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Binary.com Review: One Stop Trading Solution For All Traders
Published on May 16, 2020
Binary.com Review will help you to know about this popular Binary Options and CFD Broker.
It is a premier platform for trading binary options in the world’s financial markets.
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- 1. Binary.Com Review https://www.binoption.net/binary-com-broker-review/
- 2. Introduction A popular Binary Options and CFD broker Founded in 1999, to make binary options simple and easy for new traders More than 1,000,000 registered accounts More than 100 tradeable instruments https://www.binoption.net/binary-com-broker-review/
- 3. Company Information Owned and Operated By Binary Group Ltd. Trading Experience 20 Years Regulated In EU countries and Non-EU countries https://www.binoption.net/binary-com-broker-review/
- 4. Why Binary.com Minimum Deposit $5 Maximum payout 100% Minimum trade $1 Minimum withdrawal $10 Demo account $10,000 Vast education resources Zero withdrawal fees 24/7 customer support https://www.binoption.net/binary-com-broker-review/
- 5. Binary.com Regulation Binary (V) Ltd Regulated By Vanuatu Financial Services Commission Binary Investment (Europe) Ltd Regulated By Malta Financial Services Authority Binary (FX) Ltd Regulated By Labuan Financial Services Authority to carry on a money-broking business Binary (BVI) Ltd Regulated By British Virgin Islands Financial Services Commission Binary KK Regulated By Japanese Financial Services Agency and by The Financial Futures Association of Japan. Binary IOM Regulated By UK Gambling Commission https://www.binoption.net/binary-com-broker-review/
- 6. Awards And Achievements EGR Operator AwardPersonal Wealth Awards 2020 Global Brands Awards 2020 Global Banking & Finance Awards 2020 MENA FFXPO Award Best Fixed-Odds Financial Trading Provider Best Customer Communication Firm Best Fixed-Odds Financial Provider Financial Betting Operator of the Year Best Fixed-Odds Broker https://www.binoption.net/binary-com-broker-review/
- 7. Demo Account • Essential for all types of traders to learn trade • $10,000 virtual money • You can top up your virtual account if the amount is less than $1,000 • There is not time limit for demo account https://www.binoption.net/binary-com-broker-review/
- 8. Binary.com Account Types https://www.binoption.net/binary-com-broker-review/
- 9. Trading Assets Forex Volatility Indices Cryptocurrency Indices Commodities https://www.binoption.net/binary-com-broker-review/
- 10. Binary.com Shop • One of the most popular products of the Binary.com shop is Binary Bot • More than 18 trading related products • applications and e-books take two working days to arrive after a successful payment from clients • Buying products from Binary.com shop is only possible with your valid Paypal account https://www.binoption.net/binary-com-broker-review/
- 11. Options Types Up/Down Touch / No Touch Ends In / Out Asians Only Ups/Only Downs High Ticks/Low Ticks Reset Call/Reset Put Digits https://www.binoption.net/binary-com-broker-review/
- 12. Types of LookBacks Binary.com offers a contract named lookbacks High-Close Close-Low High-Low The Lookbacks options are only available for Volatility Indices https://www.binoption.net/binary-com-broker-review/
- 13. Trading Platform Smart Trader Web Trader Ladder Meta Trader 5 https://www.binoption.net/binary-com-broker-review/
- 14. Binary.com Tick Trade App 7 Types of underlying asset Both web and mobile 7 trade types available Minimum stake 0.35 https://www.binoption.net/binary-com-broker-review/
- 15. Academy And Webinar Interactive webinar Daily market reports E-book, videos, and more Glossary part https://www.binoption.net/binary-com-broker-review/
- 16. Deposit Method Minimum deposit $5 Safe, secure, fast and problem free Support hundreds of deposit methods including Bitcoin No deposit fee https://www.binoption.net/binary-com-broker-review/
- 17. Withdrawal Method Minimum withdrawal amount $10 Zero withdrawal fee SSL security system https://www.binoption.net/binary-com-broker-review/
- 18. Customer Support You can connect through E-mail and phone call Multilingual support system 24/7 support system available Dedicated and responsive support team https://www.binoption.net/binary-com-broker-review/
- 19. Binary.com Advantages You can perform trade 24/7 Award winning broker Trading timeframes from 10 seconds to 365 days Low deposit amount Trade according to your preferred strategy https://www.binoption.net/binary-com-broker-review/
- 20. Binary.com Disadvantages Do not support live chat Only support Paypal to shop Not Top regulatory bodies https://www.binoption.net/binary-com-broker-review/
- 21. Final Words • Brokers perform well in all aspects • Top regulatory bodies with strict policies • Withdrawal is quick and safe • Hardly any customer complaints https://www.binoption.net/binary-com-broker-review/
- 22. Get More Knowledge on Binary.com and Create Free Account From Below https://www.binoption.net/binary-com-broker-review/ Connect With Us https://www.facebook.com/binoption.net/ https://twitter.com/Binoption_Net https://www.linkedin.com/company/binoption https://www.instagram.com/binoption_net/ https://www.binoption.net/binary-com-broker-review/
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Binary.com Review and Tutorial 2020
Go to the Brokers List for alternatives
Binary.com are the established pioneers of binary options. The choice of the advanced trader, Binary.com offer the greatest flexibility of any binary broker. They also offer Forex and CFD via the MT5 platform.
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Binary.com is an online binary options and CFD trading platform (MT5) that is owned and managed by the Regents Market Group. The platform allows online trading on the financial markets, including cryptocurrency and forex markets. Our review details all you need to know before you open an account and start trading.
It was only in 2020 that BetonMarkets.com was rebranded as Binary.com by the parent company, to spearhead an expansion plan to capture a bigger slice of the financial trading market.
Today with the company’s head office located on Malta, at Mompalao Building, Suite 2, Tower Road, Msida MSD1825, Binary.com has grown to service more than one million clients from all over the world.
They have since expanded to include satellite offices in Malaysia and Japan as well. The platform has also been developed to include MT4 and MT5 integration.
Regulation & Reputation
In terms of its reputation, Binary.com is an award winning platform. Over the years, the platform has won numerous awards from major reviewers in the financial industry.
These awards are all testaments to the first class service which Binary.com has provided over the years, to its clients.
In addition, it is also reassuring for traders to know that they are dealing with a legitimate and regulated broker.
In terms of regulatory oversight, Binary.com is regulated by the Malta Financial Services Authority as a Category 3 Investment Services provider under the license number IS/70156.
On the Isle of Man and the UK, Binary.com is regulated by the Gambling Supervision Commission and the UK Gambling Commission respectively.
The platform has also been issued a Remote Bookmaker’s license by the Revenue Commissioners in Ireland.
Binary.com MT5 Trading Platform
It is interesting to note that Binary.com is able to offer its traders a wide selection of trading platforms. The trading platforms are categorised into (1) basic platforms and (2) advanced platforms.
There are 2 types of basic platforms, the Binary.com platform and the Binary Tick Trade App. Both these platforms are used for trading binaries with the latter designed specifically for mobile trading.
As for the advanced trading platforms and trading software, Binary.com has the following:
- The MetaTrader 5 platform, for CFDs and forex trading
- The Binary WebTrader, for advanced binary options trading
- The Binary Next-Gen platform, for advanced trading features
- The Binary Bot platform, for automated binary trading
As mentioned earlier, the Binary Tick Trade app is specifically designed for traders who need to be mobile and not be glued to their desktop trading terminal.
The app is available free of charge and can be downloaded from Apple App Store and Google Playstore. With the app, traders can check their trading account status as well as execute trades.
Trading Accounts Offered
With regards to the type of trading platform that are available at Binary.com, the broker only has two types of trading accounts to offer, a standard trading account and a virtual account.
The virtual or demo account is basically a practice account that is preloaded with $10,000 virtual cash. It allows beginner traders to test out the trading platform and trading strategies, without having to risk any real money.
It also provides a tool fr advanced traders to back test trading strategies and theories.
Once you are confident enough to begin live trading, you can open a standard trading account. Unlike most binary options brokers, which require a minimum deposit of $250 to open a live trading account, Binary.com only require a minimum deposit of just $5, hence making Binary.com more accessible.
The account process is simple and hassle free. If you have already registered for a demo account, the process of converting it to a virtual account to the standard account is even easier with just a click of the mouse.
The MT5 account delivers CFDs on forex, cryptocurrency and a range of other financial markets. The metatrader 5 platform is a new addition to the offering, going live in the summer of 2020.
The software is therefore cutting edge and delivers many of the features modern traders need. Stop loss, limit orders, advanced charting, trading strategy testing and one-click trading.
Binary.com Account Comparison
At present, Binary.com are not offering any form of free trade or no deposit bonus.
Assets & Instruments
At Binary.com, traders can trade in CFDs as well as 4 types of binary options such as Up/Down, Touch/No Touch, End In/Out and Stay In/Out.
As for the list of available underlying assets, there is a choice of 114 different types of assets. They consist of 30 currency pairs, 4-currency indexes, 28 market indices, 40 types of stocks, 5 types of commodities and 7 types of market volatility indices.
The addition of the MT5 platform expands the offering further.
Advanced Charting At Binary.com
For the convenience of their clients, Binary.com has translated their website into a dozen different languages. As for customer support, traders can contact the support team through email or by calling them directly on the telephone.
Contact numbers vary based on trader location. The correct details can be found on the ‘Contact Us’ area of the website.
Unfortunately, we noted that live chat support is not available which puts Binary.com at a disadvantage, when we compare the broker with other brokers in the industry.
Deposit & Withdrawal
As for the payment methods that are supported by Binary.com, there are plenty of choices. You can use major credit cards such as VISA, Mastercard. Alternatively, you also fund your trading account through eWallets such as Skrill and Neteller.
You can also fund your trading account through online exchanges such as Western Union. For traders without convenient access, funds can also be transferred through wire transfer.
Cryptocurrencies such as Bitcoin, Bitcoin Cash, Litecoin and Ethereum are also accepted in lieu of fiat currencies. As for withdrawals, the whole withdrawal process takes between 1 to 5 business days to be completed depending on the method used.
Is Binary.com Best For Day Trading?
As a platform for day trading, Binary.com is a suitable platform due to the fact that the expiry time for binary options can be as short as 2 minutes. The high returns offered also help to justify the trading risks involved in trading binaries.
Binary.com accepts traders from Australia, Thailand, Canada, United Kingdom, South Africa, Singapore, India, France, Germany, Norway, Sweden, Italy, Denmark, United Arab Emirates, Saudi Arabia, Kuwait, Luxembourg, Qatar and most other countries.
Traders can not use Binary.com from United States, Malaysia, Hong Kong, Iran.
Does Binary.com accept US Traders?
No. At present, Binary.com does not accept traders based in the US. Visit the brokers page for a list of brokers who accept traders from your region.
Does binary.com offer trading on the Nasdaq?
Yes. Nasdaq is listed as ‘US Tech 100’ under the indices list. The minimum time frame that can be traded with binary options is 15 minutes. CFD trading is also available via the MT5 platform.
Is there a mobile app?
Yes. Mobile trading is available via the ‘Tick Trade’ android app. SmartTrader is also available on Mobile.
Does Binary.com have MT4
Yes. Binary.com offer MetaTrader integration. Traders need to open a specific account to access the MT4 and MT5 platforms.
Is hedging allowed?
Yes. Binary.com offer both binary options and CFD trading depending on your region. Both can be used to hedge other trades. Payouts between the investment types vary of course, so ensure you understand the potential payouts of each trade if hedging is your aim.
Is Binary.com a trusted, regulated broker?
Yes. Binary.com have been in business since 1999. That longevity in the financial marketplace is a sign of solid customer satisfaction. They are also regulated and licensed by:
- VFSC (Vanuatu)
- FSC (British Virgin Islands)
- IBFC (Malaysia)
What is the minimum deposit requirement to open an account?
The minimum deposit requirement to open a trading account at Binary.com is $5. To open advanced and MT5 accounts, you first open a standard account, and then apply for higher levels. This does not require any additional deposits.
How fast are withdrawals processed from Binary.com?
The typical processing time for a withdrawal request to be processed is one business day. However, it may take as long as 5 business days for the funds to appear in your bank account.
Scams and Blacklist
Scams are unfortunately all too common in the field of binary options. Dishonest brokers and reviews, or rigged robots and other auto trading services – the scams can come in many forms. So we feel it’s necessary to create this blacklist and list all known frauds and dishonest techniques in one place. We also go through the steps you can take to identify a potential scam and how to deal with the situation after the fact if you’re already a victim. If you know or suspect something is a scam, and we’re missing it on our blacklist, please let us know and we will look into it!
Why Are Stories of Scams So Common?
When any new financial instrument or form of trading first emerges, a whole range of businesses tend to get involved. It’s a fact of life that some of those product providers are going to be more trustworthy than others. This is certainly true of binary options. It is, after all, an accessible and popular method for individuals to trade the markets. What’s more, at least in their early days, binary options trading platforms tended to operate under the radar of the regulators and from any country over the internet – so it’s hardly surprising that unscrupulous operators seek to take advantage. Thanks to better regulation, a strong online trader community and honest reviews, it’s now a lot easier to tell a scam from a legitimate broker. But as with any international online marketplace, there are still some shady outfits who will leave you with less than you bargained for. So what are red flags to look out for? Here are the points to consider as you go about choosing your binary broker.
MyChargeBack.com are a company who specialise in helping binary fraud victims recover their money. They liaise with bank or credit card firms in order to get charge backs made to reclaim deposits. They will tell you if you have a valid claim via a free consultation.
Are Binary Options A Scam?
The term “scam” covers a wide range of behaviour, from providing misleading information to lure you in, through to vanishing account balances – and even dishonest trading advice. Likewise, a particular broker might not be technically fraudulent in its behaviour; it’s just that the service available on the platform (such as highly unreliable uptime or failure to reimburse funds in a timely manner) means that this is a broker that really ought to be avoided.
In all of these cases, the problem isn’t with binary options as a concept, it’s with the broker.
So it’s a matter of doing your homework before you commit to any particular platform. User reviews can be helpful (if they are genuine), but always treat such reviews with scepticism – and never make a decision on the basis of testimonials published on the broker’s website. Even trader forums can be problematic – look closely and you’ll often find that the forum is an offshoot of a particular broker’s website. Independent, thorough and comparative reviews are the safest way to ‘scam-check’ a broker. Ideally, focus on review sites that allow and encourage real-life users to get in contact and report and problems with particular brokers, so you can be sure that what you are reading is up to date.
Below is an always up-to-date list of our top 3 trusted brokers. You can find a list of all the brokers we recommend here.
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The UK’s Financial Conduct Authority (FCA) does now regulate binary options. They have already created a list of unauthorised firms. While they are not calling them scams, they are making it clear that these firms are breaking the law by trading with UK visitors – so they are best avoided. The full list can be found here: FCA Unauthorised List
By contrast, the USA along with most other EU countries do regard binary options as financial products. Depending on where they are based, many platforms will, therefore, be subject to oversight from a regulatory body. Examples include the CFTC in the US and CySec in Cyprus. A platform’s regulatory status can be a highly valuable trust-indicator for traders seeking to avoid scams. It shows that the broker has to abide by certain minimum standards when it comes to service and transparency.
Marketing “Too Good To Be True”
Taken in isolation, the act of placing a trade should be a straightforward one; and indeed, the usability of a platform tends to be a big selling point for brokers. Although this aspect of binary options is “easy”, it’s something quite different to claim that profits are guaranteed. Realising a profit through regular trading requires knowledge of how markets behave, the ability to read market conditions and an understanding of strategy. If the risks are downplayed – or outright false assertions are made (along the lines of “95% trades are successful”), these are false assurances. It’s a sign that the broker may be less than scrupulous in other important areas and that the platform ought to be given a wide berth.
Terms and conditions
Transparency is essential. Read the smallprint, and be especially wary of needlessly convoluted procedures for withdrawal of funds. Terms regarding your initial deposit can be another source of contention; for instance, if you are denied access to the deposit until a certain number of trades are made – so your money is tied to the platform from the moment it is handed over. This deposit retention is often part of wider terms associated with a ‘bonus’. CySec have sought to ban these sorts of terms by stopping the use of ‘deposit match’ bonuses. Non-CySec brands are still free to use them however, so T&C’s must always checked.
These tend to fall into two categories. The first is where you are called out of the blue and invited to sign up to a particular platform. The second occurs where you are already tied to the platform and you receive a call (or email) from a “senior broker” pointing you in the direction of particular trades. Reputable brokers do not need to make cold calls. Bear in mind “cold calls” might include emails too – any form of unsolicited approach should be considered a “cold” contact and be treated with extreme suspicion.
You should always be clear about who you are dealing with. In some situations, you might visit what appears to be an actual broker’s site, click the link to sign up only to be redirected to another broker. Alternatively a trading “service” may dictate that you use only their recommended broker. These “funnel” sites are sometimes used as a front by brokers with a poor reputation, or are working alongside them to dupe visitors (often using the misleading marketing mentioned above). A good broker will be upfront about its identity from the outset.
It’s one thing for a broker to give you access to the data and analysis tools to work out your own strategies (in fact, this is one of the signs of a great platform). It’s quite another for that broker to also offer trading advice. After all, with ‘over the counter’ binary options brokers, you are betting against the house; if the ‘house’ is making the trading decisions for you, it’s hardly likely that those decisions will be in your best interests. This form of “upselling” is often the most lucrative for the broker, and is usually the where traders lose the most. Encouraged by an “account manager”, traders are advised to deposit beyond their means and to over trade. On occasion large accounts will be wiped out in hours. The “advice” goes against any sound money management, and increases risk hugely. Always take responsibility for your own trades. Never allow a broker to make trading decisions for you.
There has to be a fair and transparent benchmark against which the broker sets its prices. This benchmark should be what’s happening in the real world; i.e. real-time market prices. If the broker reserves the right to set its own prices, you can assume that those figures will be skewed against you; in other words, a loaded deck.
Scam Brokers and Not Recommended Operators
The brokers listed below have generated a lot of complaints both directly and on the forum. The disputes vary from upselling and encouraging traders to over trade, to non-payment of withdrawals and price manipulation. There is little recourse for traders to raise a dispute with unregulated brokers, so it is generally advised that you look for trusted binary options brokers – preferably regulated in your own country where possible. “Scam” has become widely used as a term to refer to any form of poor service, but it should be noted that many of these brokers may have done nothing dishonest or illegal, but have attracted higher than normal levels of complaints. If in doubt, trade elsewhere. There are plenty of honest brokers out there.
Robot And Signal Scams
These signal providers, or robot services, are either scams or not recommended for other important reasons.
Instagram And Facebook
Beware of scams operating on social media. Again, binaries are not a get rich quick scheme. There are a huge number of accounts promising to trade on your behalf and turn $2k into $8k in a week. If these claims were true, the people behind them would not need to be running ads or signing people up – they would simply trade themselves.
Screenshots of successful trades are exceptionally easy to get – even genuinely. But these operators are unlikely to even bother trading – once you send them money, it is gone and you will not hear from them again (unless they think they can get you to deposit more). Always select your own broker, and always take responsibility for your own trades – dont let someone else trade on your behalf. If you do not understand binary options, or do not have time to trade – then do not trade at all. These scams often prey on people who lack experience.
What To Do If You’ve Been Scammed
Do you think you’ve fallen prey to a binary options scam? Read on to find out what you can do if you’ve been scammed. There are many ways to help ensure that you don’t fall prey to a scam but the reality is that even if you follow all those tips there is still a possibility you will be scammed. If that happens, what do you do? Do you sit back and take it? Do you give up on trading? No, you need to stand tall and look out for yourself. Trading is good, it is rewarding and can lead to a life in which you don’t have to go to a job and punch a clock. You can’t let the actions of one broker, signal service, robot or guru dissuade you from that path. This article is a look at what you can do if you think you’ve been scammed. It’s likely that once an issue arises you won’t be able to get your profits, it is possible to get back your initial deposit but it might take some work.
MyChargeBack.com are a firm specialising in helping victims of binary options fraud. They help claimants to explain the incident to the bank or credit card company, so that they fully understand what has happened. Some banks are unaware of binary trading and are unwilling to listen to claims. MyChargeBack help in this situation. They have a solid record of recovery from genuine claims.
If you are not yet looking for third party help, here are some steps you can take yourself:
- Document everything. The very first thing to do is to make records of everything you can. This includes the brokers, or SSP’s, terms&conditions, copies of any emails/Skype/live-chat you have had with them, confirmation of your deposit, turnover requirements for bonuses and your trading history. No matter what you do next, this information will be required in order to get satisfaction. What you do next will depend on the type of scam you have fallen prey to.
- Try to withdraw. Broker won’t let me withdraw. Contact the broker and try to find out why they won’t let you withdraw. The most usual reason is that you’ve not sent in the right ID documentation, something required by international law, and is an issue easy to fix. The next most pressing reason why withdrawals are not allowed is due to bonus terms and turnover requirements. If you haven’t met conditions you will not be allowed to make any form of withdrawal which is why you want to keep track of all your trading volume and turnover. If you didn’t accept a bonus in the first place your documentation will help you prove it. A good broker will try to solve your issues, a shady one will give you the run-around.
- Make your voice heard. Broker keeps giving me the run-around. If your broker is giving you the run-around and won’t address your issues the next best avenue for satisfaction is to let the community know what is going on. After all, it is the squeaky wheel that gets the grease. You can do this by posting complaints, with details, in forums like the one here at Binaryoptions.net. When you do this be sure to let the broker know and send them a link. They may not care, a sign of a shady broker, but when it comes to reliable brokers they will want to address your problems to avoid poor publicity. When posting complaints give as much detail as possible, just saying that a broker scammed you is not enough, proofs of fraud are what get results.
- Contact their payments provider. The broker won’t help, now what? At this point the chances that you have been scammed, and not just suffering from miscommunication, are quite high. If you can’t get satisfaction from the broker you will have to take more drastic measures. If you deposited by credit card this may mean calling the card company and requesting a charge-back. Let them know the initial charge was fraudulent and that the company in question is not returning your contact requests for best results. The Times Of Israel reported that a victim of fraud was able to get a full refund of his deposit after contacting the financial institution that processed the brokers payments. They withheld payments until the broker satisfied the claims.
- Contact the regulator. Time to call out the big guns. The great thing about expanding binary options regulation is that there is an alternative for many traders who think they’ve been scammed, you can contact the regulator. In some cases this can be a challenge as many brokers are located off-shore and hidden behind holding companies and virtual offices so be sure to do your homework. If the broker is regulated contact the agency overseeing them, if they are not regulated contact the agency which oversees financial regulation in your country. If the broker is regulated they will have to address your issue, to the satisfaction of all parties, in order to remain compliant. If they are not regulated at least you can be assured at least they will have a harder time scamming any more people from your country. At best cooperation between regulators could result in the broker being shut down for fraud.
- Be persistent. Shady brokers like to hire people who are good at deflecting questions and complaints, don’t accept what they are telling you. It may take time but eventually you will talk to the right person, or persons, and your case will be addressed. What is most likely to happen is that the combination of your contact requests, forum complaints and charges with regulators will add up to one thing, the broker giving you your money back to avoid a much bigger hassle.
How to Spot a Trading Strategy Scam
The internet is loaded with ads, articles, companies and individuals trying to provide you with the next big trading strategy that will make you rich overnight. Take pause my friend, here are tips to help you spot the scam.
A System or Only a Strategy?
First and foremost, trading strategies aren’t really going to help you become a good trader. What you actually need is an entire system. When you make a trading plan it needs to cover how you will enter markets, exit markets and how you will manage your money. It also needs to tell you under what market conditions you do all these things. That is a system, it tells you everything you need to know about how you will trade. A strategy on the other hand only tells you when to enter and exit, and may not tell you under what conditions it works best or poorly. It also may not provide guidance on position size or whether you can trade multiple assets at the same time – issues which are very important to address. In other words, a strategy may have missing pieces of information you need to be successful. We need a complete trading system…but marketers are smart, so they can easily just call the product they are selling a “system” to make it sound more complete. But is it? Here are several things to watch for which could tip you off the product is probably a waste of money:
A boxed system is one where you don’t get to know how the strategy works – it’s an opaque “black box”. For example, the product may just be a series of indicators or a service that tells you when to trade, but not why. This isn’t going to make you a better trader, because you don’t know what is happening behind the scenes. If a product or signal service stops operating you are left with nothing. Even if you made money with the product/service you have to start from scratch all over again. Make sure if you buy something it explains how it works, so that eventually you don’t have to rely on the product/service.
Extremely High Win Rates
Is it possible to have a 90% win rate? Absolutely, yet it is also possible to lose money with a 90% win rate. Stats are easily manipulated to tell partial truths or fabricate lies. Other popular tactics are saying things like “Made $500 in one day!” So what? That doesn’t actually tell you anything. If that was on a $1,000,000 account then making $500 isn’t so grand. And if they lost $3000 they day before, then making only $500 today and bragging about it is rather paltry. Read between the lines. What isn’t being said? To understand performance you need several bits of information: Account size (capital), percentage return, amount at risk on each trade, amount of profit per trade, win/loss ratio, biggest winner, biggest loser, average winner, average loser, number of trades and period over which the strategy was tested/profitable.
There are also some other metrics that could help you out, but if you ask the company for these bits of information, and they can’t or won’t give them to you, be suspicious. You can usually get a sense of what vulnerabilities and tendencies a system has by looking at the above stats. One of the main things is that the strategy should be tested over a long period of time, and in all market conditions–up trends, down trends, ranges, volatile and sedate conditions. It doesn’t necessarily have to profitable in each of these environments, but it should have at least been traded through them all so you know that the system is profitable overall. Often marketers will only publish results for a period where strategy did very well. But this doesn’t give you a real idea of how the strategy or system works over the long-term.
- Related to stats there is something else you need to consider. If a system is profitable, that result is based on all the trades. If you buy the product or the service, are you going to trade them all? On issue many traders face when subscribing to a signal service is that they don’t trade all the signals. If you don’t trade all the signals then your personal results could be dramatically different than the typical results of the service.
Only One Direction
Avoid a system that only trades in one direction, for example only buys assets but won’t short sell them. Markets rise and fall, you want to participate in both trends.
No Trial Period
You should be able to test a product and be able to cancel without a fuss if the service isn’t for you. Usually a quick trading forum search on Google will reveal what others have shares about a product or service. No trial, no deal. Don’t trust anyone, test things out for yourself. If they won’t let you, then be wary.
Final Words on Identifying Scams
A product or service shouldn’t make you reliant on it. It should show you behind the scenes so that eventually you can trade on your own. Good products will always have customers since there are people who don’t want to do the work themselves, and there are always new traders. There is no reason to make every customer totally dependent. Be wary of stats that are thrown out. Ask yourself what the stats aren’t telling you. Also, if the stats they provide are legitimate, then you’ll need to trade all the signals to take advantage and get results typical of the service. Of course remember though, past performance is not indicative of futures results. That is way it pays to do some homework, and make sure the strategy/system/service/product is based on a long history, and has proven itself profitable over all types of market conditions. Test out a product/system/service before buying it. If they won’t let you try, be suspicious.
Case Study – JV Affiliate Marketers
In this section we will look at how you can avoid being scammed by Binary Options JV Affiliate Marketers. Its not so hard, but requires you to let go of your emotions and examine things in a logical manner, as many of the scammers use emotional greed/fear tactics to get your money. Once you understand this you can quickly and simply save your time and money with these unscrupulous dolts. Some scams are simply comical in how stupid they are, while others can be very well done con jobs that lure you in with seemingly genuine people/systems/reviews which later you find are the exact opposite, as you look at your $0 balance wondering “Where did my money go!?”.
As you will see in the numerous scam videos, all you have to do is “NOT DEPOSIT” then these scams no longer work. So next time you see videos that are of a similar nature, just know they are supporting scam systems/marketers. Understand if they require a deposit they are fly by night and even if they were not they are supporting the scammers by the nature of requiring you to deposit with a new broker. So just refuse to deposit and they go away. Not the same stories kind of stories and promises over and over all to get you to sign-up to their “free” system/bots… They are not free you have to deposit and they get paid on those deposits… So remember limited time/fast money/can’t lose!/just fund your account = don’t do it!
In this image above you can see many of the scam systems are connected to each other on the same servers most often. These JV marketers have tons of these turnkey scams as they are very low maintenance. The reason you see so many of them is after a few weeks of the new story line wares off and becomes boring they will start production on another one and keep it all fresh and new thus avoiding the wrath of their old scams being complained about and those complaints shared with others. If they keep it new they avoid this along with the fact most newbies jump from one scam to another hoping one of these will work, which none of them do because trading is a learned skill/job… So again, understand their stories and how they work, and don’t deposit .
Case Study – Scams on Social Media
Social media is a “perfect” platform for scammers and can be even more insidious and convincing, and unlike the JV marketers these people will talk to you directly, but only to a point. Once they figure they can’t get any more from you or you no longer have value to them, they will un-friend you in a heart beat. The one thing they are all after is your money, so be on the look out for them asking for deposits or sign-ups telling you about amazing profits and opportunities, which will have you end up with empty pockets. Videos such as those used with both “The Green Room” and “FB Wealth Group” will pretend to be traders/friends, while they are really just out to get your money through either signups or even trying to have you pay them directly.
Also – if you see them mention anything MLM (Multi Level Marketing) related, they are trained to lure you in, so run the other way. These people don’t play around and will say whatever is needed to get you to sign-up and invest. There is a 45 minute long interview of a person that was scammed by both “The Green Room” and “FB Wealth Group”. We named it Binary Options Horror Story because that is exactly what it is in all its gory details. If you are new to binary options read, and absorb the above warning signs fully to see how they scammed people out of their money so it does not happen to you. Notice also how the worked with the brokers directly, which implies that they can be directly involved as well.
Scammers will repeat the common element of wanting you to deposit or even asking for money directly and from there you can tell them “no thanks” and make sure to unfriend them.
Nadex, also known as the North American Derivatives Exchange, is the largest U.S. based exchange for trading limited risk, and low cost binary options. Nadex is currently the only regulated exchange available to United States citizens and all funds deposited are secured in top U.S. banks, rather than offshore like other international brokers.
With Nadex, you can trade spreads and binary options on a large variety of financial assets directly from your phone, tablet, or computer. Opening an account with Nadex is free and they have a low minimum deposit, which makes it ideal for beginner and novice traders.
But how does Nadex stack up to the competition? Is it really a legitimate platform for trading binary options or is it just a scam? In this Nadex review, I’m going to share everything you need to know.
Table of Contents
Deposits and Withdrawals
Founded in 2004, Nadex was initially known as HedgeStreet. It provided a digital space for traders to buy and sell binary options. Now, it’s the largest brokerage for binary options in the US. Nadex is a subsidiary owned by the UK-based IG Group. The headquarters are in Chicago.
The Commodity Futures Trading Commission (CFTC) regulates Nadex. When it was still HedgeStreet, it was the first digital derivatives exchange accepted under the purview of the CFTC. Regulations require Nadex to hold member assets in segregated funds in different financial institutions across the country.
Chicago, United States
Deposits and Withdrawals:
Check, ACH Bank Transfer, Wire Transfer, Debit Card
Stocks, Commodities, Indices, Forex, Cryptocurrency
Number of Assets:
Commissions and Fees:
$1 Per Contract, Capped at $50
Nadex allows traders to participate in trading assets in markets across the globe. Traders can ho ne in on a particular market. Alternatively, they can take advantage of all the options available to them. Currently, markets traded on Nadex include:
- Commodities, such as crude oil and gold.
- Stock indices, including Wall Street 30 (Dow), S&P 500, Japan 225 (Nikkei), and more.
- Forex markets.
- Economic events, such as unemployment rates.
By nature, all trades conducted on the Nadex exchange are of limited risk. Traders will never lose more than they initially pledge. With Nadex’s low initial deposit, traders can participate in the global market immediately.
Nadex offers three different trading platforms: a web browser client, a mobile progressive web app, and a free demo platform. Users can connect the web and mobile platforms to sync account information and trades between each device. The demo platform provides new users with the ability to test trades in real-time using virtual currency.
The Nadex web browser platform is the exchange’s primary tool for trading. It’s accessible from any Mac, Windows, or Linux operating system. It’s compatible with recent versions of the Firefox, Google Chrome, Safari, and Internet Explorer desktop browsers. Users do not need to download or purchase the web platform separately.
The web platform provides an in-browser way to navigate the Nadex exchange. It allows traders to buy, sell, and modify orders. Traders can do so without the need for input from a broker. Traders can freely view as market prices change in real-time. Nadex generates graphs and charts to this end.
NadexGO is the mobile Nadex platform. It is accessible from any smartphone. It allows access to full trading features and products on-the-go.
NadexGO is a progressive web app (PWA). This means there’s nothing to download and nothing to update. PWAs are fast-loading and reliable regardless of network connection. Users can access NadexGO almost anywhere. It’s compatible with the main browser client, allowing traders to sync their account on each device. The design permits an easy hand-off between the two.
The Nadex demo platform is ideal for learning the basics of binary options. It’s a platform for trading without sacrificing real funds. The demo platform gives each user $25,000 in virtual capital. Users can allocate this capital as if it were real to test the Nadex exchange. It is available for testing both desktop and NadexGO platforms.
The market data and trends that appear to demo users are the same ones as for full users. The demo platform also allows traders to:
- Understand market volatility and
- Learn to set appropriate risk parameters
- Learn to use the Nadex exchange interface
- Test trading strategies in real-time
Users can continue practicing on their demo accounts even after signing up for a real account. This allows traders to continually test trade strategies before carrying them out with actual capital.
Nadex offers three different financial products: binary options, touch brackets, and call spreads. Each offers different short-term contracts and built-in risk management systems. Binary options are exotic financial products. As such, they may be unfamiliar to even experienced traders.
Binary options are the financial products at the core of the Nadex exchange. Their most noticeable feature is the type of risk associated with them. They offer a fixed payoff or no payoff at all upon reach expiration. When a binary option expires, the value of the traded asset will fall on either side of the strike price. On one side, the trader receives nothing at all. On the other side, the trader receives a fixed price. In the US, this fixed price is always $100.
A binary option has three characteristics:
- The underlying asset. The assets can be in any of the tradable industries hosted on Nadex. These range from commodities to stock indices, Forex pairs, and even Bitcoin.
- Its expiry date. An asset is either worth nothing or $100 upon reaching its expiration date.
- Its strike price. This is the level that decides whether an option is “in the money” or “out of the money.” For a payout, buyers want it in; sellers want it out.
Binary options have a fixed risk. That means traders can’t lose more than they initially invested in a trade. Additionally, Nadex does not issue margin calls since trades are fully funded from the beginning.
Touch Brackets are a new type of product, unique to Nadex. They allow traders to act based on price action and bet on the direction of an entire market.
Touch Brackets last a single week. At the beginning of the week, Nadex will set four brackets for a market. Each has a different price ceiling and floor. Nadex tracks a measurement called the Nadex Underlying Indicative Index. When the Index number “touches” the price ceiling or floor, traders receive a profit or loss. If the market doesn’t fluctuate enough in a week to register a touch, then the Touch Brackets expire.
This new method allows traders to focus on the larger picture of a given market. It provides a macroscopic view rather than individual assets.
In the Nadex exchange, a call spread refers to the unique way that certain trades have a discrete floor and ceiling.
When trading in vanilla options, there’s theoretically unlimited potential for loss and gain. No one can truly predict market trends with complete certainty. That means it’s always possible for a dramatic drop – or dramatic increase – in the value of a market. Nadex call spreads intend to help limit market volatility to some extent.
Call spreads remove the potential for traders striking it rich in a single trade. But, they also ensure a limit on losses better than a stop-loss order. They do this by implementing hard limits on how high or low a market can go. If a value surpasses a call spread limit, it will be held at either the floor or ceiling in question. No more, no less.
By implementing limits and eliminating stop-loss orders, traders cannot get stopped out of a trade. That allows traders to wait for better prospects as the market rises and falls, rather than stopping prematurely. It can also help manage the risk-reward ratio when used right.
Deposits and Withdrawals
Nadex offers a variety of deposit and withdrawal methods for U.S. residents and Non-U.S. residents.
For deposits, you can fund your account with the following:
- Debit Card
- ACH (bank transfer)
- Wire Transfer
- Paper Check
For withdrawals, you can choose between:
- ACH Withdrawal
- Wire Transfer
- Debit Card
Education and Training
To help those new to binary options, Nadex offers an extensive library of educational resources. Most resources are free. However, there are higher-level webinars available only to members. These educational materials include:
- Trade examples and tutorials. These are samples of trades conducted by Nadex experts. They include guides to trading and explanations of decision-making strategies. As well, there are recommendations for controlling risk.
- Live webinars. These are weekly live events featuring Nadex educators. They answer questions in real-time and host discussions. They also demonstrate example trades.
- Trading videos. A library of hundreds of videos with a new entry every week. These videos cover various topics, such as step-by-step explanations of trading concepts and current market breakdowns.
- Online learning courses. These are free e-learning courses. They introduce binary options and trading basics.
- E-books. Free for download, these e-books are introductory lessons on Nadex trading. They help with navigating risk and market volatility.
The Nadex educational library is comprehensive. Resources range from basic starters on binary options to more in-depth topics, like touch brackets and advanced risk management. The vast majority of these learning materials are freely available. Would-be traders don’t have to make an account to learn.
What We Like About Nadex
With its size and prominence, Nadex has a number of considerable strengths. Here are a few reasons why we like Nadex:
- Regulated for US traders. In fact, Nadex is the only binary options exchange regulated for the US.
- Market range. There are tons of markets available for traders looking for variety. Crude oil, Bitcoin, economic events – Nadex has it all.
- Low trade costs. Nadex is accessible to all traders, not just the ones with enormous liquidity at their disposal.
- Demo accounts. Would-be traders can test out of the exchange in real-time with $25,000 in practice money.
It’s true that Nadex isn’t for everyone. But for those looking to dive into trading, do their research, and learn the markets, Nadex may prove to be a valuable endeavor.
Commissions and Fees
There are no fees for establishing an account or using any of the Nadex platforms. They will not hit traders with fees for letting accounts go inactive.
Traders can begin using the Nadex exchange with a minimum $250 initial deposit. This is one of the lowest minimum deposits required by any binary options trading exchange. There is no fee for transferring funds from a bank account to a Nadex account. To withdraw funds from a Nadex account, traders can use an ACH for free or a wire transfer for $25.
Regarding trade fees, there is a $1 fee to open a contract, maxing out at $50 per order. Even if you purchase 51 or 100 contracts, the opening fee will never exceed $50. There is a $1 closing fee for each trade if it ends in the money. If a binary option expires without a payout, Nadex does not collect the $1 closing fee.
Nadex places a heavy emphasis on the availability of their customer service. In addition to their educational materials, their customer support focuses on accessibility for new traders.
Traders can contact Nadex customer service representatives directly over the phone or by email. They can help navigate trading platforms and answer questions about an account. Representatives have a strong understanding of trading. They can explain aspects of the process you may not understand. For those with short questions about general trading, Nadex experts take questions on-air during live webinars.
For current traders, customer support in on-hand at 1-877-776-2339 for those in the US. Investors outside of the US should call +1 312 884 0100. Traders can also email [email protected] for assistance. Representatives are available at any time between 3 pm EST Sundays and 5 pm EST Fridays.
Opening an account can be freely done on the Nadex website. For assistance in this process, Nadex Account Specialists are available from 7 am to 8 pm EST Mondays through Thursdays. On Fridays, they are available from 7 am to 4:15 pm EST. The US phone number is 1-866-296-0167. The international number is +1 312 884 0162.
Nadex Review Conclusion – Final Thoughts
It’s true that there’s significant inherent risk in binary trading. Those interested in Nadex should be sure to thoroughly audit their own finances before starting. It’s also important to conduct careful research on markets and assets. Users should be prepared for the risk of loss, which Nadex caps at the initial investment amount.
Regarding security, Nadex is the largest exchange to offer binary options that the CFTC regulates. The CFTC requires Nadex to hold assets in segregated bank accounts. That means client assets are in a large, well-trusted financial institution instead of an offshore account. Nadex uses trusted institutions like Fifth Third Banks and other large US firms.
All that being said, Nadex is not for the faint of heart. New traders may find the exchange attractive because of the low initial deposit. However, there is a learning curve involved. It’s wise to make use of Nadex customer support and their official educational materials when joining.
As with all investment endeavors, there is no get-rich-quick guarantee when using Nadex. But for those interested in binary trading options, Nadex is undeniably at the forefront of the industry.
Robert Wolfe is the founder and chief editor of Impact Investing Collaborative. Robert is an expert trader with over 10 years of experience trading binary options, Forex, and CFDs. He prides himself in providing accurate and in-depth reviews in order to help others find a trading platform that fits their needs. When Robert isn’t actively trading or managing Impact Investing Collaborative, he enjoys spending time with his 3 kids, playing golf, and spending time outdoors.
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My name is Robert Wolfe and I’m an online trader with over 7 years of experience trading financial instruments such as binary options, CFDs, forex, and stocks. I created this website to share my knowledge of the industry so you can avoid the same mistakes I’ve made.
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