Binary Option Scams

We are here to address the common inquiries traders may have regarding binary options scams, as surge in fraudulent activities that entice individuals with promises of extraordinary profits through elaborate schemes and Binary Options in particular. These scams have become increasingly prevalent and target a wide range of people by presenting seemingly advanced solutions.

  • To protect yourself from binary options scams, it’s important to be aware of the likelihood of falling victim to these deceptive tactics. By staying informed and learning how to spot fake offerings, you can safeguard your funds and personal information.

Introduction to Binary Trading

Binary options are financial instruments that involve trading with a fixed amount of money and a specified timeframe. In fact, Binary Options are Banned completely by most regulators worldwide and are not available via Regulated Brokers.

So how Binary Option work? The Investors can purchase a stock or other investment, or make a bet on the price of an underlying asset reaching a certain level by a specific expiration date. {Read our review article about Binary Options Trading Brokers)

  • The potential loss or gain is limited to the difference between the market price and the option price. In binary options, the timeframe is much shorter, and it essentially becomes a short-term bet on the direction of the asset. If the trader’s prediction is correct, they receive a predetermined amount of money from the counterparty. However, if their prediction is incorrect, they lose the entire investment.

Yet, due to the appeal of binary options as a financial investment opportunity, the industry has faced scrutiny regarding its reliability and legitimacy. Its popularity is driven by the accessibility it offers to anyone seeking investment opportunities and the promise of high returns in a short period of time. However, it is important to closely examine the nature of this opportunity.

How do Binary Options scams work?

The binary brokers as a typical mean locate their offices primarily in offshore zones and other jurisdictions that did not imply the strictest regulation to financial investment firms, since worldwide regulation Ban this trading instrument due to high risks and lack of transparency. Therefore, the Binary company will enable its operation with a very low requirement and capital while as a general rule will claim its presence in prestigious jurisdictions alike the UK, Hong Kong, the US, or another European country. The phone number may appear to be a local line, but eventually to have the end user in the options trading hub somewhere in the world.

Therefore, binary scams are geared towards investors and promote fake binary trading software through easy for unscrupulous providers to take the advance.

Here are typical scenarios How Binary Option Fraud operates and target traders:

  • Most often binary frauds use heavy advertising tactics through social media, websites and emails with a redirection to a very-well developed websites with an allegedly professional offering and a very attractive opportunity for gains available to everyone.
  • Majority of binary options scams lure traders with a very small initial deposit and “free bonuses”, and most often it is enough to get interested. Further on an options broker will ask for credit card information and eventually, that’s where the positive side finishes. Then, the trader puts his life savings into “potential investment and gains”, but faces the loss of everything. The attempts to get money back turn out to be unsuccessful with further stress from understanding what happened.
  • The main trap in binary options trading is that firms may easily manipulate software and distort prices which will lead to a sudden loss of the trading account and balance.
  • Furthermore, scam brokers may use credit information to withdraw funds from the cards, therefore you should be extremely cautious about giving the credit details. (Read about Forex Trading Scams)
  • As the nature of Binary Options trading allows company providers to operate the “business” easily as well as to enjoy high incomes in their pockets, the industry shows its growing tendency constantly.
  • However, the situation has now changed due to better regulations and observances that keep track of scams so is always good to refer to Top-Tier regulatory websites like FCA. Securities and markets regulators across international jurisdictions received thousands of complaints as the binary options providers target investors aggressively, yet, the truth of victims is far beyond the received number of complaints.
  • While Binary Option is often categorized as a sort of gambling by the authorities the binary options broker may be a registered firm in a particular or offshore place, yet the firm is not allowed to sell its offering to residents of other jurisdictions. (Read Why to Avoid Brokers from Belize)
  • The authorities and international trading industry regulators regularly check on the trends and actions performed or offered by various brokers with the purpose to protect clients and maintain a trustable or smooth market operation. In regards to binary options trading sites, the most trusted regulators issued an Investor Alert, with advice not to involve in binary trading at all, and even banned binary options to retail traders. The agencies mention that numerous complaints received and relatively easy ways to manipulate software or to generate losing trades during the binary options trading delivery involve a significant risk to be involved in fraudulent activity. The authorities then identified thefts through a fixed-odds betting nature of the binary options trading and try to educate the population and warn about fraudulent promotional schemes.

Check on the UK FCA warning against Binary Options Scams: https://www.fca.org.uk/scamsmart/binary-options-scams

Binary Option Scams

How to protect yourself?

Even though world authorities restrict Regulated Brokers from offering Binary Options, yet, the regulators are not able to power each and every offering or specific jurisdiction where most of the scammers are based. In many instances, you should protect yourself and be aware of an interaction, that takes place with the purpose to take your money.

  • There is no guarantee on a statement made on the broker’s website, thus do not believe in every statement, specifically about its registration status, but carefully check through official regulatory sources. Scams often present themselves as a reputable firm with professional data, allured attractive possibilities of high gains, and fast outcomes. Yet, often it’s all faked, always remember because information looks official, it does not mean it is.
  • Be cautious of unsolicited phone calls, emails, or messages from individuals or companies promoting binary options trading. Legitimate brokers typically do not engage in aggressive marketing tactics.
  • Seek advice from independent financial professionals or trusted individuals who have experience in trading and investments. They can provide objective insights and help you navigate the complexities of binary options trading.
  • Always verify the broker’s registers before dealing with them and check on the reputation, as well as read Forex Brokers reviews. Probably, if the firm is not authorized it is a high risk to be a scam. You can always check Warning lists issued by the industry authorities and of course, you should consider strongly any issues, as well as review the List of Brokers to Avoid
Company Summary

If you got scammed by Binary Broker

In case you fall victim to Binary Option scams, at first you should immediately recall the credit card and try to withdraw funds from an account. Because scams are likely located overseas, there is almost no way to get any money back or to receive any sort of support.

The typical traders’ complaints included refusal to credit accounts or return funds and in fact, are not able to be supported further, as simply the company is not regulated or compensated by anyone. However, you should report a scam to specified authorities and better to access a specialist to advise on your following steps. The Regulators like UK’s FCA, Australian ASIC, Cyprus CySEC, and others provide an open and well-guided complaint procedure, therefore you should contact authorities immediately in case there are any concerns.

However, If you invested with a non-regulated entity there is no investment protection applied, as well as there, is no established compensation, unlike the Regulated Forex Brokers status provides.

Online Complaint Form

Conclusion on Binary Options Trading Scams

The sad truth is that scams in the binary options trading market are something that dominates among the offering. While the broker may provide robotic software or act as a broker, the trader should always keep caution against scams.

Overall, it is a very high risk, noting facts and issues happened to thousands of investors around the world, to engage in Binary Options trading.

We can not recommend trading with binary options brokers due to the revealed facts and numerous warnings issued by trusted authorities around the world. We value a transparent operation and investment service, therefore both reliable and trusted brokers will be always regulated and authorities in terms of their offering and performance. On the contrary, we offer to check out a list of Regulated Brokers and a description of their investment proposal, which is available by the link.

IG Group hires Max Hayden as new Global Head of Institutional Sales

IG Group logo

UK online trading leader IG Group Holdings plc has announced the appointment of Max Hayden as Global Head of Institutional Sales. With the help of Mr. Hayden the company expects to further strengthen its institutional business as part of its wider strategic investment for growth. 

Mr. Hayden is based at IG’s offices in London and reports to Fouad Bajjali, CEO of IG Bank SA, who leads IG’s global institutional business.

Mr. Hayden has a quite impressive portfolio with over 30 years of experience in the prime brokerage field. For the last 2 years, he has been a CEO at ITI Capital, a private equity-owned brokerage. Prior to that, he has served as a Managing Director at a Russian-based specialist broker BCS Global Markets. He also spent a big part of his career working at Bank of America Merrill Lynch, where he has taken mostly senior management positions and was responsible for the International Prime Brokerage product.

CEO of IG Bank SA and head of IG’s global institutional business, Fouad Bajjali has commented on the appointment: “Max has a proven track record of client focus and helping to develop businesses. His appointment demonstrates our clear commitment to grow and build our institutional business, which is a key growth opportunity within IG’s wider strategy of achieving a 30% increase in revenue by FY22. Max will manage a growing global team with a focus on the UK, Switzerland, Middle East and North Africa (MENA) and Asia-Pacific and will address the specific needs of hedge funds and family offices.”

Max Hayden has also commented on his new role: “I am delighted to join IG Group, which has such a strong brand and reputation and a clear focus on growing its offering for institutional clients. I look forward to building relationships and providing new opportunities for new and existing institutional clients.”

You can read our full review for one of the IG Group firms, IG Markets

Axiory Introducing the CopyTrade App Adding to its Great Achievements

CopyTrade App

Global multi-asset broker Axiory has launched its brand new FCA regulated social trading platform, the Axiory CopyTrade app. This app allows traders can copy successful strategies or become master traders and build a global following.

Marketing Director Dominic Poynter

“The Axiory CopyTrade app has been a part of our strategy since 2020. We wanted to make trading even more accessible, and what better way to get into trading than to mimic the strategies of already established traders?” said Marketing Director Dominic Poynter. “This is a chance for traders to expand their trading horizon and portfolio with the guidance of professionals and simultaneously take advantage of this environment to learn about strategies and the dos and don’ts of trading.” 

The app provides access to hundreds of strategies created by ‘Master Traders’ and gives an opportunity for other traders to mimic them into their own accounts. This allows them to get the percentage returns of successful traders, eliminating days of research and analysis. 

This new Axiory CopyTrade app is beneficial not only for the beginners, but also for the professional traders who can become master traders and use their proven results to grow their following within and outside of the app. Of course, even advanced traders can still benefit by following existing strategies and cutting hours and days of research, while still controlling the specifics of their position including size, budget, risk management tools, and closing their positions whenever they deem necessary. 

Axiory CopyTrade can be downloaded on all iOS and Android devices and traded on Axiory’s Max account

Earlier this year, Axiory expanded into a multi-asset broker introducing stocks and ETFs on its dedicated investment account. With the Axiory CopyTrade app, the award-winning company widens its scope and fills a new market gap that can attract new traders. 

“We aim to be as inclusive as possible, offering a variety of products and services. Not only does this cater to the needs of a wider audience, but it also allows every individual trader to expand their opportunities and dip into different markets through different platforms,” said Poynter. 

During the last year Axiory has managed to reach new highs, including a new rebranded website, expanding into investment products, introducing the MT5 platform, winning multiple global awards, and running a massively successful 50% bonus campaign, which still remains active till the first quarter of 2022.

BDSwiss to sponsor DP World Tour Championship

DP World Tour Championship

The leading Forex and CFD investment services institution, BDSwiss, has announced about its official DP World Tour Championship sponsorship in collaboration with the European Tour. The sponsorship will afford BDSwiss strong brand exposure and excellent business-to-business opportunities through access to the tournament’s Pro-Am competition and suite of hospitality services. 

The season-ending golf tournament will be held at the Jumeirah Golf Estates in Dubai. The DP World Tour Championship has been held in Dubai, one of the world’s top sporting destinations for golf fans, since 2009. The event has produced some of golf’s most memorable moments through the years.

This is the first time BDSwiss and European Tour, two organisations committed to technical expertise with a passion for performance, will partner. The game of golf instils in its players the same type of values that BDSwiss seeks to inspire in its traders: dedication, resilience, and commitment to excellence. As part of this sponsorship, BDSwiss will also be launching an exclusive loyalty campaign rewarding its loyal clients and partners as well as top-performing traders with Hospitality tickets, round trip flights and accommodation to Dubai.

Speaking about the new partnership BDSwiss CEO Alexander Oelfke commented:

“At BDSwiss, we are immensely proud to collaborate with the European Tour in sponsoring the DP World Tour Championship — a prestigious golf event that supports our global brand image and resonates with our core values of integrity, perseverance, and commitment to world-class performance.”

Daniel Takieddine, BDSwiss Senior Executive Officer MENA, added:

“We’re delighted to be one of the official sponsors of Golf’s DP World Tour Championship, a globally acknowledged sporting event that will not only support our brand with international exposure but will also bolster our efforts to become a leading multi-asset trading powerhouse in the UAE and across the broader MENA region.”

Max Hamilton, Commercial Director of the European Tour, also commented:

“We’re delighted to welcome BDSwiss to our network of partners for the DP World Tour Championship. The tournament is not only an annual milestone in global golf but a highlight of the sporting calendar in the Middle East which will be broadcast to a global audience. We’ll be working closely with BDSwiss to make sure that the partnership will deliver significant brand and business opportunities.” 

Highlighting the group’s commitment to communicate its brand values through top-tier sporting events and organisations, this is the second global sporting tournament BDSwiss is sponsoring in 2021. Earlier this year, BDSwiss announced a two-year deal as the gold sponsor of the MercedesCup ATP 250 Stuttgart tennis tournament.

IX Social App makes Trading Accessible to Everyone

Internet adoption has more than doubled globally since 2010, however, the majority of countries with lower rates of internet access are in Africa, according to the World Economic Forum. In Ghana specifically, DataReportal’s figures in January 2020 claim that while internet penetration sat at 48% of the population, mobile connections in the country stood equivalent to 130% of the population.

As such, in a bid to make trading accessible to everyone, INFINOX Capital, a leading CFD trading broker with international presence and market expertise, has recently launched it’s IX Social mobile app.

Referring to PwC’s Entertainment & Media Outlook 2020-2024 report, Jay Mawji, Managing Director at INFINOX Capital, says that smartphone internet access is on the rise as more and more consumers are capable of accessing the internet on their mobile devices. “Considering that this is the largest singular contributing device to consumer data usage, brokers should be looking to technology to ensure that trading is accessible to traders anywhere and at any time, and this means putting the power of trading in the palm of their hands.”

“IX Social provides clients with the interactive functionality to social trade, see what other traders are doing, and follow and engage with them,” he explains. “Trading can be a lonely place, and the method of social trading allows clients to connect with other successful and profitable traders, and almost emulate their trading style and strategies. Further, once following a certain trader, clients have the ability to have notifications sent to them each time the trader they follow actions a trade.”

Mawji attributes IX Social’s functionality to that of social media platforms such as Instagram, where it allows clients to ‘like’ certain trades of the traders they follow, even going so far as to comment on them and to converse about why a specific trade was chosen. Apart from merely trading on the app, IX Social also incorporates community group functionalities, where traders can create sub-communities to share information, create an education portal, or even trade as friends. Further, it allows clients to share their trades and the knowledge as to why they were chosen.

This lends to the idea of the app not only making trading accessible, but bridging the education gap and providing potential traders with the knowledge to make informed decisions in future trades. While education in trading is usually learnt over time, the idea behind social trading is being a way to fast track the often lengthy process.

Although there are other apps of its kind on the market, what separates IX Social from its competitors is twofold – the first being a more social element than others, as well as the physical presence of the brokerage behind the app.

“While INFINOX Capital is a large organisation with global representation, we still maintain that we operate as a small organisation, with the ability to converse with INFINOX Capital employees anytime,” notes Mawji. “We understand that any financial transaction involves client’s money, and by putting a face to an otherwise faceless industry builds both trust, confidence, and support.”

INFINOX Capital vets providers that use the app, ensuring that they meet certain criteria before they can offer strategies or share trade ideas with users. This adds an element of security in knowing that the providers that users are communicating and interacting with are in fact real, have integrity, and knowledgeable trading brokers. Furthermore, influencing providers that meet certain criteria also have the ability to be paid a retainer based on their following, engagement and successful quality trading advice offered to others.

With the global landscape being thrust to adopt digital means, the time is rife for the trading industry to follow suit. And with IX Social, the time for potential traders to reap the rewards of trading is now.

Award-winning online global forex and CFD broker Pepperstone enters the Kenyan market.

Pepperstone one of the world’s largest brokers,enters the Kenyan forex trading market.

Pepperstone is built on an uncompromising level of service for all its clients, underpinned by some of the best prices and execution speeds in the industry. 

Explore Pepperstone’s products and pricing at Pepperstone.com

Pepperstone Markets Kenya Ltd, a subsidiary of Pepperstone Group Ltd, has now been granted a non-dealing Foreign Exchange Broker License by the Capital Markets Authority of Kenya. Pepperstone is a global leader in the online forex trading industry, offering over 1200+ tradable instruments via its MT4, MT5, cTrader and TradingView platforms to more than 400,000 clients worldwide.

Pepperstone Kenya CEO Sahil Patel noted, “We’re extremely excited by the opportunity to bring world class trading platforms, execution and pricing to the vibrant retail and institutional forex market in Kenya.

“Having traded for international banks over the past decade, I am pleased to offer the same level of product sophistication, pricing, analysis and execution to retail investors as that received by a bank trading desk.”

The launch, which coincides with Pepperstone’s 10th year of operations, is part of a global growth strategy that enables more effective and specific servicing of the fintech’s clients.

Mr Patel said, “Ultimately, what sets us apart from our competitors is our commitment to our clients and great service. We’ve modelled our product suite to empower our traders with all the tools, expert market insight and client service they need to succeed on their trading journey.”

Pepperstone Group CEO Tamas Szabo further added, “Kenya is an important new region for us. It has become a renowned and well-regulated financial services hub in East Africa. The economy is highly developed and embodies entrepreneurship and growth. We very much look forward to doing business in Nairobi and working together with the local regulator and government to develop the industry in a sustainable manner.”

About Pepperstone 

Pepperstone is an award-winning online global forex and CFD broker known for delivering exceptional client service and award-winning funding and withdrawals to tens of thousands of clients around the world.  Pepperstone is regulated by the Australian Securities and Investments Commission (ASIC), the UK Financial Conduct Authority (FCA),Dubai Financial Services Authority (DFSA), CySec, BaFin and The Capital Markets Authority of Kenya (CMA). 

Pepperstone broker granted Germany’s BaFin license

Pepperstone review

Award-winning online FX and CFD broker Pepperstone has started his operation under its German license granted by the local regulator BaFin. The new operation will strengthen the broker’s fintech offering to the German speaking world in its 10th year of operation.

Find out more about Pepperstone’s range of instruments and markets available to traders here.

“We’re entering the sophisticated markets of Germany and Austria to offer our clients what they are looking for: Best execution and pricing in combination with an outstanding service to help our clients to master their trade” said Tobias Reichert, General Manager of Pepperstone GmbH. “We have a particularly experienced team here in Germany, and are united with the group’s genuine commitment to helping our clients on their trading journeys.”

“This year marks the 10th anniversary of Pepperstone and we are excited to celebrate it with the start of our operation in Germany.”

As one of the largest MetaTrader brokers in the world, Pepperstone’s vision is a world of digitally-enabled trading for traders to embrace the challenge and opportunity of global markets.

Pepperstone was first established in 2010 in Australia, where it has received multiple awards from the notable Investment Trends for customer service, spreads and support. In 2019, Pepperstone was rated number one for overall client satisfaction and platform features.

Disruptive and agile, the financial technology company has more than doubled in size over the past two years as well as expanded and tailored its product offering into hundreds of new markets.

“Thanks to our team in Germany, Pepperstone can establish even closer ties with our clients in the German speaking world. Germany is one of the most exciting European countries and we look forward to bringing our expertise and technology to the local investors,” said Tamas Szabo, Group CEO of Pepperstone.

“It’s been a huge year for the business. We’ve launched a number of offices in multiple jurisdictions. This growth is testament to our agility, ambition and dedication to delivering what our clients need and want. We’re excited about Pepperstone’s future in the region.”

About Pepperstone

Established in 2010, Pepperstone is now one of the largest MT4 brokers in the world. The company has subsidiaries across the globe and holds licenses issued by the Australian Securities and Investments Commission (ASIC), the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the Dubai Financial Services Authority (DFSA), the Capital Markets Authority of Kenya (CMA), and the Securities Commission of The Bahamas (SCB).

FCA fines UBS AG £27.6 million for transaction reporting failures

FCA Regulator

UBS AG (UBS) has been fined £27,599,400 by the Financial Conduct Authority (FCA) for failings relating to 135.8 million transaction reports between November 2007 and May 2017.

UBS has been found to have failed to ensure it provided complete and accurate information in relation to approximately 86.67 million reportable transactions. It also erroneously reported 49.1 million transactions to the FCA, which were not, in fact, reportable. Altogether, over a period of nine and a half years, UBS made 135.8 million errors in its transaction reporting, in violation of FCA rules.

UBS logo

The FCA also found that UBS failed to take reasonable care to organise and control its affairs responsibly and effectively in respect of its transaction reporting. These failings related to aspects of UBS’s change management processes, its maintenance of the reference data used in its reporting and how it tested whether all the transactions it reported to the FCA were accurate and complete.

UBS agreed to resolve the case and so qualified for a 30% discount in the overall penalty. Without this discount, the FCA would have imposed a financial penalty of £39,427,795.

FCA Executive Director of Enforcement and Market Oversight, Mark Steward, commented:

“Firms must have proper systems and controls to identify what transactions they have carried out, on what markets, at what price, in what quantity and with whom. If firms cannot report their transactions accurately, fundamental risks arise, including the risk that market abuse may be hidden.”

The Financial Conduct Authority (FCA) is a financial regulatory body in the United Kingdom, but operates independently of the UK Government, and is financed by charging fees to members of the financial services industry. The FCA regulates financial firms providing services to consumers and maintains the integrity of the financial markets in the United Kingdom. You can read a detailed article about why traders should choose UK brokers.

ETX Capital Offer Top-Traded Stocks At Zero Commission

There is some good news for the traders of the London-based broker ETX Capital. The broker has announced the launch of zero commission stock trading across their top-traded stock CFDs. The company has said that the likes of Tesla, Apple, Amazon, and even UK shares like Barclays are included, calling these their most-popular markets amid their client pool.

Nandik Barbhaiya, ETX Capital CMO

The CMO of the company, Nandik Barbhaiya, has commented: “We continue to see the demand for stocks increasing, but there are often so many barriers to new traders looking to try these. ETX wanted to give more people a simpler way to buy and sell these bigger stocks with no minimum charge or commissions.”

Besides these major brand names, ETX offers thousands more stock CFDs across US and European exchanges. 

ETX Capital is owned and operated by the Monecor (London) Ltd, a member firm of the London Stock Exchange. Authorised and regulated by the Financial Conduct Authority with Financial Services register number 124271. The broker is regulated by the FCA and acquired by Swiss firm Guru Capital in 2020, is one of the UK’s leading brokers. They offer trading on forex, indices, stocks, and other CFDs, as well as financial spread betting across their award-winning platform on both desktop and mobile. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.5% of retail investor accounts lose money when spread betting or trading CFDs with ETX. You should consider whether you understand how spread bets or CFDs work and whether you can afford to take the high risk of losing your money.