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Binary options trading has become a very popular trading mechanism for those looking to make a ‘quick buck’, or so it would seem. The advertisers promoting the industry claim traders can make a lot of money through binary options if you know the right trading strategies. With binary trading you have to predict the market and movement of any asset, index prices or commodity in a limited amount of time.
The number of binary options trading scams has risen to unprecedented highs in the last decade. These scammers lure many traders in through false advertising and promises of unrealistic returns. If you are interested in trading, it’s important to understand how binary options scams work in order to stay safe in the future.
Binary Option Scams
Investing in binary options is a risky and complicated business, especially when large amounts of money are involved. Therefore, the industry has attracted fraudsters who have become specialized in luring gullible traders to invest.
There are many scam binary option compainies and brokers who operate credible looking and attractive websites enticing traders to invest with them. They use high-pressure sales tactics to coerce the trader into depositing large sums of money.
These fraudulent brokers will cold call clients and offer them unrealistic bonuses in exchange for big deposits. Traders from all over the world have reported fraudulent companies after having their withdrawal requests consistently refused or accounts traded down to zero.
It’s very commonplace to receive calls and emails regarding trading bots, personal account managers and huge bonuses and profits. This type of fraud is extremely common and it’s hard for the trader to identify scam brokers due to aggressive sales pitches and promises of high returns.
- Be a smart trader and before investing your money check if the broker you are dealing with is certified and regulated by an authentic authority. Even if the broker is certified, this doesn’t save the trader from being the victim of a scam.
- Investigate a little before making investments. Verify the company website and broker and look for real customer feedback and reviews. The binary options industry is renowned for posting and promoting fake reviews and content, therefore always check the credibility of these.
- If you receive ‘cold’ calls from a broker making unrealistic offers for high returns and bonuses, this should raise an alarm bell. There is the likelihood that your details were stolen or bought from a leaked database.
- Before giving out your personal information like your bank account details or ID verification details, you should be absolutely sure about who the person is and that they are trustworthy.
Before making any investment, be sure that the source you are dealing with is reliable and always do your due diligence.