Binary Options Trading Scams
A number of shady brokers are making their way into the online trading market with the aim of taking money from unsuspecting traders. Thanks to better regulation, an active trader community and honest reviews, it's a lot easier than ever to separate legit binary options trading platforms from those who are merely looking to steal your money. However, it's still important to take the time to do your research and look for red flags.
There are several common schemes used by binary options fraudsters to trick people out of their hard-earned money. In the majority of cases, the scammers will lure victims in with a small initial return on some options trades they have supposedly made and then they ask for credit card details. This is so they can continue to steal from victims, often over a period of months.
Traders should also be wary of brokers who claim to be able to guarantee profits in binary options trading. This is a clear sign of a fraudster as this type of trading involves risk and is not guaranteed to make you money every single time. If you are unsure about a broker, contact your local trader protection agency and report any fraudulent activities to them. For more details please visit binary options trading scams
Another red flag to watch out for is brokers who insist on an upfront deposit in order to access their services. This is usually a requirement in countries where there are regulations to protect traders from unregulated brokers. In the US for example, you can check that a binary option trading platform is legitimate by verifying that they are registered with the CFTC and National Futures Association and by checking whether their customer funds are held in segregated accounts.
Lastly, beware of any online trading platform that makes claims such as "turn $100 into $1000 in a day". These types of flashy promises are a sure sign of a scam, and it's never safe to invest in anything that appears too good to be true. Legitimate trading takes time and patience, so if you aren't able to invest your time into learning about the markets then you should avoid putting any money in at all.
Lowell caught wind of binary options trading on an investor message board, and decided to try it out as a way to supplement his retirement savings. Unfortunately, he ended up losing more than $60,000. Nick was equally disappointed when a fake company stole his $3,500. Both of these victims were lured in by the promise of phony profits, smooth sales tactics and a sophisticated website. Sadly, there are many more like them out there who have been defrauded by this growing crime.