Binary options have become incredibly popular as of late, and for good reason. Binary options are a trading vehicle with incredible appeal. By allowing control over risk and offering incredibly high returns on investments, binary options have captured the attention of millions of people worldwide. However, as with just about any industry that has to do with money, it’s important to watch for scams. Today, we’ll talk about why binary options are a hub for scammers and how to spot a scammer to ensure that you’re not the next victim.
Why Binary Options Have Become A Hub For Scammers
Binary options are incredibly appealing. When traded properly, they can lead to incredibly high gains. However, they are also very new. In fact, retail binary options didn’t become available until 2008 in the open market. As a result of the fact that binary options are incredibly new, many governments haven’t gotten involved in the action quite yet. As a result, the entire industry is incredibly under-regulated.
Scammers know that consumers want to make as much money as they can as quickly as possible, and they know that by trading binary options with a legitimate broker, this is possible. They also know that binary options are heavily under-regulated. Therefore, even if they are caught scamming people through binary options trading systems, there are little to no consequences. This makes binary options a safehaven for scammers.
How To Spot A Scam In Action
The reality is that not all binary options brokers are scammers. So, it’s not a good idea to discount the industry as a whole. However, it’s incredibly important to learn how to spot the scams. Here are a few things to watch for if you decide that you’d like to start trading binary options…
Regulation – While Binary options as an industry are very under-regulated, not all brokers are created equally. There are some brokers out there that are regulated by securities and exchange commissions like CySEC. If you decide that you want to start trading, make sure that you only trade with regulated binary options brokers. This will add a layer of protection as you trade.
Blacklisted Brokers – Recently, a website known as Binary Scam Sniffer was launched in an effort to help protect innocent consumers from becoming victims of binary options scams. The company has a list of blacklisted brokers. If you plan on trading binary options, make sure that you trade with a broker not listed on the Binary Scam Sniffer blacklist.
One Click Scams – There are several one click binary options scams out there. These websites claim that all you need to do is deposit money and click button to get the automatic software to trade for you and earn a profit. 99% of the time, websites like this are going to be a scam. The reality is that money doesn’t come easy. So, don’t get fooled into believing that earning money in binary options is as simple as clicking a single button!
Final Thoughts
As mentioned above, binary options are a very legitimate way to trade and make money. However, the freshness of the industry leads to under-regulation and opportunities for scammers to steal from you! So, if you plan on trading binary options, keep your eyes peeled for scams to ensure that you don’t become the next victim.
I wish I could have read this article earlier. Recently I lost $500 in binary option. Now I am looking for the cryptocurrency. Whats your opinion on this? is it safe and better than binary or am i leading to another mess?
Alex, the crytpocurrency market is super volatile right now. A lot of money will be made and a lot of money will be lost. There’s not enough liquidity for it to be a market that I would be willing to put my money into.