It’s not unusual for you to come across advice that you should never engage in binary options trading, as you will encounter scams.
There are several types of scams in binary options trading.
There are scam brokers who will scam you and fraudulently take your money, and then there are fraudulent trading systems and trading companies that provide trading notification services that will cost you a lot, but will not provide you with the tools that you really need. So how do you know how to avoid these scams and stay safe so that you can continue to take part in trading in the binary options market?
There are 10 main signs that will help you identify a company or individual who promises more than they will bring you:
1. You can’t find the company name.
If you’re researching information about a company, such as a binary options website, and can’t find the name of the company that owns it, you may not be trusting that company. After all, you do not know at all who you are dealing with. So why would you send money to a complete stranger?
2. It is difficult to reach the support team.
Before you sign up with any site that offers binary options services or a signal service, you should check the customer support team. Try sending an email and see how long it takes before you get a response. Try chatting with someone to see if this feature is available during business hours. See if you can get through to customer service on the phone. If you can’t communicate with someone all the time, it’s best to refrain from signing up. Imagine that you have a problem, and there is no one who can help you. Here you can see who has a great customer support service.
3. Customer service is inefficient.
If you’ve contacted customer service, it’s already a start, but it doesn’t mean the company has passed your test. Are you getting realistic information on the phone, or is everything they say in vain? When you chat online, does the customer service representative communicate in a language you understand, responds immediately, knows what he/she is talking about?
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4. The company avoids questions about the regulations.
Most binary options companies are not regulated at this stage, and those that are regulated are not just a binary options company (for example, a private bank). Even good companies are not regulated. But you shouldn’t contact a company that avoids your questions about regulations or tries to give contradictory answers. If you are told that another customer service representative will answer you, or if you are given conflicting information, do not trust this company. You should also see if the company is providing you with a business license number issued in Cyprus and is trying to pass off this number as a CySEC registration number. You will most likely not be scammed by a company that answers questions about whether the company is regulated honestly and directly.
This article provides more status information directly from the customer support team of binary options brokers.
5. You can’t track your trading history.
This applies to companies and individuals and alert systems, not brokers working with binary options. If you can’t track your trading history, you have no proof that the system is working. Even if you can do it, you still don’t have proof, but that’s at least something! And the trading history is not just “I won 98% of my trading this year!”, but a list of actual trades with details on receipts, outputs and results, as well as exact figures on profits and costs.
6. The company claims that you will win 100%.
MONEY MASTER IS A SCAMMER WHO PROMISES TO EARN A TRADER ON HIS ACCOUNT WITH A BROKER.
This is complete nonsense, but novice traders get to it almost daily. We live in desperate times, from an economic point of view, and there are many people who are willing to try and take advantage of your hopes and fears to try to benefit themselves. There is nothing, absolutely nothing, that can help you win 100% of the time. Trading involves risk, just like any business, and a good trading system can help you reduce risk, but not eliminate it completely. So, beware of promises of excessive interest on winnings, such as, for example, 97%. Many professionals would be incredibly happy if they could get 70 – 90%.
7. “You can earn X amount in Y time!”
As soon as you receive a specific promise to earn a certain amount in an hour, day, month, or year, you should beware. “You can make $500 an hour!” is an example of such a promise. Another example would be, “You can turn $100 into $100,000 in just a year.” And so on. You can’t do that for sure, it’s just an unwise approach to trading. These exclamations are aimed at gamblers who are willing to make the wrong decision without thinking again, and this is not the case with responsible traders.
8. A company that has no reputation.
If you come across a company that has no reviews online and no one knows about such a company, you start trading with them or buy their trading product at your own risk. Sometimes it just means that the company is new to the market, but maybe let’s give others the opportunity to test this company and use the services of a company that already has a certain reputation. An exception may be the case if the company offers exceptional services and transparency. Check out our list of testimonials.
9. The company has a bad reputation.
Don’t ignore the warnings of other traders. Yes, every company has its enemies, but if you see consistent reviews of problems with the company, especially if the reviews are over and over again about the same problem, then it may be wise to stay away. Companies that are constantly blacklisted are there for a reason.
Read reviews about binary options »
10. There are not enough positive signs and characteristics.
You will look for the negatives, but you should also pay attention to the positives. Look for a company that provides an educational resource for its traders and encourages traders to take some time to learn and plan carefully before trading. Look for brokers that provide a variety of options. If you’re buying a signaling system or service, look for programs that provide transparent, accurate information and allow you to contact the developer in case you have questions or concerns.
Here is a list of positive characteristics to look out for in order to determine if you have found a company that you can trust and deal with. Also, you can check out our Guide to Binary Options Brokers, which can give you a good start. We have done a lot of research in order to collect reviews of the best binary options brokers. You should benefit from our hard work; It will pay off.
