How to not be a Binary Options Scam Victim?
Due to the simple fact, the binary options space deals with money you will get an endless array of scammers trying to dupe you out of your cash. I am going to teach you have to avoid this starting out and if you are a “Newbie” then listen very very carefully as this is 100% for you! Binary options by themselves are not a scam, but some brokers, marketers, signal providers, account managers, and system providers will treat them and you like the common criminals they are. They have no remorse or care and have a very simple straight forward goal and that is “TO GET YOUR MONEY!!!” that is it that is all they want to accomplish, from there they will spin tales and lies here to there and back again as long as you believe anything they say and will often wrap it in half-truths to get you to buy their lies. In the end, they are nothing more than lies and since you are new to trading I will ask they you take great care in starting out as you don't know how most of this works yet and need to be educated so you don't become one of these conmen's statistics.
Rule #1 – Never invest money you can't afford to lose.
This is the most basic fundamental of investing/trading there is. You are a newbie and do not know what you are doing so why would you risk large amounts of money that maybe you need or can't afford on trading when you can lose some or all of that which you invest? The answer is you “DON'T” anybody who tells you the opposite is out to get your money more than likely. Always start small and build until you are experienced enough to handle the risks associated with trading. It takes months and sometimes years to become a profitable binary options trader. Some never do because they do not listen to the wisdom of the market. In any endeavor you are not sure of always start small and build that way if you lose you can always start again with limited exposure. Simply put as a trader “LOSE SMALL, WIN BIG” @ TheBinaryNerd we are here to help show you how!
Rule #2 – Never allow a broker to trade for you.
Under no circumstance whatsoever are you to allow a binary options broker to trade for you! Any broker who offers you trading advice or wishes to trade for you will never be seen on “TheBinaryNerd”this is a pure conflict of interest as when you lose the binary options broker wins. Also if they wish to tell you they only make money when you win don't believe that for a minute as it is a complete and absolute lie. They like to pretend they have advanced hedging/liquidity/offsets of customer order flow but in truth the vast majority of these guys only have risk management departments that will try to give you bad fills, manipulate prices against you, delay entries and all sorts of dirty tricks in order to help you lose as they know only one thing in how they work “Tell you whatever you need to hear in order for you to “#1 DEPOSIT” & “#2 TRADE” that is all they care about. From there it is a pure coin flip of statistics of which will balance out on average 50/50 and since you make only 70-80% on a win for ever $1 traded and lose 100% on that same $1 traded. In order to come out ahead you are going to have to win over 58% of the time which will take skill to achieve. The first sign of a scam broker is them calling you repeatedly asking for larger sums of money and to trade on your behalf. The simple solution here “NEVER PICK UP THE PHONE!” No broker should call you soliciting funds in the U.S. that is against the law and it should be worldwide too IMO. Hang up on anybody who calls from a broker and BLOCK their calls.
Rule #3 – Start trading with a demo account first to prove viability and learn how to trade.
If you are just starting out trading the best advice one can give you is to first use a DEMO account. If you can't make money with a demo account that will go even more so with a live account because for most a funny thing happens when trading real money, they become afraid. In trading fear and greed are your biggest enemies. If used correctly they both can also be your best friends, I will go more into that another time on TheBinaryNerd. By testing out a signal service, broker, robot, system or method/technique you might have picked up, you then can gain knowledge and experience to see if it has any viability and works for helping you become profitable. That is the only goal of trading to be profitable and in order to do this, you need experience and a risk-free way of testing out your ideas. So if you are newbie accept you don't know what you are doing and use a demo account to learn to trade in the first steps of your journey into the binary options trading arena.
Rule #4 – If a system/software/bot/trader requires you to deposit/use real money don't do it. It breaks Rule #3!!!
Many scams have a very simple pedigree that gives them away very quickly and that is the “REQUIRES DEPOSIT” often these people once they get you to sign up to their broker will ditch you as they accomplished their goal of getting you to deposit. There is a very good reason as to why this is, and that is every time you deposit using their affiliate link they get paid from a few hundred to over $800 on their scam system/broker/software/robot/signals. Many of them will tell you it is free, but the truth is it is not as they are being paid for your deposit and more then likely the broker is ok with this because he has plans to get you to deposit more as you lose your money using their system/software/robot/magic penis fairy or whatever tall tales they will be trying to get you to believe. You are a newbie and to them they will look to take advantage of your lack of knowledge and appeal to your greed. They are very well skilled in this and if you just follow this rule they can't scam you at all. A legitimate service will allow you an option to deposit in place of a subscription fee on a designated period of time. If they have no trial period or subscription service then the odds are very high they are a scam and best to avoid.
Rule #5 – Never accept a bonus that requires turnover and traps your money from being withdrawn.
This is a more tricky one as most people want free money! I mean who does not right? The only problem is that there is nothing free about it and often it is what a scam broker will use to lure in deposits of newbies. If they are one of the real scam brokers then you will likely never see this money again. If you read the T&Cs = Terms and Conditions of the brokers website this will tell you what you need to know. Most require 30x to 50x your deposit and the bonus amount in order to withdraw. That means if you deposited $1000 and had been given a 100% bonus of $1000 you would need to trade $60,000 to $100,000 in volume before you could ever withdraw a dime of this money. Now as a newbie you don't know what you are doing so the broker is betting you will #1 never reach the turnover amount thus they get to keep your money, or lose the money in the attempt of trying to reach the turnover requirement. Only experienced traders should ever attempt to take a bonus from a broker and even then it is most often not wise. There are segregated bonuses that do not trap your money from being withdrawn that we will go over in the future on TheBinaryNerd, so stay tuned!