Binary options and “scam” are words that anyone who is surfing the web is going to hear together pretty often these days. There are a couple of reasons that binary options trading has a scammy reputation, though it doesn’t mean that you’re going to be scammed if you trade. The first reason is that a lot of traders trade really badly—which is their own fault. They weren’t scammed: they were just irresponsible. The other reason is that there isn’t a lot of regulation for binary options trading yet and as such, it’s a little more difficult to find a good binary options broker. There are scammers out there, so you have to learn how to spot good brokers and steer clear of bad ones.
Regulation = Good Sign
If a broker is regulated by some financial authority or other, that’s typically a good sign. You need to know at this time however that not that many brokers are regulated, so if you don’t see regulation, that doesn’t necessarily mean to run for the hills. Many good brokers are still working on regulation but aren’t quite there yet. You can always talk to someone at customer service about that.
Customer Service = Great
Customer service is another thing that can help you to mark out scammers. When a company says that it has a help desk staffed by live human beings and a robot answers you, that’s not a trustworthy indication, nor is it a good thing when you email a question and the broker takes a week to answer you. Imagine if you had money on the line and needed an answer right away or you were going to lose it. If a company is bad at customer service, they are going to be a lousy broker.
Organized and Professional = Worth Your Time
Look for a company with a professional, well-organized website. A site that’s been well maintained and which has consistent information that is easy to find displays funding and care, both of which are important qualities in a binary options broker. If you find a site that looks like no one has worked on it in three years, that broker may not be doing so well or may not care much about its customers. Brokers that provide resources for traders (and no, that doesn’t mean a solitary, brief “how to trade” page) also are likely more trustworthy.
Good Customer Reviews = Good Sign
You should also check out customer reviews for brokers you’re interested in. See how well they’ve scored with other people who have actually used them. Join a trading forum and ask for opinions from members of the community. You can get started by checking out some of our broker reviews and also having a look at our recommended brokers:
*Check out the broker reviews at http://www.binaryoptionsblacklist.com
Your Own Responsibility = Priceless
Finally, trade responsibly. So many traders who lose all their money by trading irresponsibly love to go after their brokers and claim that their brokers were at fault because of slippage or a slow platform or some other factor. Test that stuff out and don’t invest huge amounts of money until you’re a consistently profitable trader and you can afford it. Don’t blame your broker for bad trading decisions. Instead, make good ones and acknowledge your mistakes when they happen.
These few steps will help you avoid binary options scams and become a successful trader!