How binary options brokers make money?
When it comes to binary options brokers, you need to make a difference between honest and dishonest ones. Nowadays, the financial market is flooded with different types of trading platforms, and it’s hard to make that difference, especially if you are new in this industry. Many traders think that brokers make money on them, which is not necessarily false, but you need to make a difference between being ripped off and losing the money. It’s not a secret when a trader loses money; the broker keeps it. But, how often are you losing the money and how often the trading platform is earning.
How reliable brokers earn money?
A broker who is licensed and regulated makes his money on trading volume. Based on some reports made in Japan last years, 80% of investors lost their money, which can indicate only one thing. This means it’s very profitable to be a binary options broker in this country. Still, 15% of traders managed to keep their investment and earn some money. Another trick that trading platforms use to make a profit is by offering the bonuses, but what most trades fail to realize is that these types of bonuses come with some terms and condition. You usually need to make a particular type of successful trades before you can use and withdraw the bonus.
How false brokers make money?
There are a lot of ways how fake brokers are making money. In most cases, they are pretending to be legit and offering you financial and advisory help to increase your initial deposit. Instead of winning, you will start losing your money. In some cases, you will be awarded an automatic bonus, which means that broker will lock your deposit and you won’t be able to withdraw it until you make a certain amount of trades. The trading platform will become your best friend making you invest more and more money. Everything will be alright, until the moment you ask to withdraw the money and to take money from shady brokers is almost impossible.
Is trading software legit?
As in the previous examples, the same rule applies to trading software. If you want to use this tool, make sure you find a reliable one because it can cost you a lot of money. Many traders have tried a Millionaire Blueprint, and they are satisfied with its service. You just deposit the money and let the software place the trades instead of you.