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, and some write 100% guarantee.
- They advertise their trading system under multiple names, with fake testimonials.
- 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.
Below are reviews of many different binary signals software. You should first see the one at: http://OptionRobot.com.
Start with Demo Trading
The smart and easy 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 the CFTC, CySEC, ASIC or another government regulator?
- 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 regulatory agency?
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.
- Check the binary options forum for traders discussions.
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 names one of the best binary option brokers.
The most popular automated trading software is at OptionRobot.com. It is the #1 software that visitors to ScamBroker.com use, because of its functionality and transparency.
When choosing a broker, make sure you are using a locally licensed and regulated broker, choose one here.