Binary option trading group

Unlike normal options, however, binary options do not fluctuate in value.

Because of this binary nature, many shysters see an opportunity in selling binary options that are highly unlikely to end up in the money. They get to collect the hefty premiums, but never have to pay out. The media is part of the problem. This dubious success story was widely shared on social media without many questions being asked. That would literally make him the best trader of all time. So how did a year-old school kid learn how to outsmart the best minds and machines on the planet, just by watching YouTube videos?

There was also the very recent example of Gurvin Singh, a year-old medical student in Plymouth who claimed to be making six figures a month from foreign exchange trading.

Binary Options Brokers in Germany

Those who signed up for his services found that their trading accounts were emptied on Christmas Eve and the FCA has added him to its warning list of unauthorised traders after the fact, unfortunately. This aggravates me because, as a genuine trader, I work hard to make profits and I know what it takes. There are many reputable financial-trading firms and brokerages out there. Spread-betting firms typically make their money on the spread the gap between the buying price and the selling price and the commission paid by their clients.

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So their business model does not benefit from losing traders. However, many brokers know that a losing trader can be very profitable — for them. Simply take the other side of the trade.

How to avoid being scammed

When Johnny Punter buys, the broker sells. And when Johnny Punter wishes to cover his losses, the broker buys and collects the profit. Unprofitable traders are so profitable for many a bucket shop that they will pay handsome introduction fees for new traders. Therein lies the incentive.

And of course, there are plenty of places to hunt down a cheap, out-of-season stay at a luxurious five-star hotel, where they can do exactly the same. Most informed investors realise that if a magic money-making machine did exist it would be owned by a private hedge fund, never to see the light of day.

So anyone who actually believes that a year-old student could pull this off is ideal bait — inexperienced, naive and potentially desperate. But also, they know or rapidly learn that there is very little the police can do. The banning of the sale of binary options was a step in the right direction. Then, when the client finally wishes to withdraw, the company goes cold and refers them to the small print, in which it says that the client must trade through an impossible amount of money just to be allowed to withdraw.

Other brokers allow the affiliate to widen the spread to maximise their own commission and increase losses for their clients. We look at ways to avoid being scammed in the box below, but in short, as always — if it looks too good to be true, it is. For more from Michael, see shiftingshares. Stick with the UK: ensure any broker you use is UK regulated.

And stick to well-known names — online reviews can be faked. Le Quoc Equipment.

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