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Binary Options are prohibited in EEA
Binary options brokers that end up blacklisted are on this list for a variety of reasons. Our website was created so that South African binary options traders can find all the relevant information regarding binary brokers they need in order to make a good decision on which broker to choose.
Considering that binary options trading as an industry is steadily expanding it is only expected that there will be much more of those binary brokers who are simply looking for ways to scam South African traders, regardless of their experience levels. They have various strategies and methods to deceive traders so that you are unable to differentiate between reputable brokers and those who are just trying to take your money without you ever having the chance of avoiding it.
With all that in mind, we have decided to keep you informed about all the ways in which scam brokers might try to deceive you, what are some of the most common ways of using scam methods in online financial trading, and perhaps the most important part – what you can do to protect yourself against those threats.
As we already mentioned in our introduction, binary options trading has been becoming more and more popular over the years and it is not showing signs of slowing down. This is true for countries around the world but also for South Africa too. This attracts scam brokers who have become very versatile and creative in coming up with ways to trick their traders and take their hard earn funds. This is reflected poorly on the entire industry, but there are still many good brokers out there who could potentially prove to be great for your individual trading and investment needs.
Obviously, there is a multitude of great brokers, plenty of which we have reviewed on our website so if you need an alternative broker after you have found out that your current one might be scamming you, check out our broker lists and reviews to find out which binary broker might be a good fit for you. A couple of next paragraphs will illustrate and explain what scam brokers actually are and how to recognize them.
There are many reasons why binary options traders are finding it difficult to spot scam brokers. Some of the reasons have to do with the experience and knowledge levels of the traders, and others are directly linked to the broker’s high ability to deceive traders from South Africa in very creative and imaginative ways.
Although sometimes even the most experienced traders will end up in the hands of some scam broker, the most common reasons for this situation is the lack of experience and knowledge, thinking that it is very easy to make profit, false promises and guarantees and copying other reputable brokers. Thankfully, not all is lost, as we will be giving you steps to help you recognize the potential scammers.
There is certainly no shortage of creativity when it comes to scam brokers and their capacity for inventing new ways of deceiving their clients and attracting new ones. They go to great lengths to have a very professional looking website with all the possible attributes you might need. They will often also have a bunch of user feedback reviews that rave about how great this particular broker is.
Customer service section always seems to function very well, at least as long as there are no problems on their end. Suddenly, they are dodging your questions and do not give you any constructive feedback on how to effectively solve your problems. This is the main reason why it’s important to know how to correctly choose a binary broker and you don’t get involved with the wrong broker that could potentially leave you without all of your money.
Perhaps one of the most used tactics with scam brokers is exaggerating the potential profit which can be made, guaranteeing profit or downplaying the inherent risks involved in binary options trading. The three tactics are basically one and the same as they put the traders in a very dangerous situation where they do not realize that their money will inevitably be lost with a scam broker.
With the tactics named above, the broker makes up a false marketing campaign in which the promise amazing profit and/or bonuses but fails to mention risks involved which every South African trader should know. Obviously, broker are allowed to highlight special deals they have prepared for their clients or the good parts of their companies of the way they conduct business, but reputable binary options brokers do not hide important information as that be very dangerous.
There also tactics in which brokers promote their bonus campaigns but do not disclose the usually incredibly high turnover rates which need to be reached before requesting a withdrawal from the broker.
Also, scam brokers may shamelessly take a hold of your trading account and use your funds for trading. If you ever suspect that someone else has been tampering with your personal trading account and placing trades in your name, which is absolutely illegal, withdraw your funds as soon as possible and report the broker to financial authorities.
South African binary options traders should know that their ultimate concern should always be the security of their funds and trading processes. In addition, they should always keep in mind that their binary options broker should always have the most advanced protection of their trading platform so that they can adequately protect their clients.
Obviously, it is clear that there are many binary brokers which are present today on the South African financial market and in the online trading industry in general. Logic dictates that not all of them are reputable or have their clients best interest in mind. In order to remain safe and to increase your profit chances in trading binary options in South Africa, the essential thing is to be able to differentiate between reputable, transparent brokers and scam brokers. Here’s how to do it:
Let’s be honest, no one ever reads the Terms and Conditions on any website, mainly because it is terios and boring and there is usually so much of that. Even in case you start reading you stop half ways and just skip to the end and press accept. Well, unfortunately, with binary options trading, you do not have much of a choice if you really want to make sure that the broker of your choice is transparent and not a scam.
Everything that pertains to your rights and conditions is written in this document and it is crucial to go over it in a careful manner. Take as long as you need to go through it and make sure you really understand what is expected of you.
The thing is, most scam brokers are going to have poorly written Terms and Conditions or the information will be so complicated that you won’t even understand a word. If this is something you think is happening with your own broker, make sure you talk to their customer service and voice your concerns. It is a possibility that the document is simply a bit more difficult to understand, considering that it is a legal document. However, it should not be so complicated that you aren’t able to make heads or tails out of it.
Identity protection should and is a big factor in building a successful broker business. This is why your broker of choice should be focused on making sure that no one besides you can access your funds and withdraw money from your account.
In order to do this, reputable binary options brokers in South Africa adopt what is called a Know Your Customer policy (KYC). This shows that the broker you have decided to trade with is committed to protect your identity at all cost. That brokers who enforce the KYC policy ask of their clients to provide several different proofs of identity before their request for money withdrawal can be started in their name.
We know that this is not the most enjoyable part of trading, and that most of you would rather skip this step altogether, but it is important to understand that it is crucial to your safety and protection of your funds.
Different brokers have different types of requirements for proof of identity but they mostly revolve around similar documents. Usually, it is a bank statement, utility bill with your name on it that is not older than 3 or 6 months, driver’s licence or passport. This way you can be sure that your funds cannot be withdrawn by anyone else except you.
If your broker does not require any proof or identity, it is a major red flag that in most cases indicated a scam broker. We recommend finding another broker who does a better job at making sure that no one can access your funds and impersonate you.
Customer support service that a binary broker might provide their clients with is supposed to be spectacular. Excellent customer support is not a factor that a lot of traders think about when choosing their binary options broker but the fact is that customers support can make or break your relationship with your broker. You should always be able to contact your broker’s support service and have your questions and dilemmas answered in a fast and professional manner.
When it comes to scam brokers, they will not on their website typically that they do have a great customer support but once you try to contact them you either cannot reach them or the answers they are offering you are clearly indicating that the team is not educated enough. This is simply unacceptable. Binary options trading, just like any other types of financial investment is a serious business and you, as a client, deserve to be treated with respect and be offered quality information to help you with whichever issue you might be facing.
Cold calling is a tactic typically used by scam brokers. If you ever receive a call from your broker and they are pressuring you into making new deposits or placing trades on assets you are not comfortable with, you can be sure that you have a scam broker on your hands.
Cold calling is not something a reputable broker will ever do to you. In fact, a good broker who respects its clients will only contact them in case there is something that requires your immediate attention or if they are giving you a call-back upon your own, personal request. Binary options traders in South Africa need to be aware that certain scam brokers still employ these tactics and they should be very careful in dealing with them. We recommend finding a new broker to trade with.
False advertising is not always easy to spot. However, if you see that the broker in South Africa which you are considering of making your own is promising ridiculous amounts of profit or guaranteeing anything, you can be pretty sure you a have a scam broker on your hands.
Scam brokers usually choose to omit, or better to say – hide, very important information regarding risks involved with the binary options trading, or obligatory, binding conditions regarding bonuses. No reputable, self-respecting broker would ever allow themselves to guarantee anything when it comes to online trading seeing that this type of financial investment, as any other, clearly has inherent risks that are associated with it.
Contact your customer support to find out more about the things you find confusing or if you think that the broker in question hasn’t disclosed at relevant information pertaining to trade conditions. If you are not satisfied with the answers you get or they do not seem logical in any way, you might be dealing with a scam broker.
This is one of those issues that gets the most complaints from traders when they encounter a scam broker. Obviously, all brokers regardless of their professionalism and reputation can have issues that might delay payments and withdrawals, but those issues are usually taken care of relatively quickly. Reputable brokers will also make sure that their South African clients are contacted and that they know about the issue and will be involved in the process of remedying it.
However, that is a very different situation than the one in which the binary options broker is intentionally refusing to process your withdrawal or they are not responding to your repeated inquiries about the status of your funds. That is a clear red flag and should not be disregarded.
Make sure you have read all the content within the Terms and Conditions as you need to be aware of all the possible prerequisites you have agreed to by opening a trading account with a specific South African binary broker. When you know what are your obligations you will be better prepared for unexpected situations that might happen with your account or our trading funds.
Regulated status is not something that will define your choice of the broker but if a trader feels better knowing that their broker of choice is regulated they will most likely search for binary brokers with some sort of a trading license. However, this does not mean that those brokers without a license are automatically scam brokers, and it certainly does not mean that those with a license are reputable and good.
On the contrary, there are plenty of binary options brokers on the financial market that have licenses that on the first glance appear real and authentic but when you dig a bit deeper under the professional looking website and many important-looking awards, you find out that the license is actually a fake.
This is a fairly common practice that is employed by scam brokers who simply fabricate a licensing number and publish it on their website or they steal license details from a reputable broker. These are all extremely unethical practices that will have a legal consequence once the brokers in question are reported and identified by the legal authorities of the country they operate in.
Make sure, that if the broker of your choice does have a license, that you check the validity of it on the website of the regulating authority they claim to operate under. This way you will quickly figure out if the broker in question does indeed have a license or has simply made it up.
With all these tactics that scam brokers are employing nowaday, South African traders might be wondering how exactly can they make sure not to fall for the traps regularly set up by the unethical companies.
One of the ways to do it is to take your time and read the reviews we have prepared for you so you can always have the latest information on who to avoid and which brokers might actually have a quality service. Test all their options and features which are risk-free like the Demo account most offer, talk to their customer service and ask everything that comes to mind. Evaluate and educate yourself as that is the only way to make sure that you stay protected in the vast world of online trading.