The statement “binary options are scams” makes as much sense as saying “casinos are scams” or “Stockbrokers are scams”. Yes there are some scam casinos, there are some scam Stockbrokers and indeed there have been some scams involving binary options.
Binary options are a new area sitting between investing and wagering, where regulations are not always clear and new brokers appear constantly. Add to this the fact that it is possible to make of money, and the fact that all of this is happening online with crypto.
It is inevitable that these ingredients will attracted some dishonest brokers and gullible customers but no more than other areas of the crypto ecosystem.
How to avoid binary option scams
Like all threats online, start with good computer hygiene including these.
- Do not click on unknown links in emails or suspicious websites.
- Use a password manager for strong unique passwords.
- Use 2 factor authentication.
- Keep your computer’s antivirus, firewall and operating system up to date.
Another version of the “binary options are scams” argument is that binary option brokers are scammy in the way they masquerade as investment houses or financial service companies.
The argument goes that binary option brokers claim to be brokering trades as if binary options are a conventional mainstream financial instrument, when actually they are just taking bets with a big edge in their favor.
We can’t exactly disagree with that but we do disagree that it constitutes a scam. Rather it’s marketing spin that some brokers use which suites their product and target market.
While the edge is often in their favor I can assure you it is also often in the traders favor. Unlike sportsbooks and casinos, good binary options brokers don’t ban or limit customers who work out how to make long term profits.