6 Ways To Spot A Binary Options Scam!
There are numerous scams out there on the internet. It’s inevitable. The amount of access the internet provides the number of shady characters in the world and not a few gullible people make it a no-brainer that scams will exist. Unfortunately, binary options are no exception. The industry is rife with scams, over the past three years I have come across more scams than I can count. They range from simple marketing schemes all the way up to highly detailed networks of websites built layer by layer, funneling sheep in for slaughter. Some are easy to spot; the very worst are chameleons that cleverly blend in with the crowd of more legitimate businesses. We’ve already brought you the complete How to Avoid a Binary Options Scam Guide, and now the good news is that we summed it up so you can always tell the scam from the real with only a little work, and some help from this list I have developed.
1. Free Isn’t Always Free
One of the easiest ways to lure in potential marks is to offer something free. Everybody does it. The baker on the corner gives up free samples, the car wash gives up free squirts of air freshener, no problem. But when a website lures in with the offer of something like a free bonus only to turn around and force a deposit be wary. Anytime you have to deposit in order to get a free signal, or service you’re paying, it’s just disguised to look free. Notice: free doesn’t always mean scam! But if you think you’re getting some for free, the chances are you feel like you’ve been scammed in the end.
2. Too Good To Be True
It is not uncommon for brokers or businesses to hype up trading with ads claiming instant profits and roads paved in gold. It’s advertising. What I am saying is that there is no way that any system, strategy, guru or guide can guarantee any rate of success, much less 85%, 95% or higher so beware of making a decision simply based on this criteria. It is not only foolish but very naïve of people to believe that some secret guru will make them loads of money. You always have to look at the offer and the claims with skepticism. The ones that sound just too good to be true likely are. This doesn’t mean that every free binary options signals you come across is a scam but it is another warning flag.
3. Shady Marketing Practices
Binary options runs on marketing. Online marketing is a method of advertising that allows individuals to earn money while advertising for a product. This is good for brokers and individuals or businesses such as ThatSucks.com (former BinaryOptionsThatSuck.com). BOTS, for example, uses marketing to provide CommuniTraders 2.0, a totally free social and demo trading platform. Unfortunately, online marketing is highly exploitable and the root cause of many scams you find on the internet. If any website, individual, business or service requires you to join and fund a specified broker in order to get what they have they are using a shady marketing practice. This does not mean scam but it is the first step in recognizing many scams that exist today. Some websites will provide wrong and misleading information about brokers or signals, and if you don’t double check the facts, you’ll get drawn into some shady broker. Some forums and websites deny posting of negative feedback on certain brokers or products. Bottom line is – not everything you find online is indeed genuine and reliable. Double check the facts, and stay connected with our community.
4. The Sh*t Is Getting Deep In Here
Not only will scams make claims that are too good to be true, the websites are usually full of fluffy marketing style material. Not real information. If you come across layers and layers of pages that drag you deeper and deeper into a website without giving up the goods you can be assured it is a scam. True businesses and individuals with a valid product or service to sell do not need to rely on these tactics.
5. Who Are These People?
Once I get the feeling I’m about to be scammed I start wondering to myself “who are these people”. Often times I find names and email addresses that at give some assurance. Websites with no information get no information from me, regardless of scams but never take the information at face value. Always check it. Especially claims of regulation. If a company is regulated there will be information about it on official websites like CySEC. The most devious scam I have seen was a shady broker who set up a fake “investment” company to draw in clients; both the broker and the “investment” company regulated by financial institution on yet a third fake website. Needless to say if you find something like this it is most likely a scam.
6. Do You Feel Comfortable, Well Do You?
This is a funny line, coming out of Clint Eastwood while Dirty Harry is holding a .357 Magnum on a punk. But not so funny when you are considering the latest binary options offer you have run across. If you don’t feel comfortable with it you probably shouldn’t use it. Again, this does not make it a scam, it’s just another warning flag. You have to add up all the pieces and see them for what they are. If you feel good about what you see then most likely it’s not a scam. And if you feel good about it maybe someone else does too so be sure to check into a forum or two and see what others have to say.
The most important thing is, stay safe and don’t give your credit card to the next person offering you millions in 60 seconds.Whatever it is you ran into and you’re not sure of, we have a place for you: CommuniTraders Forums. See you around!