Binary trading is a very popular platform and like all popular things, it is subject to a lot of rumors. While some are silly, some are very dangerous. At Optionshill, we list out some of the myths you shouldn’t believe. We’re a fast growing online binary options trading platform.
You can millions of dollars in binary trading:
Hundreds of vulnerable people including retirees have ended up losing their money because of a few scrupulous traders claiming to help people earn millions of dollars within a short span. This is impossible because of the way binary trading operates. Traders placing a successful wager get only a fixed amount of returns. Unlike stock markets, your return on investment is fixed and limited. Do not trust brokers who claim to help you earn a million dollars in a few months.
Binary options is unregulated and illegal:
Binary trading began with the approval of the US Securities and Exchange Commission in 2008. While it was unregulated in the beginning, it is now one of the most regulated platforms in the world. There are regulating bodies in almost all major countries across the world that monitor trading and step in to prevent instances of fraud.
Binary options is easy and does not require training:
Binary traders have spent years trying to understand the platform and analyzing trends that affect the value of trading assets. It takes experience and expertise to predict the impact of news updates and other stories on assets. The ones perpetrating these myths are usually scammers preying on lazy traders. You will have to patiently learn and practice trading techniques. Optionshill always recommends traders to practice through a demo account to help traders become comfortable before trading with real money.
You can start with as little as $100:
True, you can get started with $100 or even less than that. But when you start out with such a tiny investment, you can invest only a very small amount on your trades. Brokers recommend investing only 2.5 -5% of your account, i.e. around $2.5 – $5. Some websites place a withdrawal threshold. Even if you were to lose a small amount of money, you will not be allowed to withdraw money that is technically yours.
Binary trading is akin to gambling:
Is this not true of stock, forex, and other forms of trading? Yes, you can treat it like gambling, but the approach will only lead you to lose money. Traders spend time and money understanding the market and analyzing trends before investing.
Author Bio : The Author manages a binary trading platform called Options Hills. He regularly writes articles to help traders understand the binary trading market dispelling myths.