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Why would you use a binary options broker?

Discussion in 'Forex Company Comparisons' started by jlmason26, Dec 1, 2014.

  1. jlmason26

    jlmason26 Recruit

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    Maybe I'm missing the boat...but I don't think so. I've been trading & investing for a living since the 1970s and seen all kinds of new and exciting deals come along...most of which were either worthless or scams. Binary options are the latest idea & there is a lot to be said for trading binaries on NADEX. You can open a small account directly with the exchange and fees are minimal. This provides an excellent risk management tool with significant opportunities for speculation.

    Along come the binary options brokers. Maybe I'm missing the boat, but I can see no reason for using a broker when you can access the exchange directly. True, some brokers offer charts or advisory services, but plenty of free charting software is out there for the underlying commodity or currency. I have seen more complaints about binary options brokers in the last two years that I have seen about futures commission merchants in the last 40 years.

    The internet is loaded with slick "get rich quick" and "home based business" videos that ultimately lead on into the clutches of some binary broker out there offering something akin to the holy grail of income producing opportunities. The worst of the lot are the ones that offer you a deposit bonus. They match part or all of your initial deposit to lure you in with the theory that you can more actively trade your way to Nirvana sooner. The fine print in all of these that I have seen makes it virtually impossible to withdraw any profits and getting your initial deposit back from these scammers is problematic. Witness the complaints against binary brokers on this site and other sites.

    My take is that if you want to use binaries, and there are good reasons for doing so, it is best to stay on the regulated exchange.

    If anyone has a reason why I should be using a broker I'd be interested in hearing about it
     
  2. Pharaoh

    Pharaoh Colonel

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    Some people fall for the "make $$ in only 60 seconds" pitch.
    Some people who don't understand how to do proper risk management in real trading like that they only can lose a limited amount per trade.
    Some people fall for the glitzy casino-like websites - without realizing how many of these binary bucketshops are owned by the same companies that own online casinos.

    There are other reasons, but that covers quite a few of the binary fans and binary victims I've seen.
     
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