AMF warns against unauthorized binary options trading websites
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This is a question many traders would love to know the answer to. We decided to put all our experience with brokers and robots into one article to help traders avoid being scammed. It is important to detect potential fraud before you make a deposit; otherwise, it could be too late. Binary scams are the sickness of the industry. Binary options, as a trading instrument, have a bad reputation mainly because of the scam schemes.
Too many traders have been ripped off during the years, and they spread negative comments all over the internet. There are many reputable and reliable brokers that are regulated and treat their customers fairly. However, because of scams, the whole industry suffers, and some measures should be taken. We decided to help traders and reveal some of the most common dishonest schemes. Hopefully, you will learn to avoid them. You know you are dealing with a bad brokerage when you have withdrawal problems or price manipulation in your trading.
He or she will often offer you more bonus money, signals, free trades, or a higher tier account an upgrade from your current account to a Gold or Platinum, depending on the account structure. If this happens, stay firm in your decision to withdraw and let them know you want your money, not some cheap offer.
Usually, if you accept a bonus, you have to reach a certain trading volume before being able to withdraw even your own money. If this limitation only applied to the bonus amount, we would be okay with it, but some brokerages extend the limitation to your own money. Brokers can manipulate the price they give you for a certain asset. If you are dealing with a scam brokerage, you can expect this to happen when you become profitable.
When the broker sees you are making many profitable trades, it how to avoid binary option scams best-tradingeu change your strike price or closing price. This is a big risk because a profitable trade will turn into a losing one. When you see sudden price reversals or volatility spikes, open a chart provider and check whether that movement also appears there. Netdania is a good source for free how to avoid binary option scams best-tradingeu, but you can also find other options online.
Account managers can promise you profitable trades if you give them access to your account. This is a major issue, but unfortunately, it happens a lot with scam binary options brokers.
It is also possible a manager will trade without your consent. That means he or she has access to your account, and no one but you should have access! The binary options robots are also very popular scams. This auto-trading software is heavily advertised as the best money machines. You just need to make a small deposit, and the robot will double it or even triple it in a few days. This, supposedly outside, software that provides auto-trading is how to avoid binary option scams best-tradingeu connected to a scam broker.
In theory, you deposit money at the broker, then you connect your trading account to the robot, and the cash flows run into your bank account. Of course, this is a deceptive illusion, and this robot will only blow your account.
Then, you will contact customer support, and they will suggest you make a bigger deposit to experience the full potential of the robot. To better understand how fraudulent this software is, you can think about the following. If this robot is so profitable and all traders make money, why is it free? How do these guys monetize? Where there is a lot of honey, there are also some flies buzzing around.
In our case, the flies are so-called binary gurus. They present themselves as seasoned pro traders, former university mathematicians who have created the ultimate These guys create fake accounts on Facebook and YouTube to spam testimonial messages.
They promise you big profits in the short term and usually are trying to sell you a trading system or an auto-trading robot. What they are actually doing is creating a setup of some free MT4 indicators and trying to sell it for money. If you search Google, you can easily find these indicators and download them for free.
Avoiding a scam robot is easy: So, you ask, how do I avoid a scam binary broker? Most scam brokers operate unregulated with registrations how to avoid binary option scams best-tradingeu offshore zones. Before you register at a broker, contact customer support via live chat. You can ask them all kinds of questions concerning withdrawals, price quotes and promotions. If your questions are avoided and the representative pushes you to register and deposit, chances are you are dealing with a bad broker.
The support staff should offer information, not try to sell you an account. If they offer you an account manager who is willing to trade with your funds, think twice. When you make profit, the company loses money; the binary broker simply works as a casino. Unfortunately, there how to avoid binary option scams best-tradingeu many naive people who believe someone will make them free money. The brokers know that, and with a number of phone calls, they can even make you deposit more after you lose your first deposit.
At a fully regulated broker, it is absolutely forbidden for a third party to trade with your funds. If you submit your account details to someone else, and this someone loses your funds, the regulator can do nothing about it.
To avoid troubles, you should simply register with a regulated company that offers binary options. This way, your money will be safe and you will be able to request a withdrawal at any time.
We know there are good brokers for sure, but you still need to be a good trader to make profits. If you are looking to make some quick bucks and skip studying the markets, you will most probably end up with empty pockets anyway. The binary options industry is not the safest out there because of all the scams that hunt your money. If you keep on your toes and stay vigilant, you can how to avoid binary option scams best-tradingeu to avoid them.
Skip to main content. How to avoid binary options scams You are here Home. We strongly advise you to trade only at regulated brokers. Scam binary brokers You know you are dealing with a bad brokerage when you have withdrawal problems or price manipulation in your trading. What are the risks if you trade at how to avoid binary option scams best-tradingeu scam broker? Bonus frauds Usually, if you accept a bonus, you have to reach a certain trading volume before being able to withdraw even your own money.
Price manipulation Brokers can manipulate the price they give you how to avoid binary option scams best-tradingeu a certain asset. Fraud account managers Account managers can promise you profitable trades if you give them access to your account. Scam binary robots The binary options robots are also very popular scams. The binary gurus Where there is a lot of honey, there are also some flies buzzing around.
Customer Support Before you register at a broker, contact customer support via live chat. You should deal only with regulated companies To avoid troubles, you should simply register with a regulated company that offers binary options.