We should all like to think that shifty business dealings come with a neon sigh and point directly at the culprit. Or, we would like to think that some inner voice would whisper „stop – bad idea“.
And while this might work sometimes, more often than not this is not the case.
Especially in the world of the lucrative binary options trading world which skilfully mixes advanced technology and finances.
Luckily, there are things traders should look out for when it comes to a tricky question of how to successfully identify scam binary brokers.
And bearing in mind that there are well over 300 binary brokers on the market, we urge traders worldwide to familiarise themselves with advice we shall provide in this guide.
It just might save them their hard-earned money.
Lack of Basic Trading Info
While most of the binary brokers do not fall into the category of scam, there are those who do. One of the ways how to successfully identify scam binary brokers is the overall lack of basic information on their website. If traders cannot find even the basic information than that might be a cause for concern.
In general, traders are always advised to do a thorough check before they settle for a broker. This approach might be time-consuming but it can prevent bad decisions.
Traders can also use sites like Binary Preview which contain plenty of useful information and broker reviews which are very helpful.
Poor or Absent Terms & Conditions
Another way how to successfully identify scam binary brokers is the poor or absent terms & conditions section.
This is one of the most important segments when it comes to binary options business and if traders are not able to locate this on broker site it is cause for alarm.
Or at least a reason to take a cautionary step back.
Also, if the broker does offer terms & conditions which prospective trader finds insufficient of poorly explained it could also be an alarm bell. Naturally, traders may contact customer support service but established brokers such as IQ Option or 24option will have transparent and detailed T&C section so traders can go over it.
Elusive Customer Support
Binary brokers who strive to deliver the best service possible will provide efficient and reliable customer support service. Professional customer support is well-trained, knows how to deal with traders’ questions or any possible issues in a suitable manner.
Ideally, traders will also be able to contact customer support service through several channels like live chat, email, phone, web form or even Skype. It is to be expected that traders do have to wait to get a response from time to time due to a large number of traders from all around the world.
However, if global traders are not able to get a response from customer service even after numerous attempts then it is possible a broker is a scam. We strongly advise that prospective traders test customer support service before they settle for a certain broker.
Poor Protection of the Trading Platform
A binary broker should always keep safety measures of their trading platform in the highest regard. That immediately communicates a professional approach to the overall business but also respect toward their register traders.
Making sure that binary brokers have sufficient safety measures installed is an easy process and all traders need to do is inspect the URL area. Usually, there are letters HTTP before the actual address as well as a small green padlock.
That indicates that the platform is protected. SSL is used as a protection on the majority of binary trading platforms which encrypts all financial and personal data which have to be exchanged.
Additionally, we also advise traders to check the longevity of the domain the broker is using. Binary options brokers who are looking to establish a long-term business will not invest in a temporary site or a domain (less than a year).
There are plenty of free and available tools online which traders may use to check domains, such as http://whois.domaintools.com/ which can be a great help.
The lack of clear indication that there is a protection measure put in place is just another way how to successfully identify scam binary brokers. A serious binary broker will never be negligent about their customers’ private and financial information.
Refusal to Process Withdrawal
This is probably one of the worst things that can happen to binary options traders but it is also a sure way how to successfully identify scam binary brokers – refusal to process the withdrawal.
If traders did all the requested steps necessary for the withdrawal process to begin, then there is no reason for a broker to refuse the withdrawal.
Sadly, if traders find that they cannot get their funds or that the broker stopped responding to their constant communication attempts then they are most likely dealing with a scam broker.
Absent Risk Warning
Trading binary options includes risk and that should be made perfectly clear to all traders who wish to engage in this online trading venture.
Binary brokers who are keen on building a transparent, long-term business will have the risk warning on their site.
The absence of it can be a sigh how to successfully identify scam binary brokers. With brokers such as 24options, IQ Option or Daweda Exchange the risk warning is given in clear terms and it can be easily located by all those who visit their sites.
There is a reason why we left this for the last. This is a grey area and lack of regulatory status is not a clear indication of scam brokers. However, many traders are led to believe this is the case.
It is always advisable that binary brokers do obtain the regulatory license, yet the lack of one cannot be taken as a proof that binary broker is a scam. There are unregulated binary brokers on the market which do not have a regulatory license but still run a respectful business with numerous happy customers.
That is the reason we have supplied several other indications of how to successfully identify scam binary brokers.
In the end, it all comes down to binary options traders doing their homework before they pick a specific binary broker. The advice given in this article could be helpful when it comes to making the right decision.