Fraud and cheating is a serious topic that is also relevant to binary options trading because there is no one who wants to be deceived and take unnecessary risks. If you choose the wrong broker you expose yourself to risk. We cannot deny the existence of the market brokers’ fraud, no matter what their deception. Unlike them there are many reputable brokers on the market through which you can trade without any worries.
Types of fraud in trading binary options
Of course, you wonder what kinds of fraud are possible in binary options trading. We’ll tell you more about that.
Unreliable payment process
The international financial traffic is very complex and new payment methods (as eWallets, for example) are challenged by many providers. To offer a serious method of payment as, for instance, Mastercard, a provider must fulfill a number of criteria. Among other things, the provider needs to know its customer and to determine his / her identity. As a result, the customer has to provide a lot of information and to fill in a lot of questionnaires before the payment.
During the creation of a deposit there are no such obstacles. Depositing runs without problems for a few minutes. Unreliable broker can refuse to pay for unrealistic reasons. It may require certifying documents that you don’t have. As a rule, it is a copy of the identity card and the bill (for example, electricity bill) where the address is written. At least such is the case for reliable brokers and the payment takes place without any problems. In addition, these documents should be prepared in advance, prior to the establishment of the deposit, so you can withdraw your money quickly.
Some platforms offer the additional advantage of provider, fractionally changing the indexes. These little manipulation are not visible to the traders, or at least are unprovable. Only a direct comparison with the price indices in real time will help to expose the provider, but it is almost impossible for the average trader. Imagine you have an option that wins with the exponent of 1.8375.
Shortly before the expiry of the term the rate is at level 1.8375. As a trader, you will not notice a small jump to 1.8373. But this small jump means that you do not get the money. The trader receives nothing, but actually the rate was 1.8375. What can a trader do to avoid this? Trade only on larger platforms which are used by most brokers. These platforms work equally honestly and without any problems. Do not trade on unknown platforms.
Know your enemy: What brokers cheat?
First of all, it should be noted there are not so many scammers as you might think. The reason is clear: because of the peculiarities of trading binary options brokers earn good money completely legal way, without cheating. Why a broker should take a risk of going out of business just to earn a little more? It does not make sense, and therefore the traders’ motivation of cheating is rather small.
That’s all for now. Got any questions? Just ask the expert!