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.

Keith got to me after he had deposited 1750 Euro and traded successfully for a while. He had grown his capital to 7500 Euro, this of course until he answered the brokers call…

Big Mistake ! Huge Mistake : After one day of trading with his broker, you know the guy that make you a millionaire, he had lost all of his capital. Keith was very upset and turned to me for help. We had started the process of trying to retrieve his funds from the Binary Options company, and surprise : when we received the reply email, it was from a different Binary Option brand. Keith obviously didn’t put a lot of meaning to this, but in fact this reply of the second brand on the same thread was our winning ticket!

This was a human mistake that they did, but at the same time a clear breach of security. Needless to say that after 1 email to them stating this severe felony, Keith received a full refund in a matter of 3 business days.

The Crypto-currency industry is fast growing and everyday there is a new coin or token issued, never buy a coin without knowing exactly what it is, the rates and company reviews, every coin is issued by someone, a company or a group of individuals, when in doubt- do your homework and double check with trusted sites and exchanges, in addition; no self-respecting exchange will work with an unknown coin and of course no respectable investment house will spam message ‘fishing’ for clients to join.

Isabella initially invested $200 by a cc with the Binary option company and tried to withdraw it without trading but noticed it wasn’t processed for some days. She contacted them by email, and instead of letting her withdraw, her account manager convinced her to deposit more funds so she can get a “risk free trade” and she will be given a signal to trade. Her account manager specifically wrote: “you just add the funds and I will give you the trade, if you don’t win you will be refunded so there is nothing to lose.” She added $1200. Her account manager gave her a signal to trade and it lost, after that there was no money back in her account as her account manager promised, Isabella tried to call and email the company but with no response.

Isabella than approached me and sent me all of her documents and chat history with the company, I reviewed everything very carefully and realized the company made a mistake- Isabella didn’t actually sign the risk free trade contract. What happened is that her account manager gave her a written promise that the trade she will take will be risk free and if she lost the funds will be reimbursed, Isabella took the trade, and lost, but only after the account manager sent her the contract to sign.

This contract was supposed to trick her and actually prevent her from taking her funds out if she loses by saying in the small letters that the funds that will be reimbursed will be allowed to be withdrawn by her only when she reaches a trading volume of 20 times this amount. This contract is very similar to the “bonus trick” and its purpose is to restrict the customer from ever withdrawing his funds. The moment I asked Isabella for the risk free trade contract and she told me she still didn’t sign it I knew we had them!

At this point I told her to of course not sign this contract and prepared for her a very well written warning for the company, attached with the evidence we had and stating that they have no other way than to refund the funds to her account or we will take this further. These actions resulted in the company’s refund to Isabella after 5 business days.

After hearing about the bitcoin rise, Lisa wanted to join the party and was looking for an exchange that will let her buy Bitcoin, unfortunately, she saw an ad on facebook that directed her to an “investment company”, she left her details and right away she received a call from an account manager/broker that gave her promises for profits. She wasn’t aware of this kind of scam companies and was happy that the company will buy and hold the Bitcoin for her, she didn’t know that no one except from her should hold the bitcoin and giving the key for her wallet is like giving the code for your credit card. After 4 months when the bitcoin was significantly high, she asked to withdraw some of her investment, but the “investment company” was already gone with her money. NEVER GIVE YOUR KEY FOR YOUR WALLET TO NO ONE!!!!! This is the key for your money and no one should know it besides you, if someone is asking you for it, never ever give it away.

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