Trading with binary options has become a popular practice, because of the high and fast returns this type of trading guarantees. However, one can trade on this market only after subscribing to a binary options broker. These intermediaries help traders generate money by providing free access to trading platforms and even allowing them to use advanced auto-trading software. Given the fact that traders depend on their brokers, scams have emerged on the dedicated market. Are binary options a scam? No, trading with binary options is a well-established industry that has helped numerous people to win money. However, certain websites are indeed scams and you need to learn how to avoid them. They take advantage of the fact that people cannot trade without the services of a broker to create the false impression that they offer these services. After depositing their money and even making profits, traders will face a terrible situation, because these scam platforms will refuse to process withdrawals. Fortunately, you can now find out which binary options brokers are scams and which are reliable by checking out online reviews. Numerous platforms are dedicated to create blacklists in an attempt to help traders avoid these frauds. What is more, you can also discover relevant information about each broker available on the market, making your choice so much easier.
Therefore, the safest way to avoid binary options scams is by relying on the experience of other traders and the investigation skills of the teams behind these websites that create the blacklists. You will also be able to read complaints and determine the truthfulness of the information provided by these platforms instantly. Another way you can determine whether a binary options broker is a scam is by looking for warning signs. If something sounds too good to be true, it probably is. You should learn what is realistic and what is not before starting to trade with binary options. If a platform promises winning rates of 90%, you should be clear that this broker exaggerates and you should be weary of them. When it comes to trading markets, everything above 50% winning rate is advantageous. If a broker guarantees 90% and it would be true, the market would not exist in the first place.
Another indicative of a scam is the fact that your broker does not offer contact information, offers false contact information or does not respond to your e-mails. A reputable binary options broker will have a customer-oriented policy and try to attract as many traders as possible. If a platform refuses to communicate with its traders, it is clear that they do not care about a long-term relationship and they will probably take advantage of the first occasion to swindle you. Sometimes, brokers respond to your e-mails immediately in the beginning and stop sending answers after you try to withdraw money and you are refused. In other words, they act as a legit binary options broker to get you hooked into investing more and more money and start avoiding you after you discover the scam.