Binary scams you should know about

Posted By Christopher Jackson on Sep 15, 2016 |


Binary options are a type of trading, and like any other form of exchange, it has its scammers. Due to rather short time it exists, the binary market is still largely unregulated, and scammers thrive in an environment like that.

The binary options are a good way to earn from home if you know where to trade and what to avoid. To help you with that we have created this article that will contain common scams you might find.

Direct aka platform-based scams you will find

These scams are connected to shady brokers. If you want to avoid these things altogether, then you should find a respectable dealer. Click here to find out one of the traders that are 100% legal, and if you choose it, you won’t have to worry about these things.

6e70a3bf22c15e483abd0d1fd6d18920Some of those shady brokers hide Terms and Conditions from the traders. They place some conditions that either allows them to confiscate the money from the traders or take a portion of it upon the withdrawal. Some of them even stop withdrawals because they find suspicious trades. They limit the amount of money the trader can invest per trade. This means that they force players to buy short-term trades that have high risk. An operator doesn’t know this because they aren’t informed about that upon the investment.

Individual brokers use bonuses as a way to scam the traders. They don’t provide full info about the bonus, and players lose their money, even though they trade with that bonus. For instance, a player receives 200 dollars as a gift, and they buy with that money. But every loss they experience doesn’t subtract the money from the bonus, but the money from their initial investment.

Declining the request for withdrawal is the worst scam in the binary options world. In essence, the broker refuses to process the withdrawal, and they force the trader to lose all the money from their account.

Indirect binary scams

These scams are only indirectly connected to brokers. They may involve people associated with agents, but some buy the info from third parties that deal with scamming platforms.

tumblr_inline_nwlgn356sv1spvpit_540Cold calling is a type of a scam in which the trader gets contacted by a person that has a great offer. They try to convince the business person to invest a lot of money into a trade or two. That investment ends up in the hands of the caller and the broker they work with.

You have seen many reviews that promise easy cash though individual binary options brokers and programs. They downplay the risk which is a scam of its own. The broker or the creator of the software is the one that pays for those reviews.

Some agents appoint account managers to their players. Those people are there to waste the money on losing trades. The majority of those managers ask for bigger investments after only several days of account management. A broker that wants you to lose money wants to appoint their worker to help you win money. That is a contradiction everyone should clearly see and avoid those so-called account managers.