Binary options scams have become increasingly more prevalent in the industry lately, so it’s time to clear some things up. First of all, how can we tell some signs that a broker might be a scam?
1) Look at the country in which the broker is based out of. If this broker is from a country with poor regulatory infrastructure then stay away unless you are hearing great things about the company from REAL reviews.
2) Check the binary option brokers page to discover who is scamming you and who is the real deal.
3) Go to Google.com and type in “BROKER NAME scam” and see what you find. However be aware that competitors try and hurt the good guys as well. So be sure you read through the complaints and see if you find any replies from the brokerage itself. If the brokerage is replying and wants to help fix the problem if there is one, then this is a good sign. However if the company is not responding to comments then please take this as a BIG negative that they are not actively trying to fix problems.
4) Talk to them, chat with them, e-mail them and have an ongoing correspondence with them before becoming a client. This is your money, and you should be able to test out their support before investing. If they have quick, reliable and knowledgeable support, they may very well be a legitimate broker.
5) Ask around, go on some forums or chat rooms and ask others about your particular broker and see if anyone has had any real dealings with them and can give you proof that they are a reliable company.