What is Binary Option? Is it a Scam?

Lately, I’ve been reviewing products that offer binary option’s, so I figured why not go over what that is and if it’s a scam. In my opinion, it is not a scam, but there’s much to learn if you hope to make money from it. Let’s go over what it is shall we?

What is a Binary Option?

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Binary Option is essentially bets that you can make on stocks with the choices of it going up or down. It’s quite simple if you made a bet on the stock going up and it does; you win money. However, if you made a bet on the stock going up and it ends up going down; you lose money. — Sounds like a gamble to me!

Yes, it is essentially gambling because you’re basically guessing whether a stock will go up or down. Many people who get into Binary Options have insider information to increase their likelihood of winning. If you’ve played fantasy football before, then you should be able to fully understand the concept of binary option’s.

When I first heard of binary option’s, the term stock came up, but unlike the traditional stock trading, you don’t actually own the stock.

How much money can you lose?

Well, this one is a silly question, but I’m sure it’s a commonly asked one. It really depends on how much money you’re willing to invest. Most applications you find in the App Store (iOS) or Google Play Store (Android) are free to download and register. However, you must put down a certain amount of money to get started (varies from app to app). Your initial investment will be used to bet on stocks.

Here are the factors that determine how much money you can lose:

  • How much money the application requires before you can get started (Initial Investment)
  • How greedy you are (Let’s say you win and you reinvest all of your money, you’re likely to lose a lot)

Sorry, I couldn’t give you an exact number because it really depends. Why do you think some people lose $10 (me) at a casino and some people lose thousands of dollars?

Is Binary Trading Risky?

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Absolutely! The odds are 50/50 when it comes to Binary Trading. Unless you have a magic ball in front of you. Your odds of winning or losing is exactly the same. Obviously, you can search for insider or professional help, but do they have a magic ball of their own? — They probably use trend and analysis, but there’s no guarantee.

Tip: If you’re going to spend money on Binary Trading, never spend more than what you’re willing to lose! This applies to any type of gambling.

Like any product that’s in the market, Binary Trading is not immune to scams. As a matter of fact, there are tons of products out there that leads you to believe that they can beat the binary option’s system.

I remember searching for a program that can beat the lottery when I was in high school! Guess how that turned out? — Well, obviously I failed because I’m still working for money.

Tip: If it sounds too good to be true, it usually is! There is no such thing as the magic ball that can predict what happens to the stock.

Even if there is one, I’m sure whoever owns it would keep it to himself or herself. Would you share such product to earn a few bucks when you can use it all by yourself and earn thousands or maybe even millions? Come on… that’s a no-brainer(:

Is Binary Options a Scam?

Binary Options itself is not a scam, but it does carry lots of products out there that are designed to scam you out of your hard-earned money. — Remember, Binary Options is a gamble and nobody can guarantee a sure win.

As long as you play the game by the book, there is absolutely no scam to Binary Options because it’s just a game of chance.

Binary Options are More Beginner Friendly Now

Social trading is one of the major aspects of binary options trading. As a beginner, you no longer have to go in blind because you can now get advice and learn from veterans of the game. There are binary options brokers that offer social trading platforms that allow you to trade alongside successful people in the company.

There are binary options robots that claim to automate winning trades for the users, but most of these are scams. I wouldn’t trust this unless it’s offered by your broker.

Even with the help of a broker and robots, your chance of winning is still 50/50, so the choice is yours.

The Pros and Cons of Binary Options

The Pros:

  • As long as you play by the book, it is not a scam.
  • You can actually make money with Binary Options.
  • You don’t have to actually own stock.

The Cons:

  • 50/50 chance of losing your money.
  • There are lots of programs out there designed to steal your money by providing you with false claims.
  • This is still considered gambling. I’ve seen families get destroyed because of gambling.

My Final Thoughts

I am not against Binary Options because it is still considered a form of making money online. You should be fine as long as you treat it as entertainment like Fantasy football and not betting more than what you’re willing to lose. I don’t recommend this if you’re a gambler that has problems in the past with spending all of your money. — You are in big trouble if you have the mindset of getting rich fast and guaranteed.

I believe Binary Options is a great option and I’m definitely going to give a shot myself, but I only search for long-term success. If you are determined to make money online to replace your existing job(s), why not look into creating an online business like mine?

You don’t need a lot of experience to get started and you can learn as you go. There are 3.8 billion users on the internet, the potentials are unlimited.

Did you enjoy this article? Have you ever encounter a binary option’s product that promises better odds? Do you have a scam story to share? Please share this with your friends and other online marketers who are searching for ways to make money online legitimately.

If you have any questions, please kindly leave a comment in the comment section below(:

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4 thoughts on “What is Binary Option? Is it a Scam?”

  1. Thanks for sharing Eric.this did answer and cleared some questionable things I had in mind, now I know what I'll be getting myself into

  2. Hello Roberto,

    You are very welcome! I’m glad to help(; Binary Option is definitely legitimate, but I can’t see how you can sustain it long-term for those who really wants to make money online. If you have any additional questions, please feel free to ask!

    Kind Regards,
    Eric

  3. Thank you for sharing this article. Ive never tried binary options but it sounds very risky and I dont condone gambling, so i will have to passed.

  4. Hello Linda,

    It's definitely a gamble, but it is definitely a legitimate way to make money. However, as stated on my article. You have to be very careful with programs out there with their false claims.

    Kind Regards,
    Eric

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