How to Avoid Binary Options Trading Frauds
Binary options are a high risk investment where you bet on whether the price of an underlying asset, such as shares or currencies, will rise or fall over a fixed time period. They are typically sold through a broker and involve predicting future market prices. This type of trading is not regulated and scams are common. The number of complaints about brokers offering this form of trading has grown significantly. The scams use various tactics such as false promises of fast and easy money, high pressure sales tactics and threats to steal your money.
Fraudulent brokers are spreading their deception across social media, online advertising, and through unsolicited texts, emails, and cold calls. Often the brokers are based abroad and they operate boiler room operations to recruit investors. They promise a once-in-a-lifetime opportunity to make millions, and they will use slick sales pitches to lure investors in. The scams are lucrative for the con artists, who receive a fee from the broker for each new investor they bring in. These fees can be substantial and are paid on a regular basis. It is important to check a broker’s reputation and registration status before making any investments.
The Bureau has heard from many people who have been targeted by these schemes and had thousands of pounds stolen from their bank accounts. In some cases victims have had their identities stolen. It is extremely important to never give out your personal details, especially your bank account details to anyone you do not know. If you have provided any information to a Binary Options firm and it has been misused, contact your bank to report it. It is also a good idea to tell a close friend or family member of your involvement in the scheme. This will help keep the pressure off of you as you deal with what is often a stressful situation. For more details please visit scams binary options
It is not only individuals who are being targeted but also large corporations and pension funds. It is thought that the total cost of these frauds could be running into billions of pounds. The scams are carried out by a variety of firms and organisations, including so-called ‘robo-traders’. These are software programmes that are used to trade on behalf of investors. The fraudsters may also be manipulating the software to generate losing trades.
A recent study found that a significant proportion of binary options traders are being scammed by overseas firms. This suggests that a lot of the money lost is being transferred out of the country where it was earned. The study suggested that if the UK was to regulate binary options, these fraudulent transfers would be reduced.
It is very important to do your research before investing in a Binary Option trading platform. Look for a broker that is regulated in your own country and which is willing to cooperate with the local authorities in investigating complaints. It is also a good idea to avoid any trading platforms that have received a high volume of complaints.