How to Avoid Binary Trading Scams
Whether you're new to trading or an experienced trader, binary options scams are a serious threat. They're on the rise, and securities regulators received over 800 complaints about them last year. And that's probably just the tip of the iceberg.
The scams work by using promises of easy money and low risk to lure you in. They often advertise on websites geared towards investors and on social media, as well as through spam e-mails. They also target mobile phone users through fake investing apps. These apps often have slick designs that make them appear professional, and they're designed to trick you into depositing money with the scammers.
Once you've invested your money, the fraudsters will begin manipulating software to generate losing trades. They may also steal money from your bank account without your knowledge, and then stop responding to phone calls or e-mails. In some cases, the scammers will even use your credit card information to access additional funds.
Scams like these are common, and they cost unsuspecting traders billions of dollars a year. They benefit a select few at the expense of others, and that's why it's so important to educate yourself about safer, more regulated investments.
Binary options are a form of gambling that gives traders the opportunity to place bets on the future direction of a given asset. The assets can range from stocks to commodities, and the payouts are set according to the likelihood that a particular outcome will occur. These payouts are usually much higher than those on traditional investments, and can be as high as 85%. However, the risk is high and traders should always research any investment before making a commitment. For more details please visit binary trading scams
The first step in avoiding a binary options scam is to check the broker's registration status and background. You can do this by visiting the Financial Industry Regulatory Authority's BrokerCheck website and National Futures Association Background Affiliation Status Information Center. This is especially important for those seeking to invest in over-the-counter binary options that aren't CFTC-regulated.
In addition, you should be wary of any binary option broker that has a poor track record or is located in a jurisdiction with weak regulation. Finally, if you have any questions or concerns about a broker's practices, contact your local financial regulatory body.
While you can earn a living by trading, it requires significant time and effort to learn the skills needed to be profitable. If you're new to the market, avoid jumping into binary options trading without doing your homework first. And remember that if it sounds too good to be true, it probably is.
Ultimately, the best way to protect yourself from falling prey to a binary options scam is to stay informed and never invest your hard-earned money with unregistered brokers. Do your research and ask plenty of questions, particularly if you're being pressured to deposit by someone who claims to be a 'trader'.