Is it Safe to Trade Binary Options?

Due to the unregulated nature of binary options trading, we don’t find this product to either be a safe or profitable investment.

Many of the requests we receive on a daily basis are from those with limited experience trading forex and CFDs. As such, we are often asked questions about the legitimacy of certain trading products. Lately, we’ve received several inquiries pertaining to the legality and safety of binary options trading.

A common question we are asked is whether or not it is safe to trade binary options? In our opinion, the answer is a very firm NO. We do not believe it is safe to trade binary options, nor do we think that binary options are a legitimate investment product.

Why We Don’t Believe Binary Options Trading is Safe or a Legitimate Investment

It’s important to emphasize that binary options trading is now illegal in the United States and Europe, with many regulators in other parts of the world following suit. For those who are wondering if binary options trading is safe, one of the best reasons to avoid binary options trading is to consider the fact that most world regulators have chosen to ban or prohibit binary options completely.

No matter what sales pitch a binary options broker may use to win your business, it’s important to remember that binary options trading is illegal in almost all parts of the world. Because regulators in places like Europe and North America have banned binary options trading, the only binary options brokers that still exist are unregulated and unlicensed, making it an unsafe investment.

Because the majority of binary options brokers are unregulated, investors will be taking a massive gamble when opening an account with a binary options broker.

Binary Options Are Not a Real, Legitimate Investment

Due to the nature of the product, the trading of binary options isn’t profitable for nearly all investors. The reason is that binary options brokers intentionally skew the outcome of each trade to favor the broker, not the client. Even if a binary options trader were to get lucky with a few profitable trades, the broker would ensure that any trades in the future would end up at a loss to keep the profitability of the binary options broker consistent. For this reason, one can never become a successful binary options trader. Furthermore, there is no such thing as a professional binary options trader.

Investors Should Be Aware of Binary Options Fraud

We strongly discourage investors from opening an account with a binary options broker. The main reason behind our suggestion is that nearly all binary options brokers are unregulated. This means that there is no level of protection for the investor. Should a binary options broker cheat an investor or simply disappear with the funds, there is no legal recourse for the investor to take. In essence, it is simply not safe to trade binary options.

Forex Consulting – Guidance & Resources for New Traders and Investors

If you are interested in learning more about trading forex & CFDs, then we recommend avoiding binary options altogether. Because it is not safe to trade binary options, those looking to trade FX & CFDs for the first time should consider opening an account with a regulated forex & CFD broker.

Our group of FX industry consultants posses a strong network of regulated forex brokers around the globe. Contact us today to speak to a consultant who can guide you in selecting a forex broker that best suits your needs. We look forward to hearing from you!

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