Binary options trading can only give you profits if you know the field. A novice who does not know the art of the trade is likely to be scammed and stripped of his/her wealth. Remember, from traders to brokers, scammers are busy devising new ways to con you.
As for online binary options brokers, thanks to digital currency, they have sprung out everywhere on the internet. This has made spotting scams more difficult even for the most seasoned traders.
So the question is how do we tell the cons from the real ones?
Luckily, there are a few very useful tips and telltale signs that can help you protect yourself from scammers; here they are;
Look for a license
You must make sure the broker you choose is registered with a reputable and authentic international regulatory body. You should talk to them ask your questions; an authentic broker does not shy away from sharing its registrations and licenses.
If a broker claims to have a license then you must check the authenticity of the regulator; make sure it offers full trader protection, has the right to take action against offenders and offers a complete history of its operations.
Do your research
Before you sign up with a broker you must do your research; check the internet for articles, user reviews and other details, which will give you an idea about the broker’s authenticity. You should also see the broker’s website in detail; check for its contact information, physical addresses and their signup requirements.
Even the smallest of details such as bad typo errors, mismatched font and unprofessionally designed website etc. can give you a clue.
Beware of signup bonuses
If the broker you selected offers an irresistible signup bonus then you should resist it!
There is a great chance that the bonus you have been promised would never be deposited, or would have other hidden conditions or even if deposited may be impossible to withdraw.
This is one of the biggest telltale signs of a scammer; if the withdrawal conditions make it difficult for you get your money then it is best to not choose the broker. However, one drawback is that you find out about these conditions only when you withdraw.
You must always check the terms and conditions section to find out their policies on withdrawals; brokers that do not allow withdrawals until you make a certain number of trades are never a good option.
Be careful when the profits offered are too high
If a broker promises profits that seem too good to be true, the chances are they are not real. Your common sense will tell you when a good promise is too good. When a broker has no history, licenses or stats to make you interested, they use false promises to lure you in.
Beware of signup deposits
When a broker asks for an outrageous sign-up deposit, you should just say no. The chances are, once you deposit the money, you will not see it again. The higher the amount, the more careful you need to be.
Hard-to-reach customer service
This is a huge red flag! When you are unable to contact their customer service, you must part ways with your broker. Authentic brokers have a very supportive staff that is always available and willing to help and guide you.
If a broker contacts you by phone or email and invites you to sign up then you need to be careful; do not share your confidential details or accept any signup offers.
These few tips can prove to be invaluable in protecting you against scams. It is best to see references and go for high-profile brokers.