How to Spot a Binary Trading Software Scam

Posted by Finlay Wheeler on June 28, 2016

Binary options trading is not off the radar from those who wish to make a victim out of innocent traders. This is especially true when it comes to using the binary trading software, which is used by traders to assist them to place trades faster than doing it manually. But for those that are desperate to have some quick cash, they easily fall prey to scams. Rather than losing your will just because you need the money, you should always keep your reasoning in check whenever you meet new software that is going to be used with binary options trading. But how do you spot a scam in the first place?

 

Before anything else, the aspects of good binary trading software can be found at Investopedia. You will find there how trading software work and the algorithm it uses to predict a good signal. However, the use of the software is not for the purpose of making it as a substitute.

From here on, you will find several red flags that point to scam binary trading software. When a new binary trading software make claims that they have made several members earn huge profits in just a short amount of time, that is when you raise your guard. Everybody knows there is no such thing as quick money. And even if there is, that kind of money earned easily goes away. The next step you are going to do is to conduct basic research. Find out if the owner does really exist. A simple search in Google will help you do that. If none exist, that is when you dig deeper. One of the common traits that scam software and companies do, especially with binary trading software, is using a video to convince their potential clients to use their amazing software. They make claims that the members have grown very rich just by using it for a couple of times. It will show you a background of luxury, especially with the self-claimed CEO. It will also make claims about the earnings they have. What makes it very convincing on their part is that they display a specific figure, for example showing a total earnings from binary trading with $879,345.56. However, the giveaway about this is that they can’t provide specific numbers – the number of active members that were involved in accumulating that earnings and the amount of money they placed to trade. Another red flag is their contact information – it is almost non-existent. Make sure that you find their place is an actual office and that it is running. Their customer support should be accessible 24/7. If not, then drop that system and find one that has already been established for more than a decade.

 

One thing that makes innocent traders give in easily to such scams is when they are desperate for money. The more desperate they are, the more they are going to risk everything just for the sake of it. Don’t ever take your guard down whenever you meet new software. This can make you lose a lot of money if you do so.