How To Choose Legit Binary Options Brokers

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Free Trading Education!
    Free Demo Account!
    Perfect for Beginners!

  • Binomo
    Binomo

    2 place in the ranking!

Binary Options Brokers

Review of Best Binary Options Brokers

How To Choose Legit Binary Options Brokers

For any novice trader, the only method to keep their investment safe is to place their trades with legit binary options brokers. It starts by selecting a broker who complies with regulations, offers a trading platform exclusively for binary options traders, and provides the requisite guidance, tools and tutorials for steering you to success.

Identification of Legit Binary Options Brokers

Whereas there are some binary options brokers that receive a specific license from regulatory authorities, many of them are white label firms. That is, they operate by leasing trading platforms that aren’t their own. Therefore, the assurance provided by such companies is always limited. In such cases, the trader’s money is safe only if the trading platform provider is regulated. Many binary options brokers do not keep the customers adequately informed of this and thereby place the client’s money at risk.

The answer to the question as to how binary options brokers make their money is a tricky one. These brokers earn the money that traders lose when they make wrong predictions. They also pay out when the trader makes the right predictions. Statistically, traders make about 50 percent wrong predictions. If the broker offers 85% payout for correct predictions, they receive 100% of the money for wrong predictions made by traders. However, legit binary options brokers often focus on how to keep their customers rather than worrying how much profit can be made when the traders lose. If traders consistently lose money, they would abandon trading soon enough.

In this context, reliable and established binary options brokers provide a number of learning tools to their clients. They offer trading platforms that offer trial runs for novice traders without the risk of losing their money. They provide state of the art graphic tools, online courses, ebooks, videos and tutorials that will help the traders learn how to place successful trades.

Practice Runs for Traders

When choosing legit binary options traders it is helpful for the novice trader if they can opt for one who offers a demo account. Though such simulations are not a must-do to become a professional, it helps to establish a certain rate of consistency in placing and winning trades. Actually, the novice can place trades of low value and practice without losing much money. The advantage of using demo accounts by new traders gives them the chance of seeking advice from serious and well established traders that the brokers have on offer. Some brokers offer risk-free trades that are executed with the real account. However, the trade is closed only if your prediction is correct. The money is then credited to your account. If your prediction is wrong, then the money is not debited from your account. It is usually the more established binary options brokers that offer risk-free trades as part of their trading plans.

Legit Binary Options Brokers

Regulations were established in the binary options trading field in the year 2020. A major risk factor in trading binary options was therefore removed. With regulations in force, there is a serious guarantee that these companies that comply with these assume the responsibility of their clients’ investments. It is important for the novice traders to choose binary options brokers of repute. Choose brokers that have established a name and have thousands of satisfied clients all over the world. The website and trading platform on offer should be well developed. Given below are some important features offered by some binary options brokers of repute:

Some legit brokers offer proprietary trading platforms which incorporate ample learning material, trading signals and a well-equipped educational center.

Some binary options brokers provide one-on-one training sessions with expert brokers and financial advisers. Most of the regulated brokers also a mobile app for traders who are always on the go.

There are binary options that offer free and exciting tools for use by the traders. They also provide binary trading signals for their clients.

Bonuses, Payments and Payouts

One other point to be considered when you choose legit binary options brokers is the profit that you will be able to make when you place trades with them. It is always important to find out the payout percentages that the brokers offer. Also important is the method that you can use to get the profits easily transferred (withdrawals) to your account. Some brokers require a lot of documentation and are likely to keep the payouts pending till they are complete. Legit binary options brokers ensure that payouts reach the clients promptly.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Free Trading Education!
    Free Demo Account!
    Perfect for Beginners!

  • Binomo
    Binomo

    2 place in the ranking!

Additionally, many binary options brokers offer bonuses when the first deposit is made. Some brokers offer up to 100% as the initial bonus. Sometimes these promotions have their flip side too. Some brokers that offer bonuses place restrictions on withdrawals. Therefore, it is important to research all options before choosing a legit binary options broker to deposit your funds with.

In summary, it is important to choose only legit binary options brokers. Checking whether the broker is regulations compliant and whether they possess the requisite licenses to operate is of topmost priority. It is also important for the novice trader to be wary of the fact that trading with binary options is risky. However, the good news is that trader would be aware of the money he/she is successful in predicting the direction of price movement and the amount he/she could lose if the prediction goes wrong. If done right and trades are executed with the correct knowledge and patience, binary options trading can multiply your investments to great heights.

It is the simplicity of binary options trading and the uncertainty prevailing in traditional financial markets that attracts trader to the binary market. However, their success depends to a great extent on choosing the right binary options broker to work with. It is, therefore, important that you spend some time to research more about some of the legit binary options brokers that we have recommended in our site. This will ensure that you open an account with a broker that best suits your needs.

Ways to Avoid Scam in Binary Options Trading

Binary options are very popular among traders all over the world, and when something is as popular as they are, many scams want to take advantage. It is impossible to prevent scams from entering the market as even the best regulation can’t challenge innovative methods scams and fraudsters are using.

Still, if traders want to trade safely, they can do so by following several easy steps. In this article you will learn:

What are Binary Options Scams?

Binary options scams are usually companies that claim to be legit brokers or auto trading services but are frauds. Once you deposit the money with such company, you won’t see that money again as it is impossible to make a withdrawal with such brokers.

Scam brokers are considered to be those that practice scam tactics in convincing new clients to make a deposit. Such methods include

  • Cold calling
  • Downplaying the risk
  • Using stolen data

In case you receive a phone call or an email from a broker you never registered with. It is best to ignore it. Don’t let them convince you. Scam binary brokers will always claim how something is an exclusive opportunity, just for you, but it is never true.

Also, the fact that a binary broker is using stolen data and can reach you via private means of communication such as email, only shows how shrewd they can be. Do you really want to provide your credit card detail to a company such as that? Probably not.

Also, keep in mind that sometimes you can find out that a broker is a scam only after you made a deposit. For example, they can insist on offering you managed account where you lose all control of your investments. They can make threats, use psychological games and pressure you into making more and more deposits. The broker should never neglect your opinion or manage your investments.

Another thing that is very suspicious and that can indicate that a broker is a scam is the lack of terms and conditions on the website. Terms and conditions not only helps you understand the service better but also offers you an insight into your obligations and procedural elements. If the broker is hiding something, the first sign of a scam is missing terms and conditions. This document is usually very long and complicated, but don’t hesitate to read it and ask for additional explanations.

Terms and conditions explain all about withdrawal limits, procedure, reveal details on how dormant accounts are handled etc. They are also obligatory, unlike the stuff is written on the website. Keep this in mind. Compare the content of the website with content of terms and conditions and if there are too many differences, avoid that broker for your own good.

You want your money to be safe from the very beginning of the trading process and it is much easier to check broker status without involving with scams in the first place.

How to avoid binary options scams?

Binary options scam brokers tend to be very convincing with their promises. They can make you think how they operate in a magic world of binary unicorns where you will become a millionaire.

The first rule of avoiding binary scams is keeping a cold head. If the broker promises something that sounds too good to be true, it probably isn’t. Be realistic and don’t expect to become a millionaire over course of night, no matter how lucrative binary options might be.

The other important rule is to read news and reviews so you know what is going on in financial markets. Objective 3rd party reviews can help you in avoiding scams, and regulatory bodies often issue warnings on different types of frauds, including binary scams. Of course, keep in mind that sometimes regulatory bodies react to little too late, so look for other suspicious signs as well. Avoiding scam brokers requires some effort.

There is also a solution of trading only with regulated brokers. Regulatory bodies all over the world issue licenses for binary options brokers. Even though sometimes regulated brokers turn out to be scams, mostly because of changes in the ownership structure that might affect the way they operate their business.

Also, you can checklists published by your local regulatory body, but keep in mind that sometimes regulators tend to be slow in detecting scams. They sometimes issue a warning on a broker that is long gone or that has already scammed many customers. The best way to read about scams is to be focused on specialized media that will give you fresh information and introduce you to reliable brokers.

What to Do After Depositing with a Scam?

Ok, let’s imagine the worst-case scenario. Imagine you made a deposit with a scam binary broker. What now?

First, it is important not to deposit any more money with that scam broker! There is a high chance the broker will call you and ask for more money but don’t do it. Every dollar deposited is a dollar lost.

Next thing you should do is request a withdrawal. There is a high chance your scam broker will say it is not possible if you don’t deposit a certain amount. Ignore it and request the withdrawal again. If necessary ask for legal advice and let the broker know you are not alone. Research other cases with your broker on online forums and see how other people got their money back. Of course, if you are trading with a broker that offers bonuses, keep in mind that in case you accepted a bonus, you have a specific trading volume you must reach before making a withdrawal.

You can also contact your local regulatory body and ask for help. Don’t forget to contact the regulatory body where the broker is licensed, in case they have a license. They can do necessary steps and revoke the license and prosecute the broker if needed.

Act fast and don’t let the broker waste your time. Make sure to keep all correspondence and make a screenshot of your trading account in every stage of withdrawal. Often, scam brokers close the accounts without prior notice, but this way you have evidence that can be crucial in your case.

How to choose a binary options broker

As we see more and more binary options brokers soliciting customers, for a trader who wishes to trade binary options, it can get difficult and confusing in choosing a binary options broker. A quick look at various online forums and websites gives out conflicting reviews and opinions which only tend to add to the confusion. So how does a trader go about choosing a binary options broker? Read this article to help you choose a binary options broker.

Just like with choosing a forex broker, the task of researching into various binary options brokers before you blindly sign up and deposit your funds is essential. While there are many legit brokers, there are equally dodgy and shady binary options brokers. This is one of the main reasons why there are so many complaints about various binary options brokers. In most cases, the trader has not done their research into the broker and only realizes that they have been scammed when it comes to withdrawing their funds. In some cases, traders have lost as much as $1000 for failing to research for the right and legit binary options broker. You can spare a couple of minutes to read through this article, or you could risk giving your money to a shady binary options broker.

Choosing a binary options broker – What to look for

When it comes to selecting a binary options broker, any trader should first look into the following checklist criteria which we briefly explain.

Start by reading the About Us Section

One of the easiest way to filter out dodgy binary options brokers is to simply read the ‘About Us’ section. It is very simple to identify how legit a binary options broker is by simply reading the contents of this page. A legit binary options broker tends to give out as much of details as possible. Traders should specifically look for the following:

The broker’s company details including registration number, country of domicile, number of years in the business.

Validate the address of the broker

Look for the address of the broker. Now-a-days more and more brokers conveniently set up a virtual office in places like London just to make their company look fancy. Doing a search of the company can instantly reveal if the company is indeed legitimate or just has a virtual office. Stay away from binary options brokers that have a virtual office. If the broker is hesitant to give out their details, there is no guarantee that you can trust them with your money.

Read the Terms & Conditions

The terms and conditions although lengthy and complicated as they might seem is in fact a very good place to get all the finer details. It is essential for traders to read through the terms and conditions as it makes for a legal document. Pay attention to the sections dealing with deposit and withdrawal of funds, look for any restrictions or any fees that may be charged and so on. You would be surprised to know that of the many traders who feel they were cheated, simply did not pay attention to the terms and conditions. Again, it pays to spend some time reading through the binary options broker’s website rather than deposit your funds and then have difficulties during withdrawal.

Check for Regulation

Regulation is a grossly misunderstood area for traders. Just because a binary options broker is regulated doesn’t mean that they are legit. Regulation from CySec in Cyprus is one of the most common licenses held by binary options brokers. Yet, despite the broker being licensed, there have been instances when traders were cheated out of their money. Having a license does not guarantee anything and there have been no documented evidence of a financial regulation authority intervening to help out a trader. However, when a binary options broker is regulated, it does mean that they are subject to fair and transparent business practices which make it a little bit better to trust the broker.

Number of years in business

Logically, the longer a binary options broker has been in business, the less likely that they will cheat their customers. Always check when the binary options broker’s business was established in order to learn how long they have been in business. For a new binary options broker, it is much easier to disappear with funds overnight or to cause problems with withdrawals than it is for a broker that has been in business.

This is also the reason why you get to see big bonuses being offered mostly by new binary options brokers rather than the established ones. See here List of best bonuses from BinaryOptions brokers

Check their customer support (Chat/Email and Phone)

The next step is to contact the binary options broker’s customer support via Phone/Email and Chat. This will help you know how professional and helpful the support staff is while at the same time allows you to get an idea about the broker’s operations.

To conclude, despite doing the above research, there is no guarantee that the broker who meets all the above criteria is legit. There are many cases of well established business going bust and thus taking their customer’s money with them as well. However, by sticking to the above criteria, a trader has a better chance of choosing the right binary options broker.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Free Trading Education!
    Free Demo Account!
    Perfect for Beginners!

  • Binomo
    Binomo

    2 place in the ranking!

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