During the last decade, trading binary options has become a very popular and widespread method of online trading. It was officially recognized in 2008, and the number of online brokers, binary bots, signals, and of course – the traders – is constantly on the rise. Proportionally with them, there is also an increase in the number of scams related to binary options. Some of them are easy to spot, some are not, but here are some guidelines on recognizing and avoiding binary options related scams.
First of all, the very broker can be a scam, and fraudulent brokers operate in several ways. It is possible that you register with the broker, place your funds and trade without any problems, and once you decide to withdraw your money – you will be unable to do so and your account may be impossible to access or even fully deleted. Fortunately, this kind of scam is not so common anymore, since the word spreads very quickly and these fake brokers get shut down in a very short time. Another kind of broker-related scam is the one where the broker changes the payout rate on the same types of options. They usually do it when they need more money, or to level out with the rest of the trading community. It is not so easy to spot these changes, especially if you execute many trades daily. But if you have more accounts with different brokers, you will have a chance to compare the prices and payouts, so you can be aware of the situations when the particular broker changes their payout rates.
Another kind of scam can also be related with brokers, but it depends on the human factor. Many scam brokers offer a “trading expert” who are supposed to guide you and help you trade, while they will actually only force you to invest more money in your trades, and you are most likely to lose it. It is even worse if you encounter an individual who claims to be a trading expert, who offers “a system” for you to earn huge amounts of money in no time if you pay him a certain sum. Of course, these scams are easy to spot, and make sure to avoid any “secret systems” for earning money, since there really is no such thing. Read more about unreliable robots and learn to make difference between scammers and good binary platforms such as TropicalTrade.
The last type of scam to mention here is hidden in binary options robots, or automated trading systems. If you decide to choose a binary option robot to execute the trade on your behalf, it is important to choose the one with high (but not unrealistic) percentage of accuracy. If the binary bot offers accuracy higher than 90%, it is most likely a scam, which will lose all your trades and take your money.
Avoiding a scam can be tricky, but it is important that you pay attention to any suspicious detail you encounter and explore it further. Reading reviews, forums and other traders’ comments may help a lot, since it will give you recommendations and an insight into the scams you may encounter on your way towards becoming a binary trader.