Many traders like to believe how online trading is successful and profitable all time and although it does sounds amazing it can not be considered as an guarantee.
That is why traders in binary trading industry have to make a crucial step – discover potential scam and avoid it in order to have a successful trading journey.
Some South African traders are more fortunate than others, where there might be dozens of reasons why. In this binary guide, we’ll take a closer look of what are the best ways to detect and avoid binary options scam brokers.
Due the fact there is a long list of binary brokers who operate on global financial market, we find main reasons to be extremely important since they might “open eyes” to inexperienced South African traders who are just getting started to trade binaries for the first time.
Insufficient Clarity of Binary Options Brokers
When planning to sign up with a broker, reading reviews and gathering information should be the initial step. This will help traders to identify potential scam activity right away and avoid registration with them that might result with a scam later on in trading process.
Of course, not all brokers are scam, but South Africans do need to be aware of them in order to avoid it and not to waste any time on such brokers. Such brokers can have a very poor website with many crucial info type missing, such as payment methods, explanation of how does binary trading work, inability to contact support etc.
Poor or Non-Existent Terms & Conditions
Traders should keep in mind how terms and conditions are something which shouldn’t be forgotten, although it might seem as a boring reading. However, valuable info regarding withdrawals, registration, bonuses etc are included and traders should gather these information before they make a deposit.
If a broker doesn’t offer T&C on their platform, traders should question is this a serious binary broker to trade with. Same goes for very poor terms and conditions where traders can’t find any of relevant info.
This however can not be applied to some of the strongest brokers on the market, such as IQ Option, BDSwiss, BetOnFinance and many more. They offer detailed explanation of their platform and what can traders expect from trading binary options with them.
Bad Customer Support Service
Binary options broker aim towards delivering the best support service to South African traders who want to trade with them. The idea is to offer efficient customer support, which could be able to provide valuable trading info, regarding how to register, which features to use and how to make payments.
Professional support team is fast and well-trained where traders can get valuable info of specific platform, which can come as pretty handy especially for beginner traders.
Depending on a broker, but there are several ways how traders can contact a broker, such as via email, live chat, phone or via telephone. Under Contact tab, traders should find what are contact options. So far by our experience, live chat option seems as the fastest way of how to reach a particular broker and ask the agent needed questions.
Issues regarding Withdrawals
Refusal to process binary options withdrawal is one of the main problems traders might encounter when dealing with a scam broker. This comes as a very serious strike and traders should be careful when it comes to withdrawals.
For withdrawals to be possible, traders need to be logged to their trading account and they have to click on withdrawal request. This request should be processed if a trader has fulfilled all required documentation. Otherwise, there is no other reason why a broker would refuse withdrawal.
With scam brokers, traders can discover how they cannot access their money and when they try to get in touch with a broker, no one responds. This is a clear indicator of a scam activity and such brokers should be reported to an authority in charge.
Misleading Trading Information
Offering misleading type of info regarding binary trading, potential returns etc are also considered as a characteristic of scam broker. For example when traders mention everywhere on their platform how they’ll get 100% payout and how there is no need to educate themselves prior to binary options trading. This can be seen as misleading traders with false promises included.
That is why serious and reviewed binary options brokers have clearly stated risk warnings and disclaimers which indicate how binary options trading does involve a certain risk and that traders in South Africa and worldwide should be aware of this fact.
Also, traders should also pay attention on security of the trading platform to see is it secure enough so that traders don’t have to worry about any safety issues. Majority of reputable brokers by our opinion use SSL encryption technology which is responsible for ensuring safety of traders’ personal and financial data.
Regulated Brokers – Yes or No?
In latest period of time, an increasing number of brokers are committing to regulatory authorities to have a regulation certificate which will show brokers how they offer serious online trading business.
There are several regulatory agencies in Europe and USA responsible for monitoring business behaviour of regulated brokers, but a lot of cases, it is refers solely on those brokers who are based in a particular country, such as Cyprus for example.
Regulatory status is a matter of choice still. More brokers want to have this licence because traders do like to see how they are regulated and being monitored by a specific authority. Regarding South Africa, there is no regulatory agency which deals exclusively with binary options, but there is FSB (Financial Services Board); responsible for investment and protecting traders’ funds.
Not all regulated brokers are trustworthy and not all unregulated ones are scam by default. At the end, it really does come down to the fact if traders did check and read broker reviews to get detailed information and ensure themselves they are dealing with a serious binary broker.