Many new binary option traders get hooked by a video about binary trading signals, or a binary options robot.

The Scam Works Like This:

1. A fake company opens a website that looks like a legitimate binary options broker.
2. They create a trading signals software that promises 100% accuracy!
3. When you join the scam, you quickly lose your initial deposit of $250.
4. You then get a phone call from a “senior broker” asking you to invest $5000.

How to Prevent Becoming a Scam Victim

The first step to avoid a binary options scam, is to properly research the binary options broker. Most review websites only give generic information about the brokers.

• Does the broker have a license from a real government regulator like the CFTC, FCA, FSB or ASIC?
• Is the broker constantly calling you to deposit more money?
• Does the brokers license protect investors from your country?
• Has the broker been fined for unethical business practices by their regulator?

The second step is to choose a good trading signals system or robot

• Never use a robot that asks you to make a deposit, before you can see the settings.
• Testimonials are all fake and illegal according to CySEC rules.
• Never follow a trading signal unless it fits with your trading strategy.
• Remember, the software that created your account, can place trades on your account.
• Historical performance is never an indication of future results.
• Read the trader discussions on the binary options forum

Conclusion

Binary options trading scams are a very common occurrence now. Do your research, and don’t get excited about making $1,000 by doing nothing. For every broker you find, and every trading system you hear about, there are 10 others who offer the exact same thing.

Each country has its own Financial Regulator that is responsible for regulating Stock Brokers, Forex Dealers, CFD & Bitcoin Trading, and Commodity Exchanges.

Some countries like those who are members of the European Union, accept brokers who are registered with one countries regulatory agency. For example, the arrangement EU countries have with CySEC, the regulator of binary option brokers in Cyprus.

Scam Brokers may advertise that they are regulated by a specific countries regulatory agency, but it is the responsibility of the trader / investor to double check that;

1. The broker is actually registered with the regulator.
2. The brokers license is still valid.

Australia – Australian Securities and Investments Commission – https://asic.gov.au/

Belize – International Financial Services Commission – http://www.ifsc.gov.bz/

Canada – Investment Industry Regulatory Organization of Canada (IIROC) – http://www.iiroc.ca/

Cyprus – Cyprus Securities and Exchange Commission – https://www.cysec.gov.cy/

Czech Republic – Czech National Bank (CNB) – http://www.cnb.cz/en/

Denmark – Finanstilsynet (The Danish FSA) – https://www.finanstilsynet.dk/

Estonia – MTR Majandus – https://mtr.mkm.ee/

France – Banque de France (BDF) – https://acpr.banque-france.fr/en

Germany – Bundesanstalt fur Finanzdienstleistungsaufsicht (BaFin) – https://www.bafin.de/EN/

Hong Kong – Hong Kong Securities and Futures Commission – https://www.sfc.hk/

Hungary – Pénzügyi Szervezetek Állami Felügyelete (PSZÁF) – http://www.mnb.hu/

Italy – Commissione Nazionale per le Società e la Borsa (CONSOB) – http://www.consob.it/

Israel – Israel Securities Authority – http://www.isa.gov.il/

Japan – Financial Services Agency – http://www.fsa.go.jp/en/

Mexico – Comisión Nacional Bancaria y de Valores – http://www.gob.mx/cnbv

Malaysia – Securities Commission of Malaysia – http://www.sc.com.my

Netherlands – Netherlands Authority for the Financial Markets (AFM) – http://www.afm.nl/

New Zealand – Financial Markets Authority – https://fma.govt.nz/

Russia – Financial Market Relations Regulation Center (FMRCC) – http://fmrrc.ru/en

Singapore – Monetary Authority of Singapore – http://www.mas.gov.sg/

Spain – Comisión Nacional del Mercado de Valores (CNMV) – http://www.cnmv.es/

Slovakia – National Bank of Slovakia (NBS) – http://www.nbs.sk/

South Africa – Financial Services Board (FSB) – http://www.fsb.co.za/

Sweden – Finansinspektionen (FI) – http://www.fi.se/

Switzerland – Eidgenössische Finanzmarktaufsicht FINMA – https://www.finma.ch/

United Kingdom – Financial Conduct Authority (FCA) – https://register.fca.org.uk/

United States – U.S. Commodity Futures Trading Commission – https://www.cftc.gov/

Vanuatu – Vanuatu Financial Services Commission – https://www.vfsc.vu/

The watchdog states in its announcement that the suspicious company is situated at 2 Woodberry Grove, London, N12 0DR, and that it trades through the website https://ctoption.com, which is owned and managed by InfiniCore Ltd. Saint Vincent. Although not blatantly claiming to be FCA regulated, it is clear from visiting its website that CTOption is indeed attempting to mislead investors that it is offering a legal product through indirectly hinting that it is FCA approved.

Besides clarifying that the firm in question lacks the proper authorisation to be targeting British customers, the FCA also reminds the public of the need to avoid trading with unauthorized firms, since those that fall victim of fraudulent entities will not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS).

In fact it should be pointed out that, in accordance with the current regulatory framework of binary options trading in the UK, CTOption should have been licensed and regulated by the UK Gambling Commission, however it should also be reminded that the UK Government, prompted by the growth of the binary options industry and increased concern about the protection of consumers, is now thinking of adopting the practice in place across most EU countries, where binary options are not treated as a gambling product, but as a financial product instead and are thus regulated by the financial watchdog in each country.