How to avoid binary options scams?
Unfortunately scammers exist in every industry and this industry is no different. It is imperative to understand the best way to spot and avoid being the victim of a binary options scam. The following tips will ensure you choose a broker who will look after your funds:
CySEC
The Cyprus Securities and Exchange Commission implemented a rule to ensure brokers falling under Cypriot jurisdiction would need to register for a license to trade. Any broker who is registered with CySEC must look after your funds in a separate account; this means you will get your funds back if an issue arises with the broker. You are also entitled to accurate data from the markets and a level of protection to ensure you receive a fair service.
This is not the only regulatory body in the world but it is the largest binary regulator. You should only use brokers who are properly registered with one of the established brokers.
Complaints
Very few businesses can keep all their customers happy. However, if you research your intended broker on the social media sites and discover an inordinate amount of complaints then you will need to be cautious. A good broker will respond to bad experiences and attempt to resolve the issue; if they do not appear to have done this with the majority of the issues then you should avoid this broker.
Demos
Many binary option scams will not have a demo account on their websites. This is because they do not want you testing their software and finding any issue before you commit your funds to their account. It is worth noting that not all genuine sites have demo facilities. If this is the case then you will need to verify what is accessible on the site; what features are offered to help you trade and how good the customer support is.
Information
They are many forums across the internet which will help you to learn about and understand the latest scams that are being used. People, are happy and willing to share their experiences to ensure others do not suffer. Talk and listen to the advice to gain a useful insight into the different brokers and their potential.
Binary Options Scams
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Any broker who is not registered is likely to be trading as a scam. This is simply because they are not prepared to adhere to any other rules or regulations. A firm that is not able to be transparent about its trading techniques and other processes is one that should be avoided or very carefully considered.
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The small print is the most favored type of binary options scam. Many brokers offer bonuses which, once accepted, will restrict you from accessing your funds for a very long time. The usual technique is to provide you with a welcome incentive and then not allow you to withdraw funds until you have traded twenty or thirty times the value of your bonus. As winning s are often added to your bonus and losses taken from your initial funds, you can end up trapped; unable to access your funds!
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The terms and conditions by which a broker regulates itself can be changed at any time. You may have carefully read them and believe you understand them. However, if there is a clause which allows them to change their conditions at any time, they can do so! This can be very easily missed and yet destroy your ability to access your own funds.
The best way to avoid being scammed is to consult other traders and study the best broker lists; this will ensure you register with a reputable trader and enjoy your binary trading experience.
