In comparison with Forex binary options looks much simplistic. Of course the common signs of deception and fraud inherent in Forex and binary trading (on schemes of deception in the foreign exchange market I told here), but has its own specifics: if the market is easier, then the methods of deception are also primitive here. However, it is logical that binary options trading involves betting on the rise or decline of quotations of the asset or currency pairs, which is much easier to understand for the beginner. So the methods of deception by the broker are designed for beginners.
Cheat in binary options: the most simple schemes
Again I will focus attention on a single point, which often confuse the beginning traders: the broker who does not take the trader to the real market, that is, gives him the opportunity to trade on their quotes is not a Scam!!! This scheme works 80-90% of all binary options brokers in Russia (there is no statistics in Europe and the US, but this scheme is found there too). This scheme is called “B-Book”. And as soon as the cheating in binary options by the brokers begins, then this company passes the category “kitchen”. The “kitchen” task — to deprive the client of any deposit, B-Book broker — just wait for the inexperienced trader o give him a deposit himself t (there are 90% of such cases).
1. Manipulation of price indicators
Some trading platforms, especially designed for a specific broker (and actively advertised), have the ability to change the indicators from the developer. For the trader the manipulation can be subtle but a change in value 1,4187 to 1,4186 you will not see, but your bet is not played. This fraud is actual on “One Touch” options. No, we are not talking about the fact that the broker will direct the trend in the opposite direction, it is simply impossible, because you can easily compare the trend on the same asset at two different brokers. But it is possible just to deviate it.
Some traders practice trading with two brokers simultaneously using a second broker as a safety net. If a good position “freezes” at one broker (itself or through the negligent company), you can open a position for another. Similarly, we can compare the movement of the trend. However, the differences can be, but only a very small and short, which means the difference between the providers quotes. But fundamental differences between the price trends must not be strictly!
And another tip: work with a proven, major platforms, although this is not a guarantee, alas.
2. Paid trading signals
What a newbie trader do not want to get “freebies”? However, the thing: download our free trading Advisor will not work because the broker is not profitable. Installing plug-ins and the blocking settings in the platform exclude the possibility of using automated trading. Cheat in binary options? No, just their own rules. But broker otherwise force you to use their paid signals, guaranteeing 100% result. What are the trading signals:
- these are the same signals that you can get by installing expert advisors;
- no person (trader) will guarantee a 100% accuracy of signals;
- offer trading signals are based on technical analysis, while fundamental and emotional factors are not taken into account.
Conclusion: you are offered a 100% guarantee? If we are talking about 70%, then it is something closer to the truth. And you get examples of usage of these signals by the broker. Agree, if the signals are such profitability, then the broker makes profit on them? Then you have the right to ask for evidence!
Another “trick” to lure inexperienced traders because professionals work in their unique strategies. First, the trading strategy can be promoted by trading bot which you will recommend to buy (in the paid store app of the same platform). Secondly, the tactics of professionals is verified to the second. The repetition of their action means delay, but in real market it is fraught with slipping orders. Social trading is the way to exercise trading on a demo account, not more.
If you know how to play chess, remember the principle of repetition of moves of the opponent: the black pieces arbitrarily can repeat moves of the white, but in the end lose, because white always a step ahead.
4. Cheat in binary options: advertising
Banners, contextual advertising, thematic posts — this is a deception itself. Alas. Yes, binary options brokers attract customers, describing all the ease of trade and huge profits. Inexperienced traders lose and immediately put the stigma of “Binary options fraud”. Unfortunately, the intrusive advertising is the reason.
If you are going to devote yourself to trade with binary options, note, that this is not a casino where bets are made. Those who mindlessly put on the trend movement, you lose on the theory of probability. Binary options is really a good opportunity of earnings with continued work and improvement of the knowledge and experience. But, believe me, the “free cheese” will not be here.
And finally, a few tips:
- do not fit all brokers from the position of “Cheating”. Even the stock based on the trading signals can be quite serious (e.g., Grosl Trader offers a free test signals of the first week). You can ensure by yourself!
- do not hesitate to ask the broker questions before making a deposit. In this section there are quite a lot of information about what you need to check with your broker first of all;
- replenish the deposit only the amount that you can afford to lose gratis.
And remember, every partnership is built on trust. Don’t hurry to “hang tags”, but do not rush to trust immediately. Ask, try, test, and investment portal Investlb.com team will always help you with its tips and friendly support!