Binary Options Scam Types
Trading in binary options provides the potential to earn a significant income. The process is very simple and every trade has the possibility of returning eighty or ninety percent returns; an amount you will struggle to find in any other financial investment opportunity. Unfortunately, this has led to a number of fraudsters attempting to use binary options to take your hard earned capital and leave you with nothing.
This is a particular concern to the Securities and Exchange Commission based in the United States. As part of this they have identified several binary options scam types:
An Inability to Withdraw
Most brokers offer you a variety of methods by which you can deposit funds into your account. You should then be able to withdraw your funds via the same method or even one of the others; subject to proper verification. Unfortunately this type of binary options scam means that you are unable to access your funds. You may be told you need to deposit more funds or that you have not fulfilled all the terms and conditions. More than likely you will simply meet with no response at all and any instruction to withdraw will be cancelled or deleted.
To make sure you are not caught out by this scam it is imperative that you thoroughly research a broker before you provide them with any of your funds. You can even access reviews on social sharing sites.
You should also make sure that you read all the terms and conditions and make sure you understand them. It is also advisable to deposit as little money as possible and then attempt to withdraw it as soon as possible to gauge the response.
It is possible that your broker will prevent you from taking your money and will actually use your identity. A broker will need to collect your details before you can start trading. However, this, to an unscrupulous broker, provides them with the opportunity to request additional information, such as a copy of your credit card or your social security number. With this information they will be able to clone your identity and even take credit out in your name!
Obviously not all brokers who want your information are trying to scam you. There is a certain amount of information which is required to trade legitimately.
The best way to avoid this scam is to ensure you know exactly who you are dealing with before you start trading. Checking social media sites is an important way to verify other people’s experiences with a specific broker. You can also check the terms and frequently asked questions to see if there is anything that may compromise your identity when you attempt to withdraw funds.
This is often a difficult one to appreciate as it happens during your trades. There have been instances where brokers have deliberately allowed the trade to end a few moments later or sooner than it should in order to keep you out of the money. If you realize this has happened then you may complain and the broker will state that they are not responsible for technical errors. Only after it has happened a few times will you start to realize there is an issue.
It is also possible that the payout rate may change without prior warning. You will still earn a reasonable rate of return but it will be lower than expected and the broker’s profit will be increased. It is important to remember that not all bad trades are scams; you can simply make an error in judgment!
The easiest way to avoid this type of scam is to check the reviews; this is the safest way to avoid almost any binary options scam types. You should &also pay attention to the market and to your broker’s actions whilst trading. You will be able to see if a trade runs long or the prices are not close to the actual market prices. If you note a discrepancy more than once it is time to withdraw your money and locate a new broker.
Finally, it is important to state that binary options trading is not a scam in itself. It is a legitimate opportunity to earn money through investment trading. However, there are many people looking to benefit from your lack of experience and you should always proceed with caution.
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|Min. deposit: $250
Min. invest.: $10
Trading: CFD, Binary