Avoid scams when trading binary options

Written by Bruce Hughes on . Posted in Internet

In the past years, the industry of binary options has developed a lot. In the year 2008, when it all started, there were no more than 10 brokerage companies operating on the market, the evolution of technology and the increasing popularity of this practice has led to the emergence of a large number of such firms. At the moment, there are more than 400 brokers and additional companies providing dedicated services. For you, as a trader, this can be a double edged sword. On the one hand, there are plenty of alternatives to choose from. On the other hand, you are very likely to run into a scam, given the fact that part of these brokers are not worth your trust. Besides brokers, there are also other service providers, such as robots (automated systems that can trade on your behalf) or signal providers. A relevant example is FastCash Biz, a robot claiming to offer the best conditions for traders to get rich in the shortest possible time.

FastCash Biz – a controversial binary options robot

If you read a specialized FastCashBiz review, you will soon discover the robot is too good to be true. Created by two developers, Madison Clark and David Graham, the software is intended to help users understand the market, by showing them when they have the best chances to gain money, based on a complex algorithm. Financial information is transmitted in real time, so that traders stay up to date and never miss the opportunity of making the right decisions. In spite of the fact that this application creates huge expectations, you need to know that it cannot transform you into a millionaire overnight. Although it has been designed to make trading easier, this software cannot be as efficient as it claims. In addition to this, what has actually raised suspicions among both users and experts is the fact that it is completely free, hence the name. While other companies demand a minimum deposit or a significant fee from those who want to create an account, FastCash Biz gives you access to its services without any charge whatsoever. At least that is what you learn if you only give a look to its features and benefits. In reality, if you choose to trade using the robot, each time you win money you will have to give the company a share of the amount gained. This is completely normal, but the catch is: why is the company advertising its software as if it would be completely free?

How can you avoid a scam?

The first thing you need to do if you want to make sure your broker is legit is check their previous activity. Read review web sites and dedicated forums to find out about other traders’ experiences. Furthermore, you should also see if they have a license – CySEC regulations work as the perfect referral in the world of binary options. Of course, there are also legit brokers or robots that do not have that license, but that is the first clue that you are dealing with a reliable company.