Binary Options: All one needs to know
What are Binary Options?
Binary Options are online trading options that allow the trader to answer a Yes or No to a market score related question. Unlike forex trading platforms where a person trades on the stock prices, buying stocks and then selling them for profits, in Binary Options the person is more interested in quoting the price of a stock at a particular time.
If the prediction is favorable, the trader earns back his initial investment along with a profit, or else he loses all of the money. This process can obviously be replicated for multiple predictions increasing the profit and loss margins significantly.
Although some Binary Options are government regulated and follow the necessary codes and trade policies, most of this trade is unregulated and are done online via apps and websites that have never been heard of before. Many of such platforms are the source of several online scams across the world
How are Binary Options scams carried out?
Most of the Binary Options scammers are scam websites and app developers who are usually located overseas. The main way a scammer lures victims is by putting several lucrative advertisements online targeting potential individuals who are careless and eager to earn.
The constant adverts feature people winning huge sums of money with just a few simple predictions. In this way, the perpetrators convince the inexperienced online traders that these are safe platforms were with low investments, high returns can be expected at considerably low risks.
Scammers even call from bank numbers to increase the credibility of such schemes and provide a sense of security. This makes traders invest in Binary Options without even questioning its authenticity. The several ways in which a scammer can con its victims are discussed below.
The perpetrators who pose as experienced brokers convince the customers that with more investment in such schemes the profits will be huge. Thus with constant persuasion, the traders invest large sums of money.
However, once invested, the scammer then might not allow the victims to credit the money out of the account. Even when the profits are earned, a user is not allowed to withdraw the amount. In such cases when the customer then tries to contact the brokers their emails are ignored and calls are refused.
The online website-based scammers in many cases prey upon the sensitive information provided by the traders. The customers are asked to provide their documents including copies of credit cards, passports, and driver’s licenses for ambiguous uses. Such information is then used by the scammers to steal the identity of the user.
Manipulation of the online platform
Most of the Binary Options scams are carried out online through apps and websites. These sites use charting and graphing software that shows live changes in stock values. With a little change in the code, the scammers can extend the time frame or change the data displayed to ensure that the customer’s predictions never match with the outcomes. This leads to huge losses on the customer’s part due to the use of such unfair means.
Precautions and Recovery
Binary Options sound very exciting and look like a simple way of earning money. But online users should always keep in mind the threats that loom with such options. To avoid getting scammed, users must stay away from unknown or unregistered binary option trading sites. They should also never breach out any kind of personal information on such online platforms. Lastly, inexperienced users must never trust data from online sites without actually verifying it.
Still many customers around the world get scammed daily. In such an unfortunate scenario taking legal action can be very difficult and time-consuming. The best way to get back the lost money is to contact an assets recovery company.
Funds Recovery is an online recovery firm that specializes in recovering money in all financial frauds along with Binary Options. With their highly trained professionals, customers are sure to get their lost money in a hassle-free manner and a short period of time.
Therefore, with just a little bit of consideration and caution, users can identify and thus avoid Binary Options scams, overall ensuring a good trading experience with high profits