Is Binary Options Trading a Scam

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education How To Trade!
    Free Demo Account!
    Big Sign-up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

Binary Options Scams

Ever since humans have been trying to make more money, there have been scammers ready to take advantage. One of the problems, of course, is that naïve consumers and investors, looking to increase their earnings, can lose everything as the result of a scam. Another issue is that a number of perfectly legitimate brokers and businesses end up being tarred with the same brush and labeled scams because of unscrupulous actions of others.

One of the difficulties is related to binary options scams. It’s important to realize that binary options represent a legitimate way to make money (even though some claim that trading them is a scam), but at the same time it’s important to be careful, since there are scammers out there waiting to take advantage of you.

First of All: Binary Options Trading Is Legit

It’s important to realize that binary options trading isn’t some big scam. Binary options have been traded for a long time, and they are a legitimate way to speculate on market outcomes, and are especially popular amongst Forex traders.

The idea that binary options trading is a scam comes from the fact that the speculative nature of this type of trading means that there is a very real chance of loss. And, it’s an proposition. If you’re right, you end up with profits. But, if you’re wrong, you lose the premium you paid in order to buy the options contract. These losses lead many to think that it is a scam. However, binary options trading is no more a scam than stock trading or Forex trading.

What Binary Options Scams Are Out There?

You need to be aware that there are different scams being perpetrated in order to part you from the money you work hard to earn. Some of the scams are more a result of poor quality software, and poor customer service, than overt scams. For example, a broker might use poor software that doesn’t record orders properly, or has other problems. You might think you are purchasing one contract, but the software says you purchased something else. The result is that you lose money.

Another possibility is that you have difficulty working with customer support when something goes wrong. You might be simply told that nothing can be done as your money trickles away. It’s also important to be on the lookout for brokerages that don’t allow you to withdraw your money, instead forcing you through various hoops, or telling you that you’ve forfeited it in some way.

Be on the watch, too, for sites that are scammers, including fraudulent web sites and “brokers” that disappear after a few weeks.

You Do Need to Watch Out for Scammers

However, just because binary options trading itself isn’t a scam doesn’t meant that there aren’t scammers out there. While there are a number of reputable brokerages that can help you trade binary options, there are also scammers trolling the web, looking for susceptible traders. Before you decide to begin trading with a brokerage, you need to make sure that you are dealing with someone reputable.

Look for a few red flags before you sign up as a client and start trading binary options:

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education How To Trade!
    Free Demo Account!
    Big Sign-up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

  • Guaranteed profits: No one can guarantee your profits. Anyone who insists that you can’t lose money is probably a scammer. There is no “safe” investment, whether you are trading binary options, or investing in the stock market. Stay away from this types of fraud.
  • Loose regulatory environment: Check the country the broker bases its operations in. In some cases, the country has a poor regulatory infrastructure and that makes it easier for fraudsters to set up shop. Be wary of brokerages based in countries without good regulatory practices.
  • Poor reviews: You do need to be careful of relying too much on poor reviews. You can, though, get a good idea of a broker’s legitimacy by spending time on forums, and looking for information about the broker. There are a number legitimate binary options brokers, and you can usually find them with a search of the Internet, or by visiting the forums. Be suspicious of organizations that not many people have heard of, as well as brokers that have nothing but bad reviews.

As long as you do your homework, and you are careful about the brokers you work with, you should be able to avoid binary options scams. Then, all you have to do is worry about whether or not you are making the right calls when it’s time to trade.

7 Binary Options

Marcio

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The vast majority of binary options trading scams will start well before even the trader manages to open their account with the brokerage. The promotional videos are what gets many people hooked. The video about the signals or the robot (whichever they are peddling) makes things look very simple.

Here is how the scam works in a nutshell:

  • A group of scammers set up a website that looks and feels like a legitimate binary options trading broker.
  • The scammers then create a makeshift trading signals software and slap a 100% trading accuracy claim on to it.
  • As soon as traders join the scam, they lose the initial deposit which is usually set at $250.
  • After that those traders will receive a phone call from a so-called ”senior broker” who will ask them to invest $5000.

Any and all amounts deposited will disappear and you’ll never be able to withdraw them.

The Demo Trading Account

We always recommend that traders should stick with trading via a legitimate and highly regulated broker. That broker should also offer you a free demo account.

When it comes to Forex, Crypto or CFDs brokers, IQ Option is regarded as being one of the best as they are licensed in Europe. Plus, traders can signup to get a free trial of their platform.

How To Steer Clear Of Binary Options Trading Scams?

Research is your best weapon against binary options trading scams. You should research the broker properly. However, you’ll need to move beyond the majority of review sites as they just provide you with basic information.

Picking a regulated broker is a good way to safeguard your funds

The most important things you should check is:

  • If the broker has a license from a financial regulator like the FSB, ASIC, FCA or the CFTC.
  • Does the broker continuously call you to deposit money into the trading account?
  • If the broker has a mechanism in place that protects investors from your part of the world?
  • Check the history of the broker to find out if they have been fined for unethical practices by a regulator?

The next step is to shortlist and pick the best robot or trading signals system:

  • You should never use a broker, robot or a trading signals software which asks that you make a deposit before ever seeing the interface.
  • Never choose a trading signal if it does not fit your style or trading strategy.
  • Any software that you use to create the account can also be used to place trades via the account.
  • If there is a binary options forum make sure to read through the discussion there.
  • Keep in mind that historical performance does not guarantee similar future results.

Conclusion

We know more than anyone else that binary options trading scams are very common. So, its imperative to carry out your own research and go beyond just getting excited about a $1000 bonus. Plus, for every binary options broker that you find out about, there are many others that offer the very same features and probably at a lower price.

Carry out your due diligence to find out what it is the requirement for the broker to be regarded as the best in the industry. Also, try to choose a broker that’s licensed locally and is regulated locally because that way your investment is protected.

Tired of lies ?! Binary options are evil and scam? РЎhecking the brokers for a fact of fraud

Binary options have become so widespread and a popular tool for earning that they have become overgrown with an incredible number of myths and diverse opinions. At what the opposite attitude to the instrument is observed. Let’s take a look at what binary options are-evil or an opportunity for investors, divorce or a way of earning, and also bring brokers of binary options to clean water. We will not go into complicated analyzes of technical characteristics and approaches to work with these contracts, but take information that lies on the surface. We hope that our material will be useful to you.

Lies all this ?!

Let’s start with the question of the legality and algorithm of the action of binary options. Many people say that this tool is a lie and no binary options actually exist. The adherents of this opinion are not entirely right. The fact is that binary contracts really exist and are used by investors on exchange trading floors. A striking example is the Chicago Stock Options Exchange OWN. By the way, it was this platform that created such a mode of trade for a binary contract. It became a kind of derivative of the standard vanilla option, in which for investors the list of settings was expanded and the algorithm of work was simplified. Binary options in the form offered to us by online brokers for supposedly trading, not quite an exchange contract – it’s rather a betting bet, which is used as an object of valuation or, if you want to bet, quotes of financial assets. Therefore, it is wrong to consider binary options as blatant lies! In addition, speaking about the legality of the tool, it should be noted that binary contracts, which are used as an online trading tool, are recognized as regulators of the financial market. And they are evaluated differently by these bodies, but nevertheless licenses brokers receive regularly and legally. Summing up this section, we can say that binary options are not exactly lies and deception, but rather variations on the interpretation of the concept. If you treat this type of instrument as a game mode using market liquidity indicators, then it becomes an interesting and simple method of obtaining income.

Binary options are evil and scam!

Most traders, especially those who fail in the binary options trade, call the tool a divorce and an evil! Yes, it is very easy to lose money here, but also just to make money. The reason for all the failures of investors lies in the plane of their own mistakes of traders and unprofessionalism.

Many losers can see themselves in the following example: a novice trader who has heard about the potential for earning money in a binary market, or reading an advertising article, thinks that I can earn as well – nothing complicated. The next step is to register the first broker on the site, completely thoughtlessly and unprofessionally. Then a quick study of simple instructions – such as how to work with options and terminal, crediting funds to the account! And, of course, after half an hour, thinking that he is already a professional, and can guess all the market movements such a “trader” starts trading. Another hour later, the deposit goes to the broker! And at that moment a feeling is born that you were deceived! But analyze your actions!

– What kind of trading platform did you choose? There are many companies in the brokerage market that deceive customers with a variety of techniques and approaches, including theft of funds
With what deposit did you start. Maybe its volume is trivial enough to properly manage the risks and so you quickly merged the deposit.
– Trade without skills and knowledge does not work! This is the truth and motto of professional traders. Only knowledge in technical analysis and other modes of market evaluation, effective strategy, extremely clear discipline of the trader in financial matters and psychological stability of the investor can lead to a good result
– But on the basis of their unsuccessful experience of this kind, investors create an opinion about a trading instrument. Is it not easier to realize your mistakes? To become a true professional requires a lot of time and effort. To put it simply, a successful trader in his career takes such steps:

  1. Completely studies the technical algorithm of the contract for trading
  2. Gets knowledge in technical analysis of the market and forecasting issues. This includes the development and study of strategies, and the choice of the most effective way to assess the market
  3. Correct choice of the risk management regime
  4. Discipline of the investor in the issue of rules of contract execution according to the indicators of the strategy

Having tempered their excitement, and acting according to the rules and restrictions of trading, any investor will be able to get a good profit in the binary market.

Therefore, do not be unfounded to blame the reception of profit in deception, the whole reason is only in the user!

РЎhecking the brokers for a fact of fraud

We came to a more practical issue of binary trading – a deception from the binary option brokers. The problem of fraud brokerage companies today is not so pronounced – many small operators have left the market, scammers who steal customer funds, have themselves exposed investors. Large platforms have received licenses and now can not widely use tricks of deception. But still in some moments the company uses certain tricks:

– Deriving trading positions on the financial market – in most advertising materials, brokers state that each trader’s trading position is displayed on the world market. This is an outright deception! In fact, online brokers are dealing centers that form the client base of investors playing against each other and the company itself. No one puts your contracts on the market, and they do not affect the quotes of a financial instrument, even if you use billions in trade, it will not shift the liquidity on the asset chart by one point! Therefore, treat this trading mode as a game of elimination!
– Technical operations with quotes – there are times when traders, on the basis of predictability of the market situation, draw up a huge number of potentially profitable contracts and this can cause financial losses to the broker, which the company can not afford. The output for the company is simple – to tighten quotes at the time of expiration of the bulk of options. Believe me, they will not be stopped even by regulator supervision and fines. It’s simple, the amount of lost funds can significantly exceed the amount of sanctions. Therefore, it is more profitable to deceive traders. But such nonsense today is engaged in a very small number of companies.
– Complex verification – you are a successful trader, and you get a good income, chose a seemingly safe trading platform, got the result and want to monetize the funds. But here there is a problem – the broker requires verification of the client and at the same time puts forward conditions that are absolutely impossible to fulfill. Such a technique is used by companies in the hope that the investor will simply surrender, refuse the deposit and the funds will remain with the company. Therefore, before you start trading on the platform, learn the verification process, so as not to get a surprise at the most interesting moment.

The result of this analysis is a simple recommendation – for trading you need to choose the most secure and trusted brokerage platform. We consider as an example of such a site resources from our TOP 3.

This trading platform for trading is the most secure, professional and client-oriented. Here, investors can work in the most comfortable mode with the use of a wide range of technical forecasting tools. In addition, the broker at all important stages of the activities of investors, including verification, offers the simplest technical modes of operation, based on interactive information techniques.

Conclusion

Binary options are without a doubt not a deceit and not a divorce of traders. With the correct use of the instrument in optimal financial and technical conditions on a professional platform, it is guaranteed to bring profit, and in a stable mode!

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education How To Trade!
    Free Demo Account!
    Big Sign-up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

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