Binary options tutorials: traders’ support or brokers’ income?
All the binary options brokers offer different tutorials, reviews on their site. They always show that they want traders to trade profitable. What is the reason for binary option trader? Do the traders need tutorials or it’s just additional paid service?
Why do binary brokers give tutorials on their sites?
Almost all binary options brokers offer education on their websites. They include basic knowledge about binary options, a variety of strategies and tactics, indicators, webinars, etc. Have you ever wondered why brokers do it?
The binary options brokers don’t take a commission for the transactions, as forex brokers do. Binary options brokers earn from traders’ losses. Therefore, they win when their traders lose their money, so they don’t need experienced traders. So, let’s see why the binary options brokers offer education on their websites.
Some reasons of tutorials
First, the binary options broker is a company that provides a range of services. This set of services includes a trading platform, quotes, and training courses. A standard set of services is included in the standard account (it may be micro, silver, etc.) but there are other accounts, such as gold and platinum.
These accounts include webinars and lessons with experienced traders. Accordingly, they are more expensive, and the broker receives more money from these accounts. This is the first reason why brokers have training courses on their websites. Training courses are additional income for the broker.
Often, educational materials are free, but they give a basic knowledge of binary options. Their main task is to engage newcomers and make them trade. Thus, training can turn a potential trader into a real trader.
Another reason why brokers have education on their sites is that if traders don’t know how to trade, they will lose their money too soon. In this case, the majority of traders will lose money and say that it’s impossible to make money with binary options. It’ll immediately reduce the popularity of binary options, and traders will disappear.
However, training materials also have a positive function. They help those who really want to learn. Webinars and lessons with experienced traders make aces from the novice. Statistics shows that traders who use educational materials earn significantly more and lose money less than those who don’t use training materials.
Free or paid tutorials
What is the difference between free and paid education? Free education gives you the information that hundreds of other traders receive. This information won’t bring you anything new. It is aimed at the general mass of people and reveals only the most common cases and situations. You aren’t controlled, and you rely only on your intuition and experience (which you don’t already have). In this case, your deposit is paying for your mistakes.
Paid courses, such as consultations with experienced traders, give you more. You can follow any experienced trader. He or she will check your transactions and protect you from the wrong deals. The experienced trader can argue why it is necessary to do something one way and not the other. In this situation, you rely on your intuition and the experience of the trader. In this case, you pay to not make mistakes in the future.
Therefore, training courses are still useful, and all newcomers need to read at least one basic training course. The only thing you should pay attention to is the quality of the broker. If scam brokers give you education materials, you will not get any effect because their main purpose is to take your money. If your broker is honest and has all its licenses, you get a good benefit from its training materials.