1.4 Current model: problems and disadvantages

We have analyzed the traditional binary options model to get a better understanding of all the reasons, causing an unfavorable attitude towards binary options and leading such a great idea to downfall.

▸ Traders bet against brokers. So, a trader’s loss is a broker’s gain. Hence, the reason for brokers to make sure traders mostly fail. There is a common belief that 90% of traders‟ funds eventually end up in brokers‟ pockets.

▸ In general, trader’s reward, in case he was right, stays fixed regardless of other factors, meaning, sometimes you should have had way more than did. Maximum that’s ever available varies from 75% to 90% of the rate.

▸ Trading process takes place in a broker’s backend, so it is not transparent. Such a system allows manipulating data in a way that makes it difficult for anyone to find out the process was altered.

▸ At times, it’s required to make a deposit to start trading, what takes time. Withdrawal takes even more time. if funds get frozen, users have to order or buy something to be able to make withdrawal.

▸ Quotations are often obtained from providers in a corrupt manner. And even then, it does not guarantee accuracy and validity of the given data.

▸ Even if brokers treat you right, it is impossible to prove, making trust a critical factor in a decision making process