Some individuals have attempted to label all binary options trading as a scam. While this is not true, we do know that there are some brokers who have taken advantage of traders. New rules and regulations mean that most of the brokers in operation today are reliable. Even so, the ability to identify a dishonest broker is one which all who plan to trade must have.
Any search for scam information relating to a new broker isn’t likely to provide much insight. Even worse, any information that is discovered could label the broker as a scam, even if they are not. This tends to be the regrettable side effect of the broker not yet having an established reputation. Any issues, whether the fault of the broker or now, may rapidly get out of hand in online dialogues. Discovering the truth can be difficult.
There are a number of factors that can indicate a binary options scam. The first of which will be poor customer service. A trustworthy broker will ensure that traders who use their platform will have access to someone who can answer questions and provide solutions. It is quite easy to put customer service to test, well in advance of ever making a deposit. Feel free to test all communication methods – phone, live chat, and email.
The most widespread grievances are typically connected to issues with the withdrawal process. Such problems can be challenging to confirm in advance. It is not uncommon for the entire withdrawal process to take a week or even longer. Those who do not understand this many feel they are being cheated. Note, however, that an exceedingly large number of complaints could suggest a serious problem.
An unethical broker will give traders the runaround and essentially make it impossible to withdraw their profits. This too can be tough to determine in advance, because it may not happen to all traders who use that broker. The problem may only exist for those who generate large amounts of profits, which could make the broker question the earning process. Additionally, this problem may not be noted until the actual withdrawal process is attempted.
Prior to submitting a deposit, be sure to read through the terms and conditions to ensure that there are no unusual limits in place for withdrawal amounts. Minimum withdrawal requirements are quite common. An additional way to safeguard yourself would be to question others who have used that broker. This can be done by participating in online forums and even via social media. Most traders are willing to share both their experiences with others. This can be the best protection you will find against an scam broker.
Another consideration is the platform. If given the opportunity, use a demo account to test the functionality of the platform. Pay special attention to load times, as well as how easy or difficult trade execution is. The general design should also be evaluated. An overly complex design can make it difficult, especially for new traders, to execute trades in a timely manner. Fast execution can be the difference between a profit and a loss.
When contemplating trading with a relatively young binary options broker, request a demo account. Reviews for newer brokers can be difficult to find. You may be asked to submit a deposit in exchange for being provided with a demo account, but the deposit should be 100% refundable should you decide not to continue on after the demo period has expired. Note that even when a broker does not advertise that they offer demo trading, they may still provide it.
Should none of your research point to any legitimate type of scam, feel free to submit a deposit. Keep in mind that bonuses may be offered when doing so, and these will have conditions which must be met before the funds can be withdrawn. Bonus withdrawal is often linked to a binary options scam, but the truth of the matter is that some amount of trade volume turnover will be required before the funds can be withdrawn from the traders account. This requirement is simply part of the process, and it can be avoided by declining any bonus that is offered.
As binary options trading has continued to grow in popularity, so too have the number of platforms that are in operation. Traders will now have many brokers to choose from, and this is a good thing. While it is easier to locate information in relation to well-established brokers, younger brokers should not be totally overlooked. Use any or all of the aforementioned methods to analyze brokers and determine which are the very best.