Even if binary options have gone a long way since they were introduced to public trading, there are still a lot of dangers associated with them. So the purpose of this article is to explain what you should do in order to avoid binary options scam.
In the first place be very careful when you are considering trading signals offers and it does not matter if they are free or paid. Because most of the time the main purpose of trading signals offers that guarantee profits is to make you open a binary options trading account and deposit money, which will earn a commission to the person who introduced you. This person will make money and then can send you whatever signal, because he or she will no longer care how you are doing.
Another typical binary options scam are brokers that don’t pay. You will deposit money on your account, but you will never be able to withdraw it, no matter if you were profitable or if you lost some money. Unfortunately such brokers still exist and new brokers are still coming.
What you can also run into is price manipulation. Some brokers manipulate the price when you are profitable to make you lose. You can check this by using a secondary price feed. It could be another binary options broker or any other trading platform that shows the price of what you are trading.
So what can you do to protect yourself from binary options scam?
- Don’t believe everything that is promised in trading signals offers. If possible, try every service of this kind on a demo account first to see if it is really profitable. Try also to search the internet for feedback from other traders.
- Choose your broker very carefully. Choose only among regulated binary options brokers with a good reputation among traders.
- And finally if you have the slightest suspicion, check your price feed against another broker to avoid having your price manipulated.
Every time you find something that is not correct, try first to resolve it with your broker or service provider. If you cannot find a solution with him, it is better to leave and change.