Are binary options a scam?
It is not an outright scam, though it is a scammy industry. Certainly there are a lot of binary option scams, probably 80% of anything you see with “binary option” in the title is a scam. All brokers incorporated in tax havens, every single one of the forex robots, and every single one of the “binary options expert” blogs and courses – all scams.
The odds are certainly stacked more against you with binary options brokers. Most of the times you cannot use stop losses, which necessitates you watching every trade and manually exiting the losers. This is emotionally hard work compared to having a stop loss do it for you.
That being said there is an inherent mispricing in certain binary options which can mitigate the disadvantages of wide spreads and excessive fees.
But strictly speaking no it is not a scam, although many binary option brokers are scam brokers that take your money when you lose and won’t pay out when you win. (two that aren’t scams are Binary.com and IQOption).
What is up with this binary trading market and all the auto trading robots? Does any participant make money or is it just the marketer of the services?
Nobody makes money except the brokers who mostly build the crappy robots. None of them work. Robots are a massive scam.
- The binary brokers build and pay for these “scam robots” knowing they are going to lose money, they make trading sound easy.
- There are a heap of so called “experts” selling binary options advice when mostly they are bloggers who don’t trade. You can counteract *some* of this by doing the opposite of what binary brokers want you to do 🙂