Back in 2016 we ran an article comparing binary options trading to starting your own business. Much of the logic in that piece holds up even now. While opting for a trading method as a means of personal income sounds far riskier and less responsible than starting a business, it’s really not much more of a long shot. Indeed, the odds might even be better that you make some money trading versus launching a personal business (many of which fail), though there’s really no way to find those odds precisely.
Mind you, that doesn’t mean that attempting to start a career in binary options trading is a particularly good idea. While it is possible to earn money, it’s just as possible to lose it – and many would have you believe that as often as not, these particular markets are actually stacked against the average investor. It’s for that reason, in fact, that in 2018 we have to ask another question: are questions about legality and fairness leading to the disappearance of binary options altogether?
About a year ago, an article surfaced with the title, “Beginning of the End for Binary Options?” It’s certainly the kind of title that catches your eye, though its scope was actually fairly limited. The article concerned the closing of Banc de Binary, which had happened earlier in the same month. This was a fairly big deal in the world of binary options trading, though it happened for a more specific reason than might imagine. There are plenty of questions about the reliability of major binary options firms, but Banc de Binary’s closing happened more because of a regulatory breach. Banc de Binary was essentially advertising and operating in areas (namely the U.S.) where it had been prohibited to do so.
Even so, the demise of this particular firm only accelerated the conversation about whether binary options trading in general might be on its way out. Noting other pieces of news that came after the closing of Banc de Binary, such as the Canadian regulator BCSC issuing a formal warning about an options platform, one article suggested last summer made a dire prediction: this could all be leading to the disappearance of binary options for good. Basically what we’ve seen is that widely held concerns about the legitimacy of certain platforms, and the shadiness of certain brokers, has translated to actual regulation and disciplinary action. This in turn has resulted in headlines, only serving to make more people aware of the idea that binary options trades can be sketchy.
It’s a little too early to say binary options trading is completely done for. But we do certainly seem to be on that path, and it may be for the best.