Binary options trading offers clients the potential to make large sums of money by betting on whether the price of any asset, commodity or stock will increase or decrease within a certain time frame. The risk associated with binary options trading is extremely high since the industry has become flooded with scam brokers synonymous with defrauding clients.
The binary options industry has become acclaimed for luring in hopeful traders with aggressive advertising tactics, turning a once legitimate industry into an international scam worth an approximate 5-10 billion USD per year.
If you want to earn money through trading platforms, you must do your due diligence before investing in any company. There are numerous ways to identify and eliminate such scams.
Avoiding the Scam
- If a broker contacts you and promises unrealistic returns whilst asking you to deposit money immediately, it is highly likely that you are being set up for a scam. A fraudulent broker will offer you “bonuses”, “profits”, “insured trades” and much more. Binary options brokers promise big returns in exchange for big deposits. It is advisable never to accept “bonuses” or to allow your account manager to trade for you.
- Binary options scam brokers also offer software signals, auto trader software and other trading bots. This is often how they lure victims in and encourage them to deposit the initial $250 to begin trading. Many brokers use unethical practices to attract traders, such as posting fake positive reviews and content from third party individuals or affiliates. Affiliate marketing drives mass traffic to binary options websites, enticing clients with a false sense of security and the opportunity to make a fortune.
- Binary options scam brokers often acquire client information via leaked or stolen databases. Therefore, if you are receiving cold calls from unknown numbers, be very cautious of this.
Can You Totally Eliminate Scam?
Whenever large sums of money are involved, there will always be scam artists and fraudulent individuals profiting on the other side. The binary options industry is rife with fraudulent brokers who earn money only when the client loses money.
Therefore, it is imperative that you thoroughly research companies and individuals who promise you the world for a small fortune. Gather as much as information about your broker before investing with them.
If you have been a victim of a binary options scam, there are independent companies who are now assisting in recovery from binary options fraud and scam brokers. These companies are leading the way in uncovering the true identities and locations of the binary options scam and recouping stolen money.