Binary Options Brokers Profitability
Welcome to Binary Options Brokers Reviews site. Here, you can check out our Binary Options Blog and discover how all Binary Options Brokers Profitability is achieved via the Binary Options Industry. Importantly, you will find inside information on how exactly Options Brokers make their profit margins from Options Trades. Remember, these Options Brokers are in a win win situation. Now, you might be wondering how? Please read more to discover exactly how?
How do Binary Options Brokers Make Their Money?
Binary options are trading instruments which lets an investor’s trade in the fluctuations of price of an asset over a fixed period of time. As an investor you need to place a bet on the movement of price of an asset above or below a selected threshold. If your bet is successful, then you will earn a set amount of profit, and if you fail, you will lose your investment. It is that simple. That is the way you, as an investor, will earn money out of binary options. But has it ever crossed your mind about how the brokers in binary options actually make their money? What’s in it for them? In this article we will talk about the binary options broker’s profit margin and we will have a look at what fills their pockets.
How the Brokers Earn their Margin?
The answer is not a secret. Anyone with the basic knowledge on Binary Options knows how the brokers make their money. Every time a trader loses money, it goes to pockets of the broker. For this reason, they rarely charge the investors with any commission or fee. This leads people to believe that brokers are motivated to make you lose your money for their own gain. That is not fully true. As you can see, alongside the fraudsters, there are also many honest and trustworthy brokers who work to improve the conditions in favoor of the investors.
The Legal ways of making Margins in Binary Options
The legitimate and licensed brokers make their money depending on the volume of trades. The more the volume is, the more chances of them earning a margin. According to a recently released Japanese survey, more than 85% of the investors lose their money while dealing in binary options. This makes it easy for the brokers to make some profits. They only have to payout to the 15% of the investors. There is another way of making money and that is by offering bonus. In this offer the brokers offer bonus money to new entrants in the Binary Options Trade. What the traders do not realise that this money comes with certain conditions and huge volume requirements. As the traders are new and inexperienced, most of them are likely to lose their money and filling the pockets of the brokers. This technique is so cliché that new traders don’t fall to this scheme anymore.
The Fraudster’s Guide to making Money with Binary Options
The brokers who are scam make their margins by cheating. At first, they lure in the new investors by making professional looking websites which gives them a legal appearance. They will make you believe that they are real and they have expert fund managers who will manage your funds on your behalf. Their trading platforms are also rigged which are designed to manipulate the results in their favour. They even deny you to withdraw your winnings by setting unusually high limits on withdrawals. Because they are not licensed, it is not possible to get your money out.
So, we’ve seen both sides of the spectrum. The only way to be safe in trading binary options is to invest only with the licensed brokers. This way your investments will be in safe hands.
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