Binary options are a relatively new trading vehicle. However, that doesn’t mean that they’re not popular. The reason is simple. If traded correctly, binary options can be a source of overwhelming profits. However, as with anything that’s both profitable and popular, there are scams out there. Nonetheless, the few bad apples in the basket aren’t stopping the masses from tasting the profits. However, if you’re thinking about getting involved in binary options trading, it’s important that you know how to identify the bad apples so to speak. Here are 5 dead giveaways that the broker you’re looking at is a scam!
Dead Giveaway #1: Out Of This World Promises
The first thing that scam brokers tend to try and hook the unsuspecting victims in with is unrealistic, often times out of this world style promises. In general, their websites will start with a video making promises of riches. Likely showing fast cars, huge homes, and yachts to drive the victims imagination. Then, you see a promise like “You could make $10,000 a day doing ABSOLUTELY NOTHING!” These types of promises are impossible to keep and a surefire sign of a scam!
Dead Giveaway #2: The Hard Sell
The hard sell is the art of making the sale now. The goal here is to make the victim feel as though they don’t have any time to make their decision, so they make the knee jerk decision to sign up and lose their money! Often times, scam brokers will have something on their website suggesting that there are only a limited number of spaces left, and show a count down to show you that your time is running out. Pay attention to these types of tactics, real, regulated brokers will never use them!
Dead Giveaway #3: Unverifiable Ownership
It’s kind of funny. Most scam brokers will make it a point to show that the founder of the company is a successful trader. By filling in the holes he found in other services, he’s said to have created the perfect system for binary options profits. However, all-too-often, if you attempt to verify this overwhelmingly successful trader that would surely have received notoriety, he somehow doesn’t exist! The truth is that the founders of honest binary options brokers aren’t the types to strut their stuff in front of the public for fame, they’ve got better things to do with their time!
Dead Giveaway #4: Bad Reviews
Before choosing a binary options broker, it’s very important to do your research. Part of this research is finding real consumer reviews and taking the time to read them. If the broker is a scam, chances are that others will have lost money and written reviews. Sometimes, taking the time to dig through the noise and find real consumer reviews can save you tons of money in the end.
Dead Giveaway #5: No Regulation
The reality is that while binary options are new, regulation is growing around the industry. At this point, the stronger brokers that have been time tested as the ones to work with, have also become regulated. If the broker you’re thinking about working with is not regulated, they could be a scam! If the broker claims to be regulated, make sure to verify their claims with the regulatory body referred to. This is very easy to do, and if they are not truly regulated, they will likely be investigated with your help. If all else fails, regulation becomes a very easy fallback!
At the end of the day, most binary options brokers are good. They are not there to steal your money. However, there are definitely scams in the space, and if you’re considering entering the binary options space, it’s important to know what to look for. Keeping these 5 dead giveaways in mind, you’ll be able to find an honest broker to work with!