The increase in popularity for Binary Options Trading is outstanding, and people in countries all over the world are trying it out. This is attributed to the possible high returns and low risks, making it easy for money to be made. Furthermore, traders can start trading even if they do not have rich background knowledge, and, they can still be effective.
Due to this, the number of CFD / Forexs brokers continues to increase, and there are not hundreds to choose from. This has opened up the market to numerous scam brokers, who are using tricks to trap unsuspecting traders. The result is hundreds of people losing their money on the trade. Despite regulatory bodies such as CySec who have intensified their efforts to safeguard the interests of traders, corrupt brokers are finding new ways to scam customers. When you make the decision to trade CFD / Forexs, you should be able to identify a viable broker so that you can trade safely at all times,
Here are five essential tips that will help you identify a Binary Options Scam.
- Check The Firm’s Name
Before you begin trading, note the name of the firm that you are about to trade with. Look for reviews online or sites that have similar names. Scam brokers often try to brand themselves with names that are similar to successful brokers. Also, establish whether the name of the broker has changed recently, as this could be an indication that the broker is trying to rebrand following negative publicity.
- Big Deposits for Huge Returns
Scam brokers need to get as much money out of you in the shortest time possible. This is so that they can make off with your investment before you unearth that they are dishonest. If you find a CFD / Forexs broker that requests for a large deposit so that you can make a huge return, it might just be too good to be true. Binary options trading is low risk, but that does not mean there is a guarantee of no risk. Avoid sites that promise you too much.
- Lack of Clear Information about a Certain Broker
A trusted broker is easy to find, both online and at their physical address. Should you conduct a search about the broker, you will find information online, including customer reviews and ratings. Tracing back history and a track record is possible.
With a scam broker, you will find it a challenge to secure any solid information about the company and its operations. The moment you find that the site you are on does not include a physical address, then you should seek another site. In addition, always seek out sites that provide evidence that they are regulated by a relevant body. This is your protection that if something goes wrong, you can retrieve your investment.
Not all unregulated sites are scam brokers, but almost all scam brokers are unregulated.
- Promotions Promising Quick Money
The message that you receive from the broker can quickly help you identify a scam or something real. If the site promises you a huge return, early retirement or a chance to win much more than you invest, it is likely to be a scam. This is also the case for promotions on the site that promise tons of money, as well as large bonuses for taking simple actions. This is the indirect way that scam brokers will lure you into their sites. Identifying these scams is a judgement call, if something does not feel comfortable, do not trade.
Furthermore, a scam site may not have a wide range of tools and features available for your access. Legitimate sites have professional trading platforms.
- Dissatisfied Clients
Seek out sites that have a good reputation. By seeking out customer feedback through CFD / Forexs reviews, you will identify sites that have negative feedback and those with happy clientele.
Taking the time to conduct basic research about the site you wish to trade on can help you save a significant amount of money. Always keep these five factors in mind when you visit a site. This way, you will enjoy CFD / Forexs trading instead of experience trauma from making the wrong decision.