3 Strategies To Avoid Binary Options Scam
Just like every other online business, there are few bad eggs bent on spoiling the good name of binary option trading. This is why it’s good to do proper research before investing your money with any trading platform. The truth is that some brokers are out to swindle your money however; this is something that anyone can avoid with the right information.
There are thousands of binary options broker out there, this makes it even more difficult to know who to trust, while some of these brokers will try to lure you with mouth-watering offers and bonus, others will out rightly take your money without looking back. How can one prevent being a victim of binary options scam?
Here are few tips to help you avoid getting scammed:
Sign up only with a broker from a country with strong regulatory system
All brokers are not guided by the same regulations. There is no point spending money on buying best binary options strategy while you are trading with unregulated or badly regulated broker. This is because nothing stops them from disappearing with your investment.
Some brokers may not be out to scam you but have a very poor platform which can lead to problems with withdrawing funds, or slow trading platform that makes you lose money, no customer support and the list goes on and on.
The Cyprus Securities and Exchange Commission (CySEC) in 2013, asked all brokers that are involved with binary options operating within the jurisdiction of Cyprus to apply for a CIF license. This was deemed a necessary step to protect the fund of traders with all EU binary options brokers who are CySEC regulated.
Look for complaints about broker you want to join
This is called doing proper research, before joining any binary option broker, search for complaints about that particular broker. If there are too many complaints, you need to find another broker immediately.
Here is a tip: I usually research a broker by attaching “scam” to their name when researching them on search engine. For Instance, if I want to research “BigForex”. I will go to search engine (Google) and type “BigForex Scam” and then “BigForex review”; these are the 2 keywords I normally used when researching a broker. With these 2 keywords, you will find complaints and reviews about the broker you wanted to join; this will help you in making a better decision.
Here is example of information you can get by doing adequate research:
On July 8, 2016, Canadian securities regulator the British Columbia Securities Commission (BCSC) issued a strong warning about BigOption who claims to be based in London, England. This warning is mainly to protect the interest of Canadian binary options traders against unauthorized and unlicensed brokers In Canada.
The BCSC issued the warning when it comes to their attention that BigOption which is not registered with Canadian securities regulators is soliciting British Columbia residents. This type of warning is necessary to avoid falling victim of unlicensed and unauthorized brokers.
Join forum and chat rooms
There are lot of binary forums and chat rooms you can join to know the latest scam about binary options. You will also learn what strategies that you can use from these forums. The first time you join a binary forum, you will be amazed how much information you can get from other people’s experiences just by asking around.
I will admit to almost falling for these types of programs before. Thankfully I never pulled the trigger because I keep reading articles like yours that point out how illegitimate they are.
Thank you for putting together a great article giving people detailed advice on how to avoid these scams. The more information there is about these binary scams, the harder it will be for them to continue to dupe people.
Thanks Kevin, I am glad you like it
Heck I don’t even know what binary option trading is, so was interested when I found your website. I would really be interested to know what it is exactly. I didn’t see a description in the post and I may well just be ignorant on this subject 🙂 This is great advice to follow though to avoid the scams out there.
Thanks Matt’s Mom. Please let me know if you have any further questions. I will be glad to help
Thanks for the insight. I was scared about investing for the very reason of getting scammed. This gives me a bit more confidence in being able to make the right decisions with my money. I think joining a public discussion is a great idea, but I don’t know where. What are names of some forums I could join?
Matt, great comment thanks. Have a look at http://forum.binaryoptions.net
Hi I just got done reviewing you post here and love the ideas and information you provided. I have lost a lot of time and money testing different brokers over time, and how I would have loved to have met you sooner. Thank you for your post. I have learned a lot in this short period of time.
Thanks Richard, I am glad the information was useful. See this post for more details The Binary Options Scam ???