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Is Trading Binary Options a Form of Gambling?

Broker of the Month: 24Option »

Short answer: Yes

At its heart, trading binary options online can be seen as a form of skill gambling. You are risking money by predicting an outcome in a period of time. I guess you can relate it to roulette, but less complex.

In roulette you bet on black or red and if the ball lands on either one at the end of its spin you win. You can see the parallels in binary options trading online.

You bet if the price of an asset will rise or fall below its current price in a certain time period and you either win or lose. It can be as high or low risk as possible so as long as you are careful then you can have fun. (See for information about gambling.)

However, despite the similarities, binary options are not considered gambling by governments. As such, any successful trading is considering earnings and not winnings and therefore any money earned is usually taxable. We advise anyone considering trading in binary options online to seek advice from an accountant in order to ensure that these earnings are claimed by the end of the taxable year.

One of the main reasons it considered earnings rather than winnings, is because of the skill involved in trading. You could, if you wish, ‘bet’ on binary options blind and guess the outcome. That’s your choice. Buts there are plenty of financial tools available to help the astute trader make informed decisions so you minimise risks or at least choose the level of risk comfortable to you.

It’s up to you to do to the research and choose whether to gamble or to lower your risks and make informed trades.

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