Another question that you might have about the Binary Options, it could be this “Are binary options legit? Are they a scam or fraud?”. In fact at a first glance, to some people the Binary Options may seem a scam, just because it’s possible to earn a lot of money in a short time with them or because there are conflicting opinions about this argument (So there are people that are saying a thing and other people that are saying the opposite).
We can already say to you, that the Binary Options are not a scam, but they are a financial instrument that had a strong “expansion” in the last years. Although they are not a scam, you can still find some people that can say the opposite: why?
A false stereotype
Because the Binary Options seem to be too “simple” to use and understand, for this reason they are not considered a financial instrument (Although they are a financial instrument); moreover, it’s possible to earn great amount of money in a short time with the Binary Options, and some people do not want to believe that this is possible, so they “classify” the Binary Options as a scam. This happens also due to the “mentality” of our society: “The more you work hard, the more you earn; the less you work hard, the less you earn”. That’s not true. To earn a lot of money, you should not work hard but work in a smart way; unfortunately, some people think the opposite and for this reason they classify everything that doesn’t “follow” their thoughts as a scam or as not possible. That is the main reason why some people say that the Binary Options are a scam (Despite they have never try to operate with the them).
Of course, there are also other reasons why people see the Binary Options as a scam. For example, how can we not mention the people who have tried to trade with the Binary options and, in a short time, have lost everything. Why? If you try to do something (does not matter what) but you fail in this activity, how would you feel? Angry, frustrated, stressed and so on; for this reason you would say to everyone to do not try this thing or activity, saying to them that you have already tried and that you have failed and for this reason they will probably fail as you . People that have lost their money with the Trading with Binary Options, they will do the same thing; but these people have lost their money because in most cases they had not the “right preparation” to do Trading with the Binary Options (For example they did not know how to interpret a chart, the Technical Analysis, the Candlestick Patterns, etc… ) or in the worst case, they had considered the Binary Options as Betting, so they operated without a strategy and without the right knowledge. It is not a mistery why they have lost all their money that they had invested on Binary Options.
Moreover there are also other people that voluntarily say that the Binary Options are a scam or something useless or just another way to lose your money. Why? Because probably these people have an interest to convince you to invest (for example) your money in other types of financial instruments or other activities; in other cases, they act in this way to convince you to buy one of their products (Especially Ebooks), with which you will learn “a secret way through which you will earn a lot of money” or similar things (Of course, it can also occur the opposite situation).
The Problem of advertising
Lastly, we have to say that the Brokers themselves do not make a good advertisement about their products and themselves in some cases. But that is not all their fault.
Before we go on, just answer to this question: would you click on a banner of a website? Surely no, you would say, because probably you are “afraid” that if you click on a banner your computer is going to get a virus (Or more than one) that will “destroy” or damage your computer. That’s another stereotype. In fact the banners on a website, are just a way (for the website owner) to earn some money, to help the website owner to pay all the expenses related to the website and they aren’t “dangerous” for your computer. Another question: would you click on a banner of a website, that says “You can ear up to 10.000 euro in one month!; Earning up to the 300% of your investment!; Bonus of the 100% on your first deposit!” (And so on) ? As before, surely no: probably you will see the Banner as a fraud. We are saying this, because in some cases the Brokers have these Slogan in their banner; so at a first glance, they can seem a fraud or something like that. But that’s not the true, because they are not a fraud!
In fact it is true the fact that you can earn up to the 300% of your investment on a Binary Option (Also up to and more the 500% in some cases); and is also true the fact that you can do great earnings in short time (Also in two minutes or less!). So the Brokers are just explaining to you the main features of the Binary Options; and is not their fault if the Binary Options work in this way! (That may seem something that is not true or a fraud). The only thing that we can say to the Brokers, is that in some cases they just “list the positive sides” of the Binary Options, and doing so, some people could believe that is very easy to earn with the Binary Options. But we should also understand them: in fact, if you want to sell a product to someone, would you say to a person the positive sides of the product or the negative sides of the product?