This is a 3 part series. I tried a few binary options traders and I will be reviewing those here. The brokers I tried were- Banc De Binary, NADEX, and 24Option
of these 3, Banc De Binary was the worst. I had an absolute horrible time dealing with Banc De Binary A few points worth noting-
1) When you deposit money using credit card, there may be a foreign transaction fees, they claim to be in New York but their back office, support etc is in Europe
2) I had the HARDEST time getting my funds back. They would not release my funds to me without a fight is the least I can say. It took me 3 weeks (yes 3 weeks) to withdraw 500 dollar (it is a tiny sum I wonder what happens to those with larger deposits? ) And when they finally did release my funds, they ate about 8 dollars that I had made trading. They only have me back $500
3) Execution- well that’s a joke. When you trade with a forex broker, it is expected what the conditions will be like when you want to trade. for example when you logon you will always find EUROUSD pair to trade their no? In this banc de binary platform (which is just a web site anyways) when I would find a very high probability trade (normally at begin of US open) the instruments will suddenly disappear. for example one day I wanted to trade SP 500, when I logged in it was gone and did not come back for 15-20 minutes by then the opportunity to go long had disappeared
4) Risk Reward- you have better odds in casino. And this is not borler specific but how it operates. If you loss, then y our loss is absolute- 100%. When you win you only win 70-85 %. So worst case your odds of success are only about 35 % It is not even 50 :50!
5) Banc de biary was slightly better when it came to executing your order than 24Option which would have horrible slippage or they wont take your order at all. I will cover 24option in next one.
Summing it up, it is my personal experience that a binary option way of playing markets is just not worth it from a risk reward point of view. Most of these brokers are still in infancy and very small. They are not even regulated here in the US, they all come from UK where they are recognized as sort of online gambling.
of these 3, Banc De Binary was the worst. I had an absolute horrible time dealing with Banc De Binary A few points worth noting-
1) When you deposit money using credit card, there may be a foreign transaction fees, they claim to be in New York but their back office, support etc is in Europe
2) I had the HARDEST time getting my funds back. They would not release my funds to me without a fight is the least I can say. It took me 3 weeks (yes 3 weeks) to withdraw 500 dollar (it is a tiny sum I wonder what happens to those with larger deposits? ) And when they finally did release my funds, they ate about 8 dollars that I had made trading. They only have me back $500
3) Execution- well that’s a joke. When you trade with a forex broker, it is expected what the conditions will be like when you want to trade. for example when you logon you will always find EUROUSD pair to trade their no? In this banc de binary platform (which is just a web site anyways) when I would find a very high probability trade (normally at begin of US open) the instruments will suddenly disappear. for example one day I wanted to trade SP 500, when I logged in it was gone and did not come back for 15-20 minutes by then the opportunity to go long had disappeared
4) Risk Reward- you have better odds in casino. And this is not borler specific but how it operates. If you loss, then y our loss is absolute- 100%. When you win you only win 70-85 %. So worst case your odds of success are only about 35 % It is not even 50 :50!
5) Banc de biary was slightly better when it came to executing your order than 24Option which would have horrible slippage or they wont take your order at all. I will cover 24option in next one.
Summing it up, it is my personal experience that a binary option way of playing markets is just not worth it from a risk reward point of view. Most of these brokers are still in infancy and very small. They are not even regulated here in the US, they all come from UK where they are recognized as sort of online gambling.
Its all in the mind.
