Binary options are a perfectly safe and legitimate way to make money on various markets. Yet they’re controversial, primarily because there are a lot of unscrupulous brokers out there who have given binary options trading a bad name.
The key to safely making money with binary options is always going to be to choose the right broker. Here’s what you need to know.
How can you spot a binary options trading scam?
First, make sure it’s regulated by the country it’s based out of, and check which country that is. Some countries have very strict financial regulations, others don’t. Most reputable places will list their regulatory authorities and license numbers right on their website.
Some brokers will not be able to work with your country of origin. For example, some foreign brokers can’t give services to people in the US or Canada, but can deliver services to people in the EU. Always make sure the broker you’re dealing with is capable of acting in the country you hail from.
You can also check to see if they’re a member of the International Financial Commission.The Financial Commission is an independent self-regulatory organization and external dispute resolution body that maintains lists of reputable brokers, as well as lists of brokers to watch out for.
You might also check out the reviews for the brokers you’re working with, but be careful. There are a lot of fake reviews and fake reviewers out there. Look for obvious signs of fakes, like accounts that only seem to exist long enough to leave a positive review, and no longer.
How can I get my money back from a binary options scam?
It can be very difficult to get your money back. Sometimes the scammer will block your ability to get to your funds by using obscure laws.
If you used a credit card to pay for your binary options then you might be able to use a chargeback to get the money you put in back. That doesn’t necessarily mean you’ll get your winnings, though.
Your best bet is to find a reputable broker that you like working with, and to stick with them.
Has anyone made money from binary options?
Yes, though nobody makes millions of dollars trading binary options overnight.
Instead, most people use a long-term strategy to get ahead slowly over time. They combine money management with an understanding of the market they’re trading on to get solid results.
Talent, the ability to predict a market with some regularity, and the willingness to learn about the world of financial markets will be a big predictor of success. If you don’t have those qualities binary options aren’t much better than gambling.