Binary options broker scam investigation
In theory, you deposit money at the broker, then you connect your trading account to the robot, and the cash flows run into your bank account. Of course, this is a deceptive illusion, and this robot will only blow your account.
Then, you will contact customer support, and they will suggest you make a bigger deposit to experience the full potential of the robot. To better understand how fraudulent this software is, you can think about the following. If this robot is so profitable and all traders make money, why is it free? How do these guys monetize? Where there is a lot of honey, there are also some flies buzzing around.
In our case, the flies are so-called binary gurus. They present themselves as seasoned pro traders, former university mathematicians who have created the ultimate These guys create fake accounts on Facebook and YouTube to spam testimonial messages. They promise you big profits in the short term and usually are trying to sell you a trading system or an auto-trading robot.
What they are actually doing is creating a setup of some free MT4 indicators and trying to sell it for money. If you search Google, you can easily find these indicators and download them for free. Avoiding a scam robot is easy: So, you ask, how do I avoid a scam binary broker? Most scam brokers operate unregulated with registrations in offshore zones. Before you register at a broker, contact customer support via live chat.
You can ask them all kinds of questions concerning withdrawals, price quotes and promotions. If your questions are avoided and the representative pushes you to register and deposit, chances are you are dealing with a bad broker.
The support staff should offer information, not try to sell you an account. If they offer you an account manager who is willing to trade with your funds, think twice. When you make profit, the company loses money; the binary broker simply works as a casino.
Unfortunately, there are many naive people who believe someone will make them free money. The brokers know that, and with a number of phone calls, they can even make you deposit more after you lose your first deposit.
At a fully regulated broker, it is absolutely forbidden for a third party to trade with your funds. If you submit your account details to someone else, and this someone loses your funds, the regulator can do nothing about it.
To avoid troubles, you should simply register with a regulated company that offers binary options. This way, your money will be safe and you will be able to request a withdrawal at any time. We know there are good brokers for sure, but you still need to be a good trader to make profits. If you are looking to make some quick bucks and skip studying the markets, you will most probably end up with empty pockets anyway.
The binary options industry is not the safest out there because of all the scams that hunt your money. If you keep on your toes and stay vigilant, you can learn to avoid them. Skip to main content. How to avoid binary options scams You are here Home. We strongly advise you to trade only at regulated brokers. Scam binary brokers You know you are dealing with a bad brokerage when you have withdrawal problems or price manipulation in your trading.
You can choose various commodities to trade in such as gold, oil or stocks etc. The value of a Binary Option is made up from the value of the asset you want to trade. For example, you could bet at 2. You are not buying or selling the gold, just predicting whether the price of it will rise or fall. Time periods involved tend to be very short 5 or 10 minutes but some firms offer longer periods to bet over.
Action Fraud has received reports June - May about binary options in the last year, with an average of 27 reports made per month.
Those who have mostly reported are men who have being paying via debit or credit card. Reports of binary options fraud which are made to Action Fraud are assessed by the NFIB and sent to law enforcement for investigation. The City of London Police earlier this year arrested a year-old man from Essex who was alleged to have been the controlling force behind Base2Trade, which is now in liquidation.
The company sold fraudulent binary options trading from three offices in the City of London; located on Bishopsgate and New Broad Street and in Tower He has been released on bail until August. If this is not the case, any binary options that the firm offers will not be regulated either by the Gambling Commission or by the FCA. However, other European Union EU countries consider binary options to be a financial, rather than a gambling product.
This means that although the FCA does not currently regulate binary options, firms offering binary options trading which operate as financial services firms in other EEA countries, are able to do business in the UK and consequently appear on our Register of financial services firms.
Platforms are set up all the time to appear legitimate, but are actually fake. Victims who reported to Action Fraud wanted to share their experiences, one said: I declined this offer. Despite numerous phone calls to the office for someone to call with my account details, no one has returned my calls.