The adage ‘all that glitters is not gold’ fits binary options brokers as well. There would be culprits in any business which involves huge money and binary option is not an exception. There are numerous tales of price manipulation, breach of contract terms, and payout refusals. However, the majority of these problems can be resolved by taking simple measures to identify shady brokers.
The registration process should be simple and straight forward. The webpage should clearly define the terms and conditions under which a binary broker operates. More importantly, the web page should clearly list the identity documents required by the binary broker to complete a hassle free registration. Furthermore, a trader should be convinced that the binary broker will not call for any other document at a later stage. If there is any doubt in this regard, a trader should contact the binary broker and get a clear confirmation in this regard.
Bonus with unattainable targets
It is not uncommon to see a binary broker offer an attractive bonus. However, what does matter is the terms and conditions behind the bonus offering. A 100% bonus with a maximum of 40x wagering is usually the norm. However, when a broker offers a deposit bonus with a 50x or more wager term, then a trader should think twice before accepting the offer as the condition is hard to achieve. The trader should also compare the success rate of his strategy with the wagering condition. If the success rate is low and the wagering requirement is high, then ultimately the trader may lose his investment as frustration will build up as time passes.
After going through the website, a wannabe trader should get in touch with the customer service to get the doubts clarified. If there is too much of a delay or if there is no clarity in response, it is better to avoid proceeding further. If the website does not give a clear idea about the jurisdiction or the place from where the company operates, then it is better to check it out as well. Even though honesty of a binary broker is no way connected with a binary broker’s jurisdiction, still, it is better to have a clear idea about that.
Clear deposit and withdrawal conditions
Finally, the terms of deposit and withdrawal matters the most as everything will go in vain if there is no way to withdraw the profit. In this regard, it is better to check out the list of shady brokers provided here. It will clear most of the doubts you have about a binary broker.
Past track record
It is also better to visit some good forums where binary traders share their trading ideas and best money management practices. The experienced traders would be of great help in avoiding shady brokers, if any, left out in the list provided here.