it in writing.
d) Do NOT ever open an account by means of a link that you got from some intermediary - now THAT is a bucket shop ! The mechanics are simple: As soon as you open and fund the account, the intermediary gets a commission - and that most certainly comes from YOUR money, and it explains why you may run into troubles withdrawing your funds, or a portion of it.
e) Do not fund your account immediately. Ask what set of documents you need to submit in order to withdraw. Make sure they accept your documents AND confirm that this set of papers is accepted and sufficient to withdraw funds.
f) Stick to brokers who are actually regulated by the FCA, brokers who do have their legal and registered corporate address in the UK. Only then it is within reach of the FCA. The same is true for Brokers on the Isle of Man who are regulated by the Gaming Commission there. Since Binary Options are much like black/red on the roulette table, it's better to have at least a serious Government Entity like a Gaming Commission in control. The betting business in the UK is regulated in better ways than the CySec rules the financial business.
e) If an entity is licensed on Cyprus by the CySec, by rule of European law the other countries consider this and are forced to accept it, if a company registers with the FCA. Still, the FCA does NOT regulate that entity and in case of a dispute, the FCA would refer to CySec to resolve the case - and then you're stuck as we know.