Nearly every one in the world wishes that they could make more money, and some of those trading binary options found a way to increase their annual and even monthly or weekly earnings. A binary option is essentially a contract that you purchase, which has two possible financial outcomes. You can either hit a payoff and walk away with more money or find that you lose your initial investment because of market conditions and market factors.
IQ Option and 24Option are two of the main online companies now offering binary trading. Estimates put the loss of people trading these options at more than $10 billion around the world every year, which is why the FBI investigates claims against companies running scams. Though there are some negative reviews about both companies online, you can compare IQ Option and 24Option to see if you can make more money with one over the other.
How Binary Trading Works
A binary option should never cost more than $100, which makes it a safe investment and one that won’t lead to you losing your home. The two most important aspects of this process is a bid and an offer.
Bid refers to the current cost of a binary option. If you currently have the option, you can sell it for the current market price without worrying about losing any additional income.
Offer is the current price that it will take to purchase that investment and add it to your portfolio. You might purchase an option for $50 that states the price of silver will hit a specific price by the end of the day. If it reaches this price, you make $100, but if silver reaches a lower price, you lose your initial investment.
Though this may seem like a simplified version of the process, trading binary options is essentially a form of betting. You take a guess at the beginning of the day that something will happen, and you can win big if your guess pays off.
How to Avoid Scams
Percentages and Fees
One of the most common complaints about binary trading brokers is that these brokers and companies take too much of a percentage of a deal. There are companies that take as much as 70% or more of your profits, which means that if you win a $100 bet, you may walk away with just $15 or less from that trade. To avoid scams, you should always check the percentage and fees charged by a broker.
You should also take a look at the average winning percentages that recent trades and past traders had. As trading is really just a guessing game, it’s likely that most have a nearly equal ratio of wins to losses. If customers tend to lose more than they win, the site is probably a scam.
No reputable broker will ever guarantee that you will win a certain number of times or that you will make a specific amount of money. If a website guarantees that you will win each bet that you make, it’s a scam. Scam sites may also promise that you’ll make a set amount every day too.
No Government License
Be very wary of doing business with companies and brokers who do not have any type of government license. The federal government issues licenses, which allows those companies to do business in that country. Never invest money in a company or with a broker who cannot do business in the United States.
No Response to Withdraws
When you invest money in the stock market, you can call your broker, ask the broker to sell those stocks for you and walk away with the money you earned. It should work the same way when it comes to binary trading too. Scam companies will often refuse to let you withdraw your money or will impose new regulations that state you must deposit a certain amount or spend a set amount before you can get access to your money.
Constant Phone Calls
Avoid any company or broker who refuses to respect your privacy. Some sites will constantly call you and ask you to make more trades and invest more money, especially if you had a run of good luck or took a break from making trades. The best sites will never bother you with unsolicited phone calls.
Trading with 24Option
One of the most reputable companies that you can work with is 24Option, which alerts you to the risks associated with binary trading from the first time you visit its page. There are some key benefits of using 24Option for your trades.
The first time that you visit the 24Option website, you will see a smaller box pop up on the bottom of the page that explains binary trading comes with some risks. This box recommends that you talk to a broker or another professional before making your first trade. That lets you know that you need to do your own research before starting.
Clear Trade Options
Clear trade options are one of the best features of the 24Option website. When you click on the trade button, you’ll enter a page that shows you all the options currently available. You can see the sell price in bright red and the buy price in bright green, and the site updates in real time too.
Adjusting the volume is as simple as using the up and down arrow buttons located right next to the volume box to change the number of items you want to buy or sell. Changing the volume will also change your point value, which may affect your profits.
Depending on how much time you want to spend on your computer, you may want to use the open trade option on the site. This lets you select a price that will open a trade for you when the option hits that price. This is helpful for those days when you have a lot of meetings that will keep you away from your desk or computer.
Deciding when to buy or sell options is hard for new traders, but 24Option includes a graph feature that displays an Ohio, line or candlestick graph. This graph shows you the price of the option as it traded in the past. You can view data by blocks of minutes, weeks or months, and the site will even let you view the option’s performance over the last year.
With 24Option, you have multiple choices when it comes to how you want to receive payment. You can link a MasterCard, Visa credit card or Discover credit card and withdraw funds directly to that card. The site will also work with some payment processors and can arrange for payments sent via bank wire or wire transfer.
Once you add a card and link that card to your account, you can tell the site exactly how much money you want to deposit into your account. The 24Option site can pull money directly off a card or from a bank account in select countries and put those funds in your online account. Depending on how you add funds, those funds may appear instantly.
Though some payment options do not have a minimum deposit, others do. If you use a credit card, you will need to deposit a minimum of $250 before making a trade. You should check the site before making any deposit.
Withdraw Time Frame
Depending on the withdraw option you selected, it can take up to three days before you see those funds. Other options let you see your money in 24 hours or less. There is generally no limit to how much you can take out at one time, and you have the chance to cancel a withdraw before 24Option processes it.
If you have any questions about the process, or you need help understanding the site, you can chat with one of the 24Option live representatives. These reps are online 24/7 and can open a chat window with you to answer all your questions.
Binary Options Guide
One of the top features of the 24Option website is that it has a binary options guide that you can use to learn more about this process. You’ll find out what binary options are, how you can trade those options and how you can start trading. There is even information on setting up your account and making payment arrangements.
Reading through the 24Option Education Center is one of the best ways to find all the tricks and tools you need. This section features videos and articles that are suitable for beginners as well as advanced traders. The site also has its own webinars that you can view in this area.
Trading with IQ Option
Finding information about trading with IQ Option is almost impossible for those living in the United States. When you visit the site, it will identify your IP address to determine your current location and issue a pop up message that tells you that you cannot use the site because it is not available in your country. That is good news for prospective traders though because most reviews claim IQ Option is a scam for a few different reasons and other reviews about the company are quite negative.
Limited Expiration Times
When you trade binary options with IQ Option, you only have a limited amount of time to make trades before time runs out. All trades expire at the end of the day, which can turn off those who like to make longer investments. Depending on where you live, the day may expire while you’re in the middle of the workday or while asleep.
Bonuses for New Traders
Sites like IQ Option offer bonuses as a way to entice new traders and make them risk their money. This bonus changes between users though, which means that you may not get the same bonus that another trader does. You may find that you need to deposit a larger amount of money before the site credits that bonus to your account too.
The most common complaint found online in relation to IQ Option is about the accounts the site canceled. Doing a simple search for the company’s name and the word scam will bring up hundreds of sites and complaints from users who state that IQ Option canceled their accounts after they made $1,000. Others had representatives from the site constantly call them and ask them to make more trades and spend more money before eventually canceling their accounts.
Lack of Deposit and Withdraw Options
While 24Option gives you the chance to deposit money into your account and withdraw money via different processors, IQ Option offers far fewer choices. You can only register two types of credit cards or work with three different online payment processors. The site does have a wire transfer option that lets you receive a wire transfer but only if you live in certain countries.
Comparing 24Option vs IQ Option
The only real benefit that IQ Option has over 24Option is that it has a minimum deposit of just $10 that lets you start trading as soon as you deposit the cash into your online account. When you use 24Option, you’ll need to deposit up to $250 before making a trade. IQ Option does have a maximum withdraw limit, but this is $1 million and designed for brokers handling the accounts of others.
IQ Option has a mixed reputation online, which may make you hesitate before you hand over any money. You should also keep in mind that you cannot use this site while living in the United States. The Education Center and other information provided by 24Option help you understand the risks that you take and help make this site a better choice than IQ Option.