5 Misconceptions About Binary Options Brokers
The binary options phenomenon has tremendously grown in the past years, attracting a wide variety of prospective investors from all the corners of the globe. In fact, many novice traders without special financial education find this way of trading as simple and beneficial. With this, mentioned, we should admit that some brokerage firms were accused of unethical activities and even fraud.
5 most common misconceptions about binary options trading
Misconception #1: The binary options brokers offer enormous returns on each and every investment.
Fact: any legitimate broker that values its reputation has been registered with the authoritative regulatory body, and therefore, won’t make such claims. One of the leading firms in this field is Opteck. With licenses from 2 most trustworthy regulatory bodies: CySEC and IFSC, this binary options broker ensures it’s credible, secure, and 100% regulative worldwide.
It is a true fact that the less trustworthy brokers usually promise enormous returns on the very first trades. The Opteck and other regulative brokers provide clients with extensive education, appropriate trading signals, and a variety of accurate trading tools, that may help them make substantial profits.
Misconception #2: The binary options trading is pure “gambling”
Fact: The binary options has transformed into a solid trading instrument, which can provide you with trading opportunities that have high reward profiles. Just like any trading instrument, it is important for those participating, to understand how this instrument works, as well as the market that it is based on. It is not working on a blind guess. The successful traders are not just “lucky”, they are immersed in financial news and study technical graphs before taking their decisions.
Misconception #3: The binary options companies manipulate the trading conditions
Fact: Once again we go back to the Opteck example. The Opteck’s binary options trading platform provides its clients with ultra-fast trading execution and real-time market prices, thus excluding this misconception. Moreover, Opteck guarantees its clients a complete transparency at any stage of the trading process. For verification purposes, traders may request and receive time and sales data for any trade in question.
Misconception #4: The binary options trading is risky, non-regulated, and exposes traders to uncontrollable losses.
Fact: Some brokers are not regulated. It’s true. But some brokers are controlled by one or more institutions. The Opteck is regulated by both CySEC and IFSC. In fact, it is very important to check your broker’s reputational standing with the regulatory body in your specific jurisdiction.
Additionally, the Opteck traders enjoy segregated accounts and have no fear of debt or hidden fees.
Misconception #5: It is hard to withdraw funds from brokers
Fact: all respected and regulated binary options providers in any jurisdiction must treat clients’ funds in accordance with the rules outlined by their regulatory bodies. The Opteck, for example, gives its traders a quick and easy withdrawal option.
To summarize, if you want to trade successfully and securely the global markets, while enjoying the highest payouts in the industry, make sure that your brokerage firm can offer you these:
- Free demo account
- Extensive educational materials
- Trustworthy regulatory bodies
- A wide variety of assets
- Easy and simple withdrawals