As rare as they are, binary options scam sites do exist, and you need to be careful so you don’t fall victim to them. Odds are you won’t find one, but that doesn’t mean you shouldn’t take precautions. Luckily, there are some really easy things that can be done to lessen the chances of falling for a scam site, and save yourself the loss of money and headaches that would follow.
Read the Broker Reviews of Binary Options
Anyone can put anything on the internet these days, but their reach is limited, and that goes for the scammers, too. So, even if a scam site is posting favorable reviews of themselves, there will not be many of them. If you go through enough independent review sites, there will be far more negative reviews of the scam broker than there would be positive ones. And if there are very few reviews out there–either positive or negative in nature–then beware. Having only a handful of reviews means that either the site is brand new or that it doesn’t have many customers. Either way, there is reason for you to stay away from the site. New sites need time before they can be considered reputable, and the sites with only a handful of users should be avoided because they haven’t attracted enough attention to keep themselves afloat for much longer. These are not things you would read in the reviews themselves, remember, they are just things that you would deduce from the quantity of the reviews themselves.
Look at the Site
Scam sites might look professional on the surface, but there are usually dead giveaways on the site itself. Sites that don’t have accredited auditors, for example, are much more likely to run a scam. And this is something that can be forged, of course, but a few minutes of research will give you a better answer. So, if a site claims to have the backing of a major service behind them, but that monitoring service doesn’t actually approve of the site, then you will need to know this. Or, the scam site might just be making up a fictitious monitoring service and hope that most people never check to see if it’s real or not. Spend a few minutes authenticating these things so that you aren’t losing money needlessly.
Look at the Details of Binary Options
The truth is, most scams are not run as fake sites, but real sites that slowly take advantage of you. This could be a broker that advertises a huge bones, but has terms that make it so you’ll never actually have it unlocked. Or, it could be a site that has very low rates of returns on successful trades. Another popular scam takes place with exotic trades, mostly. These often have high yield counterparts that have great rates of return, but are so hard to be successful with that they are not ever worth pursuing. The problem with these is that they are not actual scams. If you fall for them, it has nothing to do with the site’s misdeeds, but rather you not paying attention to the rest of the industry and settling for an inferior binary options broker. The easiest way to avoid this is to just shop around with different sites before you start trading. Know what you are doing before you start and make sure that you are giving yourself as much potential to make a profit as possible. There are plenty of ways to make sure that this happens, so educate yourself as far as a trading strategy goes before settling on a broker. This goes for beginners and experts alike.