The first time I heard about binary options, I was super excited.
It sounded so easy that I overlooked the truth about binary options and the doom that follows after I get obsessed with it.
Many brokers advertised it as though it’s very simple and sure win – All you need to do is follow the majority of people who clicks and you’ll get easy money and if you’re reading this, you must be pretty curious to try too.
Sounds easy? Oh but it’s more than that.
There are many red flags behind the mechanics but first off, let me brief you on…
What is Binary options? –My Quick Intro.
What if you can do forex without studying anything?
That’s what Binary Options is about.
Everyone knows that if you can master the art of forex trading, you can make millions but in order for you to do that, you need to have an extensive knowledge on how the market works in order to minimize risks and increase your profit.
Problem is, it takes way too long to study that.
Workshops cost thousands of dollars and universities cover that subject for several semesters if you’re taking a degree in investment analysis so it’s not something that everyone can go for and the solution? Easy. Just follow the masters.
You see, in Binary Options we don’t need any knowledge at all.
All you need to do is follow the majority of people who either call or put and if you’re unfamiliar with the terms, we usually click on call if the currency rises or put if it drops.
There are thousands of people who are on that particular binary options platform and you can see how many percent go with Call and how many chose the opposite. Just see how many people choose what and you just join in the crowd.
What could possibly go wrong right? And the next thing you might be thinking, “If I’m wrong, these 10,000 people who voted would all lose their money too so I’m sure I can win easy!”
Many things could go wrong and before you ask, let me explain why…
Red Flags – Things to Watch Out For
Binary Options may be advertised everywhere being “The perfect investment for anyone”.
It definitely isn’t and here’s why…
Red Flag #1 – You are Downright Gambling
Since you can’t control anything about it, don’t you think you’re basically gambling already?
There is no way for you to control anything within the system, all you need to do is just follow the majority of people who vote call or put.
But even that, you can still lose and so will those thousands of people who voted the same answer as you.
You’ll left with no way of knowing the answer and even if you go with the majority, you’ll still lose – Up or Down, it’s a game of probability.
Red Flag #2 – Unbalanced Payouts
As if gambling isn’t enough, imagine not getting a hundred percent return on your profit.
A payout is basically your return of investment. When you gamble, you’ll always get two times more the amount you put in, correct?
Well Binary Options doesn’t work that way.
Instead of getting two times the return amount when you win, you’ll get back your initial investment that you put in plus a percentage of it and this is called a Payout.
You’ll get different payouts altogether, some platforms give you 60% or 75% whereas some can go up to 90% but never a hundred percent so it’s not really fair considering the amount of risk we’re taking.
But supposing you lose, they’ll take a hundred percent of your money. Talk about the unfair advantage. At this rate, you’re much better off with poker.
Red Flag #3 – There are No Strategies to Winning
Since it’s all about clicking Yes or No, we cannot use any strategies whatsoever.
This is a huge problem because since we’re just following the majority of people who clicks, we won’t know anything else besides that.
This is a huge problem because we can never implement proper risk management to minimize our losses and this is exactly what they wanted us to do.
How do I know this you ask? That’s because…
Red Flag #4 – It is Rigged!
This is how Binary Options brokers profits the most.
They know you act on your instincts which will make you a tad more vulnerable and then they steer you into choosing the wrong answer by faking the majority influence so you’ll never know.
And just when you’re about to win, you’ll still lose because they control the win-loss ratio!
There was a leak during an interview that an employee confessed that his organization guarantees losses every time a user trades so that they could earn more, like how casinos control their roulettes.
This is completely possible since it’s their own platform to begin with and before you start asking…
Red Flag #5 – Very Few Brokers are Actually Regulated
Although it has been several years since Binary Options first started, the real truth is that not many brokers can be trusted because a lot of them are not regulated.
They are very prone to fraud because they are banned by many regulators as they are seen as gambling rather than a form of investment and after mentioning the points I wrote earlier, it’s hard to argue when the facts are in front of your eyes.
Because of this, many brokers take the opportunity to take advantage of innocent people who are new to the whole entire Binary Options thing which is why I’m writing on this particular topic as I too got tricked and burned a few hundreds of dollars of my own.
The number of people who got scammed are so many in fact, that it got the attention of the FBI and they are investigating Binary Options scams throughout the world.
A few countries namely France, Belgium, and Israel has even taken extra measures to ban Binary Options entirely on grounds that they are obviously a form of gambling.
So, still interested in taking the risk?
Red Flag #6 – Too Fast to Predict!
In real trading, you take months to study a trend but in Binary Options, it becomes very difficult to predict anything because it is too fast paced.
The duration in Binary Options ranges between 60 seconds to 24 hours and when the time periods are too short, assets move in random directions making any investment techniques completely useless.
If you want to win, the only way is to do it the hard way which is by staying up to date with technical data through chart-reading, technical indicators, statistics calculations and many more but since we cannot do that, your chances of winning all comes down to pure luck.
Red Flag #7 – Oh, So Haram!
Haram doesn’t just apply to food, it also to businesses.
I just had to add this in because I was getting questions from a number of Muslims asking asking me whether or not binary options is haram.
Gambling or any acts of investing money without knowing we’ll get a definite return, or even a mere doubt on any investment you’re about to make is considered haram.
And after pulling in the facts earlier, we know that it’s more than just gambling – It’s much worse than that since some fraud companies make you lose on purpose so I guess I pretty much answered this question too.
Oh, But I’m Still Interested!
If you want to do it, do it safe.
I’m the type of person who would go all out on something if I’m curious enough despite the negative facts in front of my eyes (Which is why I tried binary options myself) and if you’re like me, I’m sure you’re dying to give it a go still.
If this is the case, then you might want to be extra careful by joining the right platform.
Binary Options are risky enough as it is, you don’t want to be losing your money on a fake platform made by internet gurus who would one day run away with your money, do you?
Here’s a list of legitimate Binary Options brokers if you’re keen on starting and experiencing them yourself.
Always try out the demo account first before spending a dime on any programs online.
There’s a Better Way.
Want to make money through Amazon?
If you’re looking for a way to make an income online, a much more legitimate way you can go for is by Affiliate Marketing.
It’s basically a way to make money online legitimately by selling other people’s stuff and the best program with the best lessons that I can recommend is Wealthy Affiliate.
It’s the easiest way to start earning online because you don’t have to go through the hard work of creating your own products.
You just leverage out of the ready products that are already out there.
Do you have a passion? Great!
All you need to do is to find your niche, build a blog about it, learn how to attract people to your site and you’ll earn commissions when your visitors spend.
It’s how I build this very blog that you’re reading and it helps you understand the online world even more, perfect for beginners and those serious in building an Online Business and compared to Binary options, there’s zero risk in it.
My Final Word
Binary Options are a scam because it is purely a gamble game and you don’t have any control over it.
Many brokers are frauds, they manipulate the winning-to-losing ratio so they earn more, and even if you win, you still have a huge probability to lose which is why certain countries go so far as to ban the entire thing.
If you are into gambling, you are much better off with Poker or Roulette. At least you’ll be earning two times more than what you put in.
Thanks for reading and as usual if you have any questions at all regarding Binary Options, do drop them down below and I’ll be more than happy to reply. Cheers!
I never heard of Binary Options before. After reading your review I’ve been cautious. Truly, many innocent people are cheated by such kind of scams. I think the share market policy is a kind of gambling. And gambling is strictly prohibited in Islam. Because it puts our lives in great distress. I agree with you that it is far better to work in affiliate marketing and earning money honestly with a hard job. Thank you sincerely for such a valuable review that is useful for increasing awareness.
Glad you found the article helpful, Rgpratap. Cheers
It’s actually great to reading this article. When I first knew about binary options I thought is a way to boom financially, with the huge wealth promises in the advert i saw which are fake. I can termed it gamble. Yeah, many of the brokers are fraud and manipulate the things turning winning to loosing. I actually lose some buck on this, and I can’t recommend it to any one. If they care to heed the warning. But this article is really helpful to decide.
Glad we’re on the same boat Topazdude!
For me, I think binary option is all about gambling. Although, a lot of people don’t want to agree to that fact. yes, it’s also true that the unbalance payout is another no-no. Thank you for pointing out the rigging aspect of it and a whole lot of other red flags. In fact, binary option is not an assuring way of making money. My personal experience has been very terrible with binary options and trading generally.
However, you have done well by pointing the real deal money maker, which is My Wealthy Affiliate. Since I joined the Wealthy Affiliate community and upgraded to a premium membership, my online earning potential has really exponentially gone up. Thanks again.
Great to hear that Chidiking!
This is obviously not a good trading option, I have heard about Tradorax a lot too. They have a pretty good range of assets compared to a lot of platforms, and their payouts are pretty competitive as well. Their platform is pretty easy to use and has a clean interface that’s suitable for either beginner or advanced traders, just want to know if you have similar view.
Is Tradorax a Binary Options platform, or Stock trading?
I got to know binary option early 2018 when my interest in being a master in forex was high. I started using the platform and it wasn’t long before I started seeing little earnings when I followed the crowd. Three months into the business, I was able to gather about $900 from the initial $30. The worst happened when I followed the crowd one day and put before I could say jack, I lost all my money. From that day, I stayed off binary option.
I’m sorry to hear that Sammy, I too had fallen prey and lost thousands of dollars in hopes that eventually one sale might cover back. It doesn’t
yes binary option is a scam i am a type of person that love making research before joining any thing online when i heard about the binary option i made research about it some of the brokers that are regulated will allow me to do demo and i will keep winning on the demo as soon as i deposit to the real account i start making loss i tried many brokers and all the same result is what i get but as you call them scam i totally agree with you but the only legitimate online business i know about is blogging and affiliate.
I’m sorry to hear that Boluwagg, since they control the likeliness of you failing and succeeding, chances are they won’t ever release their money to you so there goes all our hopes and dreams.
Wow as I began reading about how it is advertised to be a very simple strategy to make money, I saw that as the first red flag, you see I don’t really believe in any good thing coming easy and when things are advertised as easy, I know the is something they are hiding which unfortunately you might only get to know after you have made the step to commit.
Thanks for the detailed and honest review, the red flags are really hard to ignore
Good things never come easy Etah, I totally agree with you on that one. Appreciate the kind feedback 😀
Sounds like an online casino more than anything else that’s rigged in favor of the brokers. What’s sad is there’s going to be a lot of unsuspecting people looking to play this dangerous game. While gambling in this game is bad enough, the fact is you won’t even see a full return on investment at any time. That really blows.
Well said Todd, depressing isn’t it.
Great review. It was informative and I learned some things about brokers and their tactics. I do not gamble so investing to me feels almost like the same thing. It’s good you put out the red flags of warnings to potential investors. I always thought it wise to do as much research on something as possible if you are going to invest any of your money into it.
Definitely Scole, appreciate the feedback!
Firstly I would like to commend you for taking the time to review this binary option. For me , I am far better off with gambling than doing this binary option because of one of the many reasons you listed here which is unbalanced payout. It’s annoying enough that the system is so unpredictable and yet you win then they refuse to give you all you are entitled too. That’s not good enough.
I would gambling would be far better than binary options because at least you can control the outcome even by a little bit, Seyi.
I agree its a scam 100%. When i started back in 2014 to try and get a passive income and i found about Binary options online…its seemed so easy!
yeah easy to lose money! i did win initially however than the losses started and i kept telling myself..i will turn it around..after 6 months of continuous losses and alot of researching online i found out that broker manipulate the numbers so you lose!
the internet should ban binary options
Sorry to hear that Tarun, but at least we know now to not waste time on binary options anymore. It is such a waste of time and there’s no system in it.
I believe that quite a bit of the trading stocks game is balanced towards the stock brokers and away from the traders. I’ve never tried this binary options trading and thanks to your article I never will. You probably saved me a lot of money. I thank you for that. I have lost money in the past trying regular options trading and I will never do that again.
Glad you were able to save your money Cory, I hope more people can realise that binary options is a scam and not at all legitimate.
Hello There, i am from Greece and I want to tell you that in the 80 s a lot of people won a lot of money from this gambling. Of course many lost fortunes.As you say, you have to know what you are doing. for me looks very complicated.In my opinion it is too risky. Did you actually invested money in this? I prefer WA it is a safer way and more productive.
Thanks a lot for your information.
I did Christina, and I was wondering why I never made back a single cent. Turns out they control the probability and that’s why you keep losing.
It is not advisable to just embrace every trade opportunity because of scam,trust me. It is always good to trade with broker using a transparent pricing, fast and reliable trade executions.
Good to know that Collins, thanks 🙂
its still possible to get your money back from the system. Binary Option is good but there are just so many fraudulent activities going through this platform. I lost a huge amount of money to binary scam but i was able to recover all my money back. Thanks to email@example.com
This really piss me off,I got scammed twice and i couldn’t tell anybody about, this two binary options company are five star rated on different sites and blogs, Many of these brokers misappropriate traders money thinking these traders will not act. Beware of where you invest in and if you lost your money, first I couldn’t reach their vendors and couldn’t sign in my account,I worked at a bank, at least with my knowledge of banking and monetary values should have saved me but that didn’t stop me from putting my life savings and loans into this,I lost my job and I sort for different ways to get my funds back, went to CySEC, credit card companies, my lenders ,funds recovery companies and every other way to get my funds back, but still couldn’t get it,I decided to let go and move on, till I met a finance analyst who introduced me to firstname.lastname@example.org come, he was really professional and very helpful in six weeks,I couldn’t get my gains but he was able to hack into them to allow me log on to withdraw my invested funds, this really help me put my life back together, for what it cost, this was worth every value ,am sure this can help someone here too.you can thank me later.No more funds to be lost! I do hope this post can bring relief and hope to folks out there.
Nice article about Binary Options yes im one of them who got scammed of my money Just would like to ask you a question have you ever herd of Bill Fisher at Billexperttrade@gmail.com there is a lot of noise over the internet about him helping people get there funds would like your feed back
I have never tried Bill Expert Trade before but really am looking forward to checking it out if I have the opportunity. Thanks for bringing it up Nobby. Cheers!
Hey Riaz! Just wanted to know if you ever gave Bill a shot? I’m thinking of using him myself but wanted to make sure it isn’t a scam first. Please let me know! Thanks!
Hey Caison, which Bill are you referring to?
This is a scam. They get your money, pretend to trade it, and then when you request a withdrawal they demand a15% processing fee BEFORE you can withdrawal. Example…I gave him $500, he built it up to $46,000, then requested $7000 BEFORE I could get any of it back.
I recently recovered my investment using unconventional means. I’d like to share my experience.
And what experience might that be?
Lost $500k trading binary option through binary tilt, couldn’t withdraw my investment not to talk of my winnings. I had to hire a refund solution professional from Geminihacks(dot)(com) they recovered $150k (80% of my investment) happy to help other traders going through this. Geminihacks(dot)(com) feel free to reach out.
I’ve heard of Gemini Hacks, Catherine. Definitely checking it out, glad you managed to get back your that money lost in binary, truly a trap for the unwary.
I have been scammed big and i seek help to recover my lost money. I would like to hear from you how you managed this with the help of Geminihacks.
I also received a call from GT options recovery stating they are in a position to refund my money. $6K. They said the funds were in litigation and payments to GT Options clients were authorized for repayment. less a 10% fee for taxes and expenses. The letter I received states quite clearly that the fee must be paid up front in order to receive payment.
Thanks so much for this comment. they also helped in r recovering my funds so happy.
Dear Mr Riaz,
i trade with skyline markets a binary trading company where i lost usd 118000/- unfortunately i came to know that 100 percent binary companies are scam and cheating many people around the world….i would ask your advise to help me how can get my funds back…i contacted MBL a law firm for recovery and then wealthy recovery and birmna law firm to recover my costs…but i cant believe any people ask to deposit 10 percent before starting the case….please advise
Unfortunately, you can never get your funds back, I too was cheated terribly last time and not just me – My friends, cousins, family even because we were tricked into joining. Never again.
I have been scammed and scammed and scammed again. I invested with four binary companies and lost all of my investments totalling 290,000GBP. Then I was contacted by someone offering help – a company who specializes in binary recovery. I was scammed by them again. By the end of it all I had lost all of my savings and I was in serious debt. I was desperate for help and that made me vulnerable to recovery scams. My husband is not around anymore and I have an 8 year old son with learning difficulties. The pressure of being a single, working mother with a child who needs so much additional attention and support became overwhelming for me. I also felt too traumatized to trust anyone else and I was very afraid, but I had no choice other than to trust Geminihacks.com They have been incredibly helpful and supportive and also very understanding about all of my fear and concerns they helped recover all of my funds back within a week using unethical means I feel quite , tremendously joyous about the decision to use Geminihacks.com. I really hope that others do not have to go through what I did, and I wish that I had realized before things were so bad that I was being scammed. I hope my story might help others to not be fooled the way that I was contact Geminihacks.com.
Gemini Hacks is very risky too and you’ll end up sharing all your contact details with people you don’t know. It can go 2 ways, either for the intended purpose or backfire back to you but in case you’ve lost everything, I’d say it’s worth a shot 😉
Great article on how binary option is not an investment method at all. I’ve always thought it’s very hard to win in forex since you don’t know where the price gonna go, but to think the platform itself is rigged is outside of me. And thanks for pointing out that many brokers are actually not regulated. We are best to keep our hard earned money from them =)
It’s definitely rigged Isaac, happy to be spreading the word on their scheme. Hope you have a good day !
As you had suggested, I am indeed curious about binary options and had wondered all along, “how does it work?!”
Thanks for the simple, easy to understand, and honest review of binary options. A lot of sites paint it out to be something that is very straightforward and an easy cash-cow…
I do agree with the point about this seemingly leans more towards gambling and that may be the unfortunate case, where the 10s or 1000s of the ‘others’ are finding the thrill out of ‘gambling’ here…
I had no idea that the FBIs were involved in several brokerage investigations, but thanks for bringing it up!
I think I will stay away from binary options as I really do not understand the market trends as well…
Appreciate the sharing Riaz!
You made the right decision by staying away from it Marcell, Binary is worse than gambling because even if you know what you’re doing, you can still lose because everything is controlled. Thanks for dropping by!
Binary Options is nothing else than just gambling online. Since you can’t control anything about it, it’s pure gambling but just in a different way.
I also believe that the majority of people who actually get involved “playing” Binary Options, are generally not the ones that really want or are interested to make money online.
But the feeling of gambling once a while, is always Nice..in a normal way.
Strong example is a comment below saying, “unfortunately I lost more than $500 in Seconds!”
This should be a strong example for those who want to try Binary Options..
Well said Alex, gambling is nice but Binary Options is definitely the type of gambling you wouldn’t want to get involved in. Appreciate the feedback man, cheers
Wow thanks for the really insightful review Riaz!
Your review was really in-depth and thorough and I liked it a lot.
Regarding the Binary Options, is there still other ways of internet marketing, other than affiliate that you can recommend?
Lastly, thanks for your post and teaching me more about binary options and how dangerous it is!
Besides Binary and Affiliate Marketing, Freelancing can earn you a lot of money too Kai Ferng. Glad you liked the review, thanks!
Binary Options is such a disgusting scam industry. 90% of these parasites are based in Israel. They require you to deposit to them via wire transfer so you can’t even issue a chargeback request to your banks.
Stay away from all of them, but particularly Geneva Option and Opteck.
You’re definitely right on that Jordan, I’ve had a bad experience with Opteck and their sales people kept pushing me to invest and yelled at me when I said I decided not to invest. Appreciate the feedback, thanks!
Ridiculous right? And the federal police and banks won’t do anything to help. Every time these parasites ring me, I tell them to f*** off.
Thank you for this very informative article. Just the other day, something like this came through my email. Since then, I have been doing a bit of research to find out about it; however, much of what I found was way too technical for me. Your article made my decision clear. It is something i will steer clear of. Wealthy Affiliate sounds like a much better investment of my time and effort. If I were to join Wealthy Affiliate, what kind of work would I be doing?
Glad my article managed to convince you, Binary Options is not for everyone and you’ll need an even more amount of cash on hand since the win-lose ratio is controlled. If you were to join WA, you’ll be learning how to monetize a website from anything at all that you liked.
Do you like fitness? Do you play video games? Anything at all can be made into your full-time business because the monetizing method will be through Amazon so you’ll have no risk at all if you put in the effort. Hope I answered your question well! Do let me know if there’s anything else I could help you out with.
I have dabbled a bit in forex but find that it is not the way to go. Earning money is definitely dependent on the market and even if you have binary options there is still the chance of the market being at a standstill. Also the time and effort spent on it will not justify the income you may or may not be getting. I agree with you that there are better alternative methods out there.
Definitely Moon Moon, market or no it’s still a risk to take because just like how casino owners rig the roulette, Binary Options platform owners will rig that to their advantage.
Thanks for writing this article about binary options! I used to trade options and found it to be very lucrative. I was earning more doing that than I am now by investing long term in fairly consistently well-performing stocks. However, I had to take a break from options because I wasn’t exactly an expert, and found that it was kind of stressful to keep track of everything. Reading about binary options reminds me of how complicated it can be. But good to know that it’s something I can come back to when I have more time and peace of mind.
I guess you’re one of the lucky ones Audrey, not many people see a positive return in Binary Options. Appreciate the feedback, thanks for sharing. Hope you have a great Tuesday!
Hi Riaz Shah,
Thank you very much, I found this article is very clear/simple and great!, the red flags that you mentioned above are just describe the idea & strategies of binary options well.
i tried some companies in past and unfortunately i lost approximately more than $500 USD in Seconds!.
Binary Options model in my opinion is Very Risk! & Not recommended especially for the beginners.
Riaz what do you think about eToro? i think its a famous trading company, is it scam?
eToro is a scam alright, they are very glitchy and a lot of people are having trouble withdrawing their hard-earned money so its a very high risk to take. They have a high spread and if you’re not a pro trader, you’re definitely trying to get yourself killed. Hope I answered your question right, appreciate the kind feedback 😀
Binary Options sounds pretty bad if you put it this way. If it really is simply a gambling system then the people are just going by sheer luck. I don’t know anything about forex trades but it can’t be this simplistic and easy to profit from. It stinks that you lost hundreds of dollars to a gambling site disguised as an investment broker. But I appreciate you sharing a list of good binary option brokers.
Glad you liked the article Chu, appreciate the feedback.
Hey man love your site! Although I know very little about stocks, bonds and trading I have been very interested for a long time. I will never go close to this binary option stuff though. Sounds to risky. Thanks for the heads up.
The Amazon idea sounds great though. I am interested in learning more about that.
Do you have any advice for a person like myself to start trading. Some books or online tools to help me understand the basics.
And to start with about $500 to $1000 . Thanks
If you’re interested to start trading still, you’ll have a much better success with forex than binary options. You could start learning through a website called Baby Pips, they teach beginners on how to understand step by step for free before investing and I too used to read through and learn back then. Cheers
This is great! I keep hearing more and more about this binary option thing online, and I’ve never really known what it was other than investing in a market type platform.
I have been interested in seeing what this is all about and I think I might have given it a try had I not read this article. I do love gambling, mostly Blackjack and Poker mostly because you have the most control over your money. But I think I’ll just stick with my casino games if I feel like potentially throwing away my money.
Thanks for the share!
Blackjack or Poker is much better than Binary options, Nicki. I’m glad you decided to stay away from Binary Options. Appreciate the feedback. thanks for dropping by!
Hey, Riaz. Thanks so much for this article, it couldn’t be more accurate! Today I was having a look at my Instagram and I just sumbled with a binary options site, and it got me really interested. Now I realize I’m much better wihouth it, and that thank to you! 🙂
I agree everyone thinking about making money online should seriously consider joining Wealthy Affiliate. I’ve never seen so much value at only one place! It is just phenomenal!
Keep up this amazing work dude, I appreciate that!
Guess you just dodged a bullet there Davi, so glad I could save you the trouble. I wrote the article to help other people who came across Binary Options and were considering on whether or not they should go for it. Appreciate the feedback. hope you have a great weekedn!
What a thorough overview of how binary options work. I personally would not take the chance on this method of making money. If a person doesn’t do their research, it can seem like an easy way to make money. However, from what you’ve pointed out, the risks are huge! It’s even more unfortunate that the system is rigged by the brokers to guarantee losses. I learned a lot from your post. Thank you!
Glad you liked my article, that guaranteed loss is really a bummer. Even games that require luck will have a better winning chance than this one. Thanks for dropping by, hope you have a great weekend ahead!