Friday, February 14th, 2014 by Michael Freeman
If you ask me what is the worst mistake you can make as a binary options trader, my answer is that you got to carefully research the broker before signing up! Many traders rely on the first review they see and in many cases the reviews are promotional and do not provide with objective facts so you have to ‘weed out’ the fake reviews and carefully Google search each broker you are thinking to do business with. Checkout my 10 tips on how to find out a reliable binary options broker!
1) Avoid brokers with little to no reviews on Google, look for forums and binary options related sites. There are over 100 brokers and some are newly established with non existent track record.
2) When searching for reviews, be sure to Google the keywords that will trigger honest reviews such as combining the broker’s name + Scam, Review, Testimonial. Look at every single website on the first page of the Google search results and if there are too many ‘overly positive’ reviews you should always checkout the 2nd and 3rd pages as well.
3) In some cases, spammers might get access to your email and send you promotional offers. If you never oped-in to receive emails from a broker, unsubscribe from their email list and avoid their offers. Email spammers lose all credibility by sending emails illegally and it’s a big red flag!
4) If you are able to locate more than a single negative review on a broker concerning withdrawal issues, spare yourself the bad experience of dealing with delays on withdrawals.
5) Another warning sign concerns the telemarketing tactics used by some of the fake sites such as calling you 3-4 times a day rushing you to deposit, trying to push you do deposit a a lot of money with claims that your chances to succeed will increase by doing so and similar ridiculous claims.
6) Avoid signals services that are affiliated with one broker! Services such as Instant Profit App, Binary Pilot and the Golden Goose Method are connected with one broker, trying to get you to deposit money with them by offering you free signals. AmberOptions.com and B54.com are examples of brokers who market themselves in this way and both are reported to scam traders.
7) Signing up with a fully EU regulated broker holding a valid CIF license is the safest way to trade! Avoid unregulated and unprofessional brokers by narrowing down your search to legitimate brokers with the regulations to back it up!
8) If you are not fluent in English and prefer to interact with account representatives who speak your native language, be sure to checkout if the broker you are interested to work with provides traders with customer service in other languages because many brokers offer customer service in multiple languages but not all of them.
9) Avoid brokers who offer a really low ITM return! Don’t settle for a %60-%70 payout on winning trades while other brokers can offer you up to %90 on some assets. If you are interested to trade a specific asset, compare the specific return offered by the brokers because each broker offers a different payouts for different assets.
10) Once you narrow down your search to 2-3 brokers that you see yourself trading with, be sure to compare the customer service by contacting each of them via Live Chat or Toll Free and listen to your gut feeling, if the reps are knowledgeable and professional VS pushy.. you should consider giving them a try!
Hopefully the above tips can help you in the process of finding the most suitable broker for you while avoiding some of the common traps when you are first introduced to the online trading world. For more information on reliable brokers checkout my complete reviews and also checkout my video on Binary Options Scams on YouTube!