Signs that your Broker is a Scam

Binary options trading has been amazingly popular in the last several years. Throughout the years binary options have been proven to be very profitable line of business and the binary options trading market has saw thousands and thousands new traders every day. If you look for the experiences of people who actually got into the business of trading binary options you see that many of those traders have positive experience and that they managed to earn significant benefits. However, since every story has two sides, binary options trading also has the other, more negative side. The negative side of binary options trading are those broker providers whose only people is to scam traders and to take away money from you.

Since, binary options trading is becoming more and more popular and since there are more and more brokers that enable traders to trade with binary options more easily and more successfully, a certain number of brokers that have been market as scam appeared with only intention of scamming traders. Being scammed is not a pleasant think – those who were scammed will testify to that. In order to avoid those feelings, this article will provide you with the most important features that characterized fake or scam binary options trading.

No Name of the Company behind the Broker

One of the most obvious signs that the binary options broker that you have selected is a scam is the fact that you are not able to find the name of the company that stands behind the broker. No name as well as no adequate reputations means that you will not be able to find the information about the registration or the license under which the broker should be registered. This, in turn, means that broker does not want to provide that kind of information and because of that you should walk away from that broker. Being in a situation where you cannot find a name that has developed and released the binary options broker should be good enough sing for you to abandon that broker and to look for another broker that will not have the characteristics that will be mentioned in the following part of this article.

No Good Features

Even though the subject of this article are negative things about the brokers that appear to be scams, you should also be looking for some positive features or sings when selecting the broker that you will be using when trading with binary options. One of the good signs or features of a broker that is not a scam is the feature that provide the traders with the opportunity to learn and to educate themselves about the market and how to actually trade binary options. The main reason why you should be looking for this is the fact that binary options trading brokers that are scams will actually not provide information about this feature or it is better to say they would not provide this feature at all for their traders.

Unrealistic Promises

Big and amazing promises truly are good marketing strategy for companies that actually are intending to fulfill those promises. However, when it comes to binary options and binary options trading big and amazing promises are usually signs that the broker that provides those promises is actually a scam and that you might end up losing your money if you decide to trader with that broker. Those broker who are promising that you will earn amazing amounts of money by doing almost nothing are selling fake promises. Anyone who actually has had experience of trading with binary options knows that, even though occasionally it is a very successful line of business, a trader must put a lot of effort, knowledge and skills into making a successful trade. Trading successfully without a lot of effort is just not possible with binary options.


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Fake Trade Success Rate and Fake Percentage of Return

Another aspect that can be related to the issue of unrealistic or fake promises is the trade success rate and even the percentage of potential returns that the binary options brokers are providing for the purpose of advertising. Similar to earning huge amounts of money by almost not doing anything, an experienced trader knows that trading with binary options cannot have the success rate that is almost 100%. The perfect score is impossible in almost all lines of business and that is especially emphasized with binary options trading.

Another issue that might get traders fooled is the percentage of the potential return that the broker is providing for traders. If it happens that you come across a binary options broker that is providing 100% of returns, it means that you have encountered a fake binary options broker and in that case it would be best to move away from that broker. The main reason why those brokers that provide 100% returns are scam broker is the fact that brokers need to stay profitable, that is, they need to be able to make certain amounts of money and by providing 100% return they will not be able to earn any money.

The Lack of Adequate Customer Support

One of the most important features of a binary options broker is the customer support service that needs to be available for the traders at any given time. The reliable and legitimate binary options brokers are aware of this fact and they provide their clients with the sufficient amount of information about how and when to reach the customer support services. However, those brokers that are not reliable and legitimate will not provide that information about the customer support and once a trader has realized that he or she cannot find that information, he or she needs to look for another binary options broker.