The last few years have seen an explosion of interest in binary options trading; the possibility of earning large sums of money relatively easily has captured the attention of many aspiring investment entrepreneur. However, many traders do not appreciate the risks involved in this type of trading; every trade has the potential to cost you your investment. But, alongside this is the issue of regulation. Along brokers located in certain countries need to be regulated; this has left the industry open to unscrupulous brokers who are simply after your money.
These brokers ( check more about top binary options brokers ) are often the ones with the best and most appealing advertising, promising huge wins and overnight riches. Many new traders will fall for these offers and find themselves a victim of a scam; by simply looking at a binary options broker review you will be able to educate yourself and choose a broker which will not scam you.
Trading in this type of financial market is legal and several countries have strict regulations regarding what is permissible and what is not. Unfortunately, there are several brokers who are not regulated and place a negative spin on the entire industry. These brokers are the minority but are the ones most likely to scam you. The safest option is to choose a broker which is registered and regulated; you can tell by studying a binary options broker review or by looking at each of their websites.
The easiest targets are those who are new to the industry and do not yet have the knowledge or experience to deal with sophisticated scamming techniques. One of the most common techniques is known as bad quotes. This is when the broker has a time delay on the market information. The prices of assets displayed on their screen lags behind the price in the actual market. A trader will then place their trade according to what they can see only to find the asset is already moving against them. Having a time delay also allows the broker to adjust the expiry of the trade by a few minutes to ensure it ends where they want it to.
The best advice to avoid this is to have a separate screen with the actual prices and never trade simply because you have received a tip; verify your own information and trade according to your analysis.
It is also important to be wary of the automated robots which will place trades on your behalf. Although this can seem like an excellent way to start trading and learn the ropes, you will find that the only real winner in this type of trading is the firm offering the robot. Despite claims of high results, there is usually a forty percent chance of winning; this ensures the robot always wins.