Binary Options Trading Scams

Binary Options Trading Scam: How It Works

More and more people are sending us emails asking if the binary options trading sector is a scam in itself, as many horror stories have been shared lately on the Internet. Whether it’s about binary options brokers, signals, or winning strategies, watch out for the big and sketchy world of this business.

In this article, you will learn what binary options are, some fraudulent practices in the industry, and how to report the crooks. How does the scam work?

Watch the video below to see in action the Binary Options Scam exposed, plus must-see info:

Binary Options Trading Scam Video

Before everything, you need to understand exactly what binary options are, in simple words and in-depth. In simple words, the best way to explain the binary options trading sector is that it is very similar to the gambling industry, aka the sports gambling websites or casinos.

You can place a bet on just about anything that is publicly traded (oil, gold, money – see video above), depending on which binary options website you use. You can win sometimes, but there is no way a binary options website could ever guarantee you that you will win. Do you ever see a sports gambling website ‘guaranteeing’ you a win on a Yankees – Red Sox or Seahawks – Giants game?

binary options trading signals

 

Given the analogy, beware of those binary options companies that pop-up on your computer screen featuring extremely long videos promising a guaranteed win if you join them on the spot. They typically feature some ‘successful’ binary options investor that invites you to come under his/her wing.

You are promised thousands of dollars a day, and all you have to do is to join their program (which, of course, comes with a deposit towards them first). If you join, little do you know that the fine print mentions ‘results vary’ or ‘no guaranteed win’, unlike the video.

All these wonder-binary option trading systems are sometimes advertised under multiple names, with fake testimonials. They lure you in and before you know it you are out your initial deposit, say $200. A few days later, you get a phone call from a “senior broker” asking you to invest $7,500.

Feel free to type in the Comments section at the end of this article questionable binary options brokers that you came across.

Binary Options Trading Scam: How To Avoid

The first recommendation is that you shouldn’t gamble on binary options trading, but again, it’s gambling. A lot of people think that they are good at it. Many even think they are very good, even when they lose.

They always find the wrong reason for their lost bet and start over again, as if they would learn from the lesson of the lost bet. The binary options trading industry is so popular because has an aura of being more respectable than the sports gambling sector since it represents itself as offering a form of investing.

At the end of the day, they are simply gambling sites. When you become a binary options addict it doesn’t sound as bad as a casino addict, does it? You don’t even know you are one.

Research the binary options broker very well, as review websites only give generic information about the dealers. Check to see if the broker has a license from the CFTC, CySEC, ASIC, FCA, BaFIN, or another government regulator. On the other hand, it is always a red flag when he regularly calls you to deposit more money.

Last but not least, be wary of robots that ask you to make a deposit, before you can see the settings.

 

Binary Options Trading Scam: How To Report

Make your family and friends aware of this scam by sharing it on social media using the buttons provided. You can also officially report the scammers to the Federal Trade Commission using the link below:

Report To The FTC Here

 

What Is A Binary Option

In more complicated verbiage, a binary option is a financial option in which the payoff is either some fixed monetary amount or nothing at all.

While binary options are used in a theoretical framework as the building block for asset pricing and financial derivatives (a binary option maps to the cumulative distribution function of the risk-neutral distribution), they have been exploited by fraudulent operations as many binary option outlets (outside regulated markets) have been shown to be scams.

binary options trading strategy

 

The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option.

The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and fixed return options (FROs) (on the American Stock Exchange).

Though binary options sometimes trade on regulated exchanges, they are generally unregulated, trading on the internet, and prone to fraud. The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have issued a joint warning to American investors regarding unregulated binary options. and have forced a major operator, Banc de Binary, to cease operations in the US and pay back all customer losses.

Many binary options “brokers” have been exposed as questionable operations. With such binary option brokers, there is no real brokerage; the customer is betting against the broker, who is acting as a bucket shop. Manipulation of price data to cause customers to lose is common. Withdrawals are regularly stalled or refused by such operations.

How To Protect Yourself More

If you want to be the first to find out the most notorious scams every week, feel free to subscribe to the Scam Detector newsletter here. You’ll receive periodical emails and we promise not to spam. Last but not least, use the Comments section below to expose other scammers.


identity theft protection

TOP 3 MUST-WATCH FRAUD PREVENTION VIDEOS

1. Top 5 Amazon Scams in 2020
 
2. Top 5 PayPal Scams in 2020
 
3. Top 5 Scams You CAN'T AVOID
Subscribe
Notify of
guest
140 Comments
Oldest
Newest
Inline Feedbacks
View all comments
A good samaritan

Well, I did some little research and here is what various customers reported as scam companies, whether is about deceptive practices or just simply not providing the service. All these companies are listed on the ripsoff report page. Watch out for these sneaky binary options brokers, folks: Option Mint Binary Options, Goption Binary, Binary Safe Haven, Benedict Morris Binary Options (Mia Morales, Michal Fridman, Johnny Simons), Quantum Code (Michael Crawford), Nesdek Inc (Mike McDonald), Escape the Rat race Binary Options (Matt Taylor), Starling Capital (Karen Roberts, Isabela Jones), Omega Options Alpine Capital, Disrupt Trading (Greg Hardman), Tropical Trade, Banc de… Read more »

Alejandra

Is there another more updated report ??.

I would like to know about the following brokers:
Perfect Binary Signal (@Mateoklen) and
Binary (@ CoachLaurenZhang88). I met them by telegram
Thank you

RIDWANAH EBRAHIM

Inside options is another scam broker. Your winnings are shown as bonuses n you can never withdraw your money. DONT INVEST WITH THEM.

Angela Sedran

My son 20 year old son made a few trades last year with a “company” called “No 1 Options”. I allowed him to use my credit card facility as he didn’t have one. Over a three month period, he made a few more trades. Then, on Dec 10, I discovered that this mob, had, in one day, taken $70k out of my accounts. Originally the business was located in the UK with a holding company in Anguilla. Earlier this year though, the ownership was transferred to UK registered company with a single Mexican national as director. 2 of my banks… Read more »

Emil Rusanov

ASKoption – FRAUD, SCAM! You never will get your money back. They push you to invest more and more and give you chance to withdraw one or two times to taste the system. After that they push you to invest more money. Using free risk trades they convert your real money to bonus points and you can not withdraw it before you turn it 30 times the amount you have in the balance. I have been waiting two weeks two withdraw my money and still nothing. They start playing games. You will never get your money back! Do not put… Read more »

godwinscott

People have lost so much in binary options, that is; Traders have failed to withdraw profits made from binary options, failed to use the right strategies when needed, failed to engage with the right broker, not giving their trade a break, also having too many trading accounts which is one of the cause of their lost of funds, deposits of too low or too high amount of funds and most especially, not being able to present the full history of their trade when trying to withdraw their profits. If you are out there and having problems such as these or… Read more »

Jake Mason Bulls--t Binary

In the last four days I received four emails that apparently were gift cards from Walmart, Costco, Amazon and DeWalt (sample products). When I clicked on those well-designed gift certificates, I was take though a series of other shell-websites to nothing but a bullshit Jake Mason Canuck Method Binary Trading page where this guy tries to sell me hard on getting into binary. When I googled his name a bunch of 1-star reviews showed up about him…. Go figure, if he lies to get you onto his page, why would you ever invest in his financial advice?? Oh, and apparently… Read more »

vklopp5@gmail.com

After investing so much money with 72 Options brokers, they wouldn’t let me withdraw my funds for over 4 months of trying. I hired a money charge-back Professional that helped me get all my funds out. I’m willing to assist anyone with similar problems with any Brokers.

Chris

I’m an EC Council certified hacker, that speaks for itself. Feel free to contact me on "jp.morgan@greenmail.net". You can reach out to me for any hack related exploit and I’ll write you a quote within 24hours alongside details on mode of operation.
I’m also open to review scam victims so as to help them recover their stolen funds.

The greatest enemy of knowledge is not ignorance, it’s the illusion of knowledge.
Daniel J. Boorstin

Josephine

I just got scammed by Orion Code INC and their broker company WMOptions. $200 I got scammed for and as you have outlined above, they tried contacting me yesterday (the same day I paid the $200) but I have not spoken to them as I was not home. Grrrr I am so pissed off with myself for falling for it!!!

David Stoicker

Most of these hackers are a complete hoax and this is getting out of hand and its already an occupational hazard in my line of work and there is already a cyber crime task force to try and put and end to this fraudulent lowlifes.
Contact cyberinfiltrator@gmail.com or on +14084751164

Find Scams