The word “scam” is a pretty harsh word in most cases and it is not a word that should be applied to something unless there are a lot of facts to back up that claim. It seems to be a word that is thrown around all too often as far as binary options trading is concerned and it has been difficult for the legitimate binary options brokers to shake its stigma over the years. Just because an investor makes an uninformed trade decision does not mean that a binary options website is a front for a scam. Are there some binary options scams out there? Potentially yes, if you look hard enough at any business that involves monetary transactions you can probably find some fault somewhere with that system.
What is a scam?
A scam is defined as a dishonest way or fraudulent scheme to make money through the deception of others. Binary options brokers make it very clear and point out that there is risk in trading these types of financial instruments and they highly recommend to investors that they only trade with dollar amounts they can afford to lose. That sounds more like a legitimate responsible business than it does a fraudulent and deceptive practice. Many times if a potential binary options investor looks into claims that someone made about a particular binary options site being a scam, they will uncover evidence that shows it came from a disgruntled trader because they lost something like the rent money on an ill-advised high risk trade. Once again, a prudent person would not consider that type of situation as being scam like in nature.
Binary options brokers have made huge strides recently to prove how legitimate a financial undertaking trading binary options is. Yes they cannot satisfy everyone and just like other forms of market trading, some people profit on their investments and other people lose money; that does not mean that there was any fraudulent activity involved in that process. It is merely a risk that anyone who invests in financial instruments or any other investment type assumes. It falls along the lines of the old adage that “you have to spend money to make money”.
Many binary options sites have taken additional steps to prove their worthiness and show they are honest and trustworthy investment sites. A lot of binary options trading sites have turned to being certified by binary options regulating agencies. These agencies, such as CySEC (the Cypress Securities and Exchange Commission) make those that fall under their certification follow a strict set of business practices and ethical values in order to maintain that certification. Their certification has become something that potential binary options traders often look for before they sign up with a binary options broker.
Is binary options trading a scam?
The answer to this question is a resounding no. Although things can happen from time to time that seem out of place, for the most part binary options trading is a fair and 100% trustworthy type of undertaking.
Recommended Binary Option Brokers:
|Banc de Binary|
|CherryTrade||US traders accepted|