Lots of traders are participating in and enjoying the benefits of this particular online trading venture.
There are however people who are interested in joining but are held back by their fear and doubt about binary options – whether or not it is a scam.
In other to provide answers to this question that has plagued a lot of people for so long, we’ll pay a little more attention to the entire concept of binary options trading and the things South African traders ought to lookout for when getting involved.
What are the benefits associated with trading binary options?
Well, there’s no straight forward answer to this, because it all depends on the particular situation.
If we really think logically about financial investments, we’ll realize that it has two major principles – just as it is possible to make money, so it is also possible to lose it.
The same can be said about binary options trading. Although it is not without its own risks, it is also ripe with amazing possibilities.
It would be difficult to call binary options trading a scam, considering the fact that millions of traders across the world are involved in it.
This has been the status quo since 2008 when it first came to the attention of the public.
From this, we can infer that these traders found something that kept bringing them back to trade binaries.
Amazing Profit-Making Opportunities
A quick look at some popular binary brokers like 24option or IQ Option will reveal one simple truth to South African traders – it is possible to make amazing profit from trading binaries.
The average winning ratio in most cases, ranges between 65 and 85% which is actually a really attractive prospect.
Also, with all the numerous trade options out there and the long and short expiry times, you don’t have to wait for long to discover if the trade was successful.
In addition, traders in binary options know beforehand how much they could lose or win which is another indication that binary options is anything but a scam.
How Diverse is Binary Options Trading?
At the beginning, binary options trading used to be a diverse but transparent and simple trading method.
Potential traders in South Africa who want to start any research on binaries are about to discover an amazing collection of underlying assets (commodities, currencies, stocks and indices), trading tools and features, trade options and strategies.
In addition, there are lots of free educational materials online on trading binary options.
Quality binary brokers also have a lot of educational segments on their platform dedicated to the trading process including lots of useful advice for South Africans who are ready to learn and trade.
The effortlessness of the entire trading process is further proof that there’s no need to harbor any fear about binary trading options being a scam.
South Africans who desire to trade binaries must make a very simple prediction – whether or not the value of underlying asset is going to rise or fall. Traders also need to pick the underlying assets they want to trade with, the trade options as well as the expiry time.
Though there are other components that ought to be included, however, these are the major ones.
Furthermore, most binary brokers offer different types of account and they all come with their own unique features and tools.
Traders can pick the trading account they feel is perfect for their style of trading and their finances because every trading account comes with its own minimum deposit requirement.
What this means is that binary options trading is very encompassing and it equips people from different backgrounds to participate and enjoy the benefits.
Advantages of the demo account
Another evidence that binary options trading is not a scam is the fact that the demo account exists.
This particular trading feature is not offered by all binary brokers, but those who offer it, and a lot of them are beginning to, are constantly setting new standards when it comes to quality of service.
The demo account can either be a simplified variety of the actual trading account or a copy, the difference being that the funds are virtual not real.
This means, many South Africans can now enjoy binary options trading with all its benefits without worrying about loss of funds.
This is a perfect way to prepare traders for what to expect when the real trading begins.
Many of the big binary option brokers such as IQ Option, Opteck, 24option and Daweda Exchange offer this amazing feature.
Affordable Initial Deposit – South Africa
Majority of the binary brokers out there have an initial deposit of $250 which is very affordable and some of them have a minimum investment per trade that starts from $1.
In fact, IQ Option which is one of South Africa’s most common binary option brokers, has a $1 minimum deposit.
This is one of the reasons why binary trading appeals to regular people, because it gives them the opportunity to make profits without necessarily making a huge investment.
The implication of this is that binary options trading as a whole cannot be considered a scam and is a completely legitimate trading venture.
Disadvantages of Binary Options Trading
Like any other business venture there are definitely drawbacks to binary options trading. It has several aspects that can be quite tricky to navigate.
The bottom line is that, binary trading options might not be the solution for every trader.
Scamming Binary Brokers
Considering the fact that there are up to 500 binary brokers or even more on the market today, it is not surprising that some of them are scammers. Yet it seems unfair to call the entire system a scam just because of some few bad apples.
Scamming is not something that is peculiar to binary trading alone; it is a normal part of life.
There are lots of binary brokers who have dedicated years to the business who have a lot of satisfied customers.
Finding a great binary broker is never easy; this is why the traders also have a role to play. Research is very essential and sites such as angelomaiuri.com are definitely very useful when it comes to providing information.
You can read guides on how to spot scams and then apply the knowledge in the South African binary industry when searching for binary brokers.
Significant Risks in Binary Trading
Trading binaries in South Africa comes with quite a number of risks because traders can end up winning or losing their investments. There are really no guarantees, and any trader who claims to have guarantees is probably a scam.
In addition, brokers who run open and transparent business will likely have a risk disclaimer on their site in other to offer their traders as much information as possible.
The good thing about the risk involved in this business is that it is impossible for traders to lose more than their investment, and they’re aware of the potential gains and benefits from the onset.
Lack of Regulations in Binaries Trading
Coincidentally, the subject of regulation is actually binary. One way of seeing it is that there are regulatory authorities, so a lot of binary brokers choose to obtain this regulatory license.
Our advice to traders in South Africa is to go for the binary brokers that have FSB issued regulatory license or a license from other similar regulatory authorities.
The second part of the equation is the fact that regulatory status is actually optional, so brokers are not under any form of obligation to register. However, this does not automatically imply that such brokers are scammers.
At the end of the day, it is all about the ability of traders to do their research and investigate the brokers that catch their attention before making any deposit.