There is a lot of talk about the legitimacy of binary options and binary options trading. People are asking: Are Binary Options Legit? Some people say it is a scam, others say it is a form of gambling that is pretending not to be gambling. While a third group of people believe that trading in binary options is a legitimate way to trade on the global financial markets.
In order to have an informed opinion about whether trading in binary options is legit or not, let’s first take a brief look at what binary options trading is.
Are Binary Options Legit and how do they work?
Binary options are the simplest trading instrument available to trade with on the global financial markets. As the name “binary options” suggests, this kind of trading is concerned with two choices. When trading your money in binary options, you do not buy or sell anything. You choose from a list of assets (Currencies, Stocks, Commodities, Indices) and you put an amount of your money on a contract that is concerned with the price movement of the underlying asset.
In it’s simplest form, also known as the “high-low” trading option, you have to decide whether the price of an underlying asset will increase or decrease within a specified timeframe. If the price has moved in the direction you specified by the expiry date/time, then you will be “in the money”. Conversely, if the price has actually moved in the opposite direction then you will be “out of the money.”
In order to secure your trade, you need to pay a fixed sum of money to the broker. The broker will then place the trade on your behalf. Once the stipulated timeframe is up, if you chose the underlying asset’s price movement correctly, then you will be paid a fixed return regardless of how much the price has moved. On the other hand, if you chose the price movement incorrectly, then you will only lose your fixed investment.
Trade with a registered and trusted broker
There are many different binary options brokers open for business in the online trading space. Those that are legit have registered with their home country’s regulatory body. Therefore they operate in compliance with the laws relating to the financial services industry as well as the international laws relating to finance and banking.
It is not always easy or obvious to see whether a company advertising itself as a binary options broker is in fact legit. Regulated and trusted brokers, such as Stern Options for instance, are proud of the fact that they comply with the global financial regulatory bodies, and they display this fact on their website.
Is it possible to turn a profit trading in binary options?
Many uninformed people believe that the only way you can make a profit when trading binary options is by pure luck. These sceptics regard it as purely a game of chance. The good news is that such beliefs and opinions are very far from the truth. In a nutshell, succeeding as a binary options trader is very far from pure luck and very little is left to chance.
A successful trader needs to spend many hours studying statistical data and price movement trends in order to get a feel for which way the price of an underlying asset might move. In order to gain access to the relevant market research materials, it’s important to partner with a broker who offers expert help and statistical data as part of their online trading platform.
Why trade with Stern Options?
Stern Options is a regulated and trusted broker with many years of experience in the binary options trading industry. They offer a world-class online trading platform that is kept up to date on both an algorithmic level and a technical level. Stern offers unparalleled customer service that includes free instruction into the theory and practice sides of the enterprise in order to help you trade successfully. Their online education centre consists of a trading academy, video tutorials, supplementary materials, glossary, and a FAQ section. Stern’s mission and motto is “professionalism developed over the years at your service.” It is clear that what is on offer by Stern Options actually demonstrates that they have thought seriously about what ‘’professionalism’’ means from the client’s point of view as well.
So- Are Binary Options Legit?
For those that are asking “Are Binary Options Legit?” the answer seems straight forward. From the above I believe it is safe to conclude binary options trading is a legitimate way to trade on the global financial markets. However, there are brokers who are not legit. This does not mean that the industry is a scam though. If you want to trade on the global stock exchanges via the binary options instrument, all you need to do is reassure yourself that you partner with a regulated broker.