5 Ways to Avoid Being Scam In Binary Options
Many people fall victim to scams, which is an unfortunate and extremely frustrating occurrence that can happen when first starting out in the binary options industry. Before you invest your hard-earned money in any scheme, it’s important to exercise due diligence. The following are five ways to avoid being scammed in binary options trading.
The first thing you need to do is to read reviews on various brokers so that you can find the most reliable and trustworthy traders. There are numerous websites where people review brokers, and you can learn from the experience of previous customers. The best thing to do is to use three to five different review websites so that you can be absolutely sure that the broker you’re researching is a legitimate one.
A binary options broker can offer you a bonus or special promotion to attract you as a client. However, you need to get the right impression about the bonus being given so that you don’t lose your money. For starters, a high bonus doesn’t necessarily mean better chances of generating high profits. For instance, let’s say you decide to open an account with a broker. Your initial investment may be $250 and a 40 percent bonus. In simple math, you now have $250 plus a $100 bonus, which equals $350. However, in order for you to withdraw your deposit plus the bonus, you might need to trade roughly 20 to 30 times the volume of the bonus. If you’re required to trade 30 times the volume of the bonus, you should multiply the $100 bonus by 30, which is $3,000. It means that you have to trade a volume of $3,000 in order to withdraw your deposit plus the bonus. And that is not inclusive of any losses the broker may suffer.
The third thing you need to do is to check whether the broker has online security. A popular form of online security among regulated, trustworthy and reliable brokers is SSL security. This encrypted security is provided by legitimate websites to guarantee that your personal and financial information remains secure. This means that you don’t need to fear that your personal or credit card information will just be hanging around cyber space.
So, you’re at home one day just minding your own business when the telephone rings. One the other end of the line, a guy from a certain firm is calling to offer you a once-in-a-lifetime investment opportunity. This guy now wants you to deposit a small amount of money and you should expect to earn huge returns, as much as 80 percent and even higher. All this sounds very interesting and you ask for more information. However, you need to ask yourself how this person got your telephone number. The person may be using leaked or stolen databases and such an unscrupulous person cannot be up to any good.
The worst scam is when your so-called broker refuses to answer your calls or return your emails when you want to withdraw your earnings. Sometimes the customer care department just quotes the terms and conditions without any link to your case. You might be told that you haven’t reached the bonus turnover yet that is not the case. In such a case, this broker is trying to make it as hard as possible for you to get your money, hoping that you will eventually give up. To avoid this type of scam, ensure that the broker remits earnings more than 95 percent of the time.