Lately quite a few scams and other fraud schemes have come under the limelight in the binary options market. These binary options scam are generally circulated via websites, TV channels and through various newspapers. The advertisements will tell about astronomically high returns in the financial market and convince you to have trade with them. The regulatory agencies within the binary options industry warns prospective traders to be thoughtful about such brokers and wants you to act wisely. If you are one of those people who want to trade in binary options but afraid of scams, then this article is going to help you. Here I have mentioned in details about the different signs of scams and how to detect one. When you are informed you will be in a better position to judge a broker and find whether its scam or not.
7 Signs of Binary Options Scam That You Should Know
If any particular trading company claims that you will be profited once investing in binary options and tells you to open an account with them, you should be wary. Read these warning signals mentioned below and take appropriate precautions while dealing with such firms:
(1) Stay aloof from firms who says about guaranteed high profits
(2) Be careful about agencies who promises “No Financial Risk”
(3) It is not advised to trade on margins if you have no knowledge of the same
(4) Don’t send cash via payment methods like Snail Mail etc on internet
(5) The scams generally target people of ethnic minorities
(6) Try to get proper track record of the broker with data on past history
(7) Ignore such brokers who do not have any kind of past history
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Binary Options Scam & How to Protect Yourself: 5 Ways
Binary options market is indeed a great place to make money because the risk tolerance is very limited. However the ugly aspect about this industry is that there are many thugs over here that specifically target the newbie or the inexperienced traders by selling them dreams of easy cash money early retirement and a life filled with luxury and comfort. To make sure that you are not duped by any type of unscrupulous broker in the industry, you should remember the following points mentioned below:
(1) Do proper research work before you select your choice of broker. You should avoid those merchants who promise to make you rich in a fortnight. Rather you should go for those brokers who can provide your profits in a realistic time frame and can warn you about the dangers of the market. Try to read their history and talk to the prospective customers who have had traded with a particular binary options broker.
(2) If the broker is promising you a high payout up to 95%, then you should strictly avoid them. A reliable and respectable broker can give you profit ranging from 50 to 65 percent and not more than that. Any broker offering you more than the above is surely a scam and nothing else.
(3) Brokers will boast about several services, good trade platform and sophisticated trade tools. In order to verify their claims, you are advised to open a demo account with them and see for yourself if they are true or not.
(4) A trustworthy and legitimate broker will offer several types of payment gateways for deposits and withdrawals like for instance credit card, Visa, MasterCard, electronic wire transfer etc. If the broker is extremely limited in terms of payment feature, then you should better stay aloof from them.
(5) Even if you have joined any broker for binary options trading, you should not sit and relax. You should constantly monitor your funds and check for frauds if there are any at regular intervals of time. Generally binary options scams take place when we start trusting our broker blindly.
Aforementioned are some of the different ways through which you can detect binary options scam and stay away from the fraudulent agencies circulating themselves in the binary options market. Always remember that you will be able to taste success in the financial industry only when you do proper research and have a patient mind. You are always advised to get online and read binary options broker reviews to get a fair idea about the different brokers in market.