Binary Options Scam

The World of Binary Options

If you are a novice investor, starting your financial career, investing in binary options may be a good starting point. A kind of financial derivatives, binary options have a very clearly defined trading market that is thronged with traders looking for small gains.

The concept behind binary options is inherent in the name itself. Binary means two poles, either yes or no. Similarly, binary options have only two results: either an investor gets everything or he gets nothing. If you are in-the money when your option expires, you have made a profit and if you end up being out-of the money, you get a zero return. This simplicity of binary option trade is a big attraction to most investors. In recent years, this trade has become even simpler because of the increased presence of online platforms and forums on which binary options are traded every second around the world.

Consequently, a binary options is a hot topic in trading leading to constant innovations in its market. To make this option even more adventurous for risk loving investors, a derivative called the ’60 second binary option’ was created that decides your fate in a matter of seconds. The 60 second binary option is designed on the framework that an investor has to bid on whether an asset will increase or decrease in value. If after 60 seconds, when the option expires, the investor was correct, he makes a profit and if he was wrong, he gets nothing and makes a loss on the price of the option.

Binary Options Trade

In financial markets, trading is usually done through brokers who are present on the actual trading floor while investors monitor security trends virtually. Gone are the days when investors had to queue up in stock exchanges and wait for their turns for purchasing and selling securities. When it comes to binary options trade, the use of online platforms has increased tremendously. Online platforms display the trends in the options markets with elaborate graphs and visuals that make analysis and decision making easier. Trading platforms are present in the form of websites and forums on which investors log on with accounts to monitor the behavior of assets on which they then buy options.

Platforms with clear visuals and charts are the ones to go for when compared with forums where data is given in the form of writing. These visuals give a clearer picture of recent trends in the market together with giving the buyer a lead.

However, before you select a platform, you have to be careful to choose one that is highly reliable and secure instead of one that only exists to make money from you. While options are an easy way of making money, their trade has been lined with a lot of mischievous activities and scams that plague the world of binary options today.

What Binary Option Scams to Look For?

Binary Options trading has become so widespread that there has been considerable fraudulent activity on the trading floor. Because they are easy to deal with, many brokers who have nil experience get in this business to make profits. Staying alert and choosing only the most trusted brokers is necessary if you want to include binary options in your investment portfolio.

Some signs that you are being trapped in a binary option fraud are as follows. Being mindful of these will help prevent such scammers harm investors and tint the trading process adversely.

  • Binary options brokers always have a good chance to trick you. Before you pay one, do a background check on the broker’s country of origin. Where is the broker platform based? Is the country known to have slack regulation? If yes, you are better off staying away from such brokers because they will definitely have something up their sleeve.

 

  • Check the online listing of binary option brokers, which is easily available to everyone who needs it on the internet. The great thing about this list is that it does not simply gives you names of brokers whom you can trade with; it also lists down the ones who are known for frauds and mischief with their clients. This distinguishing list is a very handy tool to make sure that the broker who deals with you is known to be reliable and has been checked by independent expert opinions. Apart from these lists, search engine results can also yield some important information while you decide on whom to hire for your trading.
  • A very simple way of identifying a scam broker from a reliable one is the level of customer service offered by the platform. If their aim is to foster good ties with you and help you make smart investments, customer service will be exceptional because they will value more than just the gain they get out of the investment. Most brokers who provide cheap trading platforms have nil customer service, especially in the event of a loss or crisis on the trading floor.

 

  • Interviewing the broker himself is also of prime importance. Do not just hire him from the reviews you read online, make sure to have a conversation and ask as many questions as possible to understand the way he works because the risk and dangers associated to binary trade have to be shared by both the trader and the investor. In the case of a platform, contact the customer service department to familiarize yourself with their terms and conditions of this broker so that there are no regrets later on.
  • According to experts, every smart trade starts with a broker who is smart. After all, brokers are your links to the trading floor and need to provide accurate, timely and quick information so that profitable opportunities can be used. Go to online chats, forums and blogs to find the best brokers around who treat your investments like their own.

Conclusion

Avoiding scams does not only mean that you lose less money in trade, it means getting on board a broker who has knowledge of this trade, is honest and sincere in helping you invest wisely. If you are new to Binary Options trading or have been victim to a binary option scam, the above tips will help you take the best course of action.

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