How to Avoid A Binary Options Scam
Trading can cost you your investment. A new scam in trading is binary options fraud. The websites which offer trading in binary options promote themselves as offering controlled risk. It means that an investor is unlikely to lose more than a particular amount. They provide easy operations. You can trade from home and deposit your cash with a credit card.
The latest figures by Action Fraud, UK-based national fraud and cyber-crime reporting center reveal that over the past 5 years around 2,000 people have reportedly been scammed by an online trading scam that is commonly known as binary options fraud. The center is part of City of London Police. It showed that since over the past 5 years victims of binary options fraud lost over 59 million pounds in the UK.
Who commit binary options fraud?
Binary options fraud is committed by different companies which encourage investors to make simple bets on currencies and shares. It is not that all companies which offer binary options are fraudulent. There are lots of platforms which offer legitimate betting. But nowadays there is a rise in number of fraudulent companies. You may be scammed by robot services or scam brokers.
Are binary options companies regulated?
Mostly these companies are not regulated by the government. There is no securities commission in place that can protect people’s interests. So, the world of binary options operates like a wild world. That’s why it is very hard to recover your investment if you have been scammed.
Defining a scam
You can be scammed if your broker gives you dishonest advice. You may be scammed if your broker doesn’t let you withdraw funds on the due date. That’s why these kind of binary brokers should be avoided at any cost. There are plenty of reviews on brokers available on different websites. You should go through them in order to have a better picture. But there is no shortage of fake feedback and testimonials, especially when they are on the broker’s website. Look out for different websites to find reviews and testimonials. Customers’ feedback is very important but it should be independent and transparent. Usually there is a discussion underneath feedbacks. You should go through them to know about different customers’ arguments against or in favor of a particular broker. Moreover you should not let anyone manage your funds. Manage them yourself.
How can I save myself from being scammed?
A broker is defined as a company that provides you a trading platform. So, when you decide to trade in binary options, you have to choose the right broker. You have to confirm that the broker is registered. Only after that you should deposit money with a broker. Moreover the trading platform a broker provides should be easy-to-use, especially if you are a naïve trader.
If you have fallen victim to binary trading scam, you need to consult with a legal team who can guide you and help you recover your investment.