Binary Options trading is one of the industries targeted by scammers who are constantly looking for quick ways to make money through common scams from unsuspecting traders. While it’s quite easy to lose money when trading in binary options, you can equally avoid them completely by watching out for the following warning signs:
Claims of “Revolutionary Software”
This is one of the most typical scams across the binary options space. The brokers usually market what they sensationally describe as a secretly developed revolutionary software that makes profits only, no losses at all! They then go further to say that despite the software being revolutionary, they are offering it to the public for free. Of course, common sense will tell us that if indeed the software can make profits only, then there is no way it can be free. Furthermore, anyone with software that makes profits only will never bring it to the public ear but will be happy to keep it secret and use it to make tons of money for themselves.
Claims of such software are simply scam tools marketed effectively. As soon as you give your details, the scammers will call and convince you to make a deposit. It’s at this point that you lose your money.
To spot and avoid them, look out for terms such as “100% risk-free”, “guaranteed profits” alongside wild claims from ‘traders’ who have already used the software and walked away with massive profits.
Attractive Bonus Promises
Scam brokers will promise hefty bonuses. The bonuses might appear genuine but with conditions that are impossible to meet, such as a requirement to trade an amount that is 10 or 15 times the bonus before you can be allowed to access the bonus. Obviously, by this time the client will be exhausted, lost hope, or worse still lost their money altogether. It quickly advances from a seemingly harmless sign-up bait to an outright Binary Options Scam.
Lack of Verifiable Legal Information
A broker website or profile that lacks sufficient information about the company’s legal status should serve as a warning sign that you could be potentially looking at a scammer who has put up a website for the mere purpose of scamming. Brokers who operate in the shadows lack legal and verifiable information. In the US market, for example, the US Securities and Exchange Commission recommends a status check with the Investment Adviser Public Disclosure database as well as a BASIC search through the National Futures Association Background Affiliation Status Information Center. The commission particularly makes it clear that if you are unable to verify the company’s legal details, then don’t deal with them at all including giving them money, trading, or handing them your personal information.
Testimonials are the fuel that keeps scammers going. We are not saying that any binary options broker with testimonials on their website is a scammer, but a little care will help you differentiate the genuine ones from those out to scam. It is also important to note that reviews from credible third-party websites carry more weight than those on a broker’s website. Pay attention to testimonials that sound too good or unrealistic.
Finally, scammers are known to act all nice at the start, ‘sweet’ to talk to, and extremely convincing with some urgency in their operations. The urgency part is the greatest warning sign of a binary options scam. Well, some try to mask the urgency but if you are keen you will easily pick it out during conversations on the phone or email. Read between the lines and pay attention to statements they use, for example, “time is running out”, “don’t lose the opportunity” etc.
There could be a thousand more warning signs of binary options scams, but our professional advice is to trade with an abundance of caution, constantly aware that scammers are roaming the internet ready to pounce on your money.
We know that it is possible to get scammed even when you have done your very best to conduct due diligence. So don’t feel alone if you have been scammed, it happens even to the smartest of traders. Get in touch for experienced professional help to start recovering the funds you might have lost to binary trading scams.