The binary options industry has grown incredibly quickly, and for good reason. The prospect of being able to earn massive gains in a very short time in the market is exciting. However, because of the fact that binary options got popular quicker than regulations set in, there are several brokers out there that don’t have your best interest in mind, and it’s incredibly important to avoid binary options scams. Today, we’ll provide a checklist that you should use before ever depositing money with a binary options broker.
Check Customer Reviews
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The internet has opened up ways for us to share experiences like never before, and that’s key to choosing good services. You see, if a binary options broker is a scam, chances are that you’re not going to be their first victim. In fact, there’s a very high probability that previous victims have complained publicly online about the scam. Before depositing money with any binary options broker, it’s a good idea to look for customer reviews. After all, if another customer had a bad experience, chances are that yours won’t be much better.
Professional Broker Reviews
There are several watchdog websites out there that make it their mission to act on behalf of and protect consumers. These watchdog websites generally provide professional reviews in which they investigate brokers to see if they are truly a scam. Because their sole purpose is to uncover scams, most of them have become very good at looking for and finding signs of a scam and conveying those signs to potential victims. With that said, it’s also a good idea to look for professional reviews surrounding the broker you’re thinking about working with before depositing funds. If the broker is a trusted one in the investing community, it won’t be hard to find positive professional reviews with a quick search online.
Contact Customer Support
Quality customer support is a key ingredient in the recipe for binary options success. So, it’s always a good idea not only to figure out how to contact the customer service desk offered by the broker, but to actually contact them and ask a few questions before depositing funds. This is simply a test. Ultimately, you want to make sure that the customer support provided by the broker offers clear and comprehensive answers to all of your questions before signing up.
Check For Regulation
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While the binary options industry as a whole is a very under-regulated one, there are several brokers that are indeed regulated by various financial authorities around the world. It’s always a good idea to only work with regulated brokers as the regulation adds a layer of protection for traders. However, never take the broker’s word for it. The truth is that scams will say that they are regulated, even though they are not. So, go to the official website for the regulatory body the broker claims to be regulated by and run a search. If you can’t verify regulation, don’t work with the broker.
Check For News & Warnings
Finally, it’s a good idea to do a general search for the broker’s name to see if there are any pieces of news or warnings online about them at all. Lately, some of the larger scams have been popping up in news sites, and even some governmental agencies have created lists of scam brokers to avoid. Taking time to look for any of these could save you quite a bit of loss in the future.
Final Thoughts
While there are scams out there, not all brokers are scams. In fact, some of them can help you on your way to becoming a highly profitable binary options trader. By following the check list above before depositing funds, you can be sure that you’re working with a solid broker, rather than becoming the next victim of a binary options scam!
