Binary trading is a form of online financial trading platform that promises a high return but is extremely risky, and sometimes you will lose your whole investment. The trading market is full of chances and scams. Nowadays, Binary trading scams have become common due to the growth of online trading. The most prevalent binary options scams include price manipulation, bogus asset managers, and fly-by-night brokers. These imposters use persuasive sales tactics to convince you to invest in a trade and claim that you will get high returns quickly.
However, there has been a spiky rise in complaints involving online trading in binary options. As it looks quite attractive because it sounds easiest, and the platforms usually promise high & safe returns. But in reality, binary options are risky, and many online platforms offering binary trading are deceptive.
Binary options trading is authentic but extremely risky. So don’t ever trust critics who pitch binary options as a rapid fix for your financial issues. This article will let you know how binary scams work and how to secure yourself from them.
How Binary Trade Scams Works?
Binary options scams take place when an imposter uses the cover of binary options contracts to make money illegally. Dodgy brokers tend to endorse themselves on social media through bogus profiles on different messaging apps; they will usually lure customers to their platforms using promises of high returns, pictures of luxury goods, and fake celebrity endorsements.
However, spotting a fake binary trading site is quite challenging, as these sites run so professionally. Once an innocent customer has opened an account with a bogus broker, the scam will employ multiple strategies to steal their funds. Hence, these scams may give confidence to investors to make huge upfront investments before charging them extremely high taxes and fees. Unluckily, it is impossible to recover the loss.
Common Signs to Spot a Scammer
- You will get a call unexpectedly offering a safe investment with quick, high returns.
- The imposters have professional-looking sites to assist them authentically, usually having a proper signup process, personalized account credentials, and a trading platform.
- The person invests money into the account & either the person or a broker attempts to guess whether a specific commodity price will go high or low over a short time frame. If you assume correctly, the account is credited with a small return. If you guess it wrong, you will lose the whole amount.
- Whenever you try to withdraw money, you can’t do it and usually lose the whole investment.
- Remember that these imposters will ask you about your personal details, claiming they want it to transfer money or that it is vital for anti-money laundering purposes. So, please don’t give them your personal details.
- They will not disclose their location or identity, just forced to keep the whole communication online.
- They don’t have a license to show they are registered. They always claim that they are based outside the state.
- Scam brokers usually use screenshots as proof of the money they have made. Don’t trust; it’s a trap.
How to Secure Yourself from Binary Trading Scams?
Always be cautious of any approach through social media promising high returns in a short time frame, as no reputable broker would do this. Do not mention your personal or financial information to anyone, and never agree to send money upfront without investigating the company or a person first. And remember not to tap any link provided by any firm offering you an investment.
Moreover, always be careful when you are contacted out of the blue that offers you 100% profits. Hence, you only have to deal with authorized financial services firms. You can check the firm from FS registered to make sure the firm is authorized. You can consider certain things in mind to protect yourself from such scammers.
- Ensure the broker has an authentic license from an authentic government regulator such as CFTC, FCA, FSB, or ASIC.
- Also, go through the ASIC’s professional register companies list to ensure the provider has an AFS license.
- Don’t allow anyone to force you into investing; get legal or financial advice from professionals.
- Vigilantly consider to who you are giving your personal details, including your passport and bank details.
- If you are interested in investing in binary options, your best bet is to ignore the offer and find the safer and less risky investment.
- Never use robots that frequently force you to deposit before seeing the settings.
What to do if you have been Scammed?
If you have been trapped in a scam, then honestly, your options are limited. You can hire a lawyer who knows how to tackle these imposters and send them a threatening letter. But, if the broker lives in another region, it will cost you more but might scare the broker.
Otherwise, you can file a complaint against scammers to any government site or CFTC complaints portal. Also, inform the credit card company that if your card has been used without your permission, you can let them know, and they will assist you in getting your money back.
However, we also advise you to share your scam story with us. It will help other people not get scammed by such fake brokers & Binary Trading scams.
Tips to Consider Before Making an Investment
There are certain things to remember to stay protected from imposters for those who still wish to take a chance on binary options after knowing the risk & threats.
- The most important, never ever invest more than you can pay to lose. In short, don’t lease your home, car, or other assets to invest in binary options. Always invest a smaller amount in testing.
- Second, always ask the company or broker whether they are registered with CFTC & check their registration details on the CFTC website. If you are taken to a trading firm, ensure the firm is registered as well. Although having a registration is not enough, it only shows that the firm has met the trading regulations.
- Last, connect yourself with people who have abundant knowledge about trading. Before making any trade, research and understand entirely how the market works. Also, check out the standard fees, taxes, commissions, and other threats involved in that specific trade. However, this information will assist you in detecting a scam when you encounter one.
Binary trading is legit and profitable, but if you are not careful in investing money, you may end up in a scam & lost your money. As nowadays, Binary trading scams are widespread. So always be cautious and do your own research before investing. While choosing a broker, ensure you use a regulated, locally licensed broker. Hope, this article will be beneficial for you. If you are interested in investing, find out the legitimate trading platforms.
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