Binary option trading is easily accessible to everyone around the world over the internet. Therefore, scam stories related to binary options is hardly surprising – however, the scale of this scam has gone beyond even the scammers wildest dreams. Binary trading scam can come in any form from insincere brokers & reviews to rigged robots & auto trading tools and everything in between.
Some brokers may not be dishonest but the services provided on their platform like delays in reimbursing funds or highly unreliable uptime labels them as brokers to be avoided. There is no such thing as an honest broker working for a dishonest platform.
How binary option scams work?
- You suddenly get a call offering a secure investment opportunity with fast high returns. Online ads and social media are also the sources scammers use.
- Fake company builds a professional looking website, which make them appear legitimate.
- Websites have login processes, personal account details and even create trade signals with a promise of 100% accuracy.
- You deposit money in the trading account and start trading on your own or with the help of the broker CarSite.co.uk.
- If you win returns get credited in your account but the odds are heaped against you and soon you will probably lose all the money.
- If you request for withdrawal, you cannot do it and often you lose the whole investment.
- You may even be asked for sharing personal information with a claim that they need it for anti-money laundering process or to transfer money. Sharing these details leaves you open to ID theft.
- Scammers have plenty of schemes under their sleeves to stall or keep victims in their program but as anticipated they stop taking calls and soon the firm disappears.
[Tip – Smart way for novices to start trading is get registered at legitimate regulated broker offering free demo account.]
How to protect yourself from binary option scammers?
Check review-sites, which allow and support users to contact and report issues with specific brokers. You get generic information like –
- Does broker Used Car have valid license?
- Does the broker constantly call to deposit more cash?
- Has broker been penalised for immoral business practices by regulators?
- Does the broker’s license give protection to investors from foreign country?
Important and relevant tips
- Testimonials tend to be illegal and fake
- Review sites tend to be nothing more than affiliate marketing arms of the brands they “review”
- Avoid following trade signal, which unfits your trading strategy
- Never use trading software that asks to make deposit prior to you seeing the settings
- Historical performance never indicates or predicts future results
- Software which created your account has the capacity to make trades from your account
- On forums read trader discussions – always be sceptical.
- Never allow anyone to pressurize you into making a decision regarding investments or money – get financial advice from professionals you trust.
Is trading binary options a scam?
No, the concept of binary options trading is not a scam but it is the shady brokers involved that have conquered the market and left the genuine traders behind. The regulatory status of the trading platform is highly valuable for those who seek to avoid being binary trading scam victims. A good broker –
- Has transparent terms and conditions
- Does not make cold calls like an email with unsolicited approach or a phone call?
- Will be clear and upfront about their identity without any redirecting to funnel sites or another brokers link.
- Gives access to data & analysis tool for working with your own trading strategies.
- Will offer transparent and fair benchmark of setting prices.
Take precautions and enjoy your binary options trading!