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The Emerging Trend Of Binary Options Trading 8 comments
It seems to me that everyone I speak to these days is talking about trading binary options online. So I thought to myself, let's check the markets and see what this is about. When I started doing my research I found myself reading through hundreds of binary options reviews sites, all of them talking about trading strategies and recommended brokers. Then I thought to myself, hey John you know better than this.
So I called a few friends of mine at the SEC, Nadex, CBOE, Dean Witter, Scottrade, and Merrill Lynch. They all told me the same thing with varying degrees of certainty depending on who I asked. The bottom line is very simple, the Cyprus-Based binary options trading platforms are unregulated. Now this is crucial to understand, unregulated does not mean illegal. For example, Dean Witter is a well-known and SEC licensed Broker with offices in New York and across the United States.
There are no surprises here, your enter the squeaky-clean New York offices of Dean Witter and you will get a by-the-book broker advising you about wealth management and how to invest. He will take his commission even if he loses your investment.
The newer and more agile binary options brokers work differently. While it is true that you are dealing with offshore companies in an unregulated niche, the CySec regulation process has already begun with the SpotOption Platform leading the way. This means good news for day traders and binary options investors wanting to diversify their trading portfolio, and try out new and profitable ways to trade options online.
Looking back when I just started working in Wall Street some of my friends advised me that it's best I take on another profession, one with less anxiety and pressure. That was maybe 20 years ago, back then you had a few options, but today you can register to any one of the many binary options trading sites out there, and start investing immediately.
OK, getting back to the issue at hand, I only recommend a broker after I open an account and deposit. After that I ask my friends to do the same and tell me what they think. I have to say that the new boys on the block know what they are doing. They are extremely helpful and the head traders will usually offer sound advice.
To conclude, it is very likely that the new options brokers will continue to give the older and more traditional brokers a run for their money, especially after offering higher returns on the investment and more flexible trading options. I myself believe that this trend will only grow.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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This post has 8 comments:
Is it legal to trade binary options in the US?
Should I register with the US-based broker, such as Banc de Binary? You mentioned that most Cyprus-based brokers are unregulated. What broker would you recommend?
Forbes advises people not to gamble on binary options. What's your take on that?
http://onforb.es/QeoLo2
Look forward to hearing your comments.
John
I can't really recommend bbinary because I have made a decision not to trade with EVERY binary options broker out there. I will only work with people I know and have a good working relationship with.
As for your question, there is a difference between illegal and unregulated. I have written a lot about this both on my site as well on forums such as Quora where I am often asked about the regulatory aspects of binary options trading.
If you want a good point of reference simply check out my site at http://bit.ly/MiSMm7
Cheers!
JT
I am glad that you are giving us helpful information regarding binary options because it will help us further into our day to day trading. I am most eager to know more about the pro's and cons of this kind of trading for I only trade on Forex once in a while, when I feel like trading but most of the time you will find me luring for more knowledge in binary options by reading binary optionbit review optionbitsreview.com and I have to say finding more and more posts regarding the matter help me understand binary option better, and I am hoping you could posts more strategic analysis of some binary trading, I would love to see those in the future, I admire you for putting into writing what we really need.
anyone knows about another good broker?
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