Will Binary Options Die Because Of Scam?
This is a very important question and one that I will try to answer as honestly and accurately as I can. First I must answer a different question. Is it even possible for scams to kill binary options? To that I must admit that yes, it is possible for scams to kill binary options. Do I think it is going to happen? No, but it is possible. Why? Because scams suck the life and respectability of everything they touch. Scams put a tarnish, a rust, on binary trading that will be hard to shake off. Regardless of whether binary trading is good or accepted, regardless of whether binary becomes regulated on a global basis or not it is possible for the number of scams to overwhelm the industry to the point that there just are not any trustworthy places to turn to for trading, advice or services. In the end, I think that this outcome is highly unlikely because there are just too many people interested in trading binary and too many places where honest, legitimate and trustworthy trading are important. This doesn’t mean that scams won’t persist, or that the industry won’t receive flak because of it. It simply means that I believe that binary options will live on. Whether the live on in the light, like green living things, or whether they live in the dark, like slimy scum, is the real question we must answer
There Are Some Hurdles Ahead
There are a number of hurdles ahead. One of the two biggest is the vast number of unrelated, third party, marketing websites and scams. They see an easy way to make a buck and you know how that goes. Once you feed a dog a bone you pretty much own a dog. This is worse if you feed a cat and even worse if you give money to a junkie. Scummy scam marketeers make promises of guaranteed results from automated trading bots, fool proof systems and other alluring offers that attract unsuspecting traders. This marketing approach is a great way for the brokers to get exposure and provide a source of income for bloggers like me, is also a source of income that shady people have latched onto as a source of easy money. The more money that make at it the more crafty they get until it is hard to tell the bull shit from reality. In some cases I have seen sites that even look like brokers! They make you think you are signing up with them but really you are being sent to a real broker through a different link. Can you believe that!
Another hurdle is the growing number of under-regulated and unregulated brokers out there. Being unregulated doesn’t make a broker bad, it just raises the chances. And that’s not even considering the ways in which a shady, but regulated, broker can take advantage of traders. Bonuses are the biggest concern I have for the future of binary options regardless of regulation. Bonuses lure traders in by offering free money and risk-free trading then keep desperate losers depositing more and more. The end result being lengthy waits and high trade volumes that must be met before making withdrawals. Some brokers use bonuses like a weapon, locking you into to so many different terms and volume minimums you will never know which money is yours and which is theirs with no hope of every clearing the requirements.
Others shady brokers, and their affiliates, go to elaborate lengths to make themselves look respectable. Take for example the broker NYOptions. This crafty broker, or maybe crafty marketer, or more likely a crafty combination of both, set up an intricate series of web sites and fake, completely fake, regulatory agencies in order to promote themselves and get you, my trading brothers and sisters, to think they were a US based regulated broker. They created a series of virtual offices and even a website for an “independent” and international regulatory agency from which they had received approval. I’m sure by now, after reading all this, you can see why I say that it is possible for scams to overwhelm the binary options industry. There are scams everywhere you look, in every form and some of them are being perpetrated by brokers.
The Unseen Hurdle
An unseen hurdle, and one that hangs around the neck of binary options like a sandbag, is image. Many financial industry professionals look on binary as nothing more than gambling, a view point that is slow to change and one that is quick to spot the tarnish of scams. The worst thing though is that the negative image is due to more than just scams. Scams are a symptom of an underlying problem, undereducated and high risk traders entering the market, seeking fortunes at the press of a button. The scams will persist so long as binary traders prove to be easy marks and so will the negative image so don’t be an easy mark! Tighter regulation may be the answer. Until we can get a grip on the rampant claims of fast profits, guaranteed signals and no-risk trading binary options will have a hard time crawling from the fringes of the market into more respectable light.
Why Binary Options Won’t Die
First and foremost binary options won’t die because binary trading is an ever lasting agreement between professionals. Anytime two market participants make a bet on direction or market outcome binary trading exists. That being said binary options as we know it today won’t die because of people and organizations like CySEC, the CFTC, the FCC and others. And also by websites like ThatSucks.com (former BinaryOptionsThatSuck.com) and Communitraders. The organizations have recognized the growing popularity and demand for binary trading. They have begun to create a regulatory framework for binary options brokers, platforms and businesses to operate in and have basically cemented binary as a method of trading and market speculation.
At the same time watchdogs like Martin Kay and ThatSucks.com (former BinaryOptionsThatSuck.com) have been leading the way in binary education. Helping traders to recognize and avoid scams while learning how to trade binary, not just gamble on the market. One of the many ways in which ThatSucks.com (former BinaryOptionsThatSuck.com) has improved the industry is by forging long lasting professional relationships with high quality, reputable brokers in conjunction with the development of Communitraders 2.0. This is to ensure that there are safe places to trade where binary can’t die. These relationships are important because they mean the difference between fly by night shady dealings and high quality binary options trading.