Avoiding Binary Options Scams with a Broker checklist
Almost every day we get questions about Binary Options scams and our views on certain binary options brokers. Up until recently we have tried to remain silent as to our perspective on the individual binary options brokers but recently we have decided to expand the vision of Binary Options Tutor past our original intent. There are simply so many binary options brokers available online right now that we decided to offer some of our perspective on avoiding Binary Options Scams and developing a checklist for the different binary options brokers. The purpose of this article is to share with you our Binary Options Broker review checklist so that everyone can consider some of these important factors and add them into your own personal Due Diligence research to hopefully avoid binary options scams. Successful Binary Options Trading in our opinion means you need to be very analytical and pay attention to detail and spot patterns and selecting the right broker for you is no exception so lets take a look at some important factors some of which you might not have considered.
1. The parent company of the binary options broker: We believe it is a good idea to select a Binary options broker platform that has an established parent company. We also believe that another good sign is if that parent company is a publicly traded company on an exchange. This means the company will be mindful of good and bad press as that will directly effect the value of its shares and it also means certain financial filings are made public to you so that you can look at how healthy their business really is. How is their parent company doing financially ( The broker can not pay you for wins if they are broke ).
2. Find out if the Binary Options broker is regulated: Government regulations in some form or fashion can mean that their is some Authority that you can contact about questionable conduct on the part of the broker and that is very important for you if you are going to be trusting your hard earned money to this party. Also another added benefit is that you can sometimes visit the governing authorities website and find out more about the history of this binary options broker.
TIP: Binary Options Exchanges such as Nadex or Cantor exchange etc.. are fully regulated and rely on a business model with revenue streams outside of profits generated by the losses of market participants.
3. Checking a Brokers Domain:
A) When was the domain registered: DO NOT take the brokers word for how long they have been in business instead find out when their domain was registered
B) How long is their domain registered for? When a site is registered for several years 3 - 5 atleast we believe it is a sign the binary options broker plans on staying in business for the long haul.
C) Has the binary options broker registered all 3 major TLD ( Top Level Domains ): My brother and I have owned as many as 70 domains either to develop and run or develop and sell. Any company getting professional consultation about launching their business seriously online will likely own all 3 TLD for their .com name
My favorite place to do domain research is listed below.
I like it because you can run checks on several brokers at once and find out a lot of the info with a birds eye view via their dashboard of results and dig in deeper by clicking on the globe icon.
3. Binary Options Brokers business location: This can be somewhat hap hazard to find out but a good place to start is right there on the site around the bottom hopefully a reputable broker would share this information but you might also look in the domain info to see the address of administrators if that info is made public.
4. Look for feedback about the Binary Options broker online: Conduct searches on Google and youtube searches using phrases like
Visit the various binary options communities and read as well as participate in any relevant discussions about the broker you are doing your research on to make sure they are not associalted with any binary options scams. What is the timeframe for some recent withdrawals ( shorter the better )?
5. Does the binary options broker have a working contact PHONE NUMBER? Any established business that you are considering trusting with your hard earned money should have a phone number and customer service representatives for you to reach them during at least their local business hours. In the case of a Binary Options broker look at online chat support as a supplement not a replacement for a phone number to talk to a human being about your financial affairs. Call and test the number to be sure it is current and in working order.
6. The Binary Options broker's alexa rank: Firstly let me say that Alexa rank is based on a lagging 3 month average so in some cases such as a newly established broker it will not offer much of an indicator. Also while Alexa is a wonderful tool to get some sort of idea about the traffic on a website it is not perfect. In spite of these factors Alexa is a benchmark for advertising Media buyers and is owned by Amazon one of the largest and most reputable companies on the Internet. Alexa tracks the top 30 Million sites on the internet and the lower a site is ranked the more traffic there is on that site. Where there is traffic on the net there is often transactions so compare the prospective brokers rank with other brokers.
7. Important Binary Options Account Details you need to know to avoid Binary Options scams:
A) what are the minimum withdrawals: The smaller the better because you want as much access and flexibility for withdrawing your funds and profits as you can have. Also check to make sure there are no imposed monthly limits on withdrawals and no unreasonable fees for withdrawing your money.
B) what are minimum deposits: Again smaller the better because you want to be able to test a live account without exposing to much of your capital to do so.
C) what is the minimum wager: Again the smaller the better because you need the proper flexibility to practice solid fundamental risk management if you are trading with an EU style All or nothing broker especially. Good Risk management in our opinion involves exposing only 2 - 5% of your accounts equity per trade.
D) What news,education and or charting tools does the binary options broker provide: In our opinion the more the better if this is solid education and tools not just hype to call traders into the markets. You will really have to sample this by participating in order to answer this question for yourself and compare what the different brokers have to offer.
8. Find out if the binary options brokers time frames are compatible with your trading style or signals you will be using: The best brokers offer the most flexibility for you to configure your trades as you see fit 5,15,30 minutes to an hour all the way up to end of day or longer in the best of worlds.
9. Does the Binary options broker provide a desirable user interface for your trading style: How fast is the execution on this brokers platform. Are there any problems with the broker providing liquidity when you want to get involved with a trade? Is the site frequently down for maintenance of any sort. Does the broker use proprietary software to facilitate trading or are they using a white label solution? These are all important to consider.
10. Does the binary options broker provide a Demo account: In our opinion a good demo account with no expiration and preferably without requiring a deposit is favorable. You need to be sure that you are comfortable with the brokers interface and also you need to be sure that you can test new strategies and trading ideas on paper before risking your finances in a live account.
Hopefully this article will give you some ideas to help build a good review for your prospective binary options broker and aid in avoiding binary options scams. When finance is involved it is very important to look at who you are transacting business with or considering doing business with and gather all the relevant information you can to avoid scams and feel comfortable with the binary options broker.