Like any other form of investment, binary options have been subject to fraudulent practices that have had the effect of discouraging potential traders. For those who think that binary trading is an easy business, the scams are real. A typical scam in binary options trading usually involves the trading site bailing out on profit payments or deliberately distorting the market by lying about signals or dragging the trader’s order.
There are several reasons why binary options have been categorized as scams:

1 – Attendance of brokers :

there are a large number of brokers offering a platform for trading binary options encouraging people to trade online. However, in the virtual world, you have no way of knowing who is behind the fraud and there is no way to hold anyone accountable. Binary options trading is based on goodwill and trust; when this is broken, the result is a binary options scam.

2 – Inexperience :

If a trader does not understand how binary options work or what a return means, he becomes an excellent target for fraudulent brokers. The best binary options sites encourage investors to start cautiously and always invest according to their means.
Platform malfunction: some trading platforms are built to scam traders, which means that either the traders’ decisions are not taken into account or the information provided is false. These delays in data transmission are largely responsible for the fact that binary options are labeled as a scam.
Binary option scams are illegal and cannot be justified under any circumstances. Reliable organizations such as the Autorité des Marchés Financiers ensure that traders are aware of all the conditions related to trading and that they can easily contact the administrators of their website. Choose a registered and regulated broker offering a perfect quality of service to its users. The best binary options websites have articles and blogs to help users understand how binary options work.
Staying out of scams is easy if you build a transparent relationship with a trading platform you can rely on, research your options and be wary of suspicious activity while trading.

Also, you should take a look at the blacklist of organizations and develop a strategy to trade safely. Reading financial pages or blogs will help you learn more about these binary options scams.
It is very attractive to invest in a market that can bring you up to 85% profits. The binary options market is one such market. People are interested in options trading because it is easy to access, immediate and varied in the selection of your investment. Binary options involve bidding on changes in the price of a financial asset and many traders can earn excellent profits if they know how to develop a good strategy and interpret trading signals.
Because of the bad intentions of the fraudulent companies, several people have fallen victim to a scam. It would be utopian to say that binary options scams do not exist or that they have not affected the perception and lives of those who have been victims of them. But it is also important to remember that binary options scams are not ubiquitous. Not every trading platform is fraudulent. Several organizations are seriously promoting this type of trade so that investors can benefit from it. They want to make trading binary options more convenient for investors by providing them with complete information and by complying with the terms and conditions of the trade every time the option expires.
This means that if a website claims that you will get a 75% profit if your options expire “in the money”, that is what you will get every time 100% guaranteed. As a genuine and credible website, an online broker aims to maximize returns to traders and at the same time inform them of the potential losses if the option expires “out of the money”.

Tips and tricks to avoid scams

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Learning the rules of trading and how to interpret signals will make you a well-informed trader and less likely to fall victim to a scam. You need to know trading terminology and expected returns so that the chances of being scammed are reduced.
By using a reliable trading platform, you minimize the risk of scams. You should check whether the trading website you use to trade is registered or not. You should also contact the website’s customer service department and discuss your opportunities and concerns with them.
Several forums offer information on how to avoid scams and protect your investments. Participating in these online forums will help you explore your options and decide which platform is best for you.
Don’t trust brokers who only talk about profits without giving you more details about possible losses. No matter what the situation, it is impossible to eliminate losses and binary options trading is no different. Anyone who talks about trading without losses is lying.
Also be careful when transferring your deposits and be sure to follow the guidelines of a respected broker. If you think there is a risk of scamming, do not complete the transaction. Binary options give you the choice to decide on your investments.
In summary
Binary options trading scams can easily be avoided by using an account with a regulated broker, which ensures traders the security of their funds as well as complete information about their trades.

In general, it will suffice to ask your broker the following questions:

  • is it regulated by the Financial Markets Authority?
  • is it possible to make a minimum payment (not exceeding 50-200 Euros)?
  • is it possible to train and test the platform on a demo account?
  • is it possible to make the gains made at least once a month free of charge?
  • is the spread the only commission the broker receives?

If the answers are “no”, don’t open an account with that broker and look for another one. Personally I strongly recommend Option Web and Top Option where withdrawals are very fast and customer support is excellent (this is where I trade the most and make most of my profits)