How to Avoid Binary Options Scam Brokers in South Africa

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  • Binarium

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

  • Binomo

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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

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

  • Binomo

    Honest broker!

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 Identify Scam Brokers?

The old saying “Knowledge is power” wasn’t coined as a tool for parents in order to torture their children who would rather be outside playing than studying.

It came to be because it contains basic truth – knowledge=power. In the world of binary options trading knowledge equals higher profits. And, even more importantly, knowledge will help traders to identify scam brokers in binary industry and a trustworthy one.

In this binary guide, we shall offer South African traders sound advice on how to identify binary options scam brokers and opt for those with a long-standing reputation.

Know Your Binary Broker

Know Your Customer is a standard procedure when traders open an account with a broker. South African traders should take time and do the same and gather as much information possible before picking a broker they wish to trade with.

The work is time-consuming but, in the end, it will mean the difference between being taken in by a scam broker or trading with a legitimate one where profit can be made. Brokers, such as IQ Option, StockPair or 24option are present on binary market for years now and have a reputation of being a serious broker to trade binary options with.

Poor Terms & Conditions

Another time-consuming task but again, one which has a worthy goal. Traders have to know the information listed under terms & conditions if they want to do business with a chosen broker.

Check if a broker has easily understandable terms and conditions. We recommend our readers to avoid brokers who have poor explained T&C or those hard to find on their platform.

Oftentimes traders trying to read terms & conditions get confused or they do not understand what is written. Which is where customer support comes in. Reliable and reviewed brokers such as IQ Option or 24option have very detailed but transparent terms & conditions traders can easily find on their platform and understand.

Hard to Contact Customer Support

A legitimate broker will have top notch customer support because they want their traders well-informed. A broker who isn’t a scam shall also want to be on hand if traders run into problems.

However, with scam brokers, South African traders will face with inability to contact customer agents, who would most likely always be unavailable. That is one of the first signs that traders are dealing with scam binary brokers.

With a legitimate broker, customer support will be available, responsive and well-trained. They will also be able to provide answers or give necessary clarification if South African traders do not understand something. Sometimes waiting to get a response is inevitable, but if traders cannot get an answer even after multiple attempts then it is possible they are dealing with a scam broker.

Privacy Breach & Cold Calling Sindrome

Another way of identifying scam brokers is the way they handle personal data. If traders start receiving calls from brokers who are pushing them to invest, traders should proceed with caution since it is most likely a scam broker.

Scam brokers usually promise huge profit when traders join their platform. This practice is called cold calling and it is seen as privacy breach. This means that a broker traders used either sold their private info to a third party or they want to press additional services traders’ neither need nor have signed up for.

We urge South African traders to be very careful in this respect.

Insufficient Protection of Trading Platform

Personal and financial data should be of great importance to a broker.

So, when South African traders start looking for a trustworthy binary broker another way to identify scam brokers is the SSL certificate. Therefore, when a trader goes to check a broker they should look at the web address of the broker.

If there is a small green padlock and HTTPs in front of the address that means the connection is secure.

Connected to this is also the longevity of domain where a broker has a web site. Every respectful broker who wishes to build a long-term business will not put up a temporary site. Ergo, a broker will not invest in a domain for less than a year. What South African traders can do is check with and get more information about the domain and broker web site.

Those who do not protect their platforms nor pay attention to ensuring safe trading environment are most likely scam brokers.

“Too-Good-To-Be-True” Offers

Basically every broker will have certain bonuses which can be found clearly explained on brokers’ platform.

However, if a broker offers bonuses traders cannot understand and customer support is either being elusive when traders inquire about it or, worse, never responding chances are traders are dealing with a scam broker.

Another helpful indication that traders are dealing with a scam broker is when they spot unrealistic offers on their platform. A broker who is throwing around offers such as: “100% winning rate” or lucrative “$700 bonus” after signing up all the way to promising fanciful amounts traders can earn on monthly basis without means to back up such claims is a scam broker South African traders should avoid.

Non-registered Broker – Yes or No?

Now, this is a somewhat slippery-slope area.

Naturally, it is desirable that a broker should have a license, but to identify scam brokers as such solely based on their lack of a licence is not a wise approach.

Why? Because there are plenty of binary brokers available with and without licence who are safe, reliable brokers and have been for years.

Brokers such as 24option and IQ Option which have a great reputation and a regulation licence.
Regulatory authorities across Europe do provide traders with that extra safety which is highly desirable in any business and should not be dismissed .

But, in the end, it all comes down to research and careful choice.

Refusal to Process Withdrawal

One of the worst things that can happen to traders is when their request to withdraw money gets either rejected or simply ignored. This happens very often with scam brokers. Traders seeking withdrawal are either denied their funds or they keep getting calls where they are being persuaded by the broker to invest further instead of withdrawing.

Other side of the medal is that broker does not respond at all to calls/emails from traders trying to withdraw their funds. Sadly, in most cases, this situation identifies a broker as a scam.

Miscellaneous in Binary Industry

Binary options trading is a high-risk business and trustworthy brokers do not shy away from pointing that out on their websites, so South African traders should look for a proclamation which points out the risk as well as the possible gain.

Another thing to look out for when trying to identify scam brokers are incomplete or very poor details on brokers’ website and fake reviews as well as “limited time offers” which are constantly present on the broker platform.

Gathering information beforehand, doing research and taking time to pick a broker can mean the difference between losing money or gaining it. And, as they say, prevention is the best medicine.

7 Mistakes to Avoid in Binary Options

Thanks to binary options popularity in recent years, an increasing number of people around the world began investing in binary options.

South African market is one of the most presented areas considering interest in binaries.

Ever since 2008, binary trading is widespread online investment option for many South Africans, especially those are new to trading on financial markets.

It provides them with an opportunity to have a potential profitable trading journey, regardless if we are talking about beginners or professional traders.

Our guide on 7 mistakes to avoid in binary options will reveal more information on how to avoid scam in binaries and increase chance to have a successful binary trading journey.

What we want to achieve is to provide valuable info and educate traders in South Africans to be able to recognize top 7 mistakes in binary options trading.

Trading Binaries with Scam Binary Brokers

From our point of view, binary options trading with scam brokers comes as a the biggest danger in binary industry overall. Due to its popularity, unfortunately, an increasing number of brokers appeared on the market and some of them can be listed as scam brokers.

There are several signs how South Africans can recognize if they are dealing with scam or not.

One of the first elements are Terms & Conditions of a particular binary broker. If a broker doesn’t offer clear and transparent information on its platform, it is definitely one of the major indicators how traders are dealing with a scam broker.

For this reason, we recommend traders to gather valuable information first, such as doing a research and reading broker reviews to get an objective info about a specific trading platform.

Don’t Miss an Opportunity to Use a Demo Account

A lot of brokers listed on site offer demo account as an important segment of the platform, especially for inexperienced South African traders.

Thanks to demo option, registered traders are able to see how will the trading platform look like and try out different strategies to see which one will work the best.

As a major benefit of demo account is the fact traders don’t actually invest their own money but instead they are offered with virtual funds. This way, there is absolutely no possibility of money loss. IQ Option is a popular broker for South African traders who provides them demo account, which is funded with $10000.

Time frame for practicing on demo depends on a binary broker. With some brokers, it is unlimited while others offer demo for a period of one of two weeks. Demo account is used both by inexperienced traders as well as professionals since it enables them to test the platform in risk free environment.

Never Neglect Importance of Binary Options Education

Traders who invest in binary options should be aware of the fact how relying solely on luck factor isn’t a desirable element in this online trading industry. From our experience, a wide range of binary brokers offer platforms with excellent Education so that traders can learn more and become experienced binary options traders.

Education with a variety of trading materials and tools is very valuable and useful for all levels of traders. Mostly, they include: ebook, a selection of webinars, FAQ, trading tutorials, guide articles, economic calendar and many more others.

By having education materials on disposal, both beginners and professionals can benefit from it. Traders novice can learn trading basics and from where to begin, while experts can try out advanced strategies and expand their existing knowledge.

Trading Binary Options without a Trading Plan

When trading binaries, binary options trading plan needs to be incorporated due to its many advantages.

Lack of having a trading plan is definitely one of the major 7 mistakes in binary options. This is why beginners should have that in mind before they engage themselves in binary trading world.
Luck factor can sometimes help, but it isn’t something that South African traders should have confidence in. Since binary trading is not a gambling and several factors need to be included so that traders could have a profitable trading journey, we find having strategy trading plan is more than desirable option to have.

The whole idea of a trading plan is to reduce a risk exposure and trade with those underlying assets that traders are most familiar with. This is why successful traders spent time into making a good trading plan by which they will invest their money in binary options..

Those traders in South Africa who don’t want to spend a lot of time in binaries, they can choose automatically option, such as with binary robots or automated software.

For example, one of the best auto trading robots are Binary Options Robot and Qbits MegaProfit System.

Unrealistic Trading Goals – Binary Options in South Africa

When traders have unrealistic goals for this online investment, we can say it is actually often seen situation in binary industry and falls into category of the most often mistakes when trading binary options.

Sometimes traders beginners begin their trading journey by investing a large amounts of money in different assets, without thinking it twice. This is closely related to non-existence of trading plan where traders believe they will gain thousands of dollars instantly.

It is recommended to think positive and have big plans, however, unrealistic trading goals and its expiry time are a mistake that should be avoided. With many brokers offering high payouts, traders in South Africa do have option to profit from binaries, but with “cool head” and clear vision of which underlying assets to invest in (stocks, commodities, currencies and indices).

Investing More Money than Affordable

Another often seen mistake in binary trading is when traders decide to invest a huge amounts of money, more than they can afford it. Doing that without a trading plan is definitely not a good starting point and might lead to money loss.

Usually, traders start trading with approx. 50% before they see how binary trading looks like and which underlying assets are most suitable for them to use. It all depends on traders’ preferences and current market situation on specific underlying assets.

Binary Options Overtrading as a Trader in South Africa

When thinking about trading binaries, a lot of traders make a wrong move and then overtrading becomes a problem they need to fix. We have mentioned it several time on our site under Guide tab and traders should realize how it desirable to trade binary options but smartly.

Often traders experience overtrading if they trade simultaneously with stocks, currencies, commodities and indices. This comes as one of the main differences between professional traders and beginners, who are in most cases impatient and want to earn a lot of money right away.

That is why we suggest traders in South Africa to check broker’s platform first and read broker reviews to get more info about a specific broker and what does he offer to registered traders.

Best Binary Options Brokers 2020:
  • Binarium

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

  • Binomo

    Honest broker!

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