Binary options trading was initially marketed as a simplified form of financial trading, allowing investors to speculate on price movements of various assets with a clear "win or lose" outcome. However, the simplicity of binary options trading attracted scammers who exploited inexperienced traders. As a result, many regulatory bodies worldwide have banned or heavily restricted binary options trading.
Binary options are financial instruments where the payoff is either a fixed amount or nothing at all. They are typically based on the price movement of assets like currencies, stocks, commodities, or indices. The investor decides whether the price of the underlying asset will go up or down within a specified time frame.
A binary scam involves fraudulent activities related to binary options trading, where scammers manipulate the trading process to deprive investors of their money. Here are the primary types of binary scams:
Brokers operating without regulatory oversight can manipulate prices and payouts.
They often refuse withdrawals or vanish with investors' funds.
Some platforms manipulate trading results to ensure investors lose.
Features like "stop-loss" and "take-profit" might not work as advertised.
Scammers offer to manage investors' binary options accounts for high returns.
Once they gain access, they conduct unauthorized trades or drain the accounts.
Signal sellers offer trading tips and advice for a fee, promising guaranteed profits.
In reality, they provide misleading or fake signals that lead to losses.
Phishing websites and emails are used to collect personal information.
Stolen data is used to make unauthorized trades or withdraw funds.
Brokers offer bonuses that lock investors into unfavorable trading conditions.
High turnover requirements make it nearly impossible to withdraw funds.