The scam starts before the investor even opens their brokerage account!
Many new binary option traders get hooked by a video about binary trading signals, or a binary options robot.
The Scam Works Like This:
- A fake company opens a website that looks like a legitimate binary options broker.
- They create a trading signals software that promises 100% accuracy!
- When you join the scam, you quickly lose your initial deposit of $250.
- You then get a phone call from a “senior broker” asking you to invest $5000.
If you are now having difficulty withdrawing your money from a broker, read this.
Start with Demo Trading
The smart and best way to start trading, is with a legitimate regulated broker that offers you a free demo account.
How to Prevent Becoming a Scam Victim
The first step to avoid a binary options scam, is to properly research the binary options broker. Most review websites only give generic information about the brokers.
- Does the broker have a license from a real government regulator like the CFTC, FCA, FSB or ASIC?
- Is the broker constantly calling you to deposit more money?
- Does the brokers license protect investors from your country?
- Has the broker been fined for unethical business practices by their regulator?
The second step is to choose a good trading signals system or robot
- Never use a robot that asks you to make a deposit, before you can see the settings.
- Testimonials are all fake and illegal according to CySEC rules.
- Never follow a trading signal unless it fits with your trading strategy.
- Remember, the software that created your account, can place trades on your account.
- Historical performance is never an indication of future results.
- Read the trader discussions on the binary options forum.
Binary options trading scams are a very common occurrence now. Do your research, and don’t get excited about making $1,000 by doing nothing. For every broker you find, and every trading system you hear about, there are 10 others who offer the exact same thing. Just look at the list of trading signals software.
You should familiarize yourself with what it takes for a broker to be named one of the best binary option brokers.
When choosing a broker, make sure you are using a locally licensed and regulated broker, choose one here.