Editor's Rating

7.4
Timothy M. Johnson

How to recognize binary options scams in 3 steps

There are a lot of binary options scams that give this type of trading a bad name. And that’s very unfortunate for the good ones out there. Luckily, you can spot a scammer quite easily – most of the time. So below we give you a few tricks that will help you uncover binary options scams.

1. The claims are outrageous

Really? You can become a millionaire if you try product X? You’d be surprised how many people actually think they can become a millionaire. The world would be filled with millionaires if that were true. A couple of thousand dollars is usually the maximum. And don’t expect this to happen over night either. Allow your account to grow slowly but steadily.

2. You can’t tell who’s behind it

Most brokers and other binary options providers will be open about who they are. You see a name, address and other proof of a real, existing company. If you would like to, you could actually visit their office. If a scammer is at work, he or she would probably not want you to know where to go look for him or her. So usually you can look wherever you want for a company address or telephone number, but you won’t find one.

3. There is no proof of their story

If a product is good, you can rest assured that you will find people online willing to back it up. So go do a search on the product you’re interested in and check out what others say about it. You can also check out our reviews. If it’s about binary options, you will have a good chance of finding something about it on our website. This way you’ll be sure not to put your money on a binary options scam.