Binary options scams are not new. There are thousands who lose their life savings by believing in the scams that exist with binary options. So, in order to get started, what you can do is first realize that such scams do exist and it is very easy to identify them.
How can you identify Binary options scams?
1) Ponzi Schemes
The particular Ponzi Scheme is known after the famous Italian fraudster Charles Ponzi, who effectively duped Americans of 1000s of dollars using his fake money-making system. Mr. Ponzi, using his wit and panache, paid more mature investors with the money which he gathered from newer buyers. The scheme, put out by Ponzi, is still relevant in today’s time.
With the mechanism of a Pyramid Scheme itself, the old investors get new investors to invest in the scheme and pay the returns for the first few weeks. Then comes the twist, where the new investors are told that in order to receive an additional commission, you need to reinvest and also find new joiners. This specific procedure goes on and on until they get discovered, however, by then, the scammer flees with all the money.
Although easy to spot, naive buyers are still falling because of it. Often called the crypto pyramid, the plan is often defined as “risk-free” with a high guaranteed return on investment.
To save oneself from such techniques, it is extremely advised to improve your investment knowledge before investing in any such schemes.
2) Fake Promises and Results
The first signs of a binary options scam are insane returns being assured by the options broker that has got almost no reputation. Automatic trading has taken a cost on the modern trading population with every firm proclaiming that they have developed bots that are going to help traders make lots of income in the long term.
Claims also include the particular robots that have been designed in such a means that the buyer would not make any loss, whatsoever function as the investment amount, a claim that seems fabricated from the first step itself.
First Alternative Recovery has already dealt with such a nuisance on a regular basis and highly implies you stay away from such bots as no android can surpass the trading ability of a human.
3) Fabricated trading mechanism
Almost all of the binary options deals are fake. Typically the directory of binary option scam sites can be found online after a little research. These scammers usually develop websites dependent on an original binary exchange, however, the trading chart that follows works in accordance with the algorithm developed by them. What is meant by that is when you invest your money in the swap, it will show that you have made a lot of profit in the short phrase.
The greed for more profits will make you invest more than necessary but still, you will see that you are reaping in the profits. Now the problem occurs when it’s time to withdraw your funds. Once you place your withdrawal demand, you will observe that the binary options broker is making stupid claims as to lack of staff or bank holidays in that particular country or so, resulting in a delay of line transfers.
So, think of the above points before you decided to trade binary options as it is something that might lead to a lot of trouble when it comes to the financial point of view if you don’t earn a good amount from it. So, you better get started with binary options and make sure that the particular broker that you are not investing in is a scam.