Nowadays, binary options trading as an online investment, is faced with many challenges on the financial market in South Africa. In this guide, we will take a closer look and provide detailed information that will reveal how to avoid scam in binary options.
When South African traders invest in binary options, their primary goal is to experience convenient trading and make a profit in the process itself. Therefore, we try to offer our readers a list of reliable binary options brokers, by our choice, who offer trading platforms.
Does Binary Options Scam Exist in South Africa?
Due to rising popularity of binary industry on South African market, a selection of brokers also appeared who want to take a “piece of cake” in binary options trading. Unfortunately, such brokers aren’t trustworthy and are considered as scam brokers, since they provide false promises and deceive their registered traders.
Therefore, we decided to write this guide on how to avoid scam in binary options in order for our South African readers to have proper and trusted information about this delicate topic.
South African traders should know how on financial market exist regulatory authorities who monitor business conduct of binary brokers and check if they protect traders’ data.
CySec stands for Cyprus Securities and Exchange Commission and is considered as a relevant regulatory body that overlooks on businesses of different binary brokerage companies. As addition to that, there is also FCA (Financial Conduct Authority) with HQ in London.
Due the fact that each day that passes by, binary options industry has new investors and unfortunately, that makes room for scam brokers to come into the picture.
For example, brokers who say that guarantee 100% payouts will most likely be a scam. In order to have a profitable and safe trading experience, check below our advice on how to avoid scam in binary options.
Binary Options Regulation in South Africa
Binary options trading is legal for traders in South Africa. On South African there is an authority called FSB (Financial Service Board) which monitors all online investment activities on financial markets. So far, they aren’t involved particular in regulation for binary brokers.
Due the fact there is no local regulatory authority that will be fully responsible, there is a space form scam brokers to enter.
Soon after binary options appeared as an investment in 2008, South Africans quickly became interested into trading on binary market. A variety of brokers has access to South African market and they offer platform for executing trades.
Some of these brokers are regulated, while other aren’t. However, that does not mean that if a particular broker is not regulated, that he is a scam. Regulatory licence is something that broker chooses whether they want it or not.
There are plenty of indicators that show if a broker is a scam and how to avoid it.
For more details, check below in our binary scam guide.
With brokers listed on our website, South African traders can have better chance to experience safe trading environment where they can use a selection of available features to maximize profit. Traders can choose between different short term and long term trade options and features, such as demo account and numerous account types.
Our recommendation is always to check broker reviews and their platform to see what do they offer and can they find relevant information regarding trading process.
What About the Risk?
When brokers promise traders there is no risk and that it is possible to always achieve high payouts, traders should be very careful. Those who are downplaying the risk are most likely to be a scam brokers. Unfortunately, this happens in most cases to new traders who believe empty promises.
Before investing money, traders in South Africa do need to have relevant information about risk level and potential losses, as well as gains. Traders should be aware that trading binary options comes with a risk. Therefore, top brokers offer a wide range of guide tutorials and strategies so that traders could get more acquainted with the trading process.
Importance of Terms & Conditions
Although people might think how it is useless to read terms and conditions, it is actually very important. In T&C, South African traders can find detailed information about what a particular broker offers and what can traders expect from their platform. The idea is to have all relevant information of disposal in the very beginning.
Brokers terms & conditions should be clear and simple to read. This means that new traders as well as pro traders should be able to understand them. If terms are unclear or if there is lack of one, this might be considered as a scam in binary options.
Same can be applied for bonus policy as well. A lot of brokers claim they offer excellent bonuses, however, there are cases where information about bonuses are nowhere to be found. South African traders should keep in mind that if there are any bonus requirements, there should be listed in bonus policy.
Binary Options Privacy Breach
Upon making any payments, traders are required to provide personal and financial data for brokers to have a successful registration. These documents include copy of photo ID, proof of address and credit card copy which will be used while trading.
It is important to know how brokers are obligated to protect traders’ data and not to share such important information with third party. That is considered as one of the main characteristics of scam in binary options. There were cases of privacy breach where scam brokers would share these information. Such cases need to be reported to the authorities.
Non-payments in Binary Options
This comes as one of the common scams in binary options. Traders who are dealing with scam brokers will have issue with how to reach them and get their funds. This is especially visible in withdrawal process when traders are trying to get their money.
This is very important part of trading process and South Africans should be aware of that in order to avoid scam in binary options.
One of the first signs is when traders can not reach their broker. This is “red alert” if it happens more than once. Therefore, it is crucial to have valid information about a particular broker and check all terms and conditions before depositing.
With mentioned tips above, traders in South Africa should be able to distinguish safe platform from scam, detect and of course, avoid scam in binary options trading.