Binary Options Regulations
Welcome to Binary Options Brokers Reviews site. Here, you will discover how Investment Regulations introduced by the Government Authorities is helping to clean up the Options Industry. The Options Regulations is also making it difficult for the scammers to operate. Furthermore, you will find tips on how to identify a Scam Broker and avoid becoming a victim to Online Binary Scams.
Fraud and Regulations in Binary options
Binary Options are a trading mechanism which lets investors to place bet on the fluctuations of the market. It gives a fixed payout or nothing at all. Due to its “Win all and lose all” aspect, it is widely considered as sham or gambling. Regardless of all the notoriety which this trading instrument has accumulated; many a number of people are still investing in Binary Options. In this article we will look into the cases of fraud and all the existing binary options regulations.
What is the Scam Scenario?
Binary Options are a simple yes or no investment proposition. If you invest in Binary Options, there is no middle ground. If you win the bet, you will be rewarded. And if you lose the bet, all your investments will be ashes. Due to this gambling nature and easy entry routes, many people are lured into investing in binary options without having adequate knowledge about the subject matter. This scenario opens door for various fraud schemes which plans to feed on the ignorance of the simple investors. FBI has recently issued warning against these scams and frauds. Recently many cases came up which suggest that the investors were denied their profits even though they earned them. There are also many cases which tell that the trading platforms are rigged and designed to go against the unsuspecting investors most of the time. The platform lures an investor to invest more money by letting him win a couple of times. But after 5-10 successful trades, the platform shows one losing transaction which washes all of the accumulated profits of an investor.
Binary Options Scam Websites
These Binary Options Scam Websites mainly tempt their investors through the internet and the social media platforms. They advertise their service quite aggressively on the social networks. They offer many lucrative offers, discounts and deals to make their scams attractive to the general unsuspecting public. They also design their websites very professionally to make people think that they have good production value and these sites can be trusted. There have been further allegations that they steal the investors’ confidential information such as; credit card details to withdraw funds without the knowledge of the investors. Most of these companies show that they have a physical office but upon investigating we saw that most of these sites don’t really have any office at all.
Regulations to Prevent Criminal Activities in Options Industry?
In the US, the National Fraud Intelligence Bureau works with International Law Enforcement Agencies to stop these scams. They manage these issues by updating the relevant laws by issuing bans to their business or through strict regulations. FBI is also working to solve the binary options issue.
How to Protect yourself from Binary Options Scams?
At first do not get lured into any fancy looking website promising to double your money. Run a thorough background check before investing. Secondly, do not provide them your personal details. Lastly, if you are a victim or suspecting a crime, make your issue known to the FBI by reporting directly through their website.
Internet is a dark place and full of terrors, if you don’t watch your footsteps, you’re sure to fall. So, beware and safe investing.
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