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Binary options scams are not new. Thousands lose their life savings by believing in binary options scams. So, to begin with, what you can do is to first realize that such scams exist and it is very easy to identify them.
How can you spot binary options scams?
1) Ponzi schemes
The Ponzi scheme in particular is known for the notorious Italian scammer Charles Ponzi who effectively scammed Americans out of thousands of dollars using his bogus system to make money. Mr. Ponzi, using his ingenuity and panache, paid off more mature investors with money he raised from newer buyers. The scheme, introduced by Ponzi, is still relevant today.
With the mechanism of a pyramid scheme itself, old investors get new investors to invest in the scheme and pay the first few weeks returns. Then comes the twist, where new investors are told that in order to receive additional commission, they must reinvest and also find new members. This specific procedure goes on and on until they are discovered, however by then the scammer is on the run with all the money.
Although it is easy to spot, naive buyers still fall for it. Often called a crypto pyramid, the plan is often defined as “risk-free” with a guaranteed high return on investment.
To save yourself from such techniques, it is highly recommended to improve your investment knowledge before investing in such schemes.
2) False promises and results
The first signs of a binary options scam are insane returns secured by the options broker who has almost no reputation. Auto trading has taken a toll on the modern trading population with every company claiming that they have developed bots that will help traders make a lot of income in the long run.
The claims also include the specific robots that were designed in such a way that the buyer would not suffer any loss, regardless of the amount of the investment, a claim that seems fabricated from the first step.
First Alternative Recovery has already dealt with such annoyances on a regular basis and strongly suggests that you stay away from these bots as no android can out-trade a human.
3) Trade Mechanism Invented
Almost all binary options offers are bogus. Binary options scam site directory can usually be found online after some research. These scammers usually build websites that depend on a genuine binary exchange, however, the trading chart below works according to the algorithm developed by them. What he means by that is that when you invest your money on the exchange, it will show that you have made a lot of profit in a short phrase.
The greed for more profits will make you invest more than necessary, but still, you will find that you are reaping profits. Now the problem occurs when it comes time to withdraw your funds. Once you make your withdrawal request, you will notice that the binary options broker is making stupid claims about lack of staff or bank holidays in that particular country, resulting in delayed line transfers.
So, think about the above points before you decide to trade binary options as it is something that could lead to a lot of financial problems if you do not earn a good amount from it. Therefore, you better start with binary options and make sure that the particular broker you are not investing in is a scam.