Binary options have become very popular recently and the trade volumes are growing at very high rate similar to forex trading. It has gained huge reputation amongst novice investors who prefer online trading because of its simplicity and huge payouts. As the name implies, binary options has two possible outcomes: either the trader wins and earns as high as 80% returns or he loses the trade and also his initial investment. Some believe that winning is based purely on luck. The truth is that binary options requires a lot of research and effort if you want to win consistently.
Internet scams are always a threat to innocent people in the society and every day we come across many new investors who get cheated by fraudulent brokers. These sham brokers disguise themselves as licensed brokers and allure traders by promising them with unrealistic payouts. They promise traders to become a millionaire overnight by trading binary options using their platform.
Many sham brokers promote the use of automated tools and trading robots that can place trades without the need for any manual intervention. They also promise that you can multiply your profits several times by using such automated tools. They take advantage of the ignorance of novice traders and allure them with huge payouts and amazing rewards.
Most of the fake brokers have hidden terms and conditions which can be of great advantage to them and disadvantage to the traders. For instance, most brokers manage your trading account and they refuse withdrawals when you request for it. Some fraudulent brokers charge the cards of their customers without even getting their consent. One such scam broker is Sycamore options, who have been accused of stealing money from its investors by charging their accounts without getting their consent. Also they refuse withdrawal requests of their customers and don’t respond promptly to any of customer queries or complaints. It takes a minimum of forty days to receive your first withdrawal from this broker. Similarly there are several other illegitimate and unregulated brokers who fool users with their false promises of unrealistic payouts.
Before you open a trading account and deposit your money with any broker, you should verify whether the broker is regulated and licensed by a government organization or trading commission. You can go through the list of blacklisted brokers and ensure that the broker whom you are choosing is not listed there. Some brokers listed in this website are Binary Matrix Pro, Money Machine, Quantum Income Machine, The London System, Dream Profits App, Auto Trader Alpha etc. You should also read the testimonials and reviews about binary options brokers from customers who have traded with it. The website of the broker should have SSL certification and absence of this means that it’s not safe to trade using their platform. You should also go through their terms and conditions thoroughly and ensure that there are no hidden charges or commissions. You should never get attracted by the “Get Rich Quick” schemes promoted by these fraudulent brokers.
However, not all binary options brokers are fraudulent like Sycamore options and other unregulated brokers. There are some licensed brokers like Anyoption who can be trusted and relied upon. Anyoption is regulated by the Cyprus Securities Exchange Commission (CySEC) under license no. 187/12 and provides their investors with the right set of tools necessary for trading. They guarantee decent payouts for their traders. Similarly there are other regulated brokers like 24option and NADEX which are trusted by millions of traders around the world. If you really want to make money with binary options, you should start investing with such regulated brokers.