While the majority of binary options brokers have taken their clients for a ride the good news is that not all brokers are scammers. There are a handful of legitimate regulated brokers such as Nadex, Alpari, Forex Time, and XM. Investing online is a personal decision and if you must do so we want to outline the binary options red flags to look for when choosing which broker to go with.
What a Broker Shouldn’t Promise You: Binary Options Red Flags
This is one of the most common lies scammers lure people in with. As many people desperately want money, this promise is very appealing. And this is usually the first step to getting someone to open their wallet.
Bonuses always come with an albatross of terms and conditions, locking traders into a hefty required trading volume. In reality, binary options is a game of probability and the house tends to win 99% of the time because 99% of the traders are not good players. Bonuses are a way of ensuring people keep trading for as long as possible until they lose all of their funds.
To be a successful trader takes years of training and trading before anyone can think of living off the financial markets. Anything above 5% in monthly profits can be considered a huge success. Any percentage higher than that is unrealistic. The best binary options brokers won’t make promises of fantastic returns because nobody can guarantee anything when it comes to trading.
Many people and companies offer account managers that have a “magic” strategy to double or triple your investment. However, after the client puts in money, account managers will often face some “unexpected variable” in their calculations, causing them to lose all your money. In reality, they never really traded anything in the first place, but just wired the money off to some fiscal paradise.
Most signals providers are affiliates of the broker and often be work for the brokerage house. They may suggest buying binary options that have better chances of gaining the broker profit than the client. Ideally, you should never depend on external sources for information, with the exception of a reliable news feed. Do not trust any signals unless you personally know the provider, and they have proven their success in the markets.
Robots are a type of program often recommended by binary companies to automate trades. However, they are often programmed to trade so that scammers will profit while traders will lose. Unless you program the robot yourself, don’t trust them.
Birman Law has seen many cases of people who were seduced by promises of success and didn’t notice the red flags at the time, but in the end, they lost everything. Stay safe and, if you really want to trade, be sure to invest with regulated binary options brokers. If you have been scammed, don’t give up and Contact Birman Law because in many cases your money can be recovered.