Aug 19, 2013

Posted by in Online Schemes | Comments Off

Avoiding the Binary Options Scam

As I have said before, binary options can be lucrative; there is no doubt about that.

I also said that it is important to do some research before you try out binary options.  If you have looked for binary options forums, you have probably seen many, many posts saying that binary options is a scam – full stop.
Try not to be put off by this.  I have looked into binary options scam claims and they come in all sorts of guises;

  • Poor Customer Service
  • Inability to Withdraw ‘Winnings’
  • High Withdrawal Limits
  • Cleared out Account too Quickly
  • Bogus Trading Figures

To name a few…

binary options scamSome of these claims I believe are genuine signs of scamming behaviour.  Let’s take a closer look and see how we can test the binary options brokers…

Firstly, there is no excuse for poor customer service.  Clients expect their calls to be answered and dealt with.  Any binary options platform that cares about their reputation is going to be interested in their clients.  Try calling the platform before you add any money to your account.  Bear in mind that many of the binary options platforms are overseas, so check for service helpline opening hours and allow for any time differences.  Be wary of PO Box addresses and check the locations on Google maps too, using street view to make sure that there is something at the site!

An inability to withdraw winnings is a very serious issue that cannot be resolved when mixed with the first point about poor customer service.  If you read a review on a forum where the binary options trader has been unable to resolve this issue, don’t even be tempted for a minute, no matter how good the bonuses and promised may be, to join this binary options platform.

High withdrawal limits is also a tricky subject.  I agree that some binary options trading platforms have high limits, but these are usually linked to the acceptance of a generous bonus.  If the bonus is accepted, then the binary options platform is not, realistically, going to allow you to withdraw that money the next day.  This does make sense to me, but not, it seems, to a lot of forum posters!  If I give my honest opinion, then I would say that this is NOT a real indication of a scam.

In the binary options system, because it is so simple, I can see that it could be easy to wipe out an account pretty fast.  Some binary options platforms have 60 second trading, so, if you don’t have any support from the platform or previous knowledge of the financial and stock markets, you could feasibly wipe out.  Take a bit of time to learn about binary options trading first and choose a binary options platform that is prepared to offer some support.

If you follow a demo account first and find that the trading figures are not live, then this could be a good indication of a bogus binary options site.  Unless the platform tells you clearly that the trial is not operating with live figures, steer clear.  To get a true indication, or ‘feel’ for the binary options platform, you need to operate in real time, otherwise, to put it simply, the platform could easily be cheating.

Checking is easy to do – Open some real-time market figures in another window and switch from one window to another, checking the figures.  There may be a lag, but it won’t be more than a second and will be due to processing of data.  Most charts update every minute, but they may not all update within the same minute!  It is easy to compare charts though, to see how the pips correspond within the binary options platform.

Take your time, learn as much as you can and be aware that sometimes scam reports are genuine concerns from real people but occasionally they are sour grapes!

Stay with me, I’m not done with Binary Options Trading yet!