How to spot a binary options scam
There were binary scams in the early days so you should make sure to not fall to such a scam.
The rule of thumb is to use a reputable broker with years of customer satisfaction, like one of the brokers in our top 3 table on the right. We only list brokers who are proven to be safe and it is our job to follow the market for you.
Generally speaking, when it sounds too good to be true, most likely it is a scam. Money does not grow on trees, or for that matter, in the binary options market. There is no free lunch in economic theory as they say.
If you are curious about trading binary options. remember that trading has never been easy and never will be. Financial markets are one of the most competitive places on earth with all sorts of skilled people trying to make money, so obviously not every one can be a winner.
So if you see an offer telling you that you can use their binary options platform and easily make money day in and day out, that is not true at all. They will promise you an early retirement, in a life of luxury and laziness, thanks to binary options trading. But life simply does not work this way. To make money in the markets you need to work hard to really understand how they work.
Only trade with a binary options broker that is realistic about what can be achieved in term of risk and return. A broker that does not tell you that you are going to retire next year, but rather one which says that they have a great trading platform and you will have a lot of fun using their product.
Because to be honest binary options is first of all about the fun of trading. If you make money from it even better but do not except to become a millionaire next week. Maybe you can make some money like a few thousand dollars per month if you are very good at predicting short-term market movements.
In order to stay away from these scams avoid offers from a beautiful woman explaining that she was one of the top traders on Wall Street where she traded binary options. Because Wall Street traders do not buy binary options, they only sell them. These digital options are manufactured by big banks and brokers for the public to use. And anyway hot shot traders do not end up in the binary options market as we know it, as they trade in millions of dollars, not thousands.
Only trade with a reputable binary option broker. On this site we recommend the most reliable binary brokers with a history of providing a fair trading experience with reliable trading tools and signals (see the list of top brokers ).
What matters when you choose a venue to trade options, is to look at their offer. Do they have a nice bonus for joining? Read the fine print to make sure how you can cash out this bonus when you get it. Do they offer demo accounts. And theyd better have one, because you want to test their platform before transferring any cash to them. And are they regulated and by which agency?
If you are satisfied with the three points above, then start with small amounts of money to test the waters. The binary options market will be there tomorrow, so no need to rush. Take your time to understand it first.
To start trading binaries safely today, click here.