Want binaries banned in Europe? Provide evidence NOW!

All trading is gambling then. You buy low, sell high or visa versa so you are betting a market price is above or below (excluding hedging) a certain price at a certain point in time. In order to be successful you need to have some sort of "model" that tells you when to enter and exit, the P&L and risk prior to placing a trade (bet). For a binary this model is more simple than in other types of trading (gambling) product due to the smaller number of variables and greater number of constants. Therefore I do believe a binary option is a way for non-institutional traders (gamblers) to make a profit from financial markets. in 99.9% of cases, Individuals don't have the capital of institutional investors to participate in markets in order to make a living from it. That pushes them into leverage which I think is really dangerous and increases variables on your model considerably leading to dangerous risk / financial management.

All my comments in all my posts on this subject are in the context of a fair level playing field regulated by a reputable regulator and you are very right that in Europe there is no such thing or likely to be.
 
I do not agree in banning binary option, as it was my first income during last year. it is obvious that there is a huge work to do regarding regulation, scams, etc. But scams comes not only from binaries, i saw many scams from forex brokers, that also manipulates prizes. Many of those brokers claims to be ECN but in fact are market makers. Moreover the biggest scams in the financial world came from "respectable" activities, you can find some examples if you google "biggest financial scams". So i think there is a lot to do regarding regulation and fighting criminals. If we are going to act only banning as a reply to scams so we should ban banks, bonds, stocks etc etc.
 
I do not agree in banning binary option, as it was my first income during last year. it is obvious that there is a huge work to do regarding regulation, scams, etc. But scams comes not only from binaries, i saw many scams from forex brokers, that also manipulates prizes. Many of those brokers claims to be ECN but in fact are market makers. Moreover the biggest scams in the financial world came from "respectable" activities, you can find some examples if you google "biggest financial scams". So i think there is a lot to do regarding regulation and fighting criminals. If we are going to act only banning as a reply to scams so we should ban banks, bonds, stocks etc etc.
Totally agree. I'm waiting for a Forex Peace Army message asking for evidence to ban Forex, the Futures market, or maybe HSBC.
 
All trading is gambling then. You buy low, sell high or visa versa so you are betting a market price is above or below (excluding hedging) a certain price at a certain point in time. In order to be successful you need to have some sort of "model" that tells you when to enter and exit, the P&L and risk prior to placing a trade (bet). For a binary this model is more simple than in other types of trading (gambling) product due to the smaller number of variables and greater number of constants. Therefore I do believe a binary option is a way for non-institutional traders (gamblers) to make a profit from financial markets. in 99.9% of cases, Individuals don't have the capital of institutional investors to participate in markets in order to make a living from it. That pushes them into leverage which I think is really dangerous and increases variables on your model considerably leading to dangerous risk / financial management.

All my comments in all my posts on this subject are in the context of a fair level playing field regulated by a reputable regulator and you are very right that in Europe there is no such thing or likely to be.
I applaud your comment, effectively in binary options the risk is limited, unlike Forex, cfds, futures ... But who cares if they can offer binary options as a trophy to the press, while they continue with their business? It seems that for the FPA when I trade in Forex I am a very serious investor and a minute later when I trade in Binary Options I am a gambler.
 
I applaud your comment, effectively in binary options the risk is limited, unlike Forex, cfds, futures ... But who cares if they can offer binary options as a trophy to the press, while they continue with their business? It seems that for the FPA when I trade in Forex I am a very serious investor and a minute later when I trade in Binary Options I am a gambler.

The odds are stacked against you how can you claim that risk is lower... It is basically nonsense when your potential lose is 100% from the bet while potential gain is only 75-80%. Only gamblers will buy in that.
 
The odds are stacked against you how can you claim that risk is lower... It is basically nonsense when your potential lose is 100% from the bet while potential gain is only 75-80%. Only gamblers will buy in that.
The risk is limited. I limit the risk, is it so difficult to understand this?
 
The odds are stacked against you how can you claim that risk is lower... It is basically nonsense when your potential lose is 100% from the bet while potential gain is only 75-80%. Only gamblers will buy in that.
You say that the potential gain is 75-80%. I'll tell you more, in certain hours and in some products the brokers pay less, 60%, 50%. I'll tell you why. Because many quality traders, like me ,. we beat them so consistently with the 80% that they need to reduce it. Still, we keep winning. Try doing this in horse racing. The difference is thousands of hours of study, work, to get to this. But of course, it is easier to think that if I do not win, it is that nobody wins and the matter has a trap. And dedicate time and effort to destroy the work of other people, like me. Thank you.
 
The odds are stacked against you how can you claim that risk is lower... It is basically nonsense when your potential lose is 100% from the bet while potential gain is only 75-80%. Only gamblers will buy in that.
Risk may be lower or higher, but is limited. You can´t loose more than what you risk in binaries. Your argument is logic using a gambling concept but using a trading concept and risking no more than 1 or 2% in each operation you can take a lot of benefit from binaries if you have an estrategy with 65% of success or more, as i do. I don´t understand why forex traders underestimate binaries in that way, i like both worlds and hope to enjoy them for a long time.
 
Let's make a few things clear about binary options.

1. The whole concept was invented by the online gambling industry to make gambling look like trading.

The basic concept of a binary option is a bet of up or down. In general, if you lose, you lose the entire amount of your wager. If you win, your "prize" is somewhere between 60 and 90% of your wager.

Now look at the time frames being encouraged by the brokers. They push 5 minute, 1 minute, and even shorter trades. This turns your "trade" into a coin toss or betting red or black at the roulette table, since even in a good trend, there's no way to reliably predict if price will be higher or lower in 5 minutes or less.

How many of you would like to bet $10 per coin toss, knowing that if you win, you'll get $7 or $8 and if you lose, you'll lose $10?

Real world casinos have offered to let people bet red or black at the roulette since the 1700's. There are some differences. In a casino version of roulette, the house advantage is only the green 0 slots. Other than that, the payout is equal to the wager for a red or black wager. This is a far more narrow advantage than binary "brokers" give themselves.

In real forex trading, if you catch a good trend, you can trail your stop and let the trade run as long as you like or until the trend reverses and hits your stoploss.

In real options trading, your loss can be fixed, but if a contract is "in the money", your profits are based on how far price has moved in your favor.

2. There is no liquidity provider in binary options.

There's no central bank or even large bank which will take the other side of a fixed payout wager, just like real world casinos can't get a bank to take the other side of bets at the roulette table.

EVERY binary options company is a market maker/bucket shop. Your losses are their gain, Your wins are their losses.

3. Bucketshops are profitable, but not profitable enough for these greedy binary scammers.

A roulette wheel is a mainstay at licensed and regulated casinos because it will make profits in the long run in spite of the occasional lucky gambler who cashes out while ahead. With the far greater advantage binary brokers have, they should be happy to rake in people's losses and pay out the few who make a profit and are ready to withdraw.

Instead, many (most? all?) of the major binary platforms are rigged. This lets the broker easily manipulate price or expiration to increase the client's chance of losing.

Add in the "expert account managers" who claim to be able to make profits for clients. If you walked into a casino, knowing that your winnings can hurt the casino's bottom line, would you trust an "expert gambling manager" who would tell you where, when, and how much to bet to be "sure to make you a big profit"?

The simple fact is that if a casino employee did have a way to help clients easily win big and did show this to clients, the employee would be fired to save the casino from bankruptcy.

4.. Look at the fraud rate for binary brokers vs forex brokers.

Just go to the FPA reviews and take a look. Yes, there are forex brokers with ratings averaging less than 2 stars or that are labelled as scams, but the percent of binary brokers with extremely low ratings or listed as SCAM is much higher.


It's already well established that Cysec regulation didn't even slow down most binary scammers from looting their client's bank accounts, retirement plans, and even provided advice on getting mortgages and credit card limit increases. Now that Cysec seems to have stopped handing out new licenses to steal to binary companies and Israel is chasing binary operations out of the country, more and more of these scammers are moving to countries with little or no regulation.

If you have an overwhelming urge to "trade" this way, I recommend you go to a licensed casino and spend an evening betting red or black at the roulette table. No one will call you and pressure you to deposit more. No one will misuse your credit card or ID documents. Best of all, you can take your chips and cash them in with no problem any time you like.

Binaries need to be banned. They were invented to bypass regulations. Even an honest binary broker has an automatic conflict of interest and is offering clients a bad deal. If they are banned, then there's no need to waste time and money hoping that you might have gotten lucky and found an honest one.
 
Back
Top