This section of the blog is devoted for binary options and everything that relates to them. I’ve already briefly explained how binary options works in the education section. But in case you missed it, here’s a short video on the topic:
The “nitty-gritty truth” behind binary options… not really sure what to call it..
Bottomline, they’re not regulated yet. It’s too small for governments to give two shits about right now. Since I’ve started binary options, I’ve only heard of 2 cases:
- Apparently, there’s an australian broker that is regulated
- The US originally didn’t allow people to trade binary options. That’s why at some point in time, brokers like Start Options didn’t let US citizens join their sites. That’s what I learned, I don’t know if it’s still happening today though. But now, Banc de Binary who’s HQ is in the US allows anyone to trade with them.
I won’t go into how brokers make their money from offering “no commission fee trades”. But every broker has their own way to make money, and do so to keep themselves a float. That’s why most of these “brokers” are viewed as casinos. Becausse the way some of these brokers operate, it makes it seem as if you’re playing against the house and how they find ways to screw you over. Such as increasing sprads, quote slippage, withdrawal problems, etc.
This is why my broker review section is useful. Banc de Binary which is the highest rated broker and comes highly reconmmended out of everyone that I know and trust. Including myself, although I’ve only traded with 2 brokers so far, in comparison to Start Options, Banc de Binary is much better.
Something else most, if not ALL of the “brokers” offer is a bonus as a hook to get you to join them. These bonuses help rack up the amount of trade volume that you need before they let you withdraw. That’s why in some of my earlier blog posts and even on the profits page, I include how much trade volume I have up till that point in time. Depending on the broker that you use, they’ll all require you have a certain trade volume = 10-20 times your initial deposit + any bonus given. This extra bonus just gives you more trade vol. req’d to withdraw your hard earned money.
This can lead to be a problem depending on how you look at it. But in my mind, it just delays the time it takes for me to withdraw. But since I joined BBinary, I don’t have a problem with them holding my money. Some other reasons, once I become profitable or anyone else for that matter, if you’re profitable then you should have no problem trading your way up to the req’d trade volume. Only if you’re failing at successful trades, are you worried about withdrawals. But if you’re failing, you’re likely to wipe your account before any withdrawal is made anyways.