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Binary options scam: avoid
scams in 2024

Though persistent, every year sees the rise of several fake binary options brokers. In case you have been a victim of their deceit, do not think twice—get in touch with us at once. The earlier we act, the better the chances of getting your money back.

What are Binary Options?

Binary options are one type of exotic options. Originated in the year 1974, these were developed by the CBOE- the Chicago Board Options Exchange. They became available to the whole public in 2008. Essentially, a binary option is just a simple 'yes' or 'no' bet on whether the option expires in-the-money or not. Although some brokers outside the regulatory reach allow option out-of-the-money, most the modern platforms focus on short-term expirations, usually a day or less.

Common Binary Option Types

Here are the main types of binary call/put options:
  • High/Low Binary Option
    You place a bet on whether the price will end up higher or lower than a specific price.
  • Boundary
    You bet that the price will stay within a defined range, not exceeding or falling below certain levels. If the price stays within the range, you win.
  • Touch/no-Touch
    You bet that the price will not exceed or fall below a specific price level, meaning it will either close above or below a certain price.

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Key Points

Binary options are a highly volatile market, banned in the EU and UK due to their risk and lack of regulation. Without reputable brokers, the chances of losing money increase significantly. If you’ve been a victim of binary options fraud, companies like Ontario-Recovery can assist in recovering your funds. To reduce risks, always research platforms carefully and check reviews from other traders. Never invest more than you can afford to lose.

  • Are Binary Options a scam or legit?

Binary options are often regarded as a scam and not an instrument of finance by many experts; some even consider it a form of gambling. Although they are still legal in the US, they were banned in the EU in 2018 and in the UK in 2019. One of the reasons for the EU ban was the wide approval of unreliable binary options brokers by CySEC. The US is more regulated, but binary options are nevertheless speculative and high-risk.

Professional traders are generally skeptical of binary options, seeing them as a zero-sum game where one person’s gain is another’s loss, making them more akin to gambling than a sound investment strategy.

  • Binary Options robot scams

Most binary options scams operate through automated trading systems or "robots" that claim to handle your account on your behalf. So, the robots usually require account information, but in most cases, employ hard-sell tactics and make outlandish promises about returns. Approach with caution and ensure thorough research on any automated trading system before trusting them with your account information.

  • Binary Options software scams

Software scams within the binary options market claim their money is based on "advanced AI" or "machine learning." These claims are over-inflated, and all the creators of the software do is make their money through selling their software and not by profits made through trading. As with robot scams, be wary of software that promises unrealistic returns or employs hard-sell tactics. If it seems too good to be true, it probably is.

  • Binary Options trading scams

Scams abound in the binary options market, with regulatory bans forcing many brokers into jurisdictions with lax supervision. The unregistered operators often manipulate data feed fraudulently, which leads to crazy price jumps and dives near expiration, resulting in substantial losses. To be safe, only trade with regulated brokers, but finding legitimate brokers within this market is very tough.

  • Binary Options signal scams

Signal scams are also popular in the binary options market, whereby companies or individuals promise to deliver profitable trading signals upon subscription. This may be widely promoted over platforms like Telegram, but in reality, it is an attempt to enrich oneself from your subscription fees, not in providing anything of value. Be wary of a service guaranteeing returns for a fee, as they are most likely scammers.

How to Avoid Binary Options Trading Scams

These are primary binary call/put options:

  • Use Safe and Regulated Brokers

    The first concern for binary trading in the US will be to use one of the regulated brokers by CFTC and SEC. Always check if brokers show their license number and mention complete information about the national regulatory body that supervises the operation of the broker.

  • Do Your Research On Brokers

    Before trusting a binary options broker, do your homework. Check reviews from multiple sources and be wary of sites that focus solely on binary options, as they may be biased or even fake, created to promote certain brokers.

  • Consider Broker Location

    For unregulated brokers, knowing where they are based is essential. The country of origin can offer clues about the level of regulatory oversight and the associated risks.

  • Verify Broker Data

    Also, ensure verification of the broker's data before investing your funds. Check the accuracy of their feeds and abnormal price movements in proximity to expiration, as these could be signs of manipulative practices.

Scammed and lost money in Binary Options? Here’s what you can do next!

If you've been scammed in binary options, don’t give up. At Ontario-Recovery, we specialize in helping victims recover their funds. Our experts use methods like chargebacks to work with your card company and retrieve your money. Each client gets a dedicated caseworker for personalized support throughout the process. Start by filling out our Success Calculator and check out our reviews to see how we've helped others.