Fraud in the binary options trading takes place, as in any other field, so the choice of a reliable brokerage firm will always be important for the trader who wants to make money and not experience losses. Denying the fact that fraudsters positioning themselves as reliable companies do exist in the market, is unreasonable. But there are also good brokers, which provide an opportunity to trade without problems and unpleasant surprises.
Traders should know that many operations are carried out with the help of online platforms that do not meet the standards of the supervisory bodies.
In binary trading there are some basic, most common types of customer fraud:
- The complexity of international financial traffic leads to the fact that new, but unreliable methods appear. For the company could provide its customers with payment by Mastercard, the provider is obliged to comply with many requirements. Traders will have to confirm their identity, that is, to provide a lot of information data and only then payments take place. Broker-cheater refuses to pay the money, naming ridiculous reasons, and sometimes wants the client to assure the documents, they do not have.
- Platform. Example: The figure of the option premium is 1.8375 and before the end of the term a little leap that the customer will not notice can take place, for example – 1.8373. As a result, the money floats away from the trader. How to prevent this type of fraud? Choose exceptionally large platforms and brokers with good reputation to work with. If it is an unknown platform, better play it safe.
- Personal data. There are complaints registered by CFTC about such theft with unclear objectives. There were cases when the platform requested copies of documents or credit cards. It is illegal, and if you encounter such a situation, change the broker.
How to avoid binary fraud?
We can say that the binary options industry as a niche has great potential, but it is full of fraud and unethical actions. As the popularity of binary options has increased, different scammers (brokers) have found a way to cheat their customers (traders). CySEC, as a regulated company managed together with the FSA and ASIC to bring out a minimum set of standards that binary option brokers must adhere. Unfortunately, there are still cases where some brokers cheat their customers in various ways of fraud.
- Traders should know that many operations are carried out with the help of online platforms that do not meet the standards of supervisory bodies.
- The trader needs to understand where and why he invests. Unclear wording in the contracts should alert.
- Check if the platform has a registration in a credible body, such as the Commission on the Securities and Exchange Commission, and whether the selected platform is an exchange or futures market.
Being attentive, you can avoid scams in binary options and choose a reliable broker with whom trade will bring only pleasure and money. Contrary to some clients who have already suffered from fraud, there are actually not so many scammers. Binary trading is beneficial not only for traders but also for brokers who have a decent profit from the work of their customers.
Moreover, they do it absolutely legally, deceiving and misinforming no one. Why should they risk their reputation as well as run into trouble with the regulatory authorities, which involves loss of business? It’s pointless and unreasonable, so the risk of cooperation with the fraudsters, especially in compliance with the rules of the choice of the broker, is small.
If you are interested in certain binary brokers, information about their conditions and characteristics can be found not only in the official site, you can also try out the reviews on the Internet, where real people talk about their experiences of working with one or another broker. For this purpose, for example, you need to enter Opteck on Youtube in the search box, and watch a video review of the platform online. Many reviews can be found on various forums.