Some binary options trading platforms may also be operating as unregistered securities exchanges. This would be the case if they matched orders in securities of multiple buyers and sellers using established non- discretionary methods. However, there are cases where a registered broker-dealer with a trading system or platform may legitimately have no obligation to register as an exchange.
A retail trader involved in binary trading cannot be an investor. I mean, if you’re willing to put your money on hold for several months or even years, there are other markets you can trade. However, as mentioned earlier in this article, retail traders have little or no chances to make it with short-term expiration dates binary options. In other words, the right path is somewhere in the middle.
When these webinars are going, students learn by watching Ben trade, all while he talks through his decisions. He explains what he is doing and why he is making those choices. To further enhance the learning experience, users can interact with Ben by asking questions in real time. This personalized feedback from a binary options expert is the backbone of success for Bullish University students.
Binary trading is easy. You can do it from anywhere, even at home; you do not need any previous experience. As soon as you have selected a broker, such as Nadex, Options Bank, Expert Option or BDSwiss, you can start trading immediately by registering, depositing money, and making your prediction. For Forex trading the recommended brokers are Interactive Brokers, XTB, FXCM, Plus500, eToro, Binatex, Exness and SwissQuote.
Binary options traded outside the U.S. are also structured differently than those available on U.S. exchanges. They offer a viable alternative when speculating or hedging but only if the trader fully understands the two potential and opposing outcomes. The Financial Industry Regulatory Authority (FINRA) summed up regulator skepticism about these exotic instruments, advising investors "to be particularly wary of non-U.S. companies that offer binary options trading platforms. These include trading applications with names that often imply an easy path to riches".
Binary options are often considered a form of gambling rather than investment because of their negative cumulative payout (the brokers have an edge over the investor) and because they are advertised as requiring little or no knowledge of the markets. Gordon Pape, writing in Forbes.com in 2010, called binary options websites "gambling sites, pure and simple", and said "this sort of thing can quickly become addictive... no one, no matter how knowledgeable, can consistently predict what a stock or commodity will do within a short time frame".