Unfortunately, many people associate binary options with the wrong kinds of things. For some people, if you say ‘binary options’ the first thing they think is ‘binary options scams’. And, sad as it is, there are some binary options trading scams out there, seeking to prey on innocent people. However, the good news is that it is quite easy to spot many binary options trading scams and avoid becoming victim to a binary options scam.
There are a small amount of online options brokers out there who are not real brokers, or who are running a thinly-veiled binary options trading scam where it may seem like you are trading binary options, but in reality you will never be able to withdraw your earnings. Luckily, this particular options trading scam has become relatively rare these days, and can easily be avoided. By taking time to read reviews of various options brokers online, you will quickly learn if a broker is a legal, licensed, reputable broker, or one running a trade binary options scam.
Another, slightly hard kind of binary option trading scam is when brokers change the returns on their trades to low level that are out of step with the trading community. They might do this because they are having cash problems and need to make more money, or maybe even completely accidentally because they don’t realize what other brokers are doing. This can be hard to see if you only have a single account with a single broker, because you have nothing to compare it to. The best way to avoid this kind of binary options scam is to have multiple accounts at different brokers so that you can constantly compare percentages and returns and are always getting the highest pay outs.
The last of these binary options trading scams is not from the brokers themselves, but from people professing to be experts or ‘gurus’ in the binary trading field. Some of these so-called experts claim that they can help make you a millionaire in a month if you just follow their trading system, which happens to cost five thousand dollars. In reality, they likely don’t know anything more than you do, and if a certain strategy, especially one that you have to pay a significant amount of money for, sounds too good to be true, it’s probably a binary option trading scam.
By doing a little research before buying any strategy product, or signing up for a new options trading broker, you can save yourself the heartache and the loss of being hit by scammers. Keep yourself informed, and you never have to worry about an options trading scam.