The world of today is one which is brimming with possibilities and opportunities.
Trading binary options is certainly one of them.
The South African market has been a fertile ground for binary options trading almost since the very start in 2008.
Yet, with more than 500 binary brokers currently available on the market, the fear of scam is real and should not be ignored.
On the other hand, the fear of scam should not prevent prospective traders from taking part in trading binaries.
Especially when there is a way to avoid shady binary brokers and have a profitable trading journey.
In this guide, we will give South African traders several pointers on how to recognise binary options scam alerts and enjoy the benefits of binary options trading.
Little or No Broker Information Available
Binary brokers are abundant on the market and it’s not easy to select the one that will provide South African traders with all they want. However, one of the alerts that point to scam is the lack of overall information available on the broker site.
Binary brokers with a long-standing reputation and numerous registered traders work hard to preserve the reputation they have built. Brokers such as 24option, IQ Option or AnyOption have entire tabs and sections dedicated to providing all relevant information to interested traders.
From detailed FAQ section to well-written Terms and Conditions and available payment methods. Not to mention their fantastically designed Education section where traders can find all sorts of great info on how to improve their trading skill.
The bottom line is, reputed brokers will not be afraid to provide all the necessary information.
Scam brokers tend to provide a limited amount of information which is often poorly written and hard to understand.
What we advise to South African traders is to invest sufficient time into proper binary broker research. Broker review sites like Binarytrading.co.za can be a great place to start.
Here, traders can find relevant info all gathered in one place.
Regulatory License Dilemma
A subcategory which is closely connected to binary brokers is a regulatory license issue.
Undoubtedly, it is always better to select a broker which has obtained a regulatory license from one of the regulatory authorities.
Be that as it may, to proclaim all binary brokers without a regulatory license as a scam without any further research is just as misguided as not doing any research at all.
Regulatory license certainly inspires more confidence as well as a stricter framework, so it is desirable that a binary broker has one.
Absent or Poor Terms & Conditions
Next scam alert in binary options is closely related to the first one and it deals with Terms and Conditions section.
A binary broker who does not have this clearly presented on their site is a should be avoided at all costs.
Why would any trader want to make a deposit with a broker who cannot be bothered to clearly present which terms and conditions apply?
On occasion, it might be a bit tricky to understand all the technical terms in T & C section.
But, in that case, traders can always contact the customer support or some other adequate individual within the brokerage to ask for further clarification.
No Risk Disclaimer
In connection with terms and conditions, another binary options scam alert can be very helpful – absent risk disclaimer.
Binary options trading is susceptible to risk and traders can lose their funds as much as they can make a profit.
Of course, there are steps which can be taken to minimise that risk. But, the risk is ever-present and fair binary brokers will make that fact known to their traders.
All South Africans need to do is simply visit binary brokers like Daweda Exchange, IQ Option and 24option and the risk warning with detailed description will be easy to locate and read.
Insufficient Platform Protection and Poor Customer Support
Binary options trading includes the exchange of sensitive information between the traders and the broker.
If the broker hasn’t bothered to provide sufficient protection then this is cause to be extremely careful.
To avoid being taken by binary scam brokers, south Africans can either look for security information in broker reviews, broker sites or can just closely inspect the URL bar. If letters HTTPs are visible together with a small green padlock, then the broker has safety measures installed.
Most binary options brokers use SSL encryption technology which makes communication and data exchange protected.
Poor customer support is among binary options scam alerts and should be taken seriously. Reliable customer support service is a very important element because that is usually the first place traders look to for information or to ask for help.
With established binary brokers customer support service is not only available 24/7 or at least 24/5, but they also provide several channels for communication like live chat, email, phone and web form.
We advise South Africans to thoroughly test the quality of customer support service before they make a deposit.
This is easy to do, especially since most brokers have live chat option available.
Refusal to Process Withdrawals
One of the worst things that can happen to traders in terms of binary options scam alerts, is the broker’s refusal to process withdrawals. Sadly, when this happens it is usually too late to do much about it.
There are warning signs before and it usually includes ignoring or refusing to communicate with the trader. There are also instances when traders are being constantly pressed to further invest their funds in the attempt to stop the withdrawal process.
This horrible situation can be avoided only by meticulous research and learning as much as possible on how to recognise binary options scam alerts.
We also urge prospective South African traders to carefully study withdrawal terms which should also be clearly described on the binary broker site.
Scam happens, there are risks involved in binary options trading.
Yet, for those South Africans who are willing to invest a bit more time in preparation, education and research before they ever begin the trading process, binary options trading could be a very lucrative opportunity.