People tend to overcomplicate things that are simple. This statement applies to binary options brokers as well. You have extensive guides on how to recognize a binary options scam on the internet. Those guides make this quite complicated, and in reality, it is a simple thing. Looking for the signs of a scam is easy, and it takes little time and effort. The signs we will list in this article are evident, and you don’t have to be a professional trader to notice them.
– Bad customer service equals bad binary options broker. Customer service can be “wrong” is several ways. The most obvious way is the lack of the client service. In this case, the broker provides basic Q&A page, which is useless in the majority of situations. When you find a trader be sure to send a mail to their customer service and check how much time it takes for them to answer and check whether their answer is something vague or not. You should also check their live chat and phone support. Every binary options broker should have at least one of these two. Contact them and test the quality of their support because you might need them in the future.
– The majority of the binary options brokers do their business unregulated. The question of regulation isn’t as important as the attitude of the dealer toward the issues you ask about. If a company ignores or avoids your questions about their regulation, then that should raise a red alert. Answers that are inconsistent or contradictory answers should get your worries about their legitimacy. One member of customer service can share same info as another, so don’t buy their “wait for another customer service member for the answer” excuse. Some “regulated” brokers share their info, but you should always be a skeptic. Check the info they give you because it might be incorrect. Every broker that is regulated must share their address, so be sure to check whether there is anything at that address or not.
– Checking the owner of the domain might sound complicated, but it’s just a matter of few clicks. Several sites provide you with all info about the proprietor of a certain domain. Use that to check who owns the domain that hosts the website of the broker. This is an easy way to find out whether the owner had any other domains which hosted other binary options brokers that were labeled as frauds. You will be surprised at the number of current matches. This is all due to some people creating binary options companies that scam people for a year or so, and then they shut down the company and start again.
– Another important clue that proves the dishonesty of a broker is the quality of the customer support. If the support fails to give any answers that might solve a problem, then it is evident that the dealer doesn’t care about traders. Foreign customer support that doesn’t speak the English language is also a clear giveaway of a scam. You can find more infromation about Binary Options on Wikipedia.