We are not meeting at 2 things. The first is Binary Options or Options Trading Concept.
The second is how BO brokers make its money?
Lets only discuss the fully regulated BO and option brokers in the US that are regulated by the NFA and CFTC, besides the ones regulated by the FCA, CySec, Finma in Europe. Scam BO brokers are not our concern just like the same in Forex.
Firstly, why are you against the BO Concept? Am gonna go to the worst trading option they provide and you pointed at which is the 60 second(provided by European brokers).
Even if any trading style is provided, if you find it risky, don't use it, you are not obliged at any time!
As much as you say its bad, some can find it great especially news traders.
For example: if you're a news trader, the 60 second method can benefit you greatly or even if a news gambler in forex, betting on a bad or good news before seeing the outcome data, placing a trade before seconds of the news release, this method can win you money quickly.
I don't Forex scalpers can use it for any real benefit, other than news trading its surely very risky to use.
Any company will advertise something seductive to promote its goods. At end, the client is not a kid opening his mouth if they advertise a hottie will buy the product blindly!!!
Not concerned of newbies who are in the wrong place, wanting to earn money in no time.
We are talking to grown up serious traders who have the least experience in this business.
You are looking at the BO Concept from its negative risky side, why not look at it from the positive side and try to beat the broker and market with your trading experience.
When any broker if Forex or BO or option is giving me fair service, no manipulation or whatever, if I like the concept, applied it to my forex experience and it had been working gooood, deposited money and was able to withdraw the initial deposit and willing to draw some of the profits gradually, why not continue.
If Pharaoh didn't like the concept because its not his trading style, that's another matter, but it doesn't have to do with all BO brokers are scam!!
The second point of how BO brokers make its money?
Well, am not convinced of the Nadex commission earnings nor European brokers difference in investment 15-30% or what they name in other way "Spreads"!!
But, who cares how they make their money if from the other investors loosing or spreads or whatever when that is not affecting my trading, getting right prices, execution etc
Despite I really like to know the truth.
Not convinced too of your thoughts that more winnings investors will make the best regulated big broker go bankrupted!!
We all know that there's no one broker if forex, stock, BO, option that have more than 50%(at best) of its investors who make stable income without blowing their accounts.
If we apply the same to BO, if we say 50% too, and the broker have an already step forward in the difference of investors investment and the payout %.
That will keep any broker live long growing its business. Then why some brokers are Scam?
Simply, because when they are not regulated, have a small base of clients, even with a bigger loosing clients % they are not profiting much, no big volume, so they insist on clients to deposit more, they make tricks to increase the loosing %, they bet on stealing people money in short time and escape!!at end no regulator will ask it what are you doing!?
Not necessary that BO traders can make more money than forex traders, it might be a close call at end when we talk about scalpers(15 to 1 hour max. expiry date) at both sides, but surely BO has same or maybe less profitability for long term traders of 4 and more hours time frames.
If most of your trades are based on higher time frames then forget about BO and options trading.
Again, the concept of BO is good. Not because we are used to mt4, mt5 and trading station platforms, must say that the BO platform with its expiry time principle is bad.
It's just a different way of trading and making money, if suitable to your trading style, that's okay, you don't, forget about it.
Will continue fighting its scam brokers instead of BO trading concept.
Ending with an example from basketball, when the NBA rules are different to a good extent than the Fiba rules governing many countries around the world. We would not go saying the latter concept of basketball is garbage, we are the best. Okay, best in players, arenas, big sponsors, high salaries etc But we still apply many Fiba rules when playing abroad in international tournaments.
This comparison is surely a good example since playing under different rules from the 3 point distance to under the board to timeouts and half times etc(similar to trading difference bt. forex and BO, just playing in another way like trading in another way
) it makes a real difference for NBA players despite we still win at end mostly