The issue between the US and Banc de Binary has since been resolved and is now in the past. Banc de Binary is now regulated and has partnered with the Liverpool Football Club. However the amounts of complaints are overwhelming and cannot be ignored. The majority of complaints are centered on loss of money and their aggressive sales tactics. This therefore makes having a direct answer to “Is this a scam?” rather challenging. It all depends on whom you ask.
Binary options trading is a time-consuming activity. You must always read about the latest events in the global markets in order to keep up with the most recent information and updates. Experienced and successful traders usually trade with several assets and they rarely change them. This is why as soon as you learn how to trade binary options you should pick 5-6 assets that you think are the easiest to predict. Always read the news related to the assets in order to be able to react adequately in case the market news predict a drastic change in the price.
Cold Calls. Professional brokers will not make cold calls – they do not market themselves in that way. Cold calls will often be from unregulated brokers interested only in getting an initial deposit. Proceed extremely carefully if joining a company that got in contact this way. This would include email contact as well – any form of contact out of the blue.
Traders have better control of trades in binaries. For example, if a trader wants to buy a contract, he knows in advance, what he stands to gain and what he will lose if the trade is out-of-the-money. This is not the case with other markets. For example, when a trader sets a pending order in the forex market to trade a high-impact news event, there is no assurance that his trade will be filled at the entry price or that a losing trade will be closed out at the exit stop loss.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.


The expiry time is the period that your placed contract is expected to expire. It is the period between the time you place the trade and the time it expire. For most brokers in the industry, the trader is allowed to choose his or her preferred expiry period while opening a trade. The expiry period could be as short as 60 seconds or as long as days or even months.
Since binary options trading comes with its own set of pros and cons, you’ll have to determine if it’s the right way to go for you. After all, limited regulations and limited profit potential can render it an unattractive option. However, there’s no denying of the fact that binary options are an excellent practice ground for a beginner who wants to take the plunge.
First-hand information is the best information, so go straight up to forums where professional and experienced traders hand out tips for beginners. Use the opportunity to find out about the tricky parts of the market, what is recommended, what is not recommended, etc. experienced traders are a great source of knowledge, and they will let you know things that are not often mentioned in options reviews and articles.
Binary trading offers a wide variety of trading options including commodities, currency pairs, indices and stocks. With all of these options, you are not limited to one type of trading asset only, opening you to an exciting world of trading. You now have the ability to trade Apple stock, foreign currencies, gold or silver from the same trading platform. You have the option to trade internationally without having to go back and forth between various brokers.
In 2010, critical changes to the odds, risks, and fixed rewards now associated with binary options would further promote their reputation. From then on, important brokers started implementing policies to ensure that this brand of trade would become more user-friendly so that investors would be able to trade options from the confines of their homes as well when out and about. In essence, the sheer genius and beauty of the world wide web made it easy for individuals to trade binary options anytime and from anywhere.
If we denote by S the FOR/DOM exchange rate (i.e., 1 unit of foreign currency is worth S units of domestic currency) we can observe that paying out 1 unit of the domestic currency if the spot at maturity is above or below the strike is exactly like a cash-or nothing call and put respectively. Similarly, paying out 1 unit of the foreign currency if the spot at maturity is above or below the strike is exactly like an asset-or nothing call and put respectively. Hence if we now take {\displaystyle r_{\mathrm {FOR} }} , the foreign interest rate, {\displaystyle r_{DOM}} , the domestic interest rate, and the rest as above, we get the following results.