Defending The Forex And Binary Options Industries
Defending The Forex & Binary Options Industries
There are always going to be stories in business and financial news about controversies, whether that is a corporate scandal, an economic crisis, or some kind issue with the stock or commodities market. Sometimes there are controversies surrounding the forms of trade itself. Forex and binary options trading, for example, have come under fire on some occasions, sometimes for the same reasons, sometimes for different ones. But is the controversy surrounding these forms of trades true, or is it all a giant misunderstanding? As with many things in life, the truth lies somewhere in the middle. We’ll try to address some of these concerns here.
Binary Options Trading Is A Scam
This, sadly, is an ongoing concern because of the fact that both legitimate binary options traders and scam traders exist, and many people have a difficult time telling them apart. Binary options trading itself is, of course, completely, 100% legal and legitimate. It can be a fast way to make a profit once you have an understanding of how the trading system works, but this is only the case when you open an account with an honest, legitimate broker.
Where all the trouble comes in is that because of the rising popularity of this financial product, and the growing interest from the public, scams are on the rise. Many opportunistic people see the growing interest from the public in wanting to learn more about binary options trading and wanting to get involved. So these opportunists create fake binary options trading brokerages, offering people a chance to conduct trades, but essentially pocketing the money, and sometimes even stealing identities in order empty out bank accounts or use credit cards. Because, in most cases, these scams are not based in the country of the people they are trying to convince to open accounts, once the money has been “fleeced” from the unsuspecting victim, these people have no legal means to get it back, because they willingly gave the money and the transaction did not take place in their country.
Of course, none of this applies with a legitimate binary options trader. In these cases, people who open their accounts make their trades, have their profits deposited into their accounts, and withdraw that money as they see fit. But there’s no secret involved in finding a legitimate binary options broker versus a scammer. All you have to do is be careful and be diligent. Never agree to open an account with a binary options trader just because they randomly contacted you on the phone and asked you to. Look up a binary options trader and see what kind of reputation they have online. There are now plenty of resources for people to look up that warn others of scams and bad trading experiences. Do your research on a trader before you commit to opening an account with them and you’ll always be in a much securer position.
Forex Trading Is Unethical
Forex trading itself also used to play host to large scale scams when it first debuted in the 1990s. However, the longer period of time under the scrutiny of various financial regulations has dramatically decreased the number of scammers that can easily operate. However, there have been criticisms of Forex trading—even at the national level—for what some consider unethical practices.
For example, the country of Malaysia once referred to Forex traders as “unscrupulous profiteers,” accusing these traders of bringing Malaysia’s own currency, the ringgit, to the brink of collapse. As the Asian economic crisis swept through the region several years ago, wealthy and well known Forex traders like George Soros made significant Forex trades against the ringgit, sparking a loss of confidence in the currency that accelerated its drop in value in the global market. Forex trading may, in some ways, be a barometer that some people use to measure the “health” of a particular currency. And so, unlike binary options trading, which only affects the trader, Forex trading can have an impact on currencies, economies and entire countries if a particular “mood” hits the market and influences subsequent market results.
Of course, the same could be said for any other type of trading. Stock and commodities trading can sometimes place similar expectations on their respective markets. But Forex trading itself is not inherently good or bad, nor can it be fairly accused of having undue influence the market. While it may be an indicator of economic climate, it is not necessarily a driver of market forces.
Brokers Steal From Their Clients
This particular criticism is usually heard from both binary options and Forex traders that simply have a hard time saying “no.” Unless a scammer is actually an identity thief that seizes control of credit cards or bank account numbers, no broker can actually steal money. All a broker can do is accept a transfer of funds once the permission to do so has been given.
The truth is that brokers can sometimes use high pressure, aggressive arguments and tactics in order to convince a client that a particular trade may be the right one to make. As much as it feels like choice is taken away during these high pressure moments, a client is still 100% in control of the final decision to say “yes” or “no” to surrendering those funds. Exercising more restraint—or simply standing up to an aggressive broker—is usually the simplest solution, not claiming “theft.”
Withdrawals Can’t Be Made
Once again, assuming that you’re not with a scam operation, this is 100% not true for either Forex or binary options brokers. Sometimes, it may not be possible to make a withdrawal, but this is usually due to more mundane reasons like the account not actually having the money available in the desired amount, or account owner not able to provide the necessary ID or documentation to validate the transaction.
In the normal course of events, a withdrawal may take a few business days in order to go through. This type of withdrawal is not as fast as the withdrawal from a personal account, so the longer wait times are perfectly normal.