Option Trading Scam – The Different Ways it Can Happen
Binary options are financial products that gained a lot of popularity because they offer easy profits to investors. However, there have been a lot of instances where people were taken for a ride by the broker they signed up with and ended up becoming victims of an option trading scam. No one wants to lose a large amount of money, yet binary option scams have become rampant and they come down to a number of factors, such as manipulation by the broker or lack of due diligence on the part of the investor. This is a very unfortunate situation and it has ended up tainting the whole image of binary options in their entirety.
Even though there are some bad actors in the market, there are some good opportunities that people can use for connecting with honest brokers who treat their customers with the respect they deserve. The problem is that finding such brokers can be a major challenge and the best way to go about it is to know the different ways option trading scam can happen. This will help you identify fraud brokers and you will be able to steer clear of them and opt for trustworthy and good brokers.
One of the first things that you need to remember in regard to option trading scam is that if something sounds too good to be true, then it probably is. If you come across an option broker or agent promising you outlandish returns, then you should instantly be wary. Alarm bells should be ringing in your head because if it doesn’t seem practical, there is a good chance that it isn’t. This is where most people trip up and are trapped by an option trading scam. There are different ways that scammers will try to take advantage of you.
The most common one is the software scam and it has become one of the most prominent scams in the industry. It involves a ‘revolutionary’ software that has been developed secretly. You will find a video where you the broker will take you through the story of how effective the option trading software is. The video will comprise of some wild claims, but they are mentioned so subtly that most people don’t even realize it. To the untrained eye, they come off as a legitimate offer and people fall for it. This is where you need to use common sense. If the software does really do what it claims, why would the developer give it for free to someone in the first place?
Such option trading software are nothing but scams and are just an effective way to lure in victims. Once you share your details, the ‘broker’ will get in touch with you and subtly push you to make a deposit. To spot such an option trading scam, you need to look for phrases like ‘guaranteed profit’ ‘completely risk-free’ and similar promises that just cannot be fulfilled. Fake testimonials are another sign of a scam and you will notice that these are a bunch of good-looking people who are raving about the software.
The people in the testimonials will have lots of spelling mistakes in their reviews, talk about making impossible returns and are from all walks of life. In fact, some even claim to quit their jobs because the option trading software is helping them earn so much. As stated earlier, any returns that seem to be completely positive without any risk of losses are always suspicious. There is a degree of risk in all kinds of trading and binary options are no exception. The idea that you can make money just by turning on the software is ludicrous in itself and just another option trading scam.
The bonus is another way of trapping people into a binary options trading scam. In order to attract more people to take fraudulent platform, binary options broker deliberately offer such bonuses that can tempt people to invest more money in one go. These bonuses are usually advertised as signing bonuses and appear to be quite generous. However, these come with a number of strings and are just a way to drag out the scam so they can get you to invest as much as possible. Likewise, some binary option scams also involve offering broker managed accounts or the use of binary options robot.
The key is to understand how to spot an option trading scam and then use these telltale signs to avoid them. First and foremost, the lack of essential company information on the homepage of a broker is a red flag in itself. Brokers operating in the shadows are only interested in taking your money and not in providing you any service. You need to look for essential information about the binary options broker, such as legal terms and conditions and regulatory oversight. If this information is missing, you should avoid the broker altogether.
Apart from that, you should also take a look at their service. If they are unresponsive to your initial inquiries and questions, you should regard them with a degree of skepticism. If the binary options broker is unresponsive to your questions before you have invested with them, you can rest assured that they will not be responsive at all, as soon as they receive your money. Hence, no service can speak volumes about the nature of a broker and is an indicator of an option trading scam. Last, but not the least, you should also look at their track record.
Even if despite all your precautions, you have ended up becoming a victim of an option trading scam, it doesn’t mean that there is nothing you can do. There are some recovery services out there, such as Money-Back, which can come in handy when you want to get your money back after being scammed. These services are primarily designed for this purpose and they know how to help people in recovering their valuable investment after they have suffered because of an option trading scam.