How To Avoid Binary Options Scam

By Subodh / June 23, 2014

People always get excited about quick and easy money. In fact, it’s this desire for quick money that makes it possible for companies and con-men to scam people so easily. In this day and age, it is highly important for people to be aware of the various scams that are going around. The money you have earned is incredibly special, and you have worked really hard for it. Do not let it go to waste by losing it in a scam.

Now, if you ever get a call from a salesperson who wants to tell you about Binary Options, what should you do? Are you not sure about what Binary Options is, in the first place? Here, we’ll clear all your doubts for you.

What’s Binary Options Scam?

Binary Options is a classic example of a scam. The salesperson will always make the opportunity sound incredibly good, and they will certainly offer you a nice bonus, too. Everybody likes good returns, so they will succumb to the salesperson. However, you need to be aware. If somebody calls you and tells you about a binary options scam, you should take some time to do your own research.

Scam

You should find out where the company is based, who owns the company, and where the company is actually located. If the plan is a scam, you will not be able to find out all these details about the company- if these people are planning on scamming you, they would not want to be found easily. Before you actually decide to give this a try, take some time to find out if the address listed for the company is actually a real address, or if it just a P.O Box.

How To Find Out If It Is A Scam?

There are a few ways by which you can tell if a deal is a scam, or not. If the broker who has called you is representing a company that is regulated, chances are low that it is a scam. A financial company that is controlled by a regulating body has to follow certain rules, so they will certainly not be able to steal your money. Secondly, pay close attention to the kind of bonuses being offered. Binary Option brokers offer bonuses depending on the amount you are willing to invest with them. Depending on the amount, the bonus can go as high as 100%. You have to pay close attention to the fine print here- depending on the deposit amount, you might be obligated to trade 20 or even 50 times the amount you have deposited!

Make Sure You Pay Attention To The Fine Print

People do not like reading terms and conditions- and these scam brokers take advantage of that fact. It might be incredibly tough to go through the fine print, but you have to do it for your own good. After all, your money depends on this document. There are some Binary Options brokers that add outrageous terms to the terms and conditions, and benefit from it when people sign it without reading. You have to keep in mind that all the information you have received from the brokers, and on the website are purely promotional, and do not include all the terms and obligations you will be subjected to.

Keep Your Eyes Open To What Others Are Saying

Before you decide to put your money into a scheme suggested by a Binary Options broker, take the time to look for reviews of the same. There are a number of websites that provide you with information of valuable Binary Options and the scams. You will be able to get in touch with other people who have had bad experiences with certain brokers- and you can learn from their mistake.

These are the 5 simplest ways of avoiding binary options scams. Remember- if you are prepared, and stay one step ahead of these brokers, they will not be able to scam you at all.