There are many people who will warn you against trading in binary options; they will state that this type of trade is merely a scam. Unfortunately, many of these people have never experienced this type of financial instrument and are speaking out of fear. If you perform a binary broker review then you will realize there is only one way they are able to scam you; this is when you ask for your funds and they will not release them.
The issue does not lie with trading in binary option; rather it is something which is generated by the binary option brokers, it is these firms which have the power to manipulate or stall your funds. Of course, this is not to say that all brokers do. Many work within the regulations which are becoming stricter; these brokers will offer fair opportunities and many traders have managed to create significant returns for themselves.
However, the regulations do not apply to all companies; in effect a brokerage will choose to be regulated or not depending upon where their registered office is ( read more about regulated binary options brokers ). It is these brokers which are most likely to scam you as they are not reporting or overseen by anyone. Unfortunately a scam broker will appear very similar to a genuine broker. In fact binary broker reviews have shown that the advertising is similar and even the bonus offers appear to be genuine. One of the biggest clues that they are a scam broker is the fact that they are not registered and they will accept anyone; regardless of their location.
The premise behind trading is simple; on every trade you will win or lose. A scam broker will be extremely happy when you lose and may even attempt to move the expiry date of a trade very slightly to ensure you lose. However, if you win your trade they will simply delay in paying you your funds. All you will receive is a string of excuses as to why you cannot access your winnings or even your original deposit.
It is relatively easy to avoid this issue; the best way to start is to choose a broker after looking at as many binary broker reviews as possible. In fact, the majority of these firms are legal and you will be able to locate positive reviews and will find their sites are easy to use, informative and the broker cares about you. It is the minority five or ten percent who are looking to scam traders which damage the reputation of the industry.
To ensure you choose the right broker it is advisable to consult a list of binary broker reviews from a reputable source, you can then choose the one which offers the most suitable package for your needs.