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A Guide on Avoiding a Binary Options Scam

Author Zizzur Staff. Published on August 20, 2011 - 8:04 pm (491 views — 417 words)

One thing that amateur traders should be aware of is a binary options scam. And since binary options trading is quite popular these days, numerous deceitful brokerage firms have made it a point to trick unsuspecting people who are still new to the industry. If you are new to trading, here are some reminders that you should practice in order to protect yourself from a binary options scam.

The primary thing that you can do to avoid a binary options scam is through doing a comprehensive research on the brokerage firm that you plan on joining. Naturally, the simplest way to do this is via the internet but keep in mind that it is not the best resource out there when doing research on suspicious brokerage firms. You have to ask about the regulatory body where the firm is purportedly registered. After that, you need to double check the regulatory body if they are truly registered there. A registered brokerage firm will not likely commit a binary options scam.

One more thing that you should remember in order to protect yourself from a binary options scam is to be cautious of gimmicks and promotions that suspicious brokerage firms utilize in order to draw new traders into signing up to them. Many of these companies will tell you that they will give a “signing bonus” that will become available once you’ve deposited the money in your trading account. However, once you have deposited the money, the brokerage trading firm’s website will not be accessible anymore and there is no more way for you to contact them anymore and request for a refund of your money.

Last but not the least, you need to find an actual member of the firm that can confirm that it is not a binary options scam. Try to find people who have been trading on the platform for a lengthy period of time already and not just those who have been a member for only several weeks. This is because the person may also be another probable victim just like you. Hence you have to look for a real person who has been using the trading platform for at least a year already, someone who does not find the firm to be untrustworthy at all, and he or she is actually getting gains from it for quite some time already. If you successfully get a hold of that person, then there is a good chance that it is not a binary options scam.