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

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georgey

good job

sabrina

I used a collect agency to recover my money from my broker. If you suspect your broker to be cheating you , I strongly advise you take action immediately . Contact abcdebtcollectors,com and file your complaint against your broker so that your case can be resolved and your investment refunded. Contact them today to get start.

Anthony Bonhomme

anyone heard of Randex Trading a Rep from this trading platform approach me with strategy invest $500 and Earn $6000 in one week

Marc Kristian Caraan

Heard of Adriano Savio Trader in facebook. Scammed me with about 1200usd. Smartcrypto247, 1 week invested 300 usd, their platform reflected that i profited 4000usd after a week. When time to withdraw, I paid him 400usd as commission fee separately. Then withdrawal gets delayed and after, he again asked for a system fee worth 1500usd before i can withdraw. Please be warned of this guy and this site

Balogun Raphael

I just came in contact with a broker by name @EmilyEdward. Has anyone here have dealings with her? Is she legit?

Stephanie Coetzee

Can the victims of scam get their money back? Yes, if you have fallen victim to scam from an unregulated investment platform or any scam at ll then are eligible to recover what was stolen from you and this can only happen if this is reported to the right people. With the right approach and with evidence, you will get what you lost back. Those behind these unregulated platforms will likely want to sell the idea that what happened to your investment was an unfortunate occurrence when in reality what happened was theft via elaborate means. If you are a… Read more »

Tessa Morton

I decided to supplement my income by trading on the stock market in Binary options. I signed up to lodge $500.00 with Bloombex Options. I then got a call from Tomas Damon promising me 85% profit and bonuses etc if I increased the amount to $15,000, I agreed to this and set about transferring the money. Tomas Damon was then phoning me and trying to get me to increase the amount of money in my account with them to $150,000.00 and making ridiculous promises of profits. It was then I decided to pull out of the whole thing. Part of… Read more »

Stephanie Coetzee

Can the victims get their money back? Yes. If you have been the victim of an unregulated binary options scam or ay scam at all then you are 100% eligible according to the law to recover what was stolen from you. With the right approach and evidence of the fraud you were a victim of, you can recover your money. Those behind the binary options scam want to sell the idea that what happened to you was an ‘unfortunate investment’ when in reality what happened to you was theft via elaborate means. If you were the victim or know a… Read more »

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.

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 »

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