How to spot a binary option gambling problem
Binary option trading itself is not a scam but because too many players in this industry resort to dirty tactics to make money off aspiring traders, the whole binary options trading industry is getting a bad rep. It is not too diffult for someone to setup an online binary option brokerage and start accepting clients' money. Many such fly-by-night brokerages disappear overnight with their client's money and then re-open under another name to scam again.
Be sure to only trade with regulated binary option brokerages that has been in operation for at least a few years. Many scam brokers make it extremely difficult for you to withdraw your money from your account. They will ask you for all sorts of documents for verification before letting you withdraw any money. Thus, always make test withdrawals before depositing larger sums of money. With regulated brokerages, it should not take more than a few days to withdraw money from your account.
There are many online reviews, endorsements and success stories about people getting tremendously rich easily by trading binary options. These reviews and testimonials are mostly fake and are often paid for by the binary options brokerages themselves and their affiliates. While there are indeed people who made a lot of money trading how to spot a binary option gambling problem options, they are merely the exceptions rather than the norm and the path to success is how to spot a binary option gambling problem but easy.
Be cautious of high pressure sales tactics used by representatives of binary option providers. They often call traders and pester them to deposit large sums of money by luring them in with big deposit bonuses. Often, it is necessary to trade 30 to 50 times the bonus amount in order to qualify for it but the sales people will always fail to mention this fact upfront.
In the end, most novice traders will often bust their accounts long before they qualify for the bonus. Many sites sell some kind of auto trading robots that will trade binary options for you. The website creates an account for you at a scam broker, then instructs you to make a deposit and supposedly you can then sit how to spot a binary option gambling problem and relax while it makes money for you while you sleep.
Well there is one problem: Once again, if it sounds too good to be true, it how to spot a binary option gambling problem is. Once you start winning consistently, some unscrupulous brokerages may actually begin to reduce the payout percentage to you.
If you trade regularly, make sure to open trading accounts with multiple brokers so you can compare their payouts. In binary options trading, you are betting against the brokers rather than other market participants.
Hence, the broker only makes money if you lose. For their business model to be successful, more clients need to lose than win. However, this in itself does not make this a scam as all financial trading are zero-sum games. How to spot a binary option gambling problem wins come from someone else's loss and vice versa. It is only a scam when 1 The odds are fixed against you where you have absolutely no chance of winning and 2 You don't get paid even when you win.
The scams typically come about as a result of hyper aggressive marketing, false advertising and unethically operated brokerages. Many people feel scammed because they were promised the moon and the sky only to be hit by how hard it can be to really make money trading.
However, all of the above issues should start to become less of a problem as regulations tighten and the industry itself matures as a whole. Many of the most popular financial instruments such as currency pairs, equities and commodities are available to trade using binary options.
Is binary option a legitimate financial instrument or just another form of gambling Unlike humans, robots have no emotion and do not need to rest, so they can make a lot more trades than humanly possible, combined with perfect consistency Learn how you can get scammed when trading binary options if you are not careful With so many scam brokers out there, before you learn how to trade, one must know how to separate the wheat from the chaff and find a trustworthy binary options brokerage How often does my trades need to be successful in order to be consistently profitable in the long run when trading binary options?
Stocks, futures and binary options trading discussed on this website can be considered High-Risk Trading Operations and their execution can be very risky and may result in significant losses or even in a total loss of all funds on your account. You should not risk more than you afford to lose.
Before deciding to trade, you need to ensure that you understand how to spot a binary option gambling problem risks involved taking into account your investment objectives and level of experience.
Information on this website is provided strictly for informational and educational purposes only and is not intended as a trading recommendation service. What are Binary Options? Is Binary Options Trading a Scam? How to Select a Binary Options Broker? The financial products offered by the company carry a high level of risk and can result in the loss of all your funds.
You should never invest money that you cannot afford to lose.
To trade, all you need to do is bet on whether the price of something will rise or fall below a certain amount - if it is correct, you win and get paid. If not, you lose all of the money you originally invested. You can choose various commodities to trade in such as gold, oil or stocks etc. The value of a Binary Option is made up from the value of the asset you want to trade.
For example, you could bet at 2. You are not buying or selling the gold, just predicting whether the price of it will rise or fall. Time periods involved tend to be very short 5 or 10 minutes but some firms offer longer periods to bet over.
Action Fraud has received how to spot a binary option gambling problem June - May about how to spot a binary option gambling problem options in the last year, with an average of 27 reports made per month. Those who have mostly reported are men who have being paying via debit or credit card.
Reports of binary options fraud which are made to Action Fraud are assessed by the NFIB and sent to law enforcement for investigation. The City of London Police earlier this year arrested a year-old man from Essex who was alleged to have been the controlling force behind Base2Trade, which is now in liquidation. The company sold fraudulent binary options trading from three offices in the City of London; located on Bishopsgate and New Broad Street and in Tower He has been released on bail until August.
If this is not the case, any binary options that the firm offers will not be regulated either by the Gambling Commission or by the FCA. However, other European Union EU countries consider binary options to be a financial, rather than a gambling product.
This means that although the FCA does not currently regulate binary options, firms offering binary options trading which operate as financial services firms in other EEA countries, are able to do business in the UK and consequently appear on our Register of financial services firms. Platforms are set up all the time to appear legitimate, but are actually fake. Victims who reported to Action Fraud wanted to share their experiences, one said: I declined how to spot a binary option gambling problem offer.
Despite numerous phone calls to the office for someone to call with my account details, no one has returned my calls. A second victim said: The account grew and showed good returns. All the transactions were done by debit from two of my credit cards. I was given their how to spot a binary option gambling problem details to enable me to do a wire transfer, but did not use that function. You are here Home. When do Binary Options become fraudulent?
Fraud occurs when Binary Trading Platforms: Offer a higher than average return on an investment. Refuse to credit customer accounts. Break all contact with the customer. Manipulate software to distort prices and payouts. Victims of Binary Options Fraud share their experience: If in doubt, where you think a firm offering binary options may not be trustworthy or legitimate, do not transfer money to them or provide them with your bank details.
Be mindful of any bonus structures and clauses preventing you from withdrawing funds. The Gambling Commission advises that UK consumers should research the market carefully before participating in such activities. Check whether a company holds an operating licence from the Gambling Commission by searching the public register of licensees.
If you think you have been a victim of fraud you should report it to Action Fraud by calling 20 40 or by using the online reporting tool.