Binary Options Trading Scam
Remember that a trader becomes a scam victim even before opening an account or making a first deposit. It all begins with a promotion of some binary options signal service or binary options robot. How can you recognize that it’s not a trustworthy service and stop you from falling into a trap?
How the Scam Works
- A fake company sets up a website that looks like a genuine binary options service.
- The company then develops a trading software that is said to give 100% success rate or even sometimes guarantees stable income.
- This software is then promoted through multiple channels and often under different names using fake testimonials.
- After joining the system, a trader quickly loses $250 deposit.
- A trader is quickly contacted by someone from the company and is asked to invest more money into the system. The circle continues until a trader gets tired and gives up.
Please see many different reviews of binary options system below. You will find out more about how scams look like and will become better at recognizing them.
How Not To Fall as a Scam Victim
The very first step on the way of becoming more aware of the binary options scams out there is educating you. Read a few reviews of the binary options broker before actually investing your money. You should be able to find answers to the following questions about a broker:
- Does this broker have a license from a reliable regulatory body? (CySEC, FCA, ASIC or any other government regulator)
- Will you be constantly asked to deposit more money?
- Does this broker’s license cover investors from your country?
- Has this broker been fined for any unethical conduct in the past?
Then you should carefully select the binary options signal service or a robot. Here are just a few tips on how to choose one:
- Never sign up for a service that asks you to deposit money before seeing conditions.
- Don’t trust fake testimonials
- Never follow a trading signal unless it fits your trading strategy.
- Remember that the software that created your account can place trades on it.
- Previous performance history is not always an indicator of a future result.
- Ask other traders about their experience with this software
The easiest way to avoid being scammed is to first try trading with a demo account. This way, you can place trades and see results without actually risking your own money. See the list of the services that provide you with a demo account in the list and choose one to try.
Unfortunately, there are some binary options scams out there and an inexperienced trader can fall a victim of one. However, when doing proper research and educating yourself on the situation on the market, you are increasing your chances of choosing a reliable service. Don’t base your decisions on the exciting promise to gain $1000 in one day by doing nothing. Check the list of our recommended brokers, signal services, and robots and choose the one that aligns with your trading strategy.