The term “scam” covers a wide range of behavior, from providing misleading information to lure you in, through to vanishing account balances – and even dishonest trading advice.
A particular broker might not be technically fraudulent in its behavior; it’s just that the service available on the platform means that this is a broker that really thought to be avoided.
Think About This:-
A guy sells you a fake iPhone, saying it’s the real deal. After a while, you realize you’ve just bought a fake and you’ve paid full price. Does that make Apple a scam??? NO! If someone sells you 18 karat Gold and claims it’s 29 karats, does that make Gold a scam??? See where I’m going? Binary options are not a scam, but some of the websites that offer them are scams. Open your eyes when reaching for the wallet…
The UK’s Financial Conduct Authority (FCA) does now regulate binary options. They have already created a list of unauthorized firms. While they are not calling them scams, they are making it clear that these firms are breaking the law by trading with UK visitors – so they are best avoided.
You should always be clear about who you are dealing with. In some situations, you might visit what appears to be an actual broker’s site, click the link to sign up only to be redirected to another broker. Alternatively, a trading “service” may dictate that you use only their recommended broker. These “funnel” sites are sometimes used as a front by brokers with a poor reputation or are working alongside them to dupe visitors. A good broker will be upfront about its identity from the outset.
There has to be a fair and transparent benchmark against which the broker sets its prices. This benchmark should be what’s happening in the real world; i.e. real-time market prices. If the broker reserves the right to set its own prices, you can assume that those figures will be skewed against you; in other words….