In today’s world, a person has to be very careful how and where they invest their money. With new technologies and other advancements, many opportunities for making money have come up, more so on the internet.
However, with the good comes the bad, this is because there are also very many ways to lose money, also on the internet.
One aspect that has shown to lose investors money, are binary option websites. Such sites have become quite popular over the recent years and with each day more and more of these sites come into the market.
Binary option websites actually appeal to people who can be put in the same category as gamblers.
For people who are not familiar with such sites, they can seem to represent something else. However, one should not be fooled. Binary option websites are no different from gambling websites.
These sites push themselves as offering some levels of controlled risk, big gains, low cost and easy use because one can trade from the comfort of their home and once the markets are open, setting up an account with a credit card is quick.
Despite these benefits, most binary websites fail to inform potential traders of one very important thing that predicting what an asset will do over a weeks or a months’ time is quite hard. It can be even harder to predict what it will do in an hour.
The following are some of the main reasons why binary options can be bad investment:
Banc De Binary is one of many companies that have been investigated recently and face potential legal dramas. That company is not alone. It is common in the binary options industry. Do you want to take the risk with such an industry?
Insufficient number of assets
Unlike picking any stock on the NYSE, brokers of online binary options offer a relatively small selection of stocks for one chose to use as underlying assets. This proves to be quite a disappointment for seasoned investors.
Limitations on investment
In the same way that there is a low minimum, the maximum is also rather small for nearly all binary option brokers. In most cases, investment ranges around $1500 to $3000 as the maximum investment on one particular option.
These are just some of the reason why binary options are unwise investment.
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