While I appreciate HeroCat posting here about binary options I think as a vet trader it is my duty to inform any rookies that may be reading this thread about the dangers of trading binary options.
I will demonstrate using simple maths why binary options are a scam in any case.
Binary options are ways to bet on whether the price of a given asset will be higher or lower in X minutes. Usually X is small, sometimes less than 1 minute. Given that X is so small, the probability of being right and winning is 50%. That is assuming the spreads are null which is usually not the case so your real probability is under 50%.
When you win they pay you out between 60% and 85% on the capital you invested to make the bet. When you lose however you lose your entire capital aka 100%.
Hence the expectancy of this "game" is always negative: 50% x 85% + 50% x (-100%) < 0
Which means you will ALWAYS lose in the mid/long term when you trade binary options.
The house you are trading against will ALWAYS win mid/long term because they take opposite side of your trade and hence have positive expectancy. Their edge is (100% - 85%) = 15% and many times more depending on what payout they offer you.
Compare that to the regular gambling edge of 1%-2% and you see why binary options is one of the most lucrative businesses to be in from a profitability standpoint FOR THE HOUSE.
Binary options are therefore much worse than gambling for you the trader.
Unfortunately binary options houses are marketing machines that go after the "uninformed" investor/trader and their communication and messaging is very similar to many casinos playing into their audience's desire to gamble.
You are better off playing the slot machine!