Find out “How Do You Avoid Binary Options Scam?” Binary options trading is an options contract in which the payout depends on a user’s prediction. Over the past few years, this way of trading has become very popular, and people often use it to make more money each year. With the growing popularity of binary options trading, binary options scams have become increasingly common.
Binary options trading is an excellent means of earning extra money. Yet, this trading method is risky. Unfortunately, scams are specifically common in this field.
Scams in binary options trading can involve fake reviews and brokers, auto-trading services, price manipulation, and other things. So, a trader needs to know what steps to take to spot possible scams and how to stay away from them. In this blog, we look at how binary options scams work and how to avoid becoming a victim.
How Do Binary Options Scams Work?
Scams in the binary options world happen when con artists use binary options trading as a cover to steal money. When a new financial instrument or way to trade comes out, many scams and frauds target customers.
Binary options trading can be accessed by individuals worldwide. Due to the fact that this trading method is only sort of regulated, scammers see it as the best way to make money through illegal means.
Fraudulent brokers are known to promote themselves and their services on social media platforms by using bogus profiles to approach prospective users to scam. Then, these brokers use fake celebrity endorsements and promises of huge profits to get people to use their services.
Additionally, the websites and social media platforms run by bogus profiles appear very professional. Ultimately, distinguishing between a fake and genuine website can be challenging. Fraudulent brokers may use various strategies to earn money. For example, demanding a large deposit from customers, charging high commissions, and collecting taxes.
How to Avoid Binary Options Scams
It is nearly impossible to recover the money lost due to a binary options scam. Therefore, you must undertake various steps to avoid scams. Below, we have mentioned some steps you may take to avoid falling victim to such scams.
Research Well
Reading reviews from genuine customers is one of the best ways to identify scams. The only problem here is that people who are trying to steal your money write fake reviews about themselves online. So, you need to make sure that the user reviews you use to judge the credibility of the platform come from reliable sources you can trust.
It is best to pay attention to reviews that highlight the broker’s behavior towards the client. Such user reviews may include any issues the clients encountered with withdrawing money. However, you must remember that a few poor user reviews don’t necessarily mean that a scammer runs the platform.
Some clients tend to leave bad reviews due to anger at losing their money, so make sure you do a sufficient amount of research. The binary signals reviews are another way to find out if a platform is trustworthy.
Use a Registered Broker
The first step to avoiding a binary options scam is checking with the firm a broker is registered with and locating the regulatory bodies with which it is licensed. You may find this information on the binary options website. Each country has established a financial regulatory body. This body holds the responsibility for ensuring good building practices among brokers.
Many places around the world, like the UK, have a list of unregistered businesses on the website of their regulatory body. A few binary trading scammers may state that regulatory bodies do not exist. Therefore, before you avail the services of a broker, it is wisest to double-check the regulatory body they are authorized by to avoid scams.
Even though not being regulated doesn’t always mean that a broker is dishonest, it is much safer to use a registered broker. A platform’s registered status speaks volumes about a broker’s work ethic and services.
Marketing
The method a binary options platform uses to market itself is one of the finest ways to pinpoint a scam. If a platform advertises a success rate that is too good to be true, handsome returns on investments, and luxurious benefits, it is best to avoid that platform. A trader must remember that no medium can guarantee immediate success and that paying thousands of dollars over a limited period is risky.
Numerous platforms employ fake reviews by famous personalities to attract customers. Also, if a website offers very large welcome bonuses, you should be careful. Any platform that asks a client to make a hefty initial deposit to use its services and offers no free trial to test them out is suspicious. According to statistics, one in ten people in the United States falls victim to scams annually.
If you get called by a broker randomly, it also indicates that it is best to avoid that broker. Reputable brokers never call their customers. One must treat any form of cold contact with immense care.
Customer Service
Another great way of determining whether a platform is legitimate is by contacting customer service. A trusted and reputable firm must have customer service that a user may contact at any time of the day. Additionally, they must help users solve any issues promptly without making excuses.
Most fraudulent platforms tend to respond to customers in a casual way, and they often just ignore their messages. As a result, a well-managed customer service department is one of the best ways to tell the difference between a fake and a genuine platform.
Conclusion
Binary options scams are increasing rapidly. Scams involving binary options have caused a lot of customers to lose a lot of their hard-earned money. By conducting sufficient research and taking the precautionary steps mentioned above, it is possible to avoid fraudulent brokers and platforms. Remember, if a platform promises payouts that are too good to be true, it directly indicates that you are setting yourself up for a scam.
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