Binary Options Scam and Legit
Binary Options Scam or legit? how would you know? if a broker is scam or he is not giving you your profits. It will be very much difficult for a trader to get his money out, if he doesn’t see the binary options broker is legit or scam. Identifying a scam binary broker is difficult. This is because a lot of binary options brokers and Forex Brokers available online. But there are some things that every trader should see while he is going to invest money with a binary broker. It is traders right to know the ground reality of a broker.
Online scams are easy to do. A person can make a big company with a few clicks of his mouse and there you go. With the help of a beautiful website, he can disguise. Everything is available offshore. No any need of documentation and no any tax info required. These things make it easy to scam people around the world. People in front of a computer / laptop screen do not know that whether the broker is legit or scam? But there are a few things that trader can see and judge whether the binary options scam broker or legit broker.
Binary Options Scam Overview
As we have discussed earlier in our previous article regarding binary options basics. If not read it then read it first to understand it. Binary options is an attraction for quick money makers. People want to make quick money and that’s why they want to see the ways to make money quickly. The forex and volatile markets have a lot of charm for those people. Due to heavy demand of people, scammers also get activated and they start making fool. It is also a fact that there are 95% losers in forex market or binary market. In forex market when someone loses then the other one wins. But in binary options, only trader lose the money and broker wins the money if a trader lose.
If my readers have ever heard about bucket trading then they will understand the mechanism of binary options. It is same as bucket trading. The difference between these two is, bucket trading ends soon, but binary doesn’t. Due to lot of demand and spread commission, some famous brokers made their binary options department. Because they knew that people will not stop betting, so why not make it in proper way. The made some regulations and then people start trading with them.
The identity of Binary Options Scam
The main identity of scams is, they don’t have any regulations. They will show regulation licenses on their websites, but traders will not be able to confirm them. The second way to check them is their physical location. They will not have any physical office anywhere. They will offer documents dispatch etc, but with virtual offices not in real offices. There are several websites offering virtual offices for business person. Scammers are using this facility for their dark intentions. Another thing that is interesting too, their payment processors profiles will not properly verified. Their name will not be professional. Most of the scammers use their own name or different personal names rather than organization name. This is because payment processors require additional documents, if person is using it for business purpose.
Some scam brokers offer those things that are nearly impossible to give. Just like highest rate of bonuses and highest ratio of profits per lot. Normally, binary brokers offer 80% of the profit of a lot. While they will offer 98% or above to attract the traders. But here is a question, if they are giving away that much money then what are they earning? This is a serious question that they will not answer. It is my advise to my readers to discuss about the brokers in forums and discussion platforms to understand whether the broker is legit or scam.
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