Monday, August 5th, 2013 by Tim Lanoue
The capability to determine if a website or service concerning binary options is a scam or not will unquestionably help you in the long run. In this booming trading industry where anything can happen there are always people looking to take advantage of innocent people just trying to make money online. Unfortunately for us there are numerous forms of fraud that make it easier for us to fall prey to those willing to take advantage of people. However, once you know what to watch out for then avoiding these scams will be easy. The first step you can take would be to check out their customer support system. See how fast they respond to your questions and whether they answer all your questions. When testing the customer service base it is ideal to check out each contact method and you may want to test more than one time to get a better idea of how they operate. If you receive poor customer service then this may be an indicator that this is a binary options scam.
Free Demo Account Brokers
Next, look for trading brokers that offer a free demo account. Demo accounts can serve as a powerful tool for exploiting scams where you could have fallen prey to without. Not only do they help expose scams but they also give you practice and a better understanding on how that trading platforms works. This in the long run will help you better maneuver their website while also feeling a sense of relief knowing that you are in safe hands.
Another warning sign that a binary options broker may be a scam would be if they offer unreasonably high return rates. Normally, a legitimate and trusted broker offers between 68 to 90% returns on your winning trades. However, if you see a broker offering more than those return rates be sure to take a closer look at the broker and inspect thoroughly before submitting your deposit.
Oftentimes when new traders join a broker and issue their first deposit the broker will try to give the depositor what they call a bonus. This bonus oftentimes can become a thorn in a trader’s side because the broker may offer a bonus up to 100% of your deposit amount where one may feel inclined to take that bonus. However, before accepting bonus of any size, read their terms and conditions entirely. More than likely they will require the trader to generate a volume of trades 15 to 40 times the deposit amount before the trader is allowed to perform a withdrawal.
One major aspect to look at would be the banking methods they accept. Typically reputable brokers accept several types of payments ranging from credit cards, debit cards, bank transfers, and one or more online payment processors. Having many options to choose from along with receiving no hassles associated with making a deposit or withdrawing your profits is a strong sign that the broker is not a scam.
The goal for traders is to start a trading account with a trustworthy and respected broker. Reviews concerning the performance of a broker can serve as a powerful tool as well when determining a broker to join. There are many brokers who offer promises only to not deliver on those promises later. If you know someone who is trading with a broker already, get their input on that particular broker and take appropriate actions. The objective is to join a broker who will safeguard your money and avoid those binary options trading scams. Check out the complete Binary Options Black-List and know which brokers to avoid!