Wherever there is a new money making method on the internet the problem of scams arises. One of our visitors asked me today: Is Trading Binary Options Scam? I read that it is not legit. The Binary options Trading is all about wealth so how can this process be out of the scam? There are people who take wrong advantages of the people by falsifying the information. There are few websites which are not regulated by governing bodies which are doing fraudulent activities with the investors and defaming the Binary Options Trading. It is very important from the investor point of view that whom you should trust and things you should do prevent scam happening with you.
Regulated Binary Options Brokers are more trustworthy
Since Binary options trading is a web-based trading procedure and a broker who provides a platform to do the binary options trading in various assets such as commodities, currencies and indices are provided to a web-based interface to trade. You have to share your necessary information and credit card details to start trading with the initial amount. The common belief of the people because of the non-existence of physical offices, people and wealth; is that whole Binary options trading is a scam. It is a fraud and the whole process is similar like online gambling, however, this is not true, they are real investment platform and 100% percent legitimate and viable financial instrument.
Here is a list of regulated binary options brokers.
In binary options trading, the brokers of binary options trading are regulated by some governing bodies. The most popular regulating bodies among them are CySEC (Cyprus Securities and Exchange Commission) for European countries. Australian Securities and Investments Commission (ASIC) in Australia and the Financial Services Agency (FSA) in Japan are few more examples of regulated bodies which are regulating binary options trading broker’s business and website. By registering with one of these regulated brokers, you can lower the chance or even avoid being scammed by these websites.
How does illegitimate binary options trading work?
They are many ways by which scam can occur on the web based interface of the binary options trading broker. The most typical way of doing scam is that, the unregulated broker will try to manipulate the movement of an investor’s asset in such a way that upon expiry of the time of trade, the outcome will be in favor of the broker. For instance, If the trade is about to expire at, say, 2:10 pm and at that time it was holding the money, the option is manipulated to remain open until, say, 2:11 pm, and the single minute is more than enough for a trade to expire to lose the money. In a standard scam, a broker has a trading platform with which you trade with an expiry point, let say for 60 seconds and a clock begins to count down to the expiration.
When the clock ticks to zero either you win or loss in case of a scam when the clock ticks to zero, you see the message of Expiring of which can hold for at least another 30 to 60 seconds more. This is the time, broker manipulated with your asset and move it to so that the outcome will be in favor of the broker.
Another way with which a scam can occur to you, if you use unregulated websites is that those web portals of broker easily deposit your money for the trade. Once you are done with your daily trade and thought to withdraw your money, you will find that you are facing lots of technical glitches while withdrawing your amount. You will get to know that you are busted with a scam when you will find that there is no customer service team or person to help you out. They won’t respond to your call, mail or any sort of communication when you ask for your money.
One more way a scam can hit you while you are trading with binary options broker’s web portal. Some of the unregulated brokers tend to change their terms and condition without notifying to their investors and customers. This is why you should make sure that you should sign up with a regulated broker whose terms and condition does not change every now and then and that too without the informing the customer. Even if they change, they have strong terms and condition regarding payouts which hardly change.
How to prevent being scammed:
The scams occur because people do not pay attention to little things. If they become a little tech savvy, a lot of people can save themselves from the scams.
First of all register yourself with a regulated broker who is accredited and regulated by certain governing bodies such as CySEC, ASIC, and FSA etc. As you can trust these regulating bodies as they make sure that your amount remain safe in a segregating account and you get correct market data and trading results. They have the correct clause to protect you from any issue occurred while trading.
You should also keep check that you do not sign up with a broker who belongs to the country who do not have strong laws to protect you from the scam of the broker or even do not have regulating bodies which can protect your hard earned money from the broker.
You can prevent a Binary Options Scam is by searching each and every information about the broker website, the company on the Google. You can check is there any negative review, testimonial which warns you to It will of no use to research the broker’s web portal after you already sign up and deposited the amount.
There are even some traders that don’t read any guides and have absolutely no trading strategy. These traders fail to win on the long run and sometimes they even post on forums about different brokers being scams, just because they didn’t manage to make money with them.
How to get your money back?
There are people who miss out important warnings, testimonials and don’t really read binary options reviews and fall prey in front of an unregulated broker. You might be thinking what you can do if you have been scammed is there any escape gate with which you can bring back your hard earned money. If you are 100% confident you have put down your money with a scam broker, you can file a dispute with your credit card company and cancel out the transaction.
There are chances that you might lose if you don’t have sufficient proof that you didn’t receive the services you signed up for, so the burden of proof is on you, the customer. This is the only possible way to get your hard earned money back.