Whenever a new way of trading or a financial instrument arrives, many businesses get involved with it. But are all these businesses fair? There is no doubt that many of the product providers are honest and, with their hard work, trying to achieve the milestone. They are trustworthy.
However, some are thieves. Now consider the Binary option. It is a popular and accessible method to trade the markets. When you choose a binary option, you run a significant risk of losing money because the broker has complete control over the binary options data. Therefore, you can get played very easily.
Especially if you are new to the trading world, cunning scammers can loot your money within a blink of seconds. However, in recent days these are not easy tasks to do scams. Scams can be recognized thanks to proper regulation, better reviews, and a strong online trader community easily.
But yet there is some shady outfit that still exists to loot the traders online. So, you need to acknowledge yourself about the scams and the steps you can follow to avoid scams.
You must also know what to do after you have been scammed. This article will explain the solutions to all these problems mentioned above to act accordingly in need.
Tips To Avoid Binary Options Trading Scams
The scam is not a simple behavior. It covers a whole lot of categories. Like for example, scammers can provide you misleading information and even gives you dishonest trading advice. You need to know that even sometimes, the broker’s intention is not to scam, but the services provided by them are no less than a scammer.
For instance, they can give you continuous advice because you are losing the option every time. But, unfortunately, this can also lead to huge monetary losses. Thus, stay away from these types of brokers. The following are a few tips to avoid binary options trading scams.
#1 Trust Regulated Brokers
It is critical to understand what is reliable and what is not in a market brimming with possibilities. Individuals with a license to function as trade brokers from a competent financial organization are regulated brokers.
However, it is critical to understand that while most brokers have a business license, this is not the same as obtaining a regulatory license from a competent financial body.
You must recognize the authorities who are regarded as the regulators. Cyprus Securities and Exchange Commission (CySEC), Isle of Man Gambling Supervision Commission (GSC), Malta Gaming Authority (MGA), US Securities and Exchange Commission (SEC), and US Commodity Futures Trading Commission (CFTC) are the most prevalent financial authorities.
#2 Extra Perfect Marketing
When you see perfect reviews, you must reconsider them. Even though Binary options are easier than other trading options, any broker cannot guarantee that your win is confirmed.
Profitable trading needs knowledge of market behavior, the ability to read market conditions, and a grasp of strategy. If the dangers are minimized – or blatantly incorrect declarations are made, then you must get at one go that these are scams. It indicates that the broker may be less than conscientious in other areas and that the platform should be avoided at all costs.
#3 Read The Terms And Conditions Thoroughly
While you finalize a deal with your broker, everything must be transparent. It is your responsibility to read every small print of the brochure provided by the broker. Question them about the withdrawal fees and procedure. Know the minimum deposit required and other details before investing with the broker.
#4 Cold Calling
Let’s divide this into two categories. The broker will get your details from the internet and call you to sign up for them in the first category. In the second category, the company will call you even after your registration with the broker. They will point you to a particular trade and ask you to buy options.
Both these cases indicate a scam. Treat these with the utmost attention and report if you find any discrepancies. Cold calling also includes emails or any other means of cold communication. So, you must stay alert of these frauds.
#5 Third-Party Interference
Be clear about your broker. For example, you sometimes click a website to sign up, but you are redirected to another broker site. Or in other instances, it happens that a particular trading service asks you to sign up with the brokers recommended by them only. Be careful in these situations.
Sometimes, a third party plays a scam with you by using the name of a reputed broker. Remember that a good broker will always be straightforward about them without any involvement of a third party.
#6 Managed Accounts
It is necessary for a broker to provide you with tools that can help you analyze the risk factors. However, it sometimes happens that the broker wants access to your account to make the best interests for you.
Always remember that the best interest for you can be made by the trader only that is you. So, do not ever give your broker complete authority over your trade and trading opinion.
#6 Manipulation Of Price
The broker’s prices must be determined against a reasonable and transparent benchmark. You must follow the news trend to know what the market prices of the Binary options are. If the broker reserves the authority to determine its rates, you should expect those statistics to be stacked against you.
What To Do If You Are A Victim?
If you feel like you have been played or the broker you have signed with is a fraud, do not sit back and lose hope. If you feel underconfident and leave the trade sector, you are making the wrong decision. Do not let a scammer screw your career. Instead, try to fight back.
You can consult a professional agent who is a firm specializing in helping victims of Binary Options Fraud. Or instead of basics, you can follow the below tips.
#1 Maintain The Documents
Keep records of everything possible, including the terms and conditions of the broker, copies of any cold calling instances, confirmation of your deposit, your trading history, etc. These can act as evidence of their scam and can help you to fight back against them.
#2 Try To Withdraw
Try to withdraw your money. There is a chance that your broker won’t let you withdraw. The reason might be you have not fulfilled all the terms and conditions or maybe because of any document ID proof.
If the broker is legitimate, they will help you to solve these issues and to withdraw. But the fraud one will keep hanging you up with various excuses.
#3 Give Feedbacks
Make your voice heard. If you are registering a complaint or issue that is not being resolved after long hours, you can go to the feedback option and register a complaint against the broker. If there is no option, they raise your voice among the trading community through social media.
#4 Contact The Regulators
If you see that nothing is helping, you can contact the regulators directly. For example, if the broker is regulated, contact the agency that controls financial regulation in your nation; if they are not regulated, contact the agency that supervises financial regulation in your country.
The regulated brokers are answerable to the regulators and are bound to address your complaint. If they are not regulated, you can be guaranteed, and at least the others of your country will be saved. However, at best, cooperation among authorities might result in the broker being shut down for fraud.
Blacklisted Binary Options Brokers
It is not possible to trace every fraud. But before choosing a broker and trusting them, it is crucial to do the homework. You can read articles on spotting a scammer, and you must search for the blacklisted Binary options brokers.
Below list are some of the blacklisted brokers you must avoid in the first place.
Legal Insider Bot Is A Scam
The Secret Millionaires Society Binary Options Scam
The Real Review Of Ataraxia7 Binary Options Software
iFollow Signals, Will You?
American Commodities Group Scam
Who Is Elijah Oyefeso And What Is The Deal?
Cheating The Odds 4.0 Scam
BinaryOptionBot 2.0, The Second Wave
This list is not even 1% of the scammers in the binary options trade but is on the top fraud list. So even if the broker you choose is not listed above, take every decision carefully.
Examples Of Fraud in Social Media
There are ample examples of frauds available online. These case studies are essential to know the tricks of scammers and how you can avoid them. In the following sections, we will give case studies of scams in Social Media.
Scammers may be much more devious and persuasive on social media, making it an “ideal” venue for them. They will extract everything they can from you, and when you are of no use, they will simply un-friend you.
The simple trick to recognize them is by their foolish advertisements. All they want is your money, so they will upload silly posters mentioning the profits and opportunities you will get if you sign up with them.
Videos like those used with “The Green Room” and “FB Wealth Group” will claim to be traders, but they are really simply out to acquire your money through signups or even having you pay them directly.
Secondly, if you see any social media account to mention anything related to Multi-level marketing, then be assured that they are trained scammers and never trust them.
Therefore, we will recommend you block these pages. After all, a legitimate broker will never come to social media asking for your assistance.
These multi-level marketers can do whatever it takes to drag you to their website to signup. They can also do fake interviews for hours to make you believe that they are legitimate. Do not ever fall into those traps.
Frequently Asked Questions
Which Binary Trading App Is Best?
Binary options are widely used in mobile phones for ease of business. The best apps for binary options trading are ExpertOption, IQ Option, Pocket Option, etc.
Is Binary Trading Tax-Free?
No, binary trading is not tax-free. Taxes for binary options traders are fairly similar to taxes on other types of income, especially if you’re a full-time trader. However, even part-time binary options traders must ensure that they appropriately declare their income to the IRS each year to avoid hefty fines and penalties.
Is Binary.com Safe?
In general, Binary.com is safe. It is in business since 1999. But yet, no site can guarantee you that you won’t lose money. You will have to bear with the risk if you are buying options from Binary trading options. However, if you use proper trading strategies, the risk may reduce.
The existence of Binary Scams is due to the high risks associated with trading. It is simply not easy to determine which broker is legitimate. Binary Options, for this reason, have even been banned in various countries like the US, England, California, etc. These states have defined Binary options as gambling.
This is not very far from the truth. But, unfortunately, due to increased scams in this trading option, it is considered mainly a scam. But still, some regulators are working hard to wipe away all the scammers. And now, it is your responsibility as well to invest in the right place to avoid scams.
Getting rid of scams is not 100% possible. But by the tips mentioned in this article, you can get shady signals before the frauds try to play games. Even if you have been scammed, you can follow the tips suggest above to get out of it. Just because of the scams, you must not leave the trading business. This can give outstanding results if used smartly.