LONDON, UNITED KINGDOM--(Marketwire - Dec. 7, 2012) - With binary options becoming increasingly popular, NischalManiar.info is releasing a report on how to identify binary options scams. This report is meant to protect traders and inform them of common practices to avoid when choosing a broker.
Because binary options are unregulated in most jurisdictions they have become subject to scams and rogue companies. One exception to this is the recent addition of regulation by the Cyprus Securities and Exchange Commission (CySEC), which provides licensing and regulation of Cyprus based binary options brokers. Some simple research will let you know if your potential broker is regulated and can potentially save your deposit.
Another common failing is sites that are not fully capitalized. Before opening an account, you want to assure yourself that your broker has the necessary liquidity to pay out, even in the event of a large number of trades going against the broker. Unfortunately, there is no way to be 100 percent sure that a given broker is fully capitalized, but by working with licensed brokers you have the assurance of the regulatory agency that the site is fully liquid.
"With the recent addition of regulation by CySEC we try to encourage our readers to choose a broker that is regulated versus those which are not," said NischalzManiar, President of www.nischalmaniar.info. "We have found that using a regulated broker can remove many concerns that were once typical for unregulated binary options traders."
Deposit bonuses are common in binary options trading. These offers are meant to encourage new accounts and are legitimate for the most part. It is rare to get scammed by these bonus offers per se, but you do want to read the fine print. Many companies will require you to turn over your account 2-3 times before withdrawing any bonus money.
While you are reading about bonus conditions, you should also review the sites full terms and conditions. Avoid any site which has clauses that allow for retroactive changes to their terms and conditions. This is akin to changing the rules in the middle of the game and could lead to a large win becoming a loss with some simple T&C changes on the part of the broker.
Knowing these common scams can make it easier to avoid them in the first place. NischalManiar.info recommends the four following steps to protect your trading capital:
- Always do your homework to find regulated brokers that can be trusted.
- Use the broker demo account to familiarize yourself with the trading platform.
- Understand the win/loss payouts and do the math to determine your potential ROI.
- Never trade with money that you can't afford to lose.
NischalManiar.info was created with the express purpose of providing the best binary options trading information and broker reviews. The experience team of traders working at NischalManiar.info are dedicated to educating and informing site visitors on the best ways to take advantage of trading binary options.