With an increase in Binary options trading there has also been an escalation in scams. New traders enter the marketplace with a hope to soon learn that trading successfully is challenging. It is not impossible but not easy as well.
Binary options arena is gripped with fraud brokers and individual traders. There is hardly any trust left in this industry, so if you desire to get involved then do the information filtering on your own. To avoid being scammed find as much information as possible about the potential binary options brokerage firm.
You need to trust the broker as you are offering your hard-earned money. Ensure that the money is used properly. An inappropriate behaviour is when the broker uses your funds to pay withdrawals. In financial world this is called Ponzi scheme and a forbidden act. Many brokers apply this tactic. They spend defiantly on advertising, as to lure new investors. As winning rate is very low, some investors request for withdrawal. They want to find out if their deposit is still with the firm or not. Therefore, it is wise to opt for regulated broker service.
The most important feature for new traders is to find a regulated broker, so as to save the trouble while withdrawing the funds. You can check the potential broker’s license number and the authority that controls it. If you find no such details on their website then it is possible the broker is unregulated. Some malicious minded brokers place an inexistent license number or their suspended registration number.
Never mind, address the financial authority, which regulates that firm. You can send an email to find out or give a call and enquire the information validity. With just a little effort. You can uncover crucial information regarding the potential binary options broker.
Never make decision on others opinion
Binary scams are not just focused on the brokers but there are reviews, which are fake. Brokers are well aware that people read reviews, so they hire people to comment on dedicated websites and forums. They even create their personal review website and promote brokers and businesses they are interested in. So, being cautious saves you from being scammed by binary options fraud brokers.
Internet conditions matters
Sometimes trading platform can freeze, suddenly. Therefore, even with great setup, you will not be able to execute any trade. In binary options, if the brokerage firm’s website consistently freezes means broker is playing a trick, so you lose.
Products offered
You will only be able to trade on currency pair’s broker offers, which are limited. Brokers favour pairs, which fluctuate often and trend less.
Expiration dates offered
Expiration dates will also reveal a lot about the broker. There will always be short term expiry dates. The odds to consistently earn profits while trading short term are very close to zero. Short term trading needs patience, discipline and thorough research for success.
Research is crucial before trusting binary options broker with your money. You don’t desire to make a deposit with a scam broker. Therefore, collect information about regulation and related trading process. Trade on demo account, if possible.