Any Internet search for binary options trading will include some results that include scam information. Along with the growing popularity of this form of trading came a growth in the number of fraud reports. The reputations of good brokers have been impacted by a handful of bad brokers (with the help of moral less affiliate marketers!). Regardless of how resourceful scam brokers are, there will always be ways in which the trader can identify problems in advance.
Test the Platform
You can analyze the computer software utilized within a platform via a demo account when available. Practice accounts allow traders to check for binary option scams and evaluate the platform and features in general. Even when demo accounts are not available, you should be able to freely move about the website and platform in order to learn more about what the broker is offering.
Grade Client Help & Support
Find out what the available contact methods are and do not hesitate to test each one. Live chat, e-mail, and phone contact are typically offered by reputable brokers. Response times should be fast, and all of your questions should be answered completely. Binary options scam brokers tend to offer horrible customer support, or none at all.
Note Available Banking Methods
Since there are numerous ways fund a binary options trading account, a respected broker should offer several banking methods such as credit cards, online payments, and bank transfer payment. The accessible banking methods should be listed on the broker website. As an extra measure of securing, be sure SSL encryption is active to protect the transfer of your financial information.
Find out More about Bonuses
Some broker website’s draw in traders with offers of a large amount of bonus funds when the initial deposit is placed into the trading account. Traders frequently deposit larger amounts in exchange for a larger bonus. Don’t forget to read through the fine print and terms and conditions before handing over your initial deposit to any binary options broker.
Pay attention to Profit Payout Rates
At the beginning, you are going to be bombarded by advertisements boasting large payout rates. If the claims seem unreasonably high, then a problem could exist. Typically, reputable brokers provide a 65%-85% return on in the money trades. Any broker which is offering returns of 85% or more are often linked to binary options scams. Exercise caution when engaging with any broker offering massively high-profit amounts.
The general guideline is to select only one to three trustworthy brokers to partner with. While online broker reviews are reliable, there are additional resources, which can be referred to. Online communities or any other area where you can communicate with other traders can easily help you determine which binary options brokers are trustworthy and, which are not.
How do you test if the broker is scam or not? Do you have your own testing ways? Please let us know through comments. Ask me if you have any question, I will be happy to get back with the answer!