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*Beware* Managed Binary Options Accounts

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When your Binary Options 'broker' offers to manage your account, it is always a scam. Here's why..
I like Binary Options trading. It's a fast and exciting way to play the markets. Traditional stocks, currency, or commodity trading can take years to double my investment, whilst on a Binary platform I can do it in 60 seconds or less. Unfortunately, there is some misunderstanding about how this new method of trading really works, and some platforms will take advantage of that. This leaves users feeling scammed and ripped off, and gives the entire industry a bad reputation.

The beauty in Binary is its simplicity. You choose an asset and expiry time, then predict whether its value will go UP or DOWN, and finally, input how much you want to invest. For example, the price of GOLD in 5 minutes, to go DOWN, for $25. The Binary trading platform will return your investment, plus a set percentage of it (usually 70% to 80%), if your prediction is correct. If your prediction is incorrect you lose 100% of your investment.

While it's easy to explain the process of Binary Options trading, it's not so easy to master the art of winning at it. If you want to win, it takes a lot of studying to figure out what makes the price of an asset move, and a lot of skill to consistently get the timing right. This can be intimidating. The platforms are aware of this, and will usually put one of their "brokers" or "account managers" in contact with you when you first sign up. These folks should be there to help you figure out how to use the software, make deposits and withdrawals, etc.

So, how does the Binary Options platform make money? How can they pay these "brokers", and for the software, websites, advertising, and other costs, and still be profitable? As explained above, there is an inequality between what you can win (your investment plus 70% to 80%) versus what you can lose (100% of your investment). Many assume that this 20% to 30% difference is the "fee" that the platform takes, and is how they make their money. Unfortunately, that is not the case.

"Binary Options trading platforms only make money when you lose"

The reality is, the assets you invest in are never actually purchased. The GOLD in my example above would not be quickly bought and then sold. You are actually just betting on where the value of the asset is going to move. There is no real "investment" ever made, at least not in the traditional sense.

Who are you betting against? Other users like yourself? No. You are playing against the Binary Options trading platform itself. Consider it like you're gambling at a casino, and the platform is "the House". That means Binary Options trading platforms only make money when you lose. When you win, they're paying you out of their cashier.

Most new users don't understand this. So, when their "broker" offers to help them make money by doing their trading for them, they don't realize that it is a total scam! These folks are working for the platform, remember. They only get paid when you lose - most of them work on commission. If they're there to answer your questions that's fine, but you don't want them trading with your money! They will always find a way to lose so that your money never leaves their platform.

If you need proof, just read through the Forum or comments on this website. The same story happens again and again. Managed Binary Options Accounts are a SCAM. Don't fall for it, and don't trade with any platform that offers it.

As I mentioned in the introduction, I like Binary trading. I'm not on some crusade to destroy the entire industry. Just because there is a rigged 3 card monty game on the street corner doesn't mean every casino in town is crooked. There are bad actors in Binary Options, just like they are in everything. Choose a safe platform to trade with, understand what you're getting into, and you could do quite well at it.

"*Beware* Managed Binary Options Accounts" User Comments

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