There are binary options scams unfortunately. There are unreliable scam brokers who will only take your money and never pay your profits. Every trader should be very careful while choosing a broker to work with. It is recommendable to take some time in browsing through different brokers and reading their offers. It is best to use their demo accounts, just by using demo account you can learn a lot about binary options broker. Also it is important to check if there are people complaining about broker you are considering. And finally browse through sites containing broker reviews, if all of them rank your broker as good you should work with that broker, if broker has bad reviews, avoid that broker.
4 precaution measures you should take in order to avoid binary options scams
- It is very important from which country binary options broker is operating. Some countries have better regulatory framework than others. One of countries with best regulation is Cyprus. In 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 means that all brokers need to take all the necessary steps to make sure that all your money is protected through segregated accounts where money is kept. This also means you get accurate data about the market and trading results.
- Make sure you inspect your broker by looking for any complaints their users might have. Sometimes these complaints may be unfounded, but make sure to check anyway. If there is a broker who gets complaints constantly and is even not trying to respond and clear their name is better to be avoided.
- Use demo account to see how serious your broker is. If demo account doesn’t include all the useful features necessary to make good trading decisions, or if broker doesn’t respond to you queries quickly and doesn’t offer reliable advice it is best to choose different broker
- Make sure you visit few sites that have broker reviews or some forums where binary options scam is being discussed. You can get a lot of information on many brokers out there. It is always better to learn from someone else’s experience rather than your own.
Scams are part of internet from day one. This is not a reason to stop using internet, same as binary options scams are not reason to stop trading. Just be careful, take your time when you are choosing a binary options broker and make an educated decision.