Safety Tips

Binary Options Safety Tips by Anonymous
1. Always and only sign up with trusted brokers – this is our first and most important safety tip. The binary options world has hundreds of brokers involved in it, out of which only a handful can be trusted. The vast majority of brokers will try to scam you by stealing your money. If you’re in the US, the problem is even bigger because no brokers are officially licensed except for CFTC-regulated exchanges such as Nadex and Cantor Exchange, but they are not compatible with most of the good signal services that are available and their system is quite different than that of other brokers.
2. Understand that in binary options there is a conflict of interests. The brokers, even the trusted ones, lose money when the trader is making money, and they make money when you are losing money. This is a very important thing you must always remember and the rest of our safety tips arise from this understanding.
3. Never let a broker trade for you – most brokers have some kind of managed account or AutoBot to automatically trade for its users. Never use such a service.
4. Never accept trading advice from brokers – they will to convince you to take their advice with promises of high profits. Don’t believe any of their advice.
5. Never be pressured to deposit more than you can afford to lose – This is a very important safety tip. Binary option trading is highly risky. There is a chance you WILL lose your money. Thus, you should never risk more than you can afford to lose. And the brokers will try to convince you to deposit more. If you deposited the minimum because that’s all you could afford, they will try to get more money out of you, claiming that it will make your chances of winning higher. This is bullshit.
6. Never agree to take any bonuses – the way the bonus works is that it affects the required the threshold of being able to withdraw money. So if you take a bonus, you will need to have a higher balance in order to withdraw funds than if you didn’t take a bonus. The higher the bonus, the less likely you will ever be able to reach the threshold required to withdraw.
7. Verification process – the verification process is an important part of signing up with binary option brokers. It is required in order for the broker to release your earnings to your bank account. If a broker allows you to trade before completing the verification process, this should raise a red flag. Maybe that broker does not intend to let you withdraw any funds and that’s why they don’t require that you verify your identity. We recommend that you complete the verification process BEFORE funding your account. Another issue with verification is that you should not give out too much information. For example, legit brokers will never ask you for your social security number, but identity thieves might. Let’s go over the verification requirements so that you know what to expect. First, they will require an ID to prove your identity. This could be a driving license, for example, and they will require that you cover up the social security number for security reasons. Next, they will need to know the source of the deposit, for example, a copy of the credit card or a swift copy if you deposit via wire. Finally, they will need a utility bill to prove your address. Never give out more than this information. And again – never give any information at all to untrusted brokers.
8. When choosing a signal service, make sure it is a reliable and trustworthy service. The best way to know that is by hearing it from someone you know who tried it. Searching for reviews on-line won’t help too much because even before the scammers release their scam services, they will upload many fake positive reviews. Another option is to be aware of some features that all scams share: a count-down spots left feature, too-good-to-be-true promises of making astronomical amounts of money, going on vacations, buying fancy cars and houses, etc., fake testimonials and screenshots of bank accounts and so on and so forth. A really good service will not try so hard to convince you to sign up because they know that legit services become viral by word of mouth.
9. If you’re just starting out with trading, it’s highly recommended that you begin trading with a FREE demo account, whether you are trading on your own or following a signal service. Only once you are confident in your ability to generate profits, go ahead and trade with your real account.
10. Last but not least is money management: this is a very broad and important issue, but let us simply it for you. Do not trade with more than %5-%10 of your total account balance. So if for example you deposit a minimum of $250, it’s recommended that each trade will be for no more than $25. This will make sure you will not quickly wipe out your account.

14 thoughts on “Safety Tips”

  1. is globalmarketoption.com a scam website:? I contracted a binary agent through this and wandering if it is a scam. I wired 500.00 to a contact and it looks like my money is their and agent is trading,,,but now I think I have been stupid.

  2. Avoid binarymate.com.
    I lost almost 80% ($3,750) of my savings between February and March 2017. I had to take credit with my bank for my vacation expenses in May in Africa. they gave me 100% bonus to my deposit, after some trade I won, I wanted to make a withdrawal, but they told me that I have to trade and earned triple my investment; for example: with a deposit of $250, even if I want to make a withdrawal of $50, I must have earned $500 more on my deposit, and the bonus does not go away. Oh my God, here I am in shit, this shit has plunged me into a financial crisis so far. They also have cash and bonus prices every week for big traders, I tried this opportunity to get my money back, it was also a nightmare. I could do 10,000 to 12,000 trades in 6 days and be in the lead of all traders, but at less than 24hours, 2, 3 or 4 traders jumped me sharply with more than 15,000 trades done in 2hours only;(15.000 trades in 2hours???? Il never see that, only in binarymate). so in the end I find myself with a bonus, shit.
    Frankly avoid this binarymate.com completely please.

  3. Salut,

    I think the intention is fantastic but point 10 is very contentious and very important. If you have never traded BO before I wouldn’t bother with trading a percentage of your account unless you have been doing this for a good couple of months every day. I would tweak this to trade the absolute minimum allowed at all time irrespective of account balance – As this is targeted at newcomers, you have many many experiences to go through and this will take at least 3-4 months before you have a toe dipped into the water. Starting off if you trade at 5-10% of your balance, you can kiss it good bye. If absolute minimum is $5 per trade then that is what you trade until you can triple your total account balance at least ! – Hope this helps.

  4. Great article. These 10 rules can save you a lot of money. Finding right broker is as important as investing in right stock. so according to these rules please do a full background check on broker before working with him

  5. Wow… just wow! Exactly what I was searching for. You have no idea how much these binary options safety tips will help a beginner like me who is new to binary signals trading. Just copy-pasted the entire text in a word document and intend to read it daily for the next few days so that I can fully memorize all the tips and make it a part of my system. Thanks a lot, Anonymous. 🙂

    1. First, we have nothing to do with this sleazy scam. We will be sure to add this one to our blacklist after seeing more than a few complaints. Thank you Pete.

  6. My friend got into binary options a few years ago, but then was scammed big time. That really freaked me out, so now I’m trying to do a lot of research and make sure that doesn’t happen to me too. This list is very helpful to me. Thank you!

  7. Great list. Obviously number 1 on that list is the most important. You could avoid a lot of headaches just by doing your homework in this regard.

  8. Excellent info. Wish I have had this before signing up with three binary option brokers. One auto traded unauthorized and lost a bundle. I consider this a fraud. One traded 15 K and lost then gave me a bonus (what a scam, can’t withdraw my funds), the third one, same bonus problem.

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