spot a scamThese days the binary options scams are becoming more and more popular. With the growth of this niche the brokerage companies and the creators of systems have found a lot of ways to trick the investors. That is the main reason why we, the team behind Botscam.com decided to investigate the binary options robots and brokers available online. This article is going to give you some tips and information about how to avoid and how to spot the binary options scams.

Yes, that is right! Binary options trading can be risky if the traders are not well informed about the ways to spot and avoid scam services offered online. CySEC along with other regulatory bodies around the world put a lot of efforts to set standards and requirements for the binary options brokers to follow and meet. Still, traders are not 100% secured – the risks and the warnings are usually shadowed by false and hyped promises for gaining high amounts of profits and becoming a successful trader. Remember, there is no shortcut to success in trading binary options.

We will discuss some of the reasons why traders may lose their investments and also how to get over these problems.

Binary Options Trading – Underestimating the Risks

Many of the scam binary options trading systems and brokers rely on the customers who are not well informed. The brokers and the systems prefer to highlight all the positives of the binary options trading and keep their negatives under cover. Many of the scam websites mention success stories, but they may be not legitimate. There is no doubt about the fact that binary options trading can your earn profits.

Article You may be Interested in:

Is Binary Options Trading Legit?

But it is important to have certain trading skills, strategy and basic knowledge that will help you to become a successful trader. Do not fall for stories about someone earning thousands of dollars every hour.

Brokers that Block Withdrawals

This category of fraud is executed in a very clever manner. It happens after a trader has deposited money into his account, earned profits and is now looking for a way to withdraw his earnings. Sometimes, the broker may encourage the trader to add more funds into their account so they can earn more profits.

But when the trader tries to get the funds processed, their accounts are locked. The broker may also cancel their withdrawal requests repeatedly, giving the trader no access to their funds. All the emails and phone calls that are made by the trader are usually ignored. Basically, the trader will end up having no one to communicate with when it comes to requesting a withdrawal. All the communication channels will be closed and there will be no way of withdrawing the earnings.

One of the best ways to protect yourself from this type of scam is to do your research before you make an investment with a broker. You must read reviews online and look for complaints on the internet. When you decide to sign up with a broker, you must read their terms and conditions as well. You must go through their FAQ section and know all about their withdrawal requirements.

728x90

Moreover, before you go on to build your account, you must make your first withdrawal to find out how the procedure works and whether you are able to get access to your funds or not. If you receive aggressive or pushy phone calls where you are told to add more funds into your account, then you must proceed with caution and try to get your existing funds back into your account. The simple thing to do is look for a reliable and safe broker.

Identity Binary Options Scams

You must be very cautious when signing up for a binary options trading system or a broker because there are some fraudulent companies which not only take your money, but your identity as well. Whenever you sign up for a trading account or an automated software system, you are required to provide your personal information and when you have to make a deposit, you have to provide details of your credit card. Most of these companies also require you to submit copies of your IDs. While it is true that not all binary options trading companies who request these details and information are scams, you must be cautious.

To play safe, you must only choose a broker or a software system that is reliable and trustworthy. You must use an online payment system as far as possible and avoid providing vital information to companies you are not familiar with. You can contact their customer support team for any questions and queries. You must verify small details and confirm that you will not be required to compromise your identity when it comes to making withdrawals.

>> Visit 100% Trusted Robot <<

Manipulation of Auto Trading Systems

This type of scam can be very costly in the long term. Traders are usually faced with this type of scam when they sign up with a bogus software system and have linked their account with a fraudulent brokerage company. What happens is that the broker manipulates the automated trading software in such a way that it generates losses. The software executes trades after the expiration time which makes it easy for brokers to tell traders that the losses occurred due to technical errors which is not their fault.

In such cases, the trader has no choice but to continue trading until they realize that the problem is much bigger than that they had initially thought it was. They keep generating losses repeatedly and by the time the realization comes, the entire account has been wiped out.

More About Auto Trading Systems

Reading reviews about the different software systems and brokers is the best way to solve this problem. You can protect yourself from this type of common scam if you are able to distinguish between genuine companies and fake ones. You must look for real trader reviews and not the fake ones. If you have already started trading and have encountered a technical error twice, then you should understand that you may be getting tricked into losing your money. In such cases, you must withdraw your earnings quickly and look for a more reliable option.

Unclear Terms And Conditions

One of the clever ways of tricking customers is to hide the terms and conditions, especially those which are related to making withdrawals. When traders are not aware of the rules and try to make a withdrawal, they are unable to do so. Then they find out that they have to execute a certain volume of trades or invest a certain amount of money before they can get access to their funds.

For example, if a broker offers a welcome bonus and the trader decides to accept it, then the trader may not be allowed to make a withdrawal unless a certain volume of trades have been executed. This is an unethical way to hold on the funds of the customers and it is a definitely a sign of a fraudulent company.

top tipsFREE Tip:

Before opening an account with any broker on the market read carefully the Terms & Conditions Section.

Check if the broker you choose is regulated by any financial authority.

To protect yourself from this type of binary option scam, you must read their terms and conditions before you sign up. If the terms and conditions are not visible on their website, then you must proceed with caution because the only reason to hide these kinds of vital information is to trick customers. You must look for a broker with a transparent policy. Better, sign up with a broker that is reputable.

Binary Options Trading System Promising Large Returns

New and inexperienced traders are easy targets for scammers. Whenever they see promises of large returns and huge profits, they believe it blindly. So instead of doing research and finding out more about these systems, they sign up for it and deposit money with a broker they are assigned. Most of the time, the brokers are new and unreliable. So after signing up and making a deposit, traders find out that the software does not work as it claims. The software is highly unreliable and results in more losing trades than winning trades.

You can easily identify this kind of scam by doing a research on the system. Moreover, you must understand that there are no systems currently on the market that can offer 100% results. The financial markets are volatile and accurate predictions cannot be made all the time. If a system promises huge returns or promises to make you a millionaire in a short period of time, then you must simply stay away from it.

Bottom Line

Be careful with the “Auto trading systems” promoted via email, these often are unreliable and scam systems.

At Botscam.com, customer safety is our #1 Priority – that is why we have tested and selected only the Best Binary Option Robots to save you time and money.

secure-logo-300x36