It's time to begin systematically debunking all of the various selling points employed by binary options brokers who try to convince beginners that trading binary options is superior, safer and easier than trading online Forex.
I am here to cut through all the crap and let you know emphatically what is true, what is based in fact but has clearly been twisted, and what is pure nonsense. Essentially what binary options brokers have managed to accomplish over the past few years, is slip in under the radar and take advantage of the fact that YES trading Forex online IS more complicated, YES it does have a steeper learning curve than binary options trading, and YES there is no easy way to become a trader.
The online Forex community is pretty insular, I have to admit, browse any of the forums as a beginner (even the ones for beginners!) and you start to feel like you have entered a completely alien world, full of seemingly knowledgeable experts talking in a language you can't quite understand. It's English Jim, but not as we know it! And not to mention the complete douches on there who make you feel like a retard because they got into trading a year or two before you and now want to humble you and make you feel shitty with their new-found knowledge.
And yes, the Forex brokers themselves are also kind of to blame here, the past few years have seen them move away from your entry level beginner clients, in the search for big bucks from institutional investors and moneyed amateur traders. The online Forex industry, at a glance, seems to have its doors open only to those who have had some kind of prior trading experience in the past. And even with amazing sites like www.babypips.org and www.investopedia.com, it is still extremely daunting for beginners to get into the global currency markets.
This is where binary options brokers have come in, having correctly pinpointed a niche, well, not really a niche actually but a huge demographic of individuals who would like to trade online but know next to nothing about the subject. They have swept in with promises of simplified, less risky trading, invested in all sorts of educational material and have quite literally cleaned up.
Nothing wrong with that, but the problem is that all of the arguments used to convince you that you can make more money much easier by trading binary options are totally off the mark.
To be honest I'm actually astounded that more people have not clocked on to this blatant scam. But then again, I bought into it too for a while there. Not only is binary options trading not safer, or more profitable than other forms of online trading, it is actually not even really trading at all! Furthermore it is worse (from the point of view of the investor) than most kinds of online gambling! So you're being sold a “financial” product by attractive young men and women in suits trying to convince you that binary options are an “investment vehicle”, when really even most gamblers can see through the scam and would never deposit any money with a binary options broker.
The “Don't Gamble On Binary Options” Article in Forbes has been a perpetual thorn in the side of the binary options industry. This website debunked that article, and now has to come around with its tail between its legs and debunk the debunking. The only bit that really holds up in the Forbes article we published here is that it is poorly researched. So now with me at the helm of OnlineForexTrading I get to go back and not only right a wrong (our debunking of the Forbes piece), but also do what the Forbes piece should have done in the first plce, and let you know exactly WHY you should not gamble on binary options.
So it begins. The introductions are over. Let's get stuck in. Next time we will look at the myth that Binary Options provide high (cough) payouts. Yeah right.
As always if you would like to share anything about the binary options industry, or contact me 'cause you love the way I spin a sentence and would like to have my bubbies, you can email me at [email protected]
George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.