How To Avoid Scams In Binary Options
New opportunities are always great things for people. Whether it’s a new type of business, a new type of communication, or a new technology, bringing something new into our everyday lives always gives people a chance to develop their potential in ways that might not have been possible before. Binary options trading is one of these new opportunities in the world of finance.
Unfortunately, as with anything that is relatively new, while there is learning, establishing new rules, and finding out ways to bring this practice into a more established position, there are also negative opportunities. In every business and every part of the world, there are unethical people who, rather than trying to work hard and make an honest profit, prefer instead to simply take money from others. Scammers, as they are popularly known today, have used the vast anonymity and convenience of the Internet to convince many trusting people to part with their money in illegal and unethical ways. Sadly, binary options trading is no exception, but there are some things you can do to arm yourself and reduce the likelihood of being victimized by these criminals.
Check For Customer Support
One of the most important things you can do for yourself is to remember how a scammer operates. The whole rationale behind scamming is “maximum theft, with minimum effort and expense.” This means they are trying to steal money while doing as little work as possible and not spending any more than is absolutely necessary to project an illusion of legitimacy.
If someone pretending to offer you a binary options trading opportunity approaches you, claiming to want your business, one of the best ways to find how serious this business is is by checking to see whether they have any kind of customer support.
In a real-world business situation, a legitimate company will be trying to do everything in its power to ensure that its customers have all the information and assistance they require to make their business transactions go smoothly. This usually includes some kind of customer or technical support. This allows concerned customers to ask their questions and get answers, or, in the case of some kind of administrative or financial difficulty, get it resolved by experts on staff. Obviously, this kind of qualified personnel requires a substantial amount of training and salary.
A scam operation will NOT have this kind of support infrastructure in place, simply because it takes too much time, effort and money to maintain it. If a binary options service claims that it is successful, yet has no support staff for customers, this is a pretty large, red flag that should make you question the legitimacy of the company.
Check For Encrypted Transactions
Binary options trading is a two-step process. You must create an account with your broker, and in that account, you deposit the money you intend to use for trading purposes, but this account is also where you receive your profits from successful trades. However, binary options trading is also about you sending out orders to execute trades, using a certain amount of your own money from your accounts. Those trades go through the broker and are then carried out in the Forex, stock or commodities market you are interested in.
Because there are transactions involving not just your money, but your money then being directed to through a client service to a financial market online transaction infrastructure, there is some kind of online protection in place. Or at least, with any responsible, professional trading service, there SHOULD be a form of online protection in place, and this is commonly referred to as SSL encryption.
SSL encryption is an industry standard form of online security. By encoding the specific information involved the transaction, the only people who can actually see the details such as your ID, financial details and account numbers are yourself, and the final recipient of the transaction. The same also holds true if your trade yields profit, and it’s time to deposit money in your account.
However, as to be expected, SSL encryption is not cheap. It requires a substantial investment on the part of the company, but it is designed to protect the identity and financial details of everyone that is involved with a commercial financial transaction.
Obviously, for a scammer that has no intention of actually trading your money because they are going to take it for themselves, there is just no need to get SSL encryption. That is simply spending a lot of money on a pointless service. If the binary options trader you are looking at has no form of protection for online transactions, and doesn’t even know what SSL encryption is, it’s quite likely they don’t have to protect their transactions because there are no transactions. Once again, this is a huge red flag, and should make you question the company’s legitimacy.
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