Trading has evolved a lot over the years. From the time that a trader had to visit the trading floor to the present when no matter what you want to trade, as long as you have an internet connection, you have a way, it has changed our notion of trading. In fact, trading has become a lot more accessible to the common mass since the advent of online trading. Besides generating a higher volume of trade, it also ensures that the common public is aware of exactly what he/she is getting for the money paid. However, this is a dual-edged sword.
Everyone who is remotely associated with online trading sites knows about online scams. Simply put, any website that promises you great rewards and does not deliver is a scam. What makes online scams worse is the fact that it is virtually untraceable. Not to mention the fact that there are a lot of glaring legal issues with online trading which let the perpetrator roam free even when the crime is clearly apparent.
So, should you not trade online at all? We would not say that. In fact if you check out the reviews on Binary Options scams and software at Trusted Binary Reviews you will find lots of great advice.
A Few Pointers
Like any other field, online trading in general, and Binary options trading is particular, needs to be conducted with a few extra tips in mind. Let us go through them.
- When in Doubt, invest in moderation
Simply investing blindly in a website because they are promising a 100% extra initial investment does not mean you should blindly invest your whole capital. Frankly, we advise on staying away from websites which promise such high amounts of ‘free money’ in the first place. It’s also worth taking a look at a financial calendar here.
- Don’t fall for Guarantees
All of us have seen Binary options websites which guarantee a 100% win rate. These go on to insist how you will never lose money if you invest with them. Sorry to burst the bubble, but there is nothing called a guaranteed win. Any trade, especially Binary options trades, can go either way. If you see a website which claims otherwise, stay as far away as possible. These websites are most likely scams because respectable trading platforms never hide the truth from their customers.
- Read between the Lines
Online trading websites often have a habit of promising something and then delivering something else. So, the most important part is to read the agreements and the disclaimers they provide. While a website may have a big caption of “100% profit Guarantee” on the first page and then a single line on the disclaimer page mentioning that they do not offer any guarantees. In fact, that is the case with most scam websites. What does this translate into? Well, for starters, a legal submission on your part with no chance of repercussions since they did mention the fact. Also, definitely read the rules regarding the withdrawal policies before choosing a broker.
- Reviews & Background checks
Now, while reviews do not guarantee authenticity, it certainly is better than nothing. However, most websites seem to be taking this into their own hand by faking their own reviews. We suggest on going through the reviews and then going through the names they mention on their websites as reviewers and owners on the social and news websites. Let us be honest here. If you are a billionaire, you are likely to have some form of a social life online. It is not possible to completely disappear under the radar. No mention of someone that famous probably means that the website is fake.
- Are they regulated?
There is a host of regulatory bodies on the internet who check the authenticity of a trading website. It is no sure shot way of proving that the website is authentic, but it is at least some form of measure. And besides, these regulatory bodies are often quite thorough in their checks. Definitely, go through the bodies which regulate a website as they vary from the casual to the real strict ones.
- Privacy & Security Terms
This is an important factor. If a website is missing privacy terms, that is a guaranteed scam. Not including privacy terms means that your personal information (including name and bank details) may be used for public domain (telemarketing, for example) without your consent and you will not be able to do a single thing about it. Likewise, a good trading website should always have good security measures in place since they are dealing with money.
- Do not fall for Managed Accounts
This is a very common thing to see in online scams. They offer fully automated systems where you do not have to do a single thing and the profits keep rolling in by itself. Consider this instead. In return for the automation, you will no longer be in control of your own investment. This means even if the profit levels suddenly turn negative, you will have no control over the money. It can all be gone in a moment and you will not have any say over it.
There are a lot of websites who have stolen from their customers in the past. Regulatory bodies with detailed information on such websites are available on the internet. Be sure to have a look at these charts before you choose an online broker for Binary options trading.
Always remember that you need to do your own research before choosing a broker. It is your money and unless you do something about safeguarding it, no one else will.
While it is true that it is best to choose a well-known online trading site in order to be on the safe side, it is also important to note that the best profits are generated with the new and unknown traders who offer better profit returns in exchange for their late introduction in the market. Proceed with caution and very soon, you will be trading profits like a pro.