Like any other activity that involves money, binary options trading can be risky as many people try to take advantage of other people’s desire to make quick money. It is very much possible for traders to get fooled by fraudulent companies that pretend to offer the exact services which real brokers do. Most of these fraudulent companies convince you to deposit money into your trading account without letting you know details about the withdrawal process. This is when the problems begin.
Forms of Binary Options Trading system Scams
when it comes to scams in binary options trading, the following ones are most popular:
• Non-payment of Your Profits: There are fraudulent platforms created with the main purpose of robbing people of their money. These platforms pretend to offer you something too good to be true. When you sign in and deposit money, they let you invest your money and when you win, they do not allow you withdraw your winnings. It is also possible for those platforms to not manage properly the broker funds, and hence make it impossible for a trader to withdraw his money. Either way, the result is the same. People who trade binary options on these platforms lose their money for good.
• Changing Payout Rates or Percentages: With binary option trading, payout rates should be fixed depending on the amount of money you actually win. You should be able to consult these rates before you actually start wagering. If they are not public records, you should ask the platform for these rates. If the company you chose to do your trading refuses to give you these rates (which should be fixed), or if they say that the rates vary depending on your winnings, it is time to change trading platforms.
• Incorrect Information on the Platform: Fraudulent companies who want to fool you into choosing them for binary option trading will tell you that the financial data you need to know for your wagers will be provided by the broker. If you accept this process, you risk receiving incorrect data from that broker whose only purpose is to make you lose money. If your losing means their winning, the broker will make sure to give you the wrong data.
Signs of Binary Options Trading Scams
Most of the times, it is very difficult to make the difference between a fraudulent trading platform and a legal one. There is no way of knowing for sure whether it is safe to wager on a platform or not. If you notice any of the signs below, you should reconsider your decision:
• Poor regulation – Research on the broker you want to hire to see if he is registered with legitimate regulatory bodies.
• Not enough funds – Read reviews about each broker you are considering to see if they are under-capitalized or not. If yes, do not hire them.
• Bonuses – Bonuses are legitimate, but they can also be very hard to collect. Some rules are so complex that you may end up not receiving the bonus when the process is complete.
• Terms and Conditions – Fraudulent platforms have a habit of changing the “Terms and Conditions” page as they need to fit their cause.
How to Avoid Binary Options Scams?
If you have all the information you need, you can always avoid binary option scams. In this mean world, it is hard to know who can be trusted and who is trying to fool you. However, there are some steps that you can follow to avoid being the victim of a scam.
Read Forums or Talk in Chat Rooms: Information is the key to success. If you want to succeed in a domain, you have to make sure you have all the information you need. You have to cover all the angles of each problem to brainstorm everyone around you and come up with a strategy that actually works. All these steps can be applied when it comes to binary options trading. You can join forums and chat rooms and read everything that you can find to read on this subject. On the forums, you will find people who talk about their experience with options trading. You will learn from their experience, and also find out who can be trusted. If you have any questions, you can ask them over chat rooms.
Test Your Broker before you hire him: You have all heard the saying “try before you buy”. This saying can be applied in this situation too. Test the advice you receive from your broker, how quick he responds, and how fairly he answers your questions.
Rules are not made to be Broken: Having a strong regulatory system is a sign that your broker is not a scam. If the broker you consider hiring is from a country that does not have strict rules about binary options trading, do not hire him.
By playing safe with the above mentioned signs, you can surely invest your hard earned dimes the desired way possible.
Author Box: Daniel is your savior when it comes to investing funds for a great return. He not only guides you with binary options trading but also helps you get hold of top binary options brokers for your objective.