Binary Options Scam: Everything You Should Know

Binary options (fixed time trading) is a relatively new phenomenon. They arouse distrust and genuine interest among the general public, like any new trading option. However, you should be aware of the risks and thoroughly study the market before moving on to satisfy your curiosity. “Binary options scam” is a popular search phrase on search engines and a sensitive issue in real-life trading.

Binary options (fixed time trading) are a relatively new phenomenon. They arouse distrust and genuine interest among the general public, like any new trading option. However, you should be aware of the risks and thoroughly study the market before moving on to satisfy your curiosity. “Binary options scam” is a popular search phrase on search engines and a sensitive issue in real-life trading.

What are binary options?

Working with binary options is similar to trading the Forex market, but the whole process is much easier. In the classic binary options trading scheme, a trader places a bet on an increase or decrease in the price.

If the rate is triggered, he accumulates his income. At the same time, this is not just a roulette-type game. There are many tools to predict the most likely trend for the negociação of binary options. In fact, most of the factors that affect a trader's job in relation to binary options are already known in advance.

Binary Options Scams: A Wide Range of Scammers

A wide range of scammers

The perception of simplicity options trading binary trading has unleashed a wide range of scammers who would do anything to make money from gullible traders, and trick them into becoming rich.

Although binary options, as well as scams based on them, are gaining traction, there are still a large number of people who are deceived.

As a result, those who conduct fraudulent schemes involving binary options often become very rich. Gullible customers lose their money, the reputation of the binary options market is tarnished, and users' faith in binary options is depleted.

Therefore, it is necessary to thoroughly study the characteristics of the market and be able to recognize scams and schemes based on binary options before starting to work with these new options.

Reviews of the newest binary options schemes are often posted on the Internet. Binary options schemes are aimed at the unwary and over-eager investor.

The classic scheme in binary options is the constant delivery of “super profitable” and “win-win” signals for trading. Binary options schemes create a large number of different websites where they invite users to familiarize themselves with their offering in an inappropriate way.

The aim is to arouse the attention of gullible or novice traders. Scams on binary sites usually give a 100% guarantee that the prospective client will make good money on their (broker's) approach to binary options.

They even try to prove it by posting screenshots of the page with the income received from transactions carried out with the help of these schemes. As a general rule, most of these self-styled evidentiary schemes turn out to be flukes after close scrutiny.

They promise naive clients the moon and stars, and favorable trading conditions, but their real objective was to trick the trader, steal his money, and quickly move on to the next naive target.

As a result, a person can call support and complain and demand the return of their account deposit, but all these practical attempts will not succeed because no one forced the customer to do the deal.

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As a rule, fraudulent websites hide behind the name of some character, often fictitious. For example, one John offers you a win-win strategy or super signals.

He offers them completely free of charge because he has already earned a fortune in advance, and his natural goodness simply does not allow him to keep this knowledge a secret. He wants everyone else to get rich too, but doesn't ask for anything in return due to his philanthropic nature.

When a trader becomes extremely interested in binary options, it suddenly happens that the author does not have to pay anything specifically for them to receive signals.

However, you are obligated to pay the broker by making a “initial deposit to open your account”. This is just one more scheme well used of “pay to play”.

If the broker does not pay in advance, he cannot open an account which is necessary to test the effectiveness of the fantastic win-win strategies offered. Blink the eye.

Some say these strategies can be tested anywhere; and that testing can be done on any account already opened by a trader on the platform of a trusted broker; or in a demo account, where the trader will not go into the red if the strategy or signals do not work.

Also, there are cases where traders already have an account with a broker, and the perpetrator of the binary options scam nevertheless convinces them to join the ruse. It would be a smooth job as you don't need to create a new account and spend money on a deposit, but unfortunately, these users won't get those miracle win-win methods.

So why is it extremely profitable for binary options scammers to get a new customer for a specific binary broker?

The fact is that this is exactly how these fraudulent schemes work: the crook receives money from the broker for every customer brought in based on the usual referral program.

The client replenishes his deposit (as a rule, the amount can range from $250 to $500) and tries to trade with the signals provided by the crook.

But it is not profitable for the broker if the client wins trades. Instead, the scammer generates revenue only from losing trades. Therefore, it is likely that the signals are down and the trader loses all his money. Result: everyone makes money from this scheme except the trader.

There are cases when the unscrupulous broker himself creates the image of a professional trader (you don't have to pay fees to someone else, but keep that money for yourself) to attract new customers with the help of a third party.

This binary options scheme looks like a devious marketing ploy where people in the middle suffer.

What are the most used scams by binary options scammers?

This table summarizes the most popular ways in which binary options scammers lure investors.

Method Description
cold calls Brokerage managers call and offer to register the broker on the company's website, and if you are already registered, you need to top up your account and start trading.
Emails They conduct massive and aggressive newsletter campaigns about bonus offers by the company with overly attractive conditions, as well as the results of pseudo-contests that were allegedly run by the company, with the name of the “winner” and a demonstration of the “prize”. ”.
Social media advertising Company representatives use a variety of techniques to pique the interest of potential investors with the help of popular bloggers and targeted advertising. Many manage their own blogs where they showcase extravagant and luxurious lifestyles.
Advertising on YouTube The company has an official channel for trading binary options on the market, where videos demonstrate fake screenshots with super profits from successful traders who make money in the options market through their company.
Posting fake success stories on trader forums The scammer creates a fictional character who plays the role of a successful trader and an official representative of a broker, publishes profitable reports on his trades with screenshots and offers reliable management services.

This table summarizes the most popular ways in which scammers lure investors into defrauding them outright.

Keep this in mind!
Binary options (fixed time trading) is a relatively new phenomenon. They arouse distrust and genuine interest among the general public, like any new trading option. However, you should be aware of the risks and thoroughly study the market before moving on to satisfy your curiosity. “Binary options scam” is a popular search phrase on search engines and a sensitive issue in real-life trading.You need to have trading experience as well as a knack for analyzing and predicting the market on your own to become a trader in the binary options market.

How to recognize a binary options scam?How to recognize a scam based on options

They not only promise a guaranteed income, but also indicate the exact amount of money and the period during which you can earn it.

Don't blindly trust binary options reps who offer miracle strategies that use super profit trading robots or even trust management services that will magically win pots of gold.

If a company asks you to deposit more than $200 from the start, this is probably a scam to steal your money.

You should not trust companies that offer a large number of various bonuses and promotions. This is the distinguishing feature of a fraudulent broker.

Don't blindly believe that you can make money in the options market without any expertise and experience. Binary options require certain knowledge, practice and experience to succeed — just like any other business.

Key Features of Binary Options Fraudsters

If you don't want to fall victim to these scams and schemes, you need to avoid fraudulent brokers who:

Binary options (fixed time trading) is a relatively new phenomenon. They arouse distrust and genuine interest among the general public, like any new trading option. However, you should be aware of the risks and thoroughly study the market before moving on to satisfy your curiosity. “Binary options scam” is a popular search phrase on search engines and a sensitive issue in real-life trading.It aggressively offers its services and urges you to make a deposit into a trading account while promising risk-free super profits.

Binary options (fixed time trading) is a relatively new phenomenon. They arouse distrust and genuine interest among the general public, like any new trading option. However, you should be aware of the risks and thoroughly study the market before moving on to satisfy your curiosity. “Binary options scam” is a popular search phrase on search engines and a sensitive issue in real-life trading.Offer win-win trading strategies and signals, which are mainly focused only on draining the deposit. At the same time, the broker does not provide a trial period to test these signals and strategies.

Known financial regulatorsIt does not comply with any of the known financial regulators, licenses from organizations with dubious reputations, and is also registered in an offshore zone.

Known financial regulatorsIt does not openly publish information about its legal entity on the website, such as its official company name, legal address, data about its jurisdiction, or official contact information.

Known financial regulatorsThere are tons of negative reviews on the internet where traders describe their experience working with a fraudulent broker and also talk about the deceptive schemes used by these heartless scammers.

What to do if you get scammed by binary options charlatans

It is a matter of utmost importance!
Binary options (fixed time trading) is a relatively new phenomenon. They arouse distrust and genuine interest among the general public, like any new trading option. However, you should be aware of the risks and thoroughly study the market before moving on to satisfy your curiosity. “Binary options scam” is a popular search phrase on search engines and a sensitive issue in real-life trading.Before starting cooperation with a binary options broker, thoroughly check the client's contract, the rules for making trade operations and filing claims, as well as the full legal documentation. Ask brokerage representatives questions about questionable points of the agreement, wait for a response and rate the level of competence and professionalism of the company's employees. In the cooperation process, record all your actions. Take screenshots of trades, save electronic receipts to replenish your trading account, and save history of correspondence with company managers, etc.

If you have ever suffered from the actions of binary options scammers, you should:

Known financial regulatorsSubmit an official complaint to the broker in the format and within the deadline set by the regulations for filing complaints.

Known financial regulatorsProvide the broker with evidence of his illegal actions: all materials that can confirm the broker's breach of the client's contract and prove his guilt.

Known financial regulatorsWait for an official response from the broker to your complaint within the timeframe set by the regulations.

Known financial regulatorsIf there is no response or if your complaint is not addressed, please contact the financial regulator that controls the activities of the chosen broker.

Known financial regulatorsBefore receiving a response from the regulator or broker, withdraw all funds from your trading account and constantly remind yourself of your pending claim as the entire process can take weeks or months to complete.

The binary options market is quite profitable for traders who prefer to trade these financial instruments and know what they are doing.

A professional approach to working is crucial here: market analysis and forming your trading strategy is necessary.

Often, a misconception about how to make instant super profits in the binary market prevents beginners from taking binary options trading seriously, which leads to failure and loss of investments.

Also, most of the time, a binary options broker (fixed time trading) is a trading center with a built-in trading process that does not have access to the interbank market.

This is important, but not the most critical downside when comparing the massive lack of regulation among binary options brokers.

A license from a serious financial regulator like CySEC or FinaCom in this segment is very rare, unfortunately. If you want to become a successful binary options trader, you need to remember that working with these instruments requires a certain amount of experience and knowledge.

You should not take risks and expect excessive profits or use all your funds to complete a single transaction. Even though they promise gigantic profits, remember that the risk of losing every investment is as great as the chance of making the maximum profit.

But most importantly, you should only choose a trusted and proven binary options broker for cooperation, who has been working in the market for many years and has an impeccable reputation.

Binary options (fixed time trading) is a relatively new phenomenon. They arouse distrust and genuine interest among the general public, like any new trading option. However, you should be aware of the risks and thoroughly study the market before moving on to satisfy your curiosity. “Binary options scam” is a popular search phrase on search engines and a sensitive issue in real-life trading.FAQ

 

What are binary options?
Binary options are financial trading instruments that can easily generate big profits. You just need to correctly predict the change in the price of the selected asset.
What are the risks when working with binary options?
As fast as you make a profit when trading binary options, you can incur losses. If you want to avoid this, carefully analyze the market and follow money management rules.
What to do if you are scammed by binary options scammers?
Study the broker's regulations in detail and all its legal documentation and file a complaint with the broker or regulator. 

 

 

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