Today, in the segment of binary options, the situation with fraud and deceit seriously stabilized. It is rarely possible to encounter companies that were originally created to deceive traders, brokers without licenses and operators who do not pay customers their earnings. However, many newcomers, with no experience in trading and choosing professional companies for trading, often begin their activity on unsafe platforms. Today, we offer a basic list of tricks used by unscrupulous binary option brokers, which lead to the loss of investors trading capital and initial investment.

How not to get scammed while trading binary options

So, considering the fraudulent schemes of brokers of the binary market, it is worth noting that the trader when working with options is completely in the power of the broker – here there are created both technical and financial conditions for cheating clients. The basic methods of deception include such well-known approaches:

 

• Frauds with quotes chart

Binary options fraud alert

Traders carry out the whole process of trading on specialized online services (terminals), which are provided by brokers of the binary market. Thus, the entire technical side of the trade is provided by the operator. This allows undisciplined companies to manage the trader’s result.

The simplest method in this case is the variant with untrue liquidity indicators of the asset. Twisting the indicators of the value of the asset and the direction of the trend of trade quotations, distort the indicators of technical analysis that the trader conducts in the process of trading. This will no doubt lead to loss of funds by the client and, accordingly, the broker will earn his profit.

The second variant of manipulation of quotations is expressed in impulse winding of the market movement. Experienced traders know that rapid changes in the value of an asset at many price points are extremely rare, especially when there are no news drivers. Therefore, long candles quotations, which are formed on the trading chart for no apparent reason, should alert investors. It works simply – the broker, controlling the work of the terminal, can clearly determine the volumes of trade of its customers, forecasts at a certain point in the market and the number of trade items issued on the market. If many traders make the same, and most importantly – highly probable market forecast and use large amounts of funds in contracts, then the binary option broker can lose significant funds. Therefore, having a technical capability, the company sharply increases the volatility of the asset market in opposition to the forecasts of traders and thereby makes options, issued by customers, unprofitable.

The third variant of the “work” of a broker with quotations is the use of own algorithms for their construction. Simply put, the operator himself draws the schedule as he pleases. This is due to several factors. First, – liquidity is provided by specialized companies that are engaged in the calculation of schedules. This is an expensive service for which scammers do not want to spend money, and secondly, in this option, the list of opportunities for technical operations with quotes is expanding significantly. Thirdly, you can not waste your energy on developing a specialized terminal, it’s enough simple program to allow traders to spend, and the broker to earn capital.

 

• Obsessive bonuses

binary options scam broker

Many novice investors perceive bonuses as an excellent means to increase operating capital in the hope of earning higher returns. Yes, this is an outlet for investors with minimal trading capital. However, one should remember here that any funds offered by the broker will have to be worked out – the standard condition accepted on the market is the development of bonuses by obtaining a turnover of 30 times the amount of bonuses. Safe brokerage sites give traders a choice – whether or not to use this format of the marketing product. Scammers offer bonuses without an alternative – the client, replenishing the account, receives bonuses automatically, thereby condemning himself to bondage. It turns out that as long as the trader does not work out bonuses, he will not be able to withdraw the profits, and in the process of working out, it is easy to lose all the means of capital. For this reason, you should not work on platforms where it’s impossible to refuse bonuses to the company.

 

• Monetization conditions for profit

how not to get scammed by binary options broker

So, you are a successful trader, you can properly analyze and receive a stable income in the binary market. But not all companies easily part with money. The withdrawal of profits to a bank account or other payment service is a big problem on unlicensed platforms. The main method of fraud in this case is the creation of unrealistic verification conditions and additional requirements for withdrawal of funds.
Scammers try to tighten the verification process by constantly supplementing the terms of its conduct, in the hope that the client will get bored, and he will simply leave the platform, leaving his capital to the broker. Account verification is a necessity that is conditioned by the conditions of market-regulating bodies, but scammers are covered by this requirement and offer traders simply impracticable conditions for this process. Therefore, before you make out an account and replenish it, study this issue in order not to become a hostage to a broker later, and to receive all the earned funds.

Binary options scam

We gave the main set of techniques for unscrupulous brokers, which can lead to the loss of capital by the trader of binary options. Despite the fact that today there are fewer and fewer such companies, they are still online, than they cause a significant reputation damage to the binary market. However, if you choose the right broker, you can avoid unpleasant situations. For example: if you started cooperation with a licensed company that works with quotations provided by well-known liquidity providers, provides the option to refuse bonuses and offers the simplest conditions for withdrawing profits and verifying an account, you can earn stably in the most comfortable conditions. In this regard, the best option is to offer platforms from brokers of binary options from our TOP 3. These companies offer their clients the following technical conditions for trading:

• license
• High-precision quotes from global liquidity providers
• Selection in the issue of the use of bonus offers
• Monetization of profit for 24 hours without additional conditions and with a simple verification regime

Be careful and careful: money attracts scammers, do not become their victim and earn in safe conditions!

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“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

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