Binary Options Peak
Choosing a broker is always a lengthy process that involves a lot of analysis on the part of the trader. Any serious trader should at least devote a week of intensive broker comparison before registering with one. This is since the brokerage fraternity has been infiltrated with scam brokers who use dubious means to make sure they nab those unsuspecting traders and disappear with their hard earned cash. Some scam brokers use simple scam techniques while some result in the use of sophisticated methods. But the bottom line of their daily activities is to steal from unsuspecting traders. Below are some of the techniques used by scam brokers and an example of a scam broker.
Expiry Duration Manipulation
As you well know, binary options trading is time sensitive and a second more or a second less can disastrously affect the outcome of any given trade. For instance, a trade can be progressing as per your predictions but at the last minute, an event may occur that triggers negative investors’ sentiment which then contributes to you losing that trade. This is an example of the risk one faces when trading. In the case of a winning trade, what most scam brokers do is they freeze the trading platform just as your trade is about to end. The trading platform returns to normalcy a few seconds later only for you to be shocked after finding out you lost your trade. Manipulating expiry durations is the most common scam technique used by brokers.
Withdrawal Complications
After trading and making huge profits, it’s obvious your next line of action will be to withdraw the winnings. However, some scam brokers spend sleepless nights to make sure you don’t make that withdrawal but instead you keep trading. Such brokers usually complicate their withdrawal procedures, where a single withdrawal request can take weeks or even months to be verified. Others brokers are usually not after your trading money but they may have a bigger goal. Such brokers use the withdrawal procedures to lay their hands on personal information of a trader for phishing purposes. Before you know it, money starts disappearing mysteriously from your bank accounts.
Example of a Scam Broker
Peak is a binary options broker founded a year ago. To the naked eye, Peak was just a normal broker during their existence. Their scandalous ways were however brought to light after their abrupt termination of their services where traders lost funds still sitting in their trading accounts. The opening and later abruptly closing shop is a typical scam technique used by some brokers. For instance, when Peak embarked on their brokerage journey, they offered huge trading discounts to attract new traders. After achieving their goal, they abruptly closed shop and traders didn’t have time to even request a withdrawal. Interestingly, they were not regulated and hence it’s impossible to seek legal redress against them.
Contrary to beliefs of many, it’s always upon the trader to make sure they register with an honest broker. Signing up with a reliable and reputable broker goes a long way to ensuring that a trader receives fair brokerage services without risking identity theft.