Starting out a task with some level of difficulty is not easy. If trading was simple, a lot more people would be doing it and succeeding as well. If you’re newbie you may need a little bit more hand holding along the way. What this tutorial will do is give you a basic understand of […]
Stay Away from the Scam Sites
The question many people ask is: Are Binary Options a Scam? We like to answer this with a No, but they do exist.
US Traders must use Nadex as their Trading Platform
If you are a US trader and are able to open an account anywhere else you are most likely falling into some kind of risky situation.
We aren’t speaking for everyone in the industry. Unfortunately there are some bad people out there. It’s avoiding them and sticking with the ones you know is your best bet.
Most of the times people will jump on the “scamwagon” if they lose all of their money at a particular broker. They will blame the broker as being rigged. Meaning, they will believe that price jumps against them at the last second causing a loss. Price fixing is another name for it. There are many reasons why we don’t believe these types of scams exist. We’ll talk about those below as well as go over some of the information sites to avoid.
What is running the Market
If you’ve been around awhile, you’ve seen dozens of sites available to traders. It seems like everyday a new broker is coming online. Do you wonder why this is? It’s very simple actually. There are only a few software providers available.
Right now, there are more in development, but where it stands today, there are only two major players. One is Spot Option who is the backend for over 100 binary options brokers. The other is called Tech Financials. This software maker has brokers such as 24option and OptionFair. You can read more about the brokers on our broker guide page.
Who is Spot Option
Who are these guys? They were established in 2008 and offer a package to companies called white labels. These Turnkey solutions offered by Spotoption allow these brokers to come to market. They literally design their own site around the SpotOption back-end. This means, no matter which Spot Option broker you are trading with, you are more or less getting the same thing. For one broker to go bad means Spot Option has gone bad. This would mean all the brokers are scams. Good News – This isn’t the case. They are very reputable in the industry and continue to improve their software package. It’s up to the individual broker to stay legit with their marketing efforts and client recruiting. If something were to happen to SpotOption, a lot of brokers would be out of business. Be on the look out for new platforms in the next year or two.
Who is Tech Financials
The other big player in the industry is Tech Financials. They are a pretty big player and have some really nice software. They are also offering white labels to companies. If something goes wrong at a broker, it most likely will go wrong at all the others. This will help avoid any scam issues. One of the major players of this software used to be 24option. You can find out more about them on this site.
The main thing you should watch out for, are the regular people selling signal services and information on making money online with Binary trading. Although some are legit, there are plenty of sites and YouTube channels filled with garbage. These are the places we consider scams and should be avoided at all costs. If you find a site that seems fishy just move on to a better informative site.
Based on software alone, scams won’t exist without the industry imploding. If a broker acts out of line then we may have a problem. Until this happens try to stick with the best in the industry.