Binary trading got extremely popular among traders lately. Numerous brokers appeared out of nowhere and advertising is aggressive. A retail trader is defined as someone that trades a financial product, without being a professional. Most of retail traders are newbies.

They come to this industry with great hopes and expectations, only to find out that trading profitable is not that simple. Not that is impossible, but not simple. Trading should be viewed like running a business of your own. If you treat trading as a hobby, there’s no way you’ll make it in the long run.

 

How to Avoid Binary Options Scams

Unfortunately for the retail traders, the binary options industry is gripped with scammers, starting with the brokers and ending with individual traders. In other words, as a trader, you’re on your own. There is little trust in the industry and if you still want to be involved, you must do the job filtering the information in front of view. There are a few things traders can do to avoid binary options scams. One would be to find out as much information about the binary options broker.

When trading binary options, and not only, you trust your broker with your money. If you do that, make sure the broker uses the funds appropriately. An inappropriate behavior would be if the broker uses the new funds it receives to pay withdrawals. This is forbidden in the financial world.

There’s a name for it: Ponzi scheme. Unfortunately, many brokers use this approach. They spend aggressively on advertising to attract as many new depositors. Because the winning rate is low, few people end up asking for a withdrawal. Those that do, would want to make sure their money is still with the broker.

Some famous names in the industry were involved in Ponzi schemes. There’s even a recent movie about how Bernie Madoff tricked investors. A regulated broker can’t do that. Hence, the first priority before starting trading with a broker is to find out information about it. Regulation is a must.

 

Trade with Regulated Binary Brokers

As mentioned earlier, a regulated broker save you the trouble of knowing you can withdraw your funds. Statistically, this is the most important feature retail traders look in a broker.

How to do that? Look for the broker’s license number and authority that regulates it. If there’s no such information on the website, probably the broker is not regulated. Hence, avoid sending your money to it. But brokers are smart. Sometimes they place a license number on the website, but the license doesn’t exist. Or, it was suspended.

As such, the way to go is to simply address the financial authority that regulates the broker. Send an email and ask more details about the broker. Even better, give a phone call and inquire the validity of the information. You’ll be surprised how much information exists out there. With only a bit of an effort, traders can find crucial information about a binary options broker. Latest binary scams do not refer only to the broker, though. Fabricated reviews appear on financial forums.

Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
90% $10 $1
 
200% $50 $10
 
85% $200 $20
 
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80% $5 $1
 
80% - 90% $250 $5
 
85% $250 $5  
 
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95% $250 $1
 
80% $10 $0.10
 
160% - 180% $50 $2
 
95% $250 $1
 
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80% - 90% $250 $5
 
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200% $50 $10
 
95% $250 $1
 
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80% - 90% $250 $5
 
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  90% $10 $1
 
  200% $50 $10
 
  85% $200 $20
 
  85% $100 $5
 
  95% $250 $1
 
  85% $10 $1
 
  80% - 90% $250 $5
 
  85% $250 $5  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $50 $1
 
  95% $250 $1
 
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  80% - 90% $250 $5
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
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  85% $50 $1
 
  95% $250 $1
 
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  85% $50 $1
 
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  85% $100 $5
 
  80% $250 $25
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $50 $1
 
  95% $250 $1
 
  85% $10 $1
 
  80% - 90% $250 $5
 
  80% $250 $25
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $50 $1
 
  85% $100 $5
 
  95% $250 $1
 
  85% $10 $1
 
  80% - 90% $250 $5
 
  80% $250 $25
 
  85% $250 $5  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $250 $10
 
  85% $50 $1
 
  85% $100 $5
 
  85% $10 $1
 
  95% $250 $1
 
  80% - 90% $250 $5
 
  80% $250 $25
 
  85% $250 $5  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $50 $1
 
  85% $100 $5
 
  85% $10 $1
 
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Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $50 $1
 
  85% $100 $5
 
  85% $10 $1
 
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  90% $10 $1
 
  85% $50 $1
 
  85% $10 $1
 
  95% $250 $1
 
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  90% $10 $1
 
  85% $50 $1
 
  90% $50 $1
 
  85% $10 $1
 
  95% $250 $1
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $10 $1
 
  85% $50 $1
 
  95% $250 $1
 
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  90% $10 $1
 
  85% $200 $20
 
  95% $250 $1
 
  80% - 90% $250 $5
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $50 $1
 
  85% $10 $1
 
  95% $250 $1
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  200% $50 $10
 
  85% $250 $10
 
  85% $50 $1
 
  85% $100 $5
 
  95% $250 $1
 
  85% $10 $1
 
  80% - 90% $250 $5
 
  80% $250 $25
 
  85% $250 $5  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
200% $50 $10
 
95% $250 $1
 
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  200% $50 $10
 
  85% $250 $10
 
  85% $200 $20
 
  95% $250 $1
 
  85% $10 $1
 
  80% - 90% $250 $5
 
  85% $250 $5  
 
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  85% $50 $1
 
  200% $50 $10
 
  85% $200 $20
 
  95% $250 $1
 
  85% $100 $5
 
  85% $10 $1
 
  80% - 90% $250 $5
 
  80% $250 $25
 
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95% $250 $1
 
85% $10 $1
 
80% - 90% $250 $5
 
85% $50 $1
 

 

Don’t Base Your Decision on What Others Say

Most reviews are fake. At least, the good ones. If you end up reading a positive review, it should not be isolated in that forum. Look for multiple sources to point out about the practices of that broker. Again, this should be the second step in your process of identifying a good broker and avoid binary scams.

In this industry, reviews do not work like on Amazon, for example. Brokers know traders will look at reviews and hire people simply to comment on forums or on dedicated websites. Moreover, they make their own separate reviews websites and promote the brokers and businesses they have an interest in. Again, being cautious will save you a lot of trouble when trading binary options.

Lately, many people offer “signal” services for the binary options. Think of it for a change: why would you trust someone to trade your account? What is the outcome you’re looking for? In this case, you look for a profit. Get a new job, or a raise, and you’ll end up with more money. If you want to trade or to become a trader, at least make an effort and do it properly. Keep in mind that trading is not for everyone. It doesn’t suit everybody. Make sure you have the time, capital, and the right attitude before trading financial markets.

 

Bad Practices from Binary Options Brokers

Even binary options regulations cannot stop brokers getting involved in bad practices. That means, using unethical methods to screw traders.

 

The Trading Platform

Most of the binary options brokers, if not all of them, offer a web-based trading platform. While this is not a bad thing, Internet conditions differ from trader to trader and from a part of the world to another. When trading an option, the striking price (the entry price) matters as much as the expiration date.

Sometimes, these trading platforms “freeze” all of a sudden. Despite you had a great setup, you couldn’t execute the trade. This is a technique that was popular among Forex brokers some years ago.

Nowadays, with the new ECN (Electronic Communications Network) and STP (Straight Through Processing) technologies, brokers can’t re-quote prices as they used to do. In other words, back in those days, if a trader wanted to buy or sell a currency pair at market, this wasn’t possible. The broker argued that the market changed to fast and will requote your entry. Until finally the trade gets executed, the market moved and the entry price is not relevant anymore.

In binary options trading, this makes the difference between a profitable option and one that expires out of the money. When the trading platform of a binary options broker “freezes” constantly, you’ll know the broker tries every trick in the book to play the game in such a way you’ll lose your account.

 

The Products Offered

Another way to lean the chances to their favor comes from the financial products the binary options brokers offer. You cannot trade any currency pair you want, or any product you want. Only the ones offered. Binary options brokers favor currency pairs or financial products that often change direction and trend less. EURUSD is one currency pair like this: it rarely trends, not even on the bigger time frames, and, during the trading week, makes many fake moves.

However, the EURUSD is not that bad a currency pair to trade binary options with. In fact, it is the most popular option. GBPCHF, AUDNZD, EURAUD or other similar crosses will end up in the offer. While on the Forex market, the traders can choose any currency pair from the list, on the binary options market the possibilities are limited.

 

The Expiration Dates Offered

Even more important, the expiration date possibilities tell you much about the broker. Most of the time, the binary options broker offers only a few choices for the expiration date. The short-term expiration dates will always be there. Chances to be constant profitable while trading them are close to zero. If you think otherwise, you’re only fooling yourself. Or, simply, you got lucky so far.

Trading has nothing to do with luck. I mean, a bit of luck never hurts, but, in the long run, trading success has nothing to do with it. Instead, successful trading has much to do with discipline, patience, and doing your homework. More importantly, knowing what the forces behind the market are and how to build realistic expectations.

If you come to the trading game with hopes of making a million dollars out of a one thousand dollars account, then you’re in the wrong place and in the wrong business. Binary options trading is particularly more difficult than trading other markets. And, even more importantly, less regulated. It gives a place for crooks and fake brokers to take advantage of honest traders without someone to be able to do something about it.

When you trade, no matter the product, be in control. Don’t let some account manager or a “designated” person to trade your account or money. Even if the person comes from the broker. You’ll end up seeing risky trades being taken, with aggressive trading, and in the end all you’ll get is a “sorry”. Only because markets are open doesn’t mean you have to trade.

Having no position, is a position. When you are the one that decides the moment to trade, the amount, the risk, etc., that moment you’re in control. In trading, the key thing is to control as much as possible from it. Starting with the risk, execution, and so on. Few traders understand that trading is not a video game. These are real people with real money that buy or sell for various reasons.

Not everyone buys or sells to make a profit. Some do that because they have to. For example, a company in the United States wants to buy a huge European corporation. It will have to pay for it with Euros. For that, the US company will sell dollars to buy Euros. This will end up moving the market, with no one having an intention to make a profit.

 

Conclusion

To some up, do some research before trusting your money with a binary options broker. In fact, this is valid for any broker, no matter the industry. Compare it with depositing your money with a bank. You won’t want to make a deposit with a bank that is about to go bankrupt, right? Try to find as much information as possible about the regulation. Moreover, look for info related to the trading process. If possible, trade on a demo account a bit.

Ideally, check if the broker allows you to build your own option. Back in time, this was possible with good brokers. It means you can choose your product (any product), the expiration date (from multiple possibilities), and so on.

But what matters the most, is that even doing all the above, and assuming you found the right broker to trade with, it all depends on you. If you have a day job, and you can spare only a few hours or less a day doing your analysis, then trading is a gamble.

If you’re an impatient person and see the benefits in trading short and very short-term expiration dates, it won’t take much until you’ll change your mind.

 

Here’s a comprehensive list of further scam related articles. 

 

 


34 Comments » for Binary Options Scams
  1. Mark says:

    this is the best of all

  2. BItTech China says:

    its a green light…procced

  3. Stuart says:

    You may never get your money back but unless there are enough complaints registered no-one will be able to do anything. I thought I was trading when the company were adding bonuses, but apparently NOT. These bonuses are there so you have to make thousands of pounds before you can withdraw anything out. But they can withdraw the lot as I found out to my utter dismay. So please to help others not to fall into their trap make enough official complaints. In my case, i used the service of a professional in trading, he helped me recover my lost money quickly. he is an amazing man to work with ..

    [email protected] is the real deal….Such an amazing broker

    • Trillium Logistics Solutions I says:

      Just unsure about him as he does not use his real name. How does he interact with you regarding sending money back and forth? Does he have a trading platform?

  4. Stuart says:

    I can only vouch for Astra cos of his good works. he has proven to us that we still have some good people in the world.
    My story changed when i met him and i owe my happiness to this genius broker.
    [email protected] is the best broker for your trade.
    He’s capable of making you millions if you allow him

  5. Kelly says:

    If you must make a fortune out of binary option, you must work hard, persist, and be determined. After I lost over $30000 from the loan i secured i thought it was the end of the road because it wasn’t long ago when i just left from my well paying job to trade free lance. I was on the verge of calling it a quit when i stumbled into an old friend who introduced me to his fabulous technique which i have used to make well over $140000 over the course of a 3 month period i am on this. I am up and running again, thanks to this wonderful technique. However, i will be obliged to help someone else, having tested and confirmed this technique.

  6. Mark says:

    Hi Guys. Don’t feel bad. These arseholes took me for 65,000. I would be happy to join a lawsuit, and even happier to locate these clowns. Very sneaky. Feel like an absolute idiot and have to admit they’re pretty good at this. At one stage they turned 25,000 of profit in a single day, so I thought “hey this works”. 65k later down the drain. I never gave up and i am glad i made a smart move..i hired the service of these professional ([email protected]) to trade for me and i am glad i have made more than i lost. He has this perfect strategy and it works fine…i..He is the best broker out here.

    ii made about 70,000 i in 2 weeks trading with him. This is coming from a satisfied customer

  7. Riet says:

    I implore you all to make the best of your investment by using this certified and trustworthy broker Mr Astra. Hw has helped a lot of us and i am glad to be a part of his clientele-base. He never makes losses….he is the best at this trade.
    Feel free to consult him at [email protected]

    • Sverre Mortveit says:

      ”certified and trustworthy” in what register is he registered? Can’t find him among the legal traders that is allowed to trade others money, in that case he is not certified and running a illegal business. If he is a broker, what kind of brokerage does he work or run? There is a well known word for what you are doing in this forum, and that’s called scamming.

  8. Sharon john says:

    Try Mr James, i never thought of making profit again in trading binary option until i came across Mr. James Rowland who is the best option trader that helped me recover about $90,000 that i lost trading with Nadex option. He can help you recover your lost, His email is [email protected]

  9. Riet says:

    Astra is the real deal here…i am glad to share this piece of info on how he helped my life. i almost lost all i invested until he came to my rescue..he used his perfect strategy and we made a whole lot in a short time frame….i can now boldly recommend him
    feel free to talk to him here [email protected]

    • Trillium Logistics Solutions I says:

      How did he get the money from the broker to you? Did you have to give him your credit card number or bank account number? Did you have to send him money in advance? My concern is this is not his real name and sending money to an unknown does not sit well with me as I have been burnt from my binary experience.

  10. Ashley says:

    My testimony is all about Mr Astra ( [email protected] )
    he fought my car for me and helped me with getting back my lost funds. he made withdrawing my funds quite easy after i had tried for weeks on my own. He did this in just 9 days.
    i wish you the best

  11. Joe Williams says:

    For easy and safe trading on binary options without loosing your money to your broker, for constance winning while you trade binary option with the minimum of $250 in your broker account.kindly talk to [email protected] . com,he is tested and trusted.he will never dissapoint you.

  12. Nicki says:

    Astra is one of the few good ones we have left. he restored my happiness by helping me fight my withdrawal claims. i got back my money in 8 days.
    talk to him if you ever need his service. ([email protected])

  13. Mindy Nathan says:

    hit up [email protected] …he is the best person to work with .
    He is fast and reliable

  14. protrader says:

    Skyline Markets??

  15. Mindy Nathan says:

    take time to consult Astra if you need help with investing or recovering your lost money. in my case, i had lost 40,000 but Astra helped recover the money . you can reach him at his service mail [email protected] . his service is fantastic

  16. tammy says:

    i can attest to Mr Astra’s professionalism… he came through for me when i needed urgent help with investing and recovering my money…talk to him [email protected]

  17. alfred wood says:

    All thanks to MR Gilbert for helping me with his great strategy, now am making $17,000 weekly on trading,Mr. Gilbert has the best strategy i have ever seen.if you need help or more info

  18. Nicki says:

    Don’t invest your money on binary options, it is big scam..they go on ripping people off tier hard earned money. I invested my life savings, i kept investing until i requested for withdrawal. My account was debited and here i am with 0$ balance. It was a tough time for me but i am glad i met [email protected] who helped me recover my money from this scammers. He is my personal broker now .

    you can mention my name to him for prompt reply , Sheila Fry, New York City NY

    • amanda price says:

      If binary options is a big scam lik you said why do you have a broker then you ought to have lay waste to every idea about BO on your mind

  19. Nicki says:

    you all can talk to [email protected] for recovery of your lost money to thus huge scam…..i was a victim too but he helped me

  20. stock traders says:

    All thanks to MR Gilbert for helping me with his great strategy, now am making $17,000 weekly on trading,Mr. Gilbert has the best strategy i have ever seen.if you need help or more info

  21. kate kelly says:

    Mr mark has an accurate strategy which he used to help me turn $500 to $10,000 within a week,Its really a great joy for me,If you need good strategy or a broker to manage your account you can reach him on [email protected],God will bless him as he put smiles on peoples face,am really blessed.

  22. Eric Donaldson says:

    Interested in Binary Options?
    Please let me invite you to my FREE binary strategy masterclass!Where i teach Experienced and Inexperienced traders the secrets behind a successful trade I also give out signals for free!!
    Email me via my personal Email:([email protected])

  23. Christiaan Ellis says:

    Option Yard

    Good day, does anybody know the company that did option trading called Option Yard

  24. michael kamau says:

    Hello, my financial life has been in shambles until I know about these advance trading strategy. This strategy has been revolutionary so far, I now make $48,500 every month and have recovered all my losses. Time to recover all your losses,make 2017 count. You can message me via my email [email protected] com, for more details about these trading strategy.

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