binary options scamBinary options scam is so frequent that nowadays the industry is often tagged as a fraud as a whole. How to know whether a broker is honest? Sometimes you would have to use it to find out. Some users might have zero program with certain brokers…. Simply because they don’t win, or they win little.

Binary options broker blacklist? Not a definite binary options scam marker

Some websites maintain a blacklist of rogue binary options brokers. If this might be useful, this is not always enough if you don’t find the broker you intend to use on the list. Moreover, those websites will sometimes tell you not to use broker X Y Z, and recommend instead brokers A B C… that are also unreliable, or even scammy. It is very hard to know if those websites unbiased and provide useful information to traders, or if they just bash certain bad actors to promote others that are barely better. That’s why you won’t find any blacklist or whitelist here. We can only vet for one platform, the only one that by design prevents 100% fraud thanks to the blockchain technology and its unique decentralized liquidity pool.

Different types of scams in binary trading

It is also important to note that the range of binary options scam vary widely. Not every broker in the space manipulate price feed, make it impossible to withdraw any gain, etc. Sometimes you are just exposed to very aggressive sales rep pushing you to trade more than you want, to deposit money, etc. Sometimes everything goes fine until you start to win substantially and try to withdraw your profits. Some might just kick you out before letting you withdraw your money. Where to go? To, the borker-less platform.

How to identify a potential binary option scam ?

Several factors should make you very cautious if you want to avoid the binary options scam in which many traders fall sooner or later:

  • Too good to be true promises: if a broker tells you it is almost a guarantee that you will make a lot of money or become rich using their service, it is obviously a lie as if it would be true, they would be quickly out of business. Payouts that are way above the industry standards (around 75% or less on certain markets) should be an important sign of a potential scam.
  • Pushy sales people: rogue brokers have obviously a low retention rate among their customers, so they need to constantly find new traders, sometimes even by phone. Big bonus offers are another sign. Brokers should not contact you to ask for deposits, to pressure you to trade more, etc.

Before using a broker do your own research on the Internet or on our digital options blog. Do not take for granted anything you read as there are people that are paid to write positive or negative reviews about competition. Don’t deposit a lot of money when you start. However if you do sufficient cross checks and research you should be able to have a good idea before you hand over your hard-earned money to a potentially dishonest company.

Why I can be sure that I won’t be scammed with

Because contrary to brokers, does not require you to deposit money to start trading. You trade directly from your ETH wallet, your gains are credit immediately to your wallet (or Spectre smart contracts for lower fees, again Spectre cannot access your funds, only you via the smart contract). That’s about your funds security. About fairness, Spectre does not need you to lose money to earn money. Fees are taken on each trade, winning or losing. The payouts come from the DALP (decentralized autonomous liquidity pool), that is fed with the lost trades. The payouts have been fine-tuned to ensure that the dalp is not drained.