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Are Binary Options Really Profitable? PDF Print E-mail

Return on your investment

The average percentage of returns on your investment offered by binary options brokers is between 60% to 75%, and if it turns out a bad trade, you'll lose 85% to 100%. Let's say you decide to trade a binary option with $100 and the trade went right, then you will earn $160 to $175, leaving you with $60 to $75 profit.

 

If the trade goes bad, then you will receive $15 to nothing against $100, leaving you with a total amount of loss between $85 to $100.

 

Meaning you will need more than 75% of winning rate to actually have some profit. This rate is not easy to achieve even for some of the most skilled and experienced binary options traders. Good news is, a "luck" is also one of the important ingredients to win!

 

Brokers Profit

The source of the winning money you receive is the broker and no one else. The money transaction is executed purely between traders and their brokers.

 

In other words, if your account is credited with the winning money, then your broker is losing their money, and vice versa.

 

This makes us wonder: what happens to the broker if all the traders win all the time? How would they generate their profit? How would they keep their webpage and software running? How are they going to pay for their customer support, accounts, advertisement cost, etc? Even if their traders have 50% rate of losing, that wouldn't be enough to maintain other expenses.

 

If this is true, then traders' winning rate cannot be above 25% in order for brokers to profit. However, there are thousands of brokers online today achieving a great success with huge amount of profit by offering binary options trading platform to their traders.


Given the facts above, we can guess that only a small number of traders are making money out of binary options, and we can't help but to wonder, "is it really possible to make money from binary options?"


You should not be discouraged by these facts. Rather, you should be aware of the fact that it requires a more than 75% winning rate earn some money, so that you can plan your trades well and avoid the risk of losing more than you can afford. Regardless, binary options trading is legal, and it actually offers a chance to earn money in a short period of time.

 

We just wanted you to know what you are dealing with, so you can have a great trading experience and protect your hard earned money at the same time.

 

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