A binary options scam is something anyone can avoid with the right information. Due to the amount of binary options brokers out there, it is very important that you know exactly who to trust and what to expect. So, how can you prevent a scam from happening to you?
- Don't sign up to a broker that is from a country which does not have a strong regulatory system. There's no point in having the best binary options strategy if the broker you are working with is not carefully regulated. This can lead to problems with withdrawing funds, slow trading platforms that get stuck and may result in you losing your money, little to no customer support, and the list goes on.
In early 2013, the Cyprus Securities and Exchange Commission (CySEC), declared that all brokers involved with binary options operating within the Cyprus jurisdiction would have to apply for a CIF License. This regulation means that all EU binary options brokers who are CYSEC regulated have taken all the necessary steps to ensure that all your funds are protected through segregated accounts where your funds are kept, you get accurate market data and trading results, and have the right framework in place to protect you against any unforeseen issues.
- Look out for different binary options complaints about the broker you are interested in joining. If you find any negative comments or scams about the broker, then you need to be careful. If, after doing all your research, you find that this binary broker has not responded to the negative comments out there, then it is advisable that you reconsider joining this broker since this shows that this broker is not active in fixing problems or improving their reputation.
- Try before you buy - it is important to test out the broker before you make any financial commitments. You can prevent a fixed return options scam by seeing if the broker's platform has all the useful features necessary to compliment your binary options strategy, responds quickly, answers your questions and offers you professional and reliable advice.
- Join forums or chat rooms and see what binary options scam is currently being discussed. You will be amazed how much information you can collect from other people's experiences by simply asking around. You can also apply similar steps of caution if you are thinking about joining a particular binary options signals provider.
Common Binary Options Complaints
Here are all the main scams that you should be aware of if you want to become successful in binary options trading:
Credible binary options brokers are registered with trustworthy bodies and thus are transparent about their activities. If you therefore come across a broker that lists down non-credible regulatory bodies, or is not registered with a professional body at all, then this is likely to be a scam.
You should also be aware that not everything is as it seems on the surface. For example, some brokers will use deposit bonuses with unfavourable small print terms to try and encourage you to join their site. It can be really frustrating if a broker promises a big sign-up bonus and then later you realise that you need to make two times or even three times turnover before you can have access to your bonus money. So, you will have to risk two to three times the amount of your original deposit before you are entitled to your bonus money. Although this is not necessarily a binary options scam, it is something that you can easily be tricked into if you are not careful.
A binary options scam out there that you should be aware of is Terms & Conditions manipulation. You see it is very hard for you to develop any trust with any broker if they have the power to change their Terms & Conditions at any specific point. This is why it is essential that you look out for clauses in their Terms & Conditions that allow for retroactive changes, particularly regarding payouts. There are many binary options complaints out there that can be avoided just by becoming a little more savvy.
So, now that you know how to avoid a digital options scam, here is one simple step you can take to find the best brokers out there:
Check out our up-to-date review page where we list the Top Regulated Binary Options Brokers currently in the market. For example, all Banc de Binary reviews are very positive and they have never been linked to any binary options scam, so you will find that they have been awarded a leading position on our list.
To carry on becoming more savvy about binary options trading and how to avoid ever experiencing a binary options scam, simply carry on learning new material from OptionsBee.