Binary Options Trading Scams
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The vast majority of binary options trading scams will start well before even the trader manages to open their account with the brokerage. The promotional videos are what gets many people hooked. The video about the signals or the robot (whichever they are peddling) makes things look very simple.
Here is how the scam works in a nutshell:
- A group of scammers set up a website that looks and feels like a legitimate binary options trading broker.
- The scammers then create a makeshift trading signals software and slap a 100% trading accuracy claim on to it.
- As soon as traders join the scam, they lose the initial deposit which is usually set at $250.
- After that those traders will receive a phone call from a so-called ”senior broker” who will ask them to invest $5000.
Any and all amounts deposited will disappear and you’ll never be able to withdraw them.
The Demo Trading Account
We always recommend that traders should stick with trading via a legitimate and highly regulated broker. That broker should also offer you a free demo account.
When it comes to Forex, Crypto or CFDs brokers, IQ Option is regarded as being one of the best as they are licensed in Europe. Plus, traders can signup to get a free trial of their platform.
How To Steer Clear Of Binary Options Trading Scams?
Research is your best weapon against binary options trading scams. You should research the broker properly. However, you’ll need to move beyond the majority of review sites as they just provide you with basic information.
The most important things you should check is:
- If the broker has a license from a financial regulator like the FSB, ASIC, FCA or the CFTC.
- Does the broker continuously call you to deposit money into the trading account?
- If the broker has a mechanism in place that protects investors from your part of the world?
- Check the history of the broker to find out if they have been fined for unethical practices by a regulator?
The next step is to shortlist and pick the best robot or trading signals system:
- You should never use a broker, robot or a trading signals software which asks that you make a deposit before ever seeing the interface.
- Never choose a trading signal if it does not fit your style or trading strategy.
- Any software that you use to create the account can also be used to place trades via the account.
- If there is a binary options forum make sure to read through the discussion there.
- Keep in mind that historical performance does not guarantee similar future results.
We know more than anyone else that binary options trading scams are very common. So, its imperative to carry out your own research and go beyond just getting excited about a $1000 bonus. Plus, for every binary options broker that you find out about, there are many others that offer the very same features and probably at a lower price.
Carry out your due diligence to find out what it is the requirement for the broker to be regarded as the best in the industry. Also, try to choose a broker that’s licensed locally and is regulated locally because that way your investment is protected.