How binary options brokers make money - any idea?

[avikz]

Hi Folks,

I have been seeing a load of advertising videos of binary option brokers like OlympTrade, Binomo, iq Option, Etoro etc. while playing my favorite mobile games. These platforms offer binary trading options which is mainly an one minute contract where the trader needs to forecast if the price is going up or down within that time frame. If your forecast is correct, you will earn 80 - 100% profit and if it is wrong, then you will loose your investment.

So I have tried few of them last night with demo money to understand more about this. One thing I fail to understand is that how they make money because these platforms don't take trading fees. Also you can't see the orders placed by the other players in the market. So it doesn't really functions like a trading exchange.

Do you guys have any further insights on it?

[joniboini]

Here are some links to read:
- https://www.forexreferral.com/binary-options/how-brokers-make-money
- https://www.bestforexbrokers.co/binary-options/how-do-binary-options-brokers-make-money/
- https://medium.com/@BinaryScore/how-binary-option-brokers-make-money-7647b541eeb3
- https://www.howwetrade.com/how-binary-options-brokers-make-money/
- etc

Source: https://www.google.com/search?q=how+binary+options+brokers+make+money

[Paycoinzzz]

Hi Folks,

I have been seeing a load of advertising videos of binary option brokers like OlympTrade, Binomo, iq Option, Etoro etc. while playing my favorite mobile games. These platforms offer binary trading options which is mainly an one minute contract where the trader needs to forecast if the price is going up or down within that time frame. If your forecast is correct, you will earn 80 - 100% profit and if it is wrong, then you will loose your investment.

So I have tried few of them last night with demo money to understand more about this. One thing I fail to understand is that how they make money because these platforms don't take trading fees. Also you can't see the orders placed by the other players in the market. So it doesn't really functions like a trading exchange.

Do you guys have any further insights on it?

Actually I tried trading BO and Countdown, Binomo, ... all are the same. The way it works is that exchange will definitely hold your command. Every time you win, you will win 80% - 82% of the exchange's money. but if you lose then you will lose 100%. Besides that we are not that easy to win, I've traded 18 consecutive trades and after that my account has been priced. I tried to play Countdown at Whaleinc, it was based on MT4's pricing platform, but when you place an order, it is the price in Whaleinc's system. so I lost 5 orders due to price manipulation and when contacting supporters no one wanted to solve it for me. It's best to stay away from these types of games, our odds of losing are huge.

[marilynmanson21]

binary option trading is a type of gambling, very different from trading,
if gambling is included, of course they get money from losing broker users, maybe part of it is also from trading or withdrawing fees,

[ryzaadit]

binary option trading is a type of gambling, very different from trading,
if gambling is included, of course they get money from losing broker users, maybe part of it is also from trading or withdrawing fees,

Same as crypto if you don't have knowledge about TA/FA and only hopping the price was up its can be called gambling too. The problem of binary option, the TA predict was not really correctly the interval time of trading was really short around 1-5 mins the longest i already try only 10-30 mins. Predict the movement price with a short time was really difficult, that's why most of the option trader always getting rekt/lose.

[Findingnemo]

I see lot of people claiming that olymp trade selectively scams the users once they started depositing their real money to trade there so they no need to charfe fees when they can abke to take all the money from the traders.

I will suggest anyone to avoid binary option trader because ts more likely people will lose money once they started to feel we can make money easier with this kind of trading method because results are highly manioulated and no transeperency st all about their working module.

[davinchi]

There has been zero places in the entire world that has not taken something from you and still made a profit, binary options brokers make money just like all other people make money as well. The difference is, instead of clearly stating how much they charge for your trading, they hide the fact that they are giving you false prices and less wins versus other peoples losses.

Like everyone mentioned (and I highly suggest reading jonibonis articles) you can see that these places simply just give you 80% of the win from the losers and keep the other 20% to themselves. Same idea of the poker tables, there is a rake involved, when someone loses money to you, you don't get all of their money, you get a certain amount of it and the house keeps their rake.

[Linkkoin]

Check payouts - if you lose a bet, you lose the whole amount, when you win, you never get it double. As well BO have already a very bad reputation as such, as in the past many of them had been manipulating rates or blocking a possibility of withdrawing profits.

[cotton ball]

Looks binary option good investing or trading way? I heard many people lost their money with this broker because not get prediction when have to buy and always make mistake with choose which one price to buy with their market trade system, I dislike with broker trade way look not fair with choose between left or right without have other solution.

[avikz]

binary option trading is a type of gambling, very different from trading,
if gambling is included, of course they get money from losing broker users, maybe part of it is also from trading or withdrawing fees,

It may sound like gambling but it is not. Because Binary option trading is considered gambling, then we will have to consider the entire forex market as gambling. So it is not gambing and I am sure about it. I was just wondering how they make money since they are not taking any trading fees.

@Joniboini, thanks for the resources. I will go through them to get more insights!

[Bagaji]

The amount of money they make from players that lose their prediction is always higher than the numbers of people who predict the right direction of the market trend within that period and I believe that is how they make their money.

[pajak666]

The amount of money they make from players that lose their prediction is always higher than the numbers of people who predict the right direction of the market trend within that period and I believe that is how they make their money.

If you put a monkey in front of 2 buttons it would be right 50% of the time...  Costs are hidden in the payout structure. As somebody mentioned, timeframe is so short it is usually a 51-49% type of situation. If a proposition is that you lose 100% but win less than 200% then there is your fee. You can read up a little about expected value (EV).

[bittraffic]

There used to be a popular binary trading site in the forum named secondstrade but are gone now. The older users in bitcointalk new that site well because it runs a marketing campaign as well. I use to play binary option there. I can say its on of the good binary option ever existed, nothing so far tried to match them. There are few but eventually become a scam by not letting users withdraw.

[dunfida]

Hi Folks,

I have been seeing a load of advertising videos of binary option brokers like OlympTrade, Binomo, iq Option, Etoro etc. while playing my favorite mobile games. These platforms offer binary trading options which is mainly an one minute contract where the trader needs to forecast if the price is going up or down within that time frame. If your forecast is correct, you will earn 80 - 100% profit and if it is wrong, then you will loose your investment.

So I have tried few of them last night with demo money to understand more about this. One thing I fail to understand is that how they make money because these platforms don't take trading fees. Also you can't see the orders placed by the other players in the market. So it doesn't really functions like a trading exchange.

Do you guys have any further insights on it?

I cant see any brokers or platforms that do give out 100% profit. Most of them do really get commission on every trade or bet you do made.
Either Call or Put and if you lost a certain position then its normal for them to get the money but if you won then usually it ranges on 80-85%.
BO is somewhat like a gamble but if you do know how to scalp or short trade on small timeframes then this one is good for you.

[bitgolden]

Lol you still wondering how they make money? Those people make more money than you can imagine, and they make money when you lose. They have lots of traders on their platform I believe, and most of them lose trades every time and those money goes to the platform. It’s just like when you go to gamble, you don’t pay any fees, but does that mean the casino is not making any money?

Of course they are making money because there are other players that are losing money. Binary trading is even similar to gambling because you’re kind of betting on which direction the price of a particular asset or stock is moving to.

[rijaljun]

So I have tried few of them last night with demo money to understand more about this. One thing I fail to understand is that how they make money because these platforms don't take trading fees. Also you can't see the orders placed by the other players in the market. So it doesn't really functions like a trading exchange.

In the simple mind, where do you think your losses go to?

Also, I don't think OlympTrade, Binomo, etc are legit platform. They are for me more like unfair gambling platform where the owner could easily cheat their users and intentionally make then lose.

[semobo]

So I have tried few of them last night with demo money to understand more about this. One thing I fail to understand is that how they make money because these platforms don't take trading fees. Also you can't see the orders placed by the other players in the market. So it doesn't really functions like a trading exchange.

In the simple mind, where do you think your losses go to?

Also, I don't think OlympTrade, Binomo, etc are legit platform. They are for me more like unfair gambling platform where the owner could easily cheat their users and intentionally make then lose.

They are not an entire scam but honestly they are something like that because they are manipulating the results so users will lose their money once they start leverage big amount compared to their previous trade profits.

[nelson4lov]

I see lot of people claiming that olymp trade selectively scams the users once they started depositing their real money to trade there so they no need to charfe fees when they can abke to take all the money from the traders.

I will suggest anyone to avoid binary option trader because ts more likely people will lose money once they started to feel we can make money easier with this kind of trading method because results are highly manioulated and no transeperency st all about their working module.

Of recent, most of my guys were jumping onto the Olympic trade platform. I don't really know what the hype is about but I've avoided them like a plagued. I've learnt that in life, anything that sounds too good to be true is probably not true. New users are flooding their platform because of their demo feature. On the demo feature, they make it easier for users to win trades. However, this changes when it comes to a real account. In a delegate space as crypto, one needs to do some dye diligence before putting money in anything – be it which cryptocurrency to trade or which platform to trade with.

[hugeblack]

It is the first mistake you make. Do not trust the content of these ads because the majority of them are scams.
What is the probability that you will be correct in your long-term expectations? Certainly, it is much less likely to be wrong, which means that you will be the loser in the long run. That is, if we assume that these platforms are legal.

Let’s check some of them:

 

• Beware of Olymptrade
• I'm Looking For Information About Binomo

[rijaljun]

They are not an entire scam but honestly they are something like that because they are manipulating the results so users will lose their money once they start leverage big amount compared to their previous trade profits.

If you can say they are manipulating the result (cause you might have the proof or many people were experiencing that dishonesty) then why don't you call it a full scam?