We love binary options, they are fascinating, fun and potentially profitable in both the long and short term.
Proponents: Trading binary options is investing
We find it a bit disingenuous that proponents of binary option present them as a solid investment to be traded with professional institutions that take a commission % like financial services companies. They call the customer service agents “financial advisers” and refer to depositing into your account as “investing”.
In fact when you use binary options you are not “trading” anything, you are betting and the brokers are as much like sportsbooks as they are investment houses. They do not take a commission like investment brokers do, they get your money if you lose and lose money if you win like sportsbooks do.
Opponents: Trading binary options is a crapshoot
We disagree even more with the way binary options are presented by opponents. That binary options are a form of irresponsible gambling with no skill involved offered to suckers by dishonest operators.
Both of these characteristics are inaccurate and the truth is happily in between. Trading binary options is more like what we think of as betting than investing but they can be really good bets with positive expectation for long term profits.
These are new wagering markets and are full of inefficiencies just waiting for a smart customers to take advantage of. That does require research, patients and skill, not at all like games of chance such as roulette or slots.
We know that some of what city of London and Wall Street traders and stock brokers do is more like “gambling” than “investing” and we know there are professional sports bettors and poker players who take a systematic, data based, businesslike approach and make long term profits which makes their “gambling” more like “investing”.
For more see our comparison of binary options to other types of investing and gambling.
Are binary options fun and profitable?
Don’t get hung up on whether binary options trading is investing or wagering, they are all ways of taking an opinion about an uncertain future event and placing a monetary consideration on it with the possibility of profit or loss.
What is more important is are they enjoyable and can I make a profit? The answer for us and many others is yes and yes! See how to be a winning binary options trader for how to make it happen!