How to Avoid Scam in Binary Options ¦ Binary Trading South Africa

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Ways to Avoid Scam in Binary Options Trading

Binary options are very popular among traders all over the world, and when something is as popular as they are, many scams want to take advantage. It is impossible to prevent scams from entering the market as even the best regulation can’t challenge innovative methods scams and fraudsters are using.

Still, if traders want to trade safely, they can do so by following several easy steps. In this article you will learn:

What are Binary Options Scams?

Binary options scams are usually companies that claim to be legit brokers or auto trading services but are frauds. Once you deposit the money with such company, you won’t see that money again as it is impossible to make a withdrawal with such brokers.

Scam brokers are considered to be those that practice scam tactics in convincing new clients to make a deposit. Such methods include

  • Cold calling
  • Downplaying the risk
  • Using stolen data

In case you receive a phone call or an email from a broker you never registered with. It is best to ignore it. Don’t let them convince you. Scam binary brokers will always claim how something is an exclusive opportunity, just for you, but it is never true.

Also, the fact that a binary broker is using stolen data and can reach you via private means of communication such as email, only shows how shrewd they can be. Do you really want to provide your credit card detail to a company such as that? Probably not.

Also, keep in mind that sometimes you can find out that a broker is a scam only after you made a deposit. For example, they can insist on offering you managed account where you lose all control of your investments. They can make threats, use psychological games and pressure you into making more and more deposits. The broker should never neglect your opinion or manage your investments.

Another thing that is very suspicious and that can indicate that a broker is a scam is the lack of terms and conditions on the website. Terms and conditions not only helps you understand the service better but also offers you an insight into your obligations and procedural elements. If the broker is hiding something, the first sign of a scam is missing terms and conditions. This document is usually very long and complicated, but don’t hesitate to read it and ask for additional explanations.

Terms and conditions explain all about withdrawal limits, procedure, reveal details on how dormant accounts are handled etc. They are also obligatory, unlike the stuff is written on the website. Keep this in mind. Compare the content of the website with content of terms and conditions and if there are too many differences, avoid that broker for your own good.

You want your money to be safe from the very beginning of the trading process and it is much easier to check broker status without involving with scams in the first place.

How to avoid binary options scams?

Binary options scam brokers tend to be very convincing with their promises. They can make you think how they operate in a magic world of binary unicorns where you will become a millionaire.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Choice!
    Free Trading Education!
    Free Demo Account!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!!!

The first rule of avoiding binary scams is keeping a cold head. If the broker promises something that sounds too good to be true, it probably isn’t. Be realistic and don’t expect to become a millionaire over course of night, no matter how lucrative binary options might be.

The other important rule is to read news and reviews so you know what is going on in financial markets. Objective 3rd party reviews can help you in avoiding scams, and regulatory bodies often issue warnings on different types of frauds, including binary scams. Of course, keep in mind that sometimes regulatory bodies react to little too late, so look for other suspicious signs as well. Avoiding scam brokers requires some effort.

There is also a solution of trading only with regulated brokers. Regulatory bodies all over the world issue licenses for binary options brokers. Even though sometimes regulated brokers turn out to be scams, mostly because of changes in the ownership structure that might affect the way they operate their business.

Also, you can checklists published by your local regulatory body, but keep in mind that sometimes regulators tend to be slow in detecting scams. They sometimes issue a warning on a broker that is long gone or that has already scammed many customers. The best way to read about scams is to be focused on specialized media that will give you fresh information and introduce you to reliable brokers.

What to Do After Depositing with a Scam?

Ok, let’s imagine the worst-case scenario. Imagine you made a deposit with a scam binary broker. What now?

First, it is important not to deposit any more money with that scam broker! There is a high chance the broker will call you and ask for more money but don’t do it. Every dollar deposited is a dollar lost.

Next thing you should do is request a withdrawal. There is a high chance your scam broker will say it is not possible if you don’t deposit a certain amount. Ignore it and request the withdrawal again. If necessary ask for legal advice and let the broker know you are not alone. Research other cases with your broker on online forums and see how other people got their money back. Of course, if you are trading with a broker that offers bonuses, keep in mind that in case you accepted a bonus, you have a specific trading volume you must reach before making a withdrawal.

You can also contact your local regulatory body and ask for help. Don’t forget to contact the regulatory body where the broker is licensed, in case they have a license. They can do necessary steps and revoke the license and prosecute the broker if needed.

Act fast and don’t let the broker waste your time. Make sure to keep all correspondence and make a screenshot of your trading account in every stage of withdrawal. Often, scam brokers close the accounts without prior notice, but this way you have evidence that can be crucial in your case.

How to Avoid Scam in Binary Options?

Nowadays, binary options trading as an online investment, is faced with many challenges on the financial market in South Africa. In this guide, we will take a closer look and provide detailed information that will reveal how to avoid scam in binary options.

When South African traders invest in binary options, their primary goal is to experience convenient trading and make a profit in the process itself. Therefore, we try to offer our readers a list of reliable binary options brokers, by our choice, who offer trading platforms.

Does Binary Options Scam Exist in South Africa?

Due to rising popularity of binary industry on South African market, a selection of brokers also appeared who want to take a “piece of cake” in binary options trading. Unfortunately, such brokers aren’t trustworthy and are considered as scam brokers, since they provide false promises and deceive their registered traders.

Therefore, we decided to write this guide on how to avoid scam in binary options in order for our South African readers to have proper and trusted information about this delicate topic.

South African traders should know how on financial market exist regulatory authorities who monitor business conduct of binary brokers and check if they protect traders’ data.

CySec stands for Cyprus Securities and Exchange Commission and is considered as a relevant regulatory body that overlooks on businesses of different binary brokerage companies. As addition to that, there is also FCA (Financial Conduct Authority) with HQ in London.

Due the fact that each day that passes by, binary options industry has new investors and unfortunately, that makes room for scam brokers to come into the picture.

For example, brokers who say that guarantee 100% payouts will most likely be a scam. In order to have a profitable and safe trading experience, check below our advice on how to avoid scam in binary options.

Binary Options Regulation in South Africa

Binary options trading is legal for traders in South Africa. On South African there is an authority called FSB (Financial Service Board) which monitors all online investment activities on financial markets. So far, they aren’t involved particular in regulation for binary brokers.

Due the fact there is no local regulatory authority that will be fully responsible, there is a space form scam brokers to enter.

Soon after binary options appeared as an investment in 2008, South Africans quickly became interested into trading on binary market. A variety of brokers has access to South African market and they offer platform for executing trades.

Some of these brokers are regulated, while other aren’t. However, that does not mean that if a particular broker is not regulated, that he is a scam. Regulatory licence is something that broker chooses whether they want it or not.

There are plenty of indicators that show if a broker is a scam and how to avoid it.

For more details, check below in our binary scam guide.

With brokers listed on our website, South African traders can have better chance to experience safe trading environment where they can use a selection of available features to maximize profit. Traders can choose between different short term and long term trade options and features, such as demo account and numerous account types.

Our recommendation is always to check broker reviews and their platform to see what do they offer and can they find relevant information regarding trading process.

What About the Risk?

When brokers promise traders there is no risk and that it is possible to always achieve high payouts, traders should be very careful. Those who are downplaying the risk are most likely to be a scam brokers. Unfortunately, this happens in most cases to new traders who believe empty promises.

Before investing money, traders in South Africa do need to have relevant information about risk level and potential losses, as well as gains. Traders should be aware that trading binary options comes with a risk. Therefore, top brokers offer a wide range of guide tutorials and strategies so that traders could get more acquainted with the trading process.

Importance of Terms & Conditions

Although people might think how it is useless to read terms and conditions, it is actually very important. In T&C, South African traders can find detailed information about what a particular broker offers and what can traders expect from their platform. The idea is to have all relevant information of disposal in the very beginning.

Brokers terms & conditions should be clear and simple to read. This means that new traders as well as pro traders should be able to understand them. If terms are unclear or if there is lack of one, this might be considered as a scam in binary options.

Same can be applied for bonus policy as well. A lot of brokers claim they offer excellent bonuses, however, there are cases where information about bonuses are nowhere to be found. South African traders should keep in mind that if there are any bonus requirements, there should be listed in bonus policy.

Binary Options Privacy Breach

Upon making any payments, traders are required to provide personal and financial data for brokers to have a successful registration. These documents include copy of photo ID, proof of address and credit card copy which will be used while trading.

It is important to know how brokers are obligated to protect traders’ data and not to share such important information with third party. That is considered as one of the main characteristics of scam in binary options. There were cases of privacy breach where scam brokers would share these information. Such cases need to be reported to the authorities.

Non-payments in Binary Options

This comes as one of the common scams in binary options. Traders who are dealing with scam brokers will have issue with how to reach them and get their funds. This is especially visible in withdrawal process when traders are trying to get their money.

This is very important part of trading process and South Africans should be aware of that in order to avoid scam in binary options.

One of the first signs is when traders can not reach their broker. This is “red alert” if it happens more than once. Therefore, it is crucial to have valid information about a particular broker and check all terms and conditions before depositing.

With mentioned tips above, traders in South Africa should be able to distinguish safe platform from scam, detect and of course, avoid scam in binary options trading.

Binary Options Guides

Binary Trading South Africa is a place for South African traders to find relevant guide articles which can assist them to have better trading knowledge of binary options.

We continuously strive to bring our readers in South Africa guide about topics that interest them the most in order to gain more experience and become pro traders with better trading results.

Below in our Binary Guide section, you can find selection of articles on various trading topics.

Deposit Methods with Best Regulated Brokers in South Africa

What is Social Trading?

How to Avoid Scam in Binary Options?

Most Profitable Auto Trading Robots in South Africa

Best Tips on How to Master Binary Options

Binary Auto Trading Robots

Binary Options Introduction – South Africa

In recent years, binary options trading became a popular system which interest individuals in South Africa to invest in binary options.

Trading with binary options is a quite simple process and easy to understand. No complex procedures and technicalities are involved in this trading system.

Like other parts of the world, binary options trading is highly popular among the traders in South Africa. Traders can choose whether they want to invest in currencies, commodities, stocks and indices.

Trading binary options is actually trading with fixed payout and time of expiry. There are only two options; asset price can rise or can fall. The idea behind binary options trading is to figure out will asset price be below or above target price.

To able to make a right prediction for predetermined time, a certain trading skills are required.

Although, trading binary options isn’t difficult as people might think, it still needs a certain effort involved and understanding of how binary trading works.

BinaryTrading.co.za Guide Section

Under Guide tab, traders can learn many useful tips and tricks with only goal to become more experienced and have better option for profitable trading journey. South African traders can find out more about how to choose the right binary broker and detect scam in binary industry.

Also, traders can learn what is binary auto trading, as well as social trading and why are these investment types so popular among traders in South Africa.

We find Guide section to be very useful because of its many advantages.

Traders can get guidelines from our articles which can later be used to profit from binary brokers. This is especially important for new and inexperienced traders who are thinking about joining binary trading platform.

Services such as demo account and different trade options are significant for trading process. On demo account, traders have an amazing opportunity to test the platform and try out different tools and strategies to see which one work the best. This is risk free since South Africans deposit virtual and not real money.

In case you are not sure about which broker to choose and want to know more about trading features, we recommend to read our Guides and get valuable information.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Choice!
    Free Trading Education!
    Free Demo Account!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!!!

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