How do Binary brokers actually make money ?

londonyaksolondonyakso Posts: 6
edited July 2016 in Beginners Questions
I saw some binary brokers offering free lessons on technical analysis and stuff like that if we sign up .
i mean why would they wanna teach us if they'll go bankrupt when everyone knows how to trade correctly?

Comments

  • The_Geek_MHThe_Geek_MH Posts: 642 mod
    well my friend you have hit the nail right on the head. they don't want to teach you to trade correctly, at all. At best they want to give you a false sense of security so you will rush in and trade you money away, and then get frustrated, and come to them for more help, and they will try to convince you to deposit more money, and to use signals they provide (which suck) or to let a "broker" trade for you. It's a marketing tactic. Not all brokers are shady like that, but the premise is the same. A successful trader is a money loser for a broker, an EU or offshore style broker, because they are operated in a similar fashion to a casino where you bet against the house.
  • cap647cap647 Posts: 9
    So how DO you learn to trade correctly? Is there someone /an organisation who simply wants to be helpful, with no hidden financial agenda? And simply use the broker as just that - a broker from who you take no advice, and totally ignore except when placing trades that YOU have calculated, risk-assessed, and are happy to place?
  • The_Geek_MHThe_Geek_MH Posts: 642 mod
    you can start with the brokers education center, it is a basic place to start and will point you in the right direction... just don't trust them for signals etc. next is to learn, really learn, technical analysis and money management. This website is a good place to help with that. Read articles on candlestick charts, indicators, management etc. Also, use a demo account to practice trading. And read books on trading and technical analysis.

    this is a link to a great book on Candlestick Charting, well worth it.

    https://www.bookdepository.com/Candlestick-Charting-Explained-Gregory-Morris/9780071461542/?a_aid=market69

    here are some more links to articles here on BONET that are also good places to get started.

    http://www.binaryoptions.net/blog/introduction-to-japanese-candlestick-charts/
    http://www.binaryoptions.net/blog/candle-charts-getting-the-big-picture/

    http://www.binaryoptions.net/blog/30-minute-stochastic-strategy-for-trend-followers/
    http://www.binaryoptions.net/blog/applying-multiple-time-frame-analysis/
    http://www.binaryoptions.net/blog/two-rules-for-support-and-resistance/


    believe me when I say, this is just the tip of the iceberg, learning to trade is a lifetime pursuit,

    OH, and read this one too.

    http://www.binaryoptions.net/blog/risk-management/
  • axtrayaxtray Posts: 1
    edited July 2016
    Just experienced this first hand few minutes ago. The so called senior account manager from Banc De Binary (don't bash me) saying i could make money thanks to the Brexit and MSP (if i got this right) within this week.

    The problem is he's asking me to deposit extra 10 grand and confirm that i can make double of it by the end of the week. I mentioned that i just don't have the fund to make the deposit. he got pissed at the end and just hang up. lol really shows there.

    They would've sounded alot more genuine if they offered me a strategy to turn around my 90 bucks balance in my account lmao.

    Note: got assigned to this broker thanks to me registering for copy buffett (yea fell for it).

  • The_Geek_MHThe_Geek_MH Posts: 642 mod
    well, stay away from that stuff and you'll be ok, copy buffet is a scam.
  • kowaskykowasky Posts: 7
    edited July 2016
    gaddie said:

    Have found Finpari to be a worthwhile, legit platform.

    Oh sure! Worthwhile, legit and pay well the AFFILIATES like you, right?
  • The_Geek_MHThe_Geek_MH Posts: 642 mod
    Finpari sucks, they say they are regulated, but they aren't, stay away
  • RichardEvansRichardEvans Posts: 6
    axtray said:

    Just experienced this first hand few minutes ago. The so called senior account manager from Banc De Binary (don't bash me) saying i could make money thanks to the Brexit and MSP (if i got this right) within this week.

    The problem is he's asking me to deposit extra 10 grand and confirm that i can make double of it by the end of the week. I mentioned that i just don't have the fund to make the deposit. he got pissed at the end and just hang up. lol really shows there.

    They would've sounded alot more genuine if they offered me a strategy to turn around my 90 bucks balance in my account lmao.

    Note: got assigned to this broker thanks to me registering for copy buffett (yea fell for it).

    That's their strategy: they promise good profits but only want you to deposit more and more, never enough
  • maxpetersmaxpeters Posts: 2
    For you to be able to make money with binary options is to register for a demo account. You need to try out some brokers like Optionstars to make trade practice with. Unlike others who would not offer any demo because they will immediately require the traders to put on a real money account with them. Always try to utilize your learning by availing free services from most brokers.
  • martin111martin111 Posts: 2
    maxpeters said:

    For you to be able to make money with binary options is to register for a demo account. You need to try out some brokers like Optionstars to make trade practice with. Unlike others who would not offer any demo because they will immediately require the traders to put on a real money account with them. Always try to utilize your learning by availing free services from most brokers.

    using demo wont help to much, because some platforms, "helping" you behind the screen to make a profit most of the time. Demo account it their's marketing tool as well. When you winning most of the time on the demo it's more likely that you will deposit 250$ in real account and will try after the account manger will push you..

  • Nice topic
    I am also very interested in binary options
    Very very interesting this conversation here!
    Sooner or later I want to start to trade that way aswell
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