Binary options trading is an attractive profit-making prospect and traders in South Africa have picked on that.
Yet, with more than five hundred brokers available online it can be quite a feat not just to pick the right one, but the avoid the wrong one. In this guide, we will focus our attention on the “wrong ones” a.k.a – how to recognise scam binary brokers and save both money and time.
The golden rule for traders, both in South Africa and around the world, is to continually learn and follow all available info with special attention to areas we will further discuss in this guide article.
No Binary Broker Info Available
Bells should start ringing loudly if South African traders come across a binary brokerage which does not provide sufficient info.
This does not immediately mean that traders are dealing with scam binary options brokers. However, better to be safe than sorry. Or, in this case – better safe than with an empty wallet.
Established binary brokers want for their prospective traders to know as much about them as possible.
Those who provide only the basic info, or less, should be viewed with caution. In selecting a binary options broker, traders should adopt the KYC policy and apply it. Yes, it will take time, but if South African traders see it as an investment rather than a chore they are already on the right path to profitable binary options experience.
Confusing Terms & Conditions
Studying terms and conditions section is another task which many newbie binary traders like to skip. They fail to realise this can be a powerful tool on how to recognise scam binary options brokers.
If a broker South African traders find interesting has confusing, poorly written or completely absent terms and conditions then we advise them to proceed cautiously. Binary brokers with a long-standing reputation like 24option or IQ Option have detailed, clear and easily located terms and conditions on their website.
Sometimes the language used in terms and conditions might be a bit too technical, but traders can always contact customer support and can ask further clarification. Additionally, South African traders should always make sure they select a broker who made sure they know what sort of risks are involved in binary options trading.
Binary brokers who have the risk warning clearly shown and explained are the ones who wish to be transparent and as informative as possible so their traders have all the necessary info available.
Unavailable Customer Support Service
Binary options broker who is dedicated to providing a top-notch service will not penny-pinch on providing traders with the professional, available and friendly customer support.
For South African traders who are only starting out reliable customer support is very important as they will need help along the way. Scam binary brokers often have unavailable customer support service. Traders do not have to make a deposit to contact customer support and ask a few questions.
In doing this, they can judge the quality and availability of broker agents which will make the selection much easier.
Poor Protection of Trading Platform
Another useful way of spotting scam binary brokers is the poor protection of trading platform. At times, it can happen that there are no safety measures at all. This is very worrying and it might be wiser to stay away from such brokers.
Therefore, South African traders looking for binary brokers should always take a look at the URL area where a tiny green padlock should be visible as well as green HTTPs letters. Both indicate that the platform is secure. This is not something that should be compromised on since sensitive information is exchanged between traders and binary brokers. In binary options industry, most brokers use SSL – standard security technology which encrypts all data exchanged between the browser and designated web server.
Scam brokers do not care about security so they will most likely not invest in it. If South African traders can’t find any info concerning security and customer support is also being cagey about it, it might be wiser to look for another broker.
Withholding Trader’s Profits
This is probably every trader’s nightmare – not being able to withdraw their profits. It usually starts with ignored or rejected attempts on the side of the trader to withdraw money.
Another tactic is when the broker keeps pressing traders to invest further funds instead of withdrawing them. Sadly, when traders are dealing with a scam binary broker often they will not be able to get any response at all.
This situation can be avoided if South African traders read the instruction concerning certain broker’s withdrawal procedure. Also, looking for feedback from other traders concerning this aspect of binary options trading can be very useful or they may simply talk to the customer support and seek more info on the withdrawal policy.
Non-regulated Broker – Yes or No?
The reason we have left this for last is due to the fact this is a grey area where yes or no answer simply does not apply.
Yes, it is always wiser to select regulated brokers such as IQ Option, 24option, Daweda Exchange or AnyOption.
Yet, to assume that any broker who hasn’t got a license from regulatory authorities such as the South African FSB is a scam would be misguided. In the end, prospective South African traders looking to trade binary options have to take our first tip on how to recognise scam binary brokers most seriously and do full research on the broker.
Knowing as much as possible about the binary broker they are interested in is crucial, and it will determine the rest of their binary options trading journey.
Everything starts with a wisely selected binary broker.
In following all the other advice we provided in this guide, can only take South African traders closer to their perfect binary broker and profits the wish to achieve. Binary options trading provides fantastic possibilities when it comes to making a profit, but traders need to approach it wisely and well-informed.
The risk is part of any financial dealing, a trading binaries is not an exception, but in knowing the risks involved and in following sage advice South Africans may have a very profitable path ahead of them.