Binary Options Scam Alerts ¦Trading Binary Options South Africa

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Binary Options Scam Alerts

The world of today is one which is brimming with possibilities and opportunities.

Trading binary options is certainly one of them.

The South African market has been a fertile ground for binary options trading almost since the very start in 2008.

Yet, with more than 500 binary brokers currently available on the market, the fear of scam is real and should not be ignored.

On the other hand, the fear of scam should not prevent prospective traders from taking part in trading binaries.

Especially when there is a way to avoid shady binary brokers and have a profitable trading journey.

In this guide, we will give South African traders several pointers on how to recognise binary options scam alerts and enjoy the benefits of binary options trading.

Little or No Broker Information Available

Binary brokers are abundant on the market and it’s not easy to select the one that will provide South African traders with all they want. However, one of the alerts that point to scam is the lack of overall information available on the broker site.

Binary brokers with a long-standing reputation and numerous registered traders work hard to preserve the reputation they have built. Brokers such as 24option, IQ Option or AnyOption have entire tabs and sections dedicated to providing all relevant information to interested traders.

From detailed FAQ section to well-written Terms and Conditions and available payment methods. Not to mention their fantastically designed Education section where traders can find all sorts of great info on how to improve their trading skill.

The bottom line is, reputed brokers will not be afraid to provide all the necessary information.

Scam brokers tend to provide a limited amount of information which is often poorly written and hard to understand.

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  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect Choice For Beginners and Middle-Level Traders!
    Free Demo Account! Free Education!

  • Binomo
    Binomo

    Honest broker!

What we advise to South African traders is to invest sufficient time into proper binary broker research. Broker review sites like Binarytrading.co.za can be a great place to start.

Here, traders can find relevant info all gathered in one place.

Regulatory License Dilemma

A subcategory which is closely connected to binary brokers is a regulatory license issue.

Undoubtedly, it is always better to select a broker which has obtained a regulatory license from one of the regulatory authorities.

Be that as it may, to proclaim all binary brokers without a regulatory license as a scam without any further research is just as misguided as not doing any research at all.

Regulatory license certainly inspires more confidence as well as a stricter framework, so it is desirable that a binary broker has one.

Absent or Poor Terms & Conditions

Next scam alert in binary options is closely related to the first one and it deals with Terms and Conditions section.

A binary broker who does not have this clearly presented on their site is a should be avoided at all costs.

Why would any trader want to make a deposit with a broker who cannot be bothered to clearly present which terms and conditions apply?

On occasion, it might be a bit tricky to understand all the technical terms in T & C section.

But, in that case, traders can always contact the customer support or some other adequate individual within the brokerage to ask for further clarification.

No Risk Disclaimer

In connection with terms and conditions, another binary options scam alert can be very helpful – absent risk disclaimer.

Binary options trading is susceptible to risk and traders can lose their funds as much as they can make a profit.

Of course, there are steps which can be taken to minimise that risk. But, the risk is ever-present and fair binary brokers will make that fact known to their traders.

All South Africans need to do is simply visit binary brokers like Daweda Exchange, IQ Option and 24option and the risk warning with detailed description will be easy to locate and read.

Insufficient Platform Protection and Poor Customer Support

Binary options trading includes the exchange of sensitive information between the traders and the broker.

If the broker hasn’t bothered to provide sufficient protection then this is cause to be extremely careful.

To avoid being taken by binary scam brokers, south Africans can either look for security information in broker reviews, broker sites or can just closely inspect the URL bar. If letters HTTPs are visible together with a small green padlock, then the broker has safety measures installed.

Most binary options brokers use SSL encryption technology which makes communication and data exchange protected.

Poor customer support is among binary options scam alerts and should be taken seriously. Reliable customer support service is a very important element because that is usually the first place traders look to for information or to ask for help.

With established binary brokers customer support service is not only available 24/7 or at least 24/5, but they also provide several channels for communication like live chat, email, phone and web form.

We advise South Africans to thoroughly test the quality of customer support service before they make a deposit.

This is easy to do, especially since most brokers have live chat option available.

Refusal to Process Withdrawals

One of the worst things that can happen to traders in terms of binary options scam alerts, is the broker’s refusal to process withdrawals. Sadly, when this happens it is usually too late to do much about it.

There are warning signs before and it usually includes ignoring or refusing to communicate with the trader. There are also instances when traders are being constantly pressed to further invest their funds in the attempt to stop the withdrawal process.

This horrible situation can be avoided only by meticulous research and learning as much as possible on how to recognise binary options scam alerts.

We also urge prospective South African traders to carefully study withdrawal terms which should also be clearly described on the binary broker site.

Scam happens, there are risks involved in binary options trading.

Yet, for those South Africans who are willing to invest a bit more time in preparation, education and research before they ever begin the trading process, binary options trading could be a very lucrative opportunity.

Binary Options – Scam or Not?

Binary options trading is a wide-spread financial activity on the South African market.

Numerous traders are taking part and reaping the benefits of this online trading venture.

However, there are those who would like to take part but are battling the fear and constant doubt of binary options – scam or not dilemma.

To offer the answer to this agonising question we took a closer look at binary options trading as a whole and what South African traders need to be aware of before they get involved.

Why Trade Binary Options?

It is often said that if there is smoke there also has to be a fire.

Well, yes and no, depending on the situation at hand.

If we take a moment and think logically about any type of financial investment we will soon realise that two main principles exist – an individual can make money and they can also lose it.

The same goes for binary options trading. Of course, there are risks but there are also fantastic possibilities.

It would be hard to proclaim binary options trading scam with millions of traders around the world taking part in it.

And, this has persisted since 2008 when this manner of trading first became available to the public.

Obviously, traders found something to keep them coming and trading binaries.

Great Profit-Making Opportunities

A cursory look at popular and often used binary brokers like IQ Option or 24option will soon tell South African traders one simple truth – they could make great profit with trading binaries.

In most cases, the possible average winning ratio moves between 65-85% on a successful trade which is a very attractive prospect.

This is a very attractive prospect for eager binary traders in South Africa.

Also, with numerous trade options and short and long expiry times it is not necessary to wait for a long time to find out if the trade was successful or not.

Additionally, in binary options trading traders know beforehand just how much they stand to win or lose which indicates that binary options are not scam.

Diversity of Binary Options Trading

Binary options trading started out as diverse but also simple and transparent way of trading.

Potential South African traders who start researching binaries will soon find a great selection of underlying assets (stocks, commodities, indices and currencies), trade options, trading tools and features as well as strategies.

Furthermore, when it comes to trading binary options there is plenty of educational materials available for free online.

Quality binary brokers have educational sections on their platforms which detail the trading process and impart useful advice to South Africans eager to learn and trade.

Further proof that the fear that all binary options trading is scam does not hold is the simplicity of the trading process.

Those South Africans who wish to trade binaries will find they have to make a simple prediction – whether the price of the underlying asset will rise or fall. Next, traders need to choose the underlying asset they wish to trade, trade options and expiry time.

Of course, there are other components which have to be included, but these are the basics.

What’s more, the majority of binary brokers also provide varied account types which all have a unique set of features and tools available.

Traders are free to select the trading account which best suits their trading style but also their financial circumstances because every type of trading account has a different minimum deposit.

This also means that binary options trading has a far reach as it enables people from all walks of life to take part and reap the benefits.

The Demo Account Advantage

Further evidence speaking in favour of binary options no scam claim is the existence of the demo account.

Not all binary brokers provide this unique trading feature but those who do, and there is an increasing number of them, are raising their quality of service.

The demo account is either a simplified version of the real trading account or the exact copy but with one crucial difference because funds are not real but virtual.

That means that hopeful South Africans get to experience binary options trading and all that comes with it but do not have to worry about losing their funds.

This is the perfect training grounds which can prepare traders for what happens when real trading takes place.

Some of the top binary options brokers like 24option, IQ Option, Daweda Exchange and Opteck provide this fantastic feature.

Affordable Initial Deposit – South Africa

Most binary brokers have a very affordable initial deposit of $250 and with some brokers minimum investment per trade starts at only $1.

In fact, one of the most popular binary options brokers in South Africa, IQ Option, has the minimum deposit of only $10.

This makes binary options trading very appealing for regular people because they stand a chance to make profits without a huge investment.

This also implies that binary options trading on the whole is not a scam activity but legitimate trading venture.

Drawbacks of Binary Options Trading

Of course, it’s not pretty and pink in the world of binary options trading. There are several aspects which can be difficult to handle.

Bottom line is – binary options trading will not be suitable for all traders.

Scam Binary Brokers

Scam brokers exist, especially since there are more than 500 binary brokers available on the market today. Yet, to proclaim binary options trading a scam because of the few rotten apples is not justified.

Scam happens in all areas of life and binary trading is not exempt.

There are binary brokers who have been in business for years and have numerous satisfied customers.

It is not easy to find a good binary broker, but this is where traders have to play their part. Research is important and sites like Binaryoptions.org.za are a helpful source of information.

It is great to read guides dealing with a scam and how to spot it and then apply that knowledge when South Africans look for binary brokers.

Substantial Risks in Trading Binaries

Trading binaries includes substantial risks because South African traders can win or lose their investment. There are no guarantees and brokers who claim this are

There are no guarantees and brokers who claim this are likely a scam and should be avoided.

Also, brokers who run a transparent and open business will have the risk disclaimer visible on their sites because they want to provide as much info to their traders as possible.

The good side of the risk involved in trading binary options is that traders cannot lose more than they invest, and they do know the potential gains and profits from the start.

Lack of Regulation in Trading Binaries

The issue of regulation is, coincidently, very binary. On the one hand, there are regulatory authorities and many binary brokers opt to obtain the regulatory license.

We do advise South African traders to rather opt for the binary brokers who have the regulatory license issued by FSB or so other regulatory authority.

On the other hand, regulatory status is optional and brokers are under no obligation to have it. This also does not immediately mean that traders are dealing with a scam binary options broker.

Again, it all comes down to traders doing their homework and researching brokers they found interesting prior to making the deposit.

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.

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.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect Choice For Beginners and Middle-Level Traders!
    Free Demo Account! Free Education!

  • Binomo
    Binomo

    Honest broker!

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