Avoiding Binary Scams

 

Investing in binary options is your opportunity for a steady income

It is also an opportunity to lose a lot of money

You can decide which one it will be!

Identifying Binary Scams

A binary option is a financial derivative. It has this name because it’s an investment that derives from another asset. The first thing you must know about trading with derivatives is that it involves risk.

If you are aiming at turning 100 dollars into 180 in 15 minutes, which is possible with binary options, you need to understand that does not come without taking chances. Many of the scam accusations against binary brokers are a result of frustrated traders who didn’t consider the risks and therefore didn’t prepare accordingly. Don’t be one of them.

So remember throughout this article: although you should avoid falling into a scam, it will not be enough. To succeed in binary trading you must acknowledge the risk and learn how to avoid it.

Reliable Brokers

Working with a broker that offers your real advantages and serious guidance is the best way of avoiding a scam. Having the feedback of experienced traders is another guarantee of a correct selection. The following companies have created profits for clients, and many traders have reported success and satisfaction working with these binary options brokers.  These are some of the special benefits and assistance you can use to earn money consistently:

Banc de Binary helps you evolve professionally and gain real investment skills. This company has an excellent reputation and a professional customer service,  helping newcomers in performing at a high level quickly. It offers you a free live ecourse, and has a team of professionals which guide you and help you increase and maintain profits. Banc de Binary is fully regulated by the CYSEC and all clients can access a highly accurate signals service. It pays you the highest return on your money: 91% per trade, and is the sponsor of the Liverpool FC. Take advantage now of their generous cash bonus promotion:

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OptionBit has set up a complete package of free advantages and educational materials, including a free trading signals service, and one-on-one training and guidance. With these updated  financial summaries and the new trading strategies that you will be taught  every week by professional investment counselors, your profitability will reach new heights. OptionBit is the 2nd largest broker wordlwide,  and their bonuses and promotions will add to a satisfying trading experience:

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RedWood Options is the largest binary options company in the USA and another example of a convenient destination for your investment funds. This binary broker focuses on teaching you trading strategies with one on one training sessions and a video library containing more than 80 videos. Offering an excellent asset list and professional customer service your money immediately has more value with RedWood Options, since a significant cash bonus is added instantly to your account:

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StockPair is a highly reliable broker with a full-fledged education center, focusing on market analysis and advanced trading. This type of massive free assistance and guidance are a strong indication that this broker wants no part of scam rumors. In addition, StockPair offers the highest returns in the market, so the trading knowledge you gain is quickly translated into higher profits. This is an excellent choice for you to get started as an online trader:

StockPair

Binary Options Trading System

To be able to identify a binary scam, you must understand the basic concept of binary options trading. It is very simple and easy to operate a trading platform, and you should be able to do that efficiently almost from the onset. That ease should not be confused with the ability to trade efficiently. Creating profit is not as simple as performing trades.

Binary brokers are companies that offer you a platform where you purchase the options and make predictions on their outcome. For your accurate prognosis the broker will offer huge payouts. If so, how do these firms make money?

Binary brokers earn when your prediction is wrong. When that happens, they keep your money, or at least most of it. Basically, the same company that offers you the product (binary options) is the one hoping you will err your prediction. A conflict of interests?

Binary Brokers and Binary Scammers

The focal point of this industry is: mathematically, there is a better probability that a trader will lose money rather than earn it. This is statistically unavoidable. Therefore, binary brokers are guaranteed their share of the profit.

Here is where scammers are separated from intelligent, reliable brokers. Real binary brokers understand that if all traders lose money, business will be shorted lived. Therefore they give real assistance to customers who want to learn investment strategy, portfolio management and other financial skills needed to succeed. This way, a big portion of the traders succeed, while others still fail. It’s more than enough to keep the broker earning and the customers coming.

The Scam Brokers

On the other hand are the scammers. These brokers promise the same high payouts as any other binary company. Yet they fail to inform about risk, and most importantly, don’t offer any assistance to turn customers into better traders.

In this sense, where does Cedar Finance stand? It would be an exaggeration to state there is  a Cedar Finance scam, nor would it be accurate to believe are they careful about alerting and instructing customers. Although they don’t fit the ultimate scam label they are not among the most reliable brokers either, a list comprised by the brokers  listed above.

Avoiding Binary Scams – Summary

  • Remember the risks involved: before fearing a scam, beware of ignorance
  • Avoid brokers who promise huge profits and teach you nothing
  • Free educational tools are made available by serious brokers
  • It’s up to you to use these educational tools
  • When you learn to trade online you can earn a consistent income