Binary Options Scam - How to Avoid Risky One

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1 WRITTEN BY BEN SAWICKI

2 P a g e 1 IN THIS FREE E-BOOK YOU WILL LEARN HOW TO PROTECT YOURSELF FORM BEING SCAMMED BY BINARY BROKERS IN FEW EASY BUT IMPORTANT STEPS! AUTOR: BEN SAWICKI BINARY OPTION INVESTIGATOR

3 P a g e 2 CONTENTS: 1. TIPS AND ADVICES 1.2 MAKE RESEARCH 1.3 TEST THE BROKER 1.4 LOOK FOR USER FRIENDLY TRADING PLATFORM 1.5 READ THE TERMS AND CONDITIONS 1.6 CHECK WHAT YOU CAN INVEST IN 1.7 CONSIDER BONUS CONDITIONS 1.8 CHECK THE CUSTOMER SERVICE 2. COMMON BINARY OPTIONS COMPLAINS 3. WHAT SHOULD YOU LOOK OUT FOR 3.1 EDUCATION AND TRAINING 3.2 FLEXIBILITY 3.3 SECURITY 3.4 HUMAN INTERACTION 3.5 SOCIAL MEDIA

4 P a g e 3 There are scams in every business! And since Binary Options Trading s popularity has been skyrocketing across the globe, it is an obvious target for hackers and brokers who are either unprofessional or are willingly pulling a fast one on you. In the financial world, especially if you are just being introduced to it, starting out cautiously is always a good idea. Entering the binary options market could be tricky when it comes to finding a reliable broker that would cater to all of your requests. Binary options trading has been around for no more than five years. Just like every new successful industry, it quickly became over-flooded with brokers. As their numbers increased, the more difficult it became to monitor and control them. According to our research, about 75% of binary brokers offer only over-the-counter services and aren t regulated by any institution. A binary options scam is something anyone can avoid with the right information. Due to the amount of binary options brokers out there, it is very important you know exactly who to trust and what to expect. So, how can you prevent becoming a victim of a scam?

5 P a g e 4 1.TIPS AND ADVICES 1.1. MAKE RESEARCH First of all you need to make sure that the broker you are trading with is legit. Check if there are enough positive or negative reviews on the Internet. Know if they're regulated or not. Make sure the broker you are dealing with is regulated by a major regulatory body. If a financial company is regulated, it has to abide by fair practice rules and to have the best interest of its clients in mind when doing business. Also, the funds of a regulated company and those of its clients have to be kept in separate accounts. What this means is that in the event the broker goes bankrupt, your money is safe and sometimes even insured to some extent. A regulated broker is also constantly verified by the regulatory authority so that a high level of professionalism is maintained. Join forums or chat rooms and see what binary options unfair practices are currently being discussed. Look out for different binary options complaints about the broker you are interested in

6 P a g e 5 joining. If you find any negative comments or complaints about the broker, then you need to be careful. If, after doing all your research, you find that this binary broker has not responded to the negative comments out there, then you should stay away. It shows that this broker is not active in resolving problems or improving their reputation. Most scam brokers will conceal this information for reasons easily understood: if they plan to scam you of your money, they don t really want you to know where they are located or the real name of their company. Make sure they have real headquarters, not just a virtual office or rented P.O. Box. If you don t have a time for this, you can leave it to You just submit a scam investigation request and wait for the results TEST THE BROKER Try before you buy. It is important to test out the broker before you make any financial commitments. You can spot a shady broker by seeing if the broker responds quickly, answers your questions and offers you professional and reliable customer support.

7 P a g e 6 Don't sign up with a broker that is from a country which does not have a strong regulatory system. There's no point in having the best binary option strategy if the broker you are working with is not carefully regulated LOOK FOR USER FRIENDLY TRADING PLATFORM A good binary options trading platform should have an easy to use interface. In trading, the saying time is money has an even stronger meaning than usual. No trader should have to struggle with a web platform, because with every second passed he/she may be missing a big financial opportunity (especially if you are trading the 60-seconds option or if your option is near its expiration time). Before registering with any broker make sure, the trading software you will be using is straightforward and easy to navigate. If you are an experienced binary options trader or like to follow the changes on the market constantly, it is probably a good idea to pick a broker who offers a mobile trading app.

8 P a g e READ THE TERMS AND CONDITIONS Read carefully the broker s terms and conditions for trading and bonuses. You can use their live chat or to request a phone call and ask your questions. It may sound as a tedious job, but if you value your money you will have to read the entire Terms and Conditions document. By opening an account with a broker you are automatically accepting their terms and conditions and I would not recommend signing something without reading it first, especially considering the fact that some brokers have almost outrageous terms such as $500 minimum withdrawal, a 30% inactivity fee or you will even have to pay for the account statement s they send you. The examples I just gave are rare but things like this happen nonetheless so please understand the importance of reading the Terms and Conditions. You must also be aware of the fact that the information available on a broker s website is mainly promotional and meant to sugar-coat things, but it can be easily modified or completely erased so if you read something on the main website but you don t find it in the T&C, don t be surprised if the broker will not apply it.

9 P a g e CHECK WHAT YOU CAN INVEST IN A professional Binary Options Broker should offer a variety of ways you can invest. Apart from the most standard PUT/CALL (UP/DOWN) option, make sure your broker also has the 60- Seconds Option, the Touch/No Touch, Option Builder, and Boundary Options. Except for currency pairs (Forex), a good binary options broker, should allow you to trade stocks, indices, and commodities. There s no point in trading with a broker that doesn t have the assets that you want to trade. If you have a background in Forex trading, you want to make sure that they have a rich assortment of the currencies that you would be interested in trading. If they don t have the assets you need, don t waste your time. Also, search for brokers whose platform has graphs with good history time frames, which go back further than 1 day. This will enhance your decision-making when trading binary options.

10 P a g e CONSIDER BONUS CONDITIONS Almost all Binary Option Brokers will offer you a bonus depending on the amount you choose to deposit with them. This incentive can go as high as 100% of your initial deposit and might sound great at first but it is paramount for you to understand why it is given to you: the first and most obvious reason is to make the whole thing more appealing and to make you deposit more. The second and less known reason is to tie your money to their platform by imposing a trade volume requirement before any funds can be withdrawn from your account and yes, this includes your initial deposit. In other words, you will be obligated to trade 20, 30 or even 40 times the deposited amount + bonus before you are able to withdraw. This volume requirement differs from broker to broker and everything above 30 times deposit + bonus is considered too high as it will limit your ability to use your funds. Make sure you read the broker s specific Bonus Conditions as some extra limitations may apply depending on the company you are dealing with. Also, read carefully the broker s terms and conditions, regarding the payment and withdrawal methods. Sign up with a broker that accepts the largest variety of payment methods. The most common methods include: credit/debit card, bank transfer, Western Union and Moneybookers.

11 P a g e CHECK THE CUSTOMER SERVICE Before depositing your money with any binary options broker, make sure your needs as a customer will be met. Clarity and communication are essential. Quickly scan through the website and see if there are enough languages offered? If there are enough foreign trading currencies offered? Do they have a 24 hour phone or live chat support? Do they offer multiple ways to contact their customer service representatives? Do they offer bonuses to loyal users and how can you use them? Also, do not forget to browse through the Internet forums and read some of the opinions of other binary options traders. Are they happy with the services offered by the given broker? Do they answer quickly and thoroughly to the traders questions? In the end, a good customer service may be what will make you choose your binary options broker!

12 P a g e COMMON BINARY OPTIONS COMPLAINS Here are the most common scams that you should be aware of, if you want to become successful in binary options trading: Credible binary options brokers are registered with trustworthy regulatory bodies and thus are transparent about their activities. If you therefore come across a broker that lists noncredible regulatory bodies, or is not registered with one at all, then this is likely to be a scam.

13 P a g e 12 You should also be aware that not everything is as it seems on the surface. For example, some brokers will use deposit bonuses with unfavourable small print terms to try and encourage you to join their site. It can be really frustrating if a broker promises a big sign-up bonus and then later you realise that you need to make two times or even three times turnover before you can have access to your bonus money. So, you will have to risk two to three times the amount of your original deposit before you are entitled to your bonus money. Although this is not necessarily a binary options scam, it is something that you can easily be tricked into if you are not careful. A binary options scam out there that you should be aware of is Terms & Conditions manipulation. You see it is very hard for you to develop any trust with any broker if they have the power to change their Terms & Conditions at any specific point. This is why it is essential that you look out for clauses in their Terms & Conditions that allow for retroactive changes, particularly regarding payouts. There are many binary options complaints out there that can be avoided just by becoming a little more savvy.

14 P a g e WHAT SHOULD YOU LOOK OUT FOR 3.1. Education and Training Successful trading is an art form. Successful traders focus on the art of trading. They invest wisely, because they understand the laws of trading. They know when to invest, where to invest and how to protect their investments. One of the most common mistakes made in trading is jumping right into the market, without understanding where it s going, and without knowing the signs that the market provides. It s kind of like jumping into the water without knowing how to swim: the odds are against you. If you are new to trading Binary Options it is absolutely essential to equip yourself with knowledge before you begin your trading journey. How much education materials does your broker provide? Is it easy to understand? Can you understand how to trade from their website? What market information does the broker provide you?

15 P a g e Flexibility A broker needs to provide flexibility for executing your trades. Since binary options trading can be done from virtually any location across the globe, brokers should realize the importance of offering a range of global assets for users. Assets should be available across all categories including stocks, indices, currency pairs and commodities from a range of market sectors and geographical regions. Does your broker allow you to start off with a small amount of money and then invest more when you are ready to trade bigger? 3.3. Security For your binary options trading platform to be completely safe for you to use, the most essential element to look out for is encryption, making sure that it is equipped with 128 bit SSL encryption from a market leading security provider. This acts as your only protection against online theft. Does your broker have well known payment security processes?

16 P a g e Human Interaction Every single Binary Options Broker should be reached not only by but also by phone. If they are not, then be very wary of them as they may not really have a customer support staff. Also, try out their Live Chat to see if they are responding at all times of the day and if they are being helpful and knowledgeable Social Media With Social Media getting bigger and bigger it has become increasingly easy to find out how genuine a broker is. Does your broker have twitter and facebook pages? Do they communicate with clients through discussions?

17 P a g e 16 Don t become a victim!

18 P a g e 17 TOP BINARY BROKERS FOR 2015: