Interested in online trading?
Want to know whether binary brokers are scammers?
Understand where the allegation of a binary brokers scam comes from and learn how to differentiate between reliable companies and rip-offs.
The Binary Brokers Scam Allegations
Binary options are a highly speculative investment. In other words, the ability to forecast results is low, the risk is high and the loss percentage can be total.
Now compare this to the way binary options are sometimes advertized: earn money easily, immediately, abundantly.
Of course, when these two realities meet, there is a good chance someone will feel scammed.
But is it really a fraud? Are binary brokers cheating their customers, or are they marketing geniuses?
Binary options mixed reputation is caused by the high risk nature of this investment. Many traders who venture into the market have high expectations of fast and easy earnings and do poorly. When money is lost, they accuse the brokers.
Nonetheless, the binary options derivative is simply an opportunity to earn big payouts that involves high risk. The meaning of high risk is that the odds of losing are higher than the odds of winning.
So is it best to avoid binary trading? Not unless you are willing to renounce to those payouts. A portion of the customers earn, substantially, with this investment. All you need to know is how they do it.
Binary brokers marketing scam
If a company’s product has several benefits and also some flaws, do not expect them to advertize the flaws. No binary broker can be accused of trying to make a sell.
- They claim the payouts are big. Well, they are.
- They claim trading is easy. Well, it is.
- They claim you can win even when the market is doing badly. Well, it’s true.
Yet some brokers are more constantly and severely accused of fraud. They allegedly retain traders’ yields, use misleading information on their trading platform, and induce customers to make bad deals.
Such allegations are relevant, and have nothing to do with the marketing strategy used by brokers. If a client has earned money, he or she should have no trouble withdrawing the profit. Furthermore, the trading platform has to show correct data at all times, and traders can’t receive bad financial guidance.
Cedar Finance has definitely had issues with the above topics, and so has TradeRush. These companies have done a poor job of creating a professional and serious image. TradeRush have been intent on fixing this problem, and we hope Cedar Finance will follow in its steps.
Legit binary options brokers
Since this investment is highly speculative, the only way to profit is by using appropriate trading strategies. These include two basic concepts:
- Risk management – lowering the odds of loss
- Probability axioms – strategies based on odds rather than data
Here is where choosing the right binary broker makes all the difference. The best binary option brokers help customers learn. They put at their disposal investment counselors, trading tutorials, educational tools. Cedar Finance lacks this facet on their site and it backfires because many traders end up having a bad experience with them as a result. Scam accusations ensue.
What companies are doing a better job?
StockPair is an excellent example and a safe choice. Their personal-training program is the best way for you to learn and benefit. They offer up to 95% payouts, and are known for giving out excellent cash bonuses and other perks. As soon as you open your account you will be guided by an investment expert towards consistent profits, because their customer service and commitment to professional financial services turn them into a solid destination for your investment:
Banc e Binary, sponsor of Liverpool FC Premier League club is also an excellent alternative. A full-fledged educational center will give you an abundant amount of learning tools. They focus on professionalizing their traders, which is a an excellent deal for you, because you get the assistance of true investment advisors and will be able to increase your profits substantially with this guidance and acquired knowledge:
OptionBit, the leading European binary options corporation, has developed a free signals trading tool which enables you to profit immediately. This important benefit has been praised by traders in several markets, which have reported a sharp increase in the accuracy of their binary predictions:
Tips for avoiding fraudulent brokers
- Don’t trust binary brokers who promise fast profits without offering learning tools
- Start you trading experience investing somewhere between 250 and 500 dollars, less is not enough to succeed
- Begin with small trades and focus on creating a strategy
- Always stick to the rules of the trading method you learned
- Prefer brokers who offer bonuses or demo accounts
- Learn more about each assets and pick the ones you are most familiar with
- Give preference to trading during the opening hours of the market you are working with