Binary options trading is a wide-spread financial activity on the South African market.
Numerous traders are taking part and reaping the benefits of this online trading venture.
However, there are those who would like to take part but are battling the fear and constant doubt of binary options – scam or not dilemma.
To offer the answer to this agonising question we took a closer look at binary options trading as a whole and what South African traders need to be aware of before they get involved.
Why Trade Binary Options?
It is often said that if there is smoke there also has to be a fire.
Well, yes and no, depending on the situation at hand.
If we take a moment and think logically about any type of financial investment we will soon realise that two main principles exist – an individual can make money and they can also lose it.
The same goes for binary options trading. Of course, there are risks but there are also fantastic possibilities.
It would be hard to proclaim binary options trading scam with millions of traders around the world taking part in it.
And, this has persisted since 2008 when this manner of trading first became available to the public.
Obviously, traders found something to keep them coming and trading binaries.
Great Profit-Making Opportunities
In most cases, the possible average winning ratio moves between 65-85% on a successful trade which is a very attractive prospect.
This is a very attractive prospect for eager binary traders in South Africa.
Also, with numerous trade options and short and long expiry times it is not necessary to wait for a long time to find out if the trade was successful or not.
Additionally, in binary options trading traders know beforehand just how much they stand to win or lose which indicates that binary options are not scam.
Diversity of Binary Options Trading
Binary options trading started out as diverse but also simple and transparent way of trading.
Potential South African traders who start researching binaries will soon find a great selection of underlying assets (stocks, commodities, indices and currencies), trade options, trading tools and features as well as strategies.
Furthermore, when it comes to trading binary options there is plenty of educational materials available for free online.
Quality binary brokers have educational sections on their platforms which detail the trading process and impart useful advice to South Africans eager to learn and trade.
Further proof that the fear that all binary options trading is scam does not hold is the simplicity of the trading process.
Those South Africans who wish to trade binaries will find they have to make a simple prediction – whether the price of the underlying asset will rise or fall. Next, traders need to choose the underlying asset they wish to trade, trade options and expiry time.
Of course, there are other components which have to be included, but these are the basics.
What’s more, the majority of binary brokers also provide varied account types which all have a unique set of features and tools available.
Traders are free to select the trading account which best suits their trading style but also their financial circumstances because every type of trading account has a different minimum deposit.
This also means that binary options trading has a far reach as it enables people from all walks of life to take part and reap the benefits.
The Demo Account Advantage
Further evidence speaking in favour of binary options no scam claim is the existence of the demo account.
Not all binary brokers provide this unique trading feature but those who do, and there is an increasing number of them, are raising their quality of service.
That means that hopeful South Africans get to experience binary options trading and all that comes with it but do not have to worry about losing their funds.
This is the perfect training grounds which can prepare traders for what happens when real trading takes place.
Affordable Initial Deposit – South Africa
Most binary brokers have a very affordable initial deposit of $250 and with some brokers minimum investment per trade starts at only $1.
In fact, one of the most popular binary options brokers in South Africa, IQ Option, has the minimum deposit of only $10.
This makes binary options trading very appealing for regular people because they stand a chance to make profits without a huge investment.
This also implies that binary options trading on the whole is not a scam activity but legitimate trading venture.
Drawbacks of Binary Options Trading
Of course, it’s not pretty and pink in the world of binary options trading. There are several aspects which can be difficult to handle.
Bottom line is – binary options trading will not be suitable for all traders.
Scam Binary Brokers
Scam brokers exist, especially since there are more than 500 binary brokers available on the market today. Yet, to proclaim binary options trading a scam because of the few rotten apples is not justified.
Scam happens in all areas of life and binary trading is not exempt.
There are binary brokers who have been in business for years and have numerous satisfied customers.
It is not easy to find a good binary broker, but this is where traders have to play their part. Research is important and sites like Binaryoptions.org.za are a helpful source of information.
It is great to read guides dealing with a scam and how to spot it and then apply that knowledge when South Africans look for binary brokers.
Substantial Risks in Trading Binaries
Trading binaries includes substantial risks because South African traders can win or lose their investment. There are no guarantees and brokers who claim this are
There are no guarantees and brokers who claim this are likely a scam and should be avoided.
Also, brokers who run a transparent and open business will have the risk disclaimer visible on their sites because they want to provide as much info to their traders as possible.
The good side of the risk involved in trading binary options is that traders cannot lose more than they invest, and they do know the potential gains and profits from the start.
Lack of Regulation in Trading Binaries
The issue of regulation is, coincidently, very binary. On the one hand, there are regulatory authorities and many binary brokers opt to obtain the regulatory license.
We do advise South African traders to rather opt for the binary brokers who have the regulatory license issued by FSB or so other regulatory authority.
On the other hand, regulatory status is optional and brokers are under no obligation to have it. This also does not immediately mean that traders are dealing with a scam binary options broker.
Again, it all comes down to traders doing their homework and researching brokers they found interesting prior to making the deposit.