Even a little bit of research into binary options trading will have informed you that there are scams out there. Many an unsuspecting trader has fallen victim to them and lost a considerable amount of money.
This should not put you off from engaging in this type of trading. Instead, you should know how to identify a binary options scam. This way, you will still be able to benefit from all of the perks available while safeguarding yourself from unsavory schemes. Here is how you can manage this:
1) Know What the Most Common Scams Are
There are some scams that are more frequently utilized than others. By knowing what they are, you will play closer attention to what you are being offered. You may have heard of traders complaining about how they are unable to withdraw money from their accounts.
Once you have deposited money, the brokers will block attempts to withdraw it. They will also stop answering emails and phone calls. Another is hiding various principles and protocols within the terms and conditions. Few people go through each point and sign the contract without realizing what they are agreeing to. Another scheme that has been documented is where traders are promised that their accounts will be managed by a professional. Once an unsavory broker has gained control over your account, they will most likely drain it.
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2) Beware of A Poorly Designed Website
Sometimes, you can judge a book by its cover. A broker that is professional will take great care to create an aesthetically pleasing website that is user friendly. A legitimate broker understands that their website is much like their storefront and that appearances matter.
It is always important to look through the site, looking for as much information as possible. Authentic brokers will typically have detailed pages so that you are aware of precisely what it is that you are signing up for.
This includes information on deposit and withdrawal processes. The site will also have email addresses and phone numbers. Make sure that you try both avenues to ensure that there are people who will answer the phone if you need customer support.
3) Pay Attention to Promises
Now, it’s easy enough to spot and avoid those claims of turning you into a millionaire in a month. The first sign of an illegitimate operation is the promise of unrealistic goals and opportunities. However, you should also be aware that sometimes, it is a little more subtle than that. Large bonuses and the promise of unprecedented payout rates may also be used as lures. It is a good thing to note that CySEC has actually imposed sanctions of regulated brokers that offer bonuses. When it comes to payouts, it can be a little trickier. It is still a good idea to be suspicious of rates that seem unusually high. Do some research to see what most brokers are offering to determine what the baseline percentage should be.
This is how to identify a binary options scam. Some schemes might be incredibly well camouflaged, however. Thus, always ask numerous reliable sources about a broker before making deposits. Even then, limit your deposits so that you can’t lose too much of money.