Before investing, it is a must that you should do some research. Having confidence in your broker is a non-negotiable for every trader. Take time to investigate—especially if you aren’t dealing with your regular broker or investment adviser.
There are a lot of honest stockbrokers, brokerage firms, investment advisers and investment advisory firms that may be very reputable, but keep in mind that a number also are not.
How do you potentially protect yourself from binary option scammers?
Do intensive research before you even think of depositing money with any broker. There are numerous stories of investors being scammed out of their money because they didn’t do their due diligence – research as much as you can! The best way to minimize risk is to carefully select platforms/brokers that have been proven to be fair over a period of time. Examine the aspects of a brokerage or platform first-hand in order to avoid some of the pitfalls that have cost others a lot of money.
Reputable brokers will not entice potential and current traders with get-rich-quick promises or other easy ways to success – no gimmicks, no false promises. Bad brokers bring the “too good to be true” feeling. You should only open an account with a binary broker that offers realistic expectations of what you can expect in terms of risk and return. The financial markets are competitive and there are many skilled traders trying to generate income – you won’t win every time. So, if your broker is promising you an early retirement when trading with them, then I suggest you find another broker. Binary Options trading doesn’t work like that. There are no guarantees you will profit from binary options – just as being successful with any other type investment or trading strategy isn’t guaranteed.
Read ALL the terms and conditions and the FAQ thoroughly. Never skip reading broker’s Terms and Conditions. Check and make sure you understand the pay-out process and see if there are any minimum withdrawal thresholds. You should select a broker that has a trading platform you find easy to use. Other things to look out for include analysis tools, research tools, trading guides, tutorials, webinars and the like. These can be the perfect accoutrement to your trading experience. Success depends on a lot of factors that include market knowledge, experience, calculating risk and instinct. That is why brokers play a huge role in trading binary options. The purpose of the broker/trading platform is not to influence traders or how they execute trades. They are there to provide a reliable environment in which participants can conduct business.
Do a test withdrawal with a conservative deposit before trading with your new broker. Don’t sink all of your money into a new market, brokerage or platform until you have evaluated results for yourself. Make a series of small trades and withdrawals, and consider comparing a few platforms before settling on one over another.
Be suspicious about requests for copies of your identity cards. Some brokers may try to steal your identity and your money. All brokers collect information on their customers, which can make this a challenge to avoid. When you deposit or withdraw you might provide your credit card information. However verification of identity by sending a copy of your valid IDs could be a scam. To avoid this, you may want to go with an online payment system which can help protect your identity.
Binary Options trading is actually a good trading vehicle and not a scam. But there are some dishonest brokers that are watching newbies as prey. Each investor has their own preferences and ways they rely on to make decisions. It will always be up to the individual to take the time to investigate different options before making any final decisions.