It is quite important for new traders to know what does or does not constitute a binary options scam. Many of the common fears experienced by traders can be reduced or eliminated by knowing exactly what to expect in advance of getting started. There is nothing wrong with being cautious. In fact, everyone should be when finances are involved. Consider the following when searching for a reliable, scam-free broker.
By far, the most prominent concern on the minds of traders is the ability to withdraw funds. An example of a true scam would be a total non-payment of monies owed. This is rare, but it could happen if a broker goes out of business or uses odd terms and conditions to show that the trader has broken rules. To avoid problems, seek out a broker which is regulated and/or has been in operation for several years. Scam brokers are not around for very long, so the amount of time that a broker has been in operation is an excellent indicator or reliability.
Getting paid can take some time. As frustrating as having to wait can be, it is normal to have to wait up to 2 weeks to receive withdrawn funds. A portion of the wait time will be dedicated to the approval of your request, with the remaining wait time involving the speed of payment arrival. As a general rule, credit card and e-wallet payments are received faster than bank wire transfers, check, or Western Union payments.
Deposit bonuses are another area of concern. All bonuses do come with conditions which must be met before the funds can be withdrawn. Most often, the requirement will be in the form of a specific trade volume. For example, it could be necessary to trade the bonus amount 25x over before the bonus actually becomes yours to withdraw. At times, the volume requirement will be based upon both the bonus plus the deposit amount.
You may or may not be able to make a withdrawal of deposited funds (not bonus funds) before the trade volume has been reached. Do question customer service about this prior to accepting a bonus. Acceptance of a bonus is not a requirement, so feel free to decline if you wish. Should a bonus be automatically added to your account and you do not want those funds, contact customer service immediately to have the provided amount removed from your account.
The need to verify your identify could be viewed as a binary options scam, but it actually isn’t. Before funds can be withdrawn, a broker is going to want to know that you are who you say you are and that the payment method (such as a credit card) does belong to you. Expect to be asked for a photo ID, proof of residence, and possibly a scan of a credit card (with most numbers blocked out) before being able to withdraw funds. This process is done not only for the protection of the broker, but also for the protection of the trader.
There are actually very few true scams to worry about, but the potential for some hassles certainly does exist. It is wise to not believe everything you read online about brokers, as there are some traders who do indeed break the rules and then become disgruntled when they are not allowed to make a withdrawal. The best course of action is to screen each binary options broker to the best of your ability, using reviews and personal opinions as a backup to facts. Only then will you be able to develop a clear picture as to whether or not a broker is dependable.