Binary options scams are not new. There are thousands who lose their life savings by believing in the scams that exist with binary options. So, in order to get started, what you can do is first realize that such scams do exist and it is very easy to identify them.
How can you identify Binary options scams?
1) Ponzi Schemes
The particular Ponzi Scheme is known after the famous Italian fraudster Charles Ponzi, who effectively duped Americans of 1000s of dollars using his fake money-making system. Mr. Ponzi, using his wit and panache, paid more mature investors with the money which he gathered from newer buyers. The scheme, put out by Ponzi, is still relevant in today’s time. pmon real
With the mechanism of a Pyramid Scheme itself, the old investors get new investors to invest in the scheme and pay the returns for the first few weeks. Then comes the twist, where the new investors are told that in order to receive an additional commission, you need to reinvest and also find new joiners. This specific procedure goes on and on until they get discovered, however, by then, the scammer flees with all the money.
Although easy to spot, naive buyers are still falling because of it. Often called the crypto pyramid, the plan is often defined as “risk-free” with a high guaranteed return on investment.
To save oneself from such techniques, it is extremely advised to improve your investment knowledge before investing in any such schemes.
2) Fake Promises and Results
The first signs of a binary options scam are insane returns being assured by the options broker that has got almost no reputation. Automatic trading has taken a cost on the modern trading population with every firm proclaiming that they have developed bots that are going to help traders make lots of income in the long term.