forex Something about Binary Options, and the Broker Binary.com

[Anzo Lim 0]

What is binary option

Binary option is one of the most common forms of option. Compared with forex trading, binary option doesn’t involve trading lots, margin or leverage. Instead of actually trading an asset, binary option investors bet on whether the price of an underlying asset will be above or below the set mark at a certain time. Binary option bears considerable risks, as its mechanism is very similar to gambling.

        

Booming development followed by crackdown

The rapid development of the internet has led to a proliferation of web-based binary option platforms, particularly after 2010. Yet among these emerging brokers, many conduct unauthorized business and make huge profits through their illicit practices. Facing with the overgrown binary option platforms, European Securities and Market Authority (ESMA) made an announcement last year, prohibiting the marketing, distribution and sale of binary options within EU boarders. As countries tighten their regulation, many binary option brokers choose to transfer their businesses to offshore companies in order to carry on their business operations.

 

Visiting Binary.com

Binary.com claims itself to be an award-winning front-runner os online binary option with a trade volume of over 2 billion USD, and WikiFX visited the company’s branch in Malaysia upon investors’ requests. We arrived at the shopping centre where Binary.com is located, and found the company’s office. However, it’s empty with no one inside, and there were few people inside the building.

 

According to assessment data from WikiFX App, Binary.com is rated at 3.29. The broker uses non-MT4 trading software, which investors should beware of. In addition, WikiFX App’s risk warning suggests both the VESC (Vanuatu)’s license and FSC (the Virgin Islands)’s license held by the broker are in offshore regulation, while its FSA (Japan)’s license is suspected to be cloned, suggesting high risks. Investors need to be careful in choosing this broker.

 

Choosing a compliant binary option broker

Before making an investment, it’s a good idea to do a thorough research on the broker and check its information from all aspects, like its compliance and regulation, authenticity of its claimed regulatory status, whether it manages clients’ assets in segregated account and customers’ feedback on the broker.

Stay tuned as we bring you more forex trading strategies (fundamental and technical analysis) and don’t miss out the great forex contents updated on WikiFX.

[JavieCoentr 2]

Isn't the binary option the same as CFD trading? Isn't this just another way of calling it? I'm trading CFDs with the Investous broker. Have you heard of it? I think you did, it is reputable in the CFD trading industry. I speculate on where the price will go from the moment I enter the market, just as you described the binary option. Yes, it's more risk involved, I agree, but it's a direct dependency between the price and the risk, as soon as one of them increases - the other one does that also.