One thing we noticed about each broker is that all their advertisements praise binary options trading. Yes, it’s a highly profitable instrument.
Yes, you can make money within a minute of the close. Yes, it’s easier than the Forex market, and even more so than trading on a real exchange. But few people realize how dangerous binary options are.
Therefore, many beginners, without suspecting anything, make deposit after deposit. That is until the beginner either abandons this disastrous trade, in their opinion, or goes ahead and runs into trouble.
So let’s get to know all the pitfalls of binary trading and we’ll show you the dangers of binary options for an unprepared beginner.
The first danger is advertising
This is what we said at the beginning of the article. Advertising is done not only by brokers, but also by major partners. Sometimes the ads look good. They don’t promise super profits and facilities. But we often find the opposite.
It’s not easy to make a prediction, even for venerable traders who have been trading for over a year. This is serious analytical work that no one can do without knowledge and experience.
Yes, you only have to press a button to close the deal. But without making predictions, this is a game that will sooner or later lead to disaster.
Stop believing advertisements that promise to turn you into a trading professional in a matter of days or promise easy money.
The big brokers are moving away from this advertising, using really interesting offers. But misleading advertising continues to be used by competitors who have nothing to offer. And also by unscrupulous partners who are looking for one goal – to attract users by any means and make money out of it.
The second danger is self-deception
If you’re interested in the dangers of binary options, you probably didn’t realize that one of the risks is in yourself.
Misleading advertising does not go unnoticed. Many beginners believe it and think that there is nothing complicated about trading, and that even children will be able to get an apartment for their parents.
If you’ve fallen victim to this advertising and are on the verge of depositing money, stop. Don’t think that in a month’s time you’ll be sleeping on pillows full of notes or sitting on an ivory throne. If you have no experience and haven’t completed the appropriate training, your main task is to save your own funds, not to make money.
This is not to say that trading is impossible. It’s just that you won’t be able to profit without experience and knowledge. So don’t make large deposits upfront.
Danger three – fraudulent brokers
We’ve already talked about advertising, but what are the other dangers in binary options? Today, there are hundreds of companies working in this field.
Unfortunately, there are also scammers among them. And unfortunately, there are several of them.
Even if you don’t get fooled by golden promises, if you start learning and practicing you could lose your deposit by being scammed by the broker.
There are some tips to help you avoid dubious companies.
We’ve already written in detail about how to choose a broker. Now let’s quickly go through the rules and comment on them briefly:
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Look at the website. Some companies only offer the English version. It may seem that this is worse than a website partially translated into Portuguese. In fact, in the first case, the broker clearly shows that it does not intend to work with Brazilian traders. But they do, so to speak, want to attract the attention of speculators from Brazil, but at the same time they do so reluctantly, since the translation has probably been done in an online translator;
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Choose regulated companies. There are several honest and reputable organizations that issue licenses. CySEC, FinaCom, MiFID, FCA and others. If the broker has received a license from one or more of these organizations, the firm is probably trustworthy. But what is the danger of binary options in this respect? There are regulators who do not fulfill their duties and issue licenses in exchange for money;
- Read comments in forums on the subject. Many traders share their opinions on the internet. But the problem is that any such site is full of personalized posts that either praise the company undeservedly or denigrate it;
- Check out our recommendations. So that you don’t waste time searching, we’ve created our own ranking. Each company on this list has become home to hundreds of thousands of active traders. Stable payouts, affordable conditions, help for beginners. Any company we recommend can boast these and other useful qualities.
Now you know how dangerous binary options are. This means you can bypass all the problems and trade honestly and transparently. No illusions and no deceptions.
