The scam starts before the investor even opens their brokerage account!
Many new binary option traders get hooked by a video about binary trading signals, or a binary options robot.
The Scam Works Like This:
- A fake company opens a website that looks like a legitimate binary options broker.
- They create a trading signals software that promises 100% accuracy!
- When you join the scam, you quickly lose your initial deposit of $250.
- You then get a phone call from a “senior broker” asking you to invest $5000.
How to Prevent Becoming a Scam Victim
The first step to avoid a binary options scam, is to properly research the binary options broker. Most review websites only give generic information about the brokers.
- Does the broker have a license from a real government regulator like the CFTC, FCA, FSB or ASIC?
- Is the broker constantly calling you to deposit more money?
- Does the brokers license protect investors from your country?
- Has the broker been fined for unethical business practices by their regulator?
The second step is to choose a good trading signals system or robot
- Never use a robot that asks you to make a deposit, before you can see the settings.
- Testimonials are all fake and illegal according to CySEC rules.
- Never follow a trading signal unless it fits with your trading strategy.
- Remember, the software that created your account, can place trades on your account.
- Historical performance is never an indication of future results.
- Read the trader discussions on the binary options forum
Binary options trading scams are a very common occurrence now. Do your research, and don’t get excited about making $1,000 by doing nothing. For every broker you find, and every trading system you hear about, there are 10 others who offer the exact same thing.