Binary options have become popular among new and expert traders, mostly the risk-takers. Investors have a 50-50 chance of winning or losing. They can potentially earn a 70-90% profit over their deposit. Many traders look to binary options firms for investment, as a shortcut for their financial solutions.
More binary options firms and brokerage companies leverage trading with this method with the growing demand for binary options. However, not all of these binary trading firms are legit. Many of them are binary options scams that make traders lose their money. The reports of fraudulent binary trading through third parties have increased in these past two years.
Binary Option Scams are Everywhere
As the cases grow in number, it raises fundamental questions like – is binary options trading is a scam or a legit way for trading?. The fact is that binary options scams are everywhere. Once you go online, hundreds, if not thousands, of binary options – websites lure traders into opening accounts and making deposits with them. However, binary options scams won’t allow you to withdraw your money as you’ve made a deposit.
These binary option scams companies usually hold your money and require you to make another deposit to withdraw your earnings. While the trading graphics or reports of the binary trading option looks real, drawing your profit is the issue. Some scams can prolong their existence with this method instead of walking away after receiving deposits.
Another fact is that it is hard to eradicate binary options frauds. It’s because they use servers overseas so to perpetrate their acts. Victims can hardly process any disputes about the operation. On the other hand, countries apply different regulations about trading with binary options. There are some limited ways for traders to recover their money lost from binary options scams.
People Are Losing Their Money
Thousands of people are losing their money from binary book scams and fraudulent trading services. Binary option scam firms require you to deposit as you open an account on their platform. The process was similar, if not the same, with a regular brokerage company. What makes them different is things coming after you make a deposit.
These scams never transfer earnings or money left in the deposit to the investors. There’s a long process to take such binary option scam sites down, while tens of new scam sites could follow the death of one website. At this point, it will be the traders’ discretion to choose binary options brokers available on the internet.
Is there anything like an excellent Binary Options firm?
There are, of course, professional binary options brokerage firms that provide clients with legit services. They offer an accountable trading process with reliable services for their clients. They have also built an undoubted reputation in this industry. However, consider these factors to ensure that you’re not hiring a binary options broker scam for your trading portfolios.
When you want to choose a reliable binary options firm, check the following factors:
Licenses and Regulation
First of all, an excellent binary options trader firm will be under the state’s regulation and have a license. Depending on the country and the state, you need to check whether the company holds the appropriate financial authority licenses. Reputable trading brokerage companies would disclose this information upfront. However, you can check the truth to the authorities that issue the license and the regulation. Regulated and licensed firms are the safest option if you want to give a shot in trading with binary options.
The regulation provides traders with protection on their rights and investments against binary scam options trading. You can avoid trading companies that can’t show their license, or you can find any proofs about their legitimate papers. Some regulatory bodies are FCA(UK), CFTC(US), CySec(Cyprus and EU), FSB(South Africa), and ASIC(Australia). Check the body in your country.
Terms and Conditions
You also need to spend time reading and comprehending the terms and conditions of the firms. Some firms may lure you with bonuses, but you’d have to make a certain amount of deposit. T&C also covers the deposit and withdrawal mechanisms, profit share, charge, fees, and many more. Generally speaking, a binary options scam usually applies to the luring T&C that forces you to make a deposit. Take note that scams don’t always look fraudulent. Some offers look legit but are scamming you.
Demo Accounts
It’s always helpful to use demo accounts for trying binary option trading services. You can open multiple accounts in different firms and find the one with the best possible performance. Or the ones that suit your preferences. Before making a deposit, use these trial accounts to push binary options trading performance to the limit to ensure it’s not a binary options scam for sure. Even if you already get a recommendation, always sign up for a demo account first. Reputable firms still allow clients to have their demo accounts. Whenever you want to start real binary options trading, always make a minimum amount of deposit.
How They Charge
Another fundamental thing you should consider is how the brokers charge you. Commonly, brokers charge commissions over your profits, while some may also charge flat or progressive fees. Either way, make charges or fees exact in the front. It’s because some binary market scams take advantage of fraudulent charges. They may hold your profit for more significant fees or cut some amounts of your payout money without your agreement.
Reviews and References
It will help research reviews and references about the companies when you’re shopping around your binary options brands. You need to check how the firm pays out your profit, withdrawal, user experience, and so forth. You can find the actual reputation of a binary options firm by checking reviews on trusted platforms. There are also non-endorsed references from professional traders. If you see many firm complaints, you can exclude them from your list and choose the safe option.
If you are a victim, then we recommend you check the blog InvestmentBloom to help you with financial advise and ways to proceed to recover your funds.
(Syndicated press content is neither written, edited or endorsed by ED Times)
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