I wrote a post about the number 1 reason why I wouldn’t trade forex binary options.
And if you are thinking of trading binary options, I suggest you take a big brain fart and let all that bad smelly binary options trading out of your head because you’ll be most likely to be scammed.
It looks as though not a day goes by without you hearing or reading some bad news about the binary options trading scams involving binary options brokers.
Here are some news that are making the rounds lately:
#1: Israeli Binary Options Brokers Defraud French Traders Of USD $120 million
An article in leaprate, it was reported that a French judge secretly visited Israel and interrogate up to 15 suspects who were detained by Israeli police.
Seriously guys and girls, this is a lot of money to scam and defraud the French people!
These are the 5 Israeli scam brokers identified:
- Forex Place (also known as FXP)
- Sisma Capital &
Here’s how these scam brokers operated as reported:
- they placed online ads targeting French websurfers offering very lucrative investment opportunities
- The French targets then followed by calling a local toll free phone number, or left their contact details online at the advertiser’s website.
- Representatives of the companies, who were based at call centers in Israel, called the targets back introducing themselves as representatives of French or British companies, and offered them to invest in foreign exchange and binary options trading schemes with an annual yields of between 20% and 88%.
- To convince the targets to transfer money, the company reps gave the targets fake company info for London or Paris addresses.
- The targets were asked to transfer money to known brand name banks in Europe such as ING, RBS or HSBC.
- The companies then transferred the money to banks outside the EU, to countries such as Israel, Georgia or Singapore.
- From there much of the money found its way to offshore tax havens including the Seychelles, Belize or the British Virgin Islands.
#2: Central Options, Another Scam Binary Options Broker Gets Another Warning After Trying To Lure Binary Options Fraud Investigator As A Client
Why some binary options brokers are allowed to operate is simply beyond me… Is it hard to shut them down by the regulatory authorities?
This is a really funny one….happened in Canada.
Canadians are also falling down to the online binary options trading scams.
This article was also in leaprate. Here’s what was written:
Jason Roy couldn’t believe the coincidence when he received a random automated call at his home at 6pm on April 11 from Central Option, a Binary Options broker offering an ‘amazing investment opportunity.’
It turns out that Jason Roy is a senior investigator with the Manitoba Securities Commission (MSC). He began a conversation with the self-described expert on Binary Options trading from Central Option. Roy then began gathering evidence while pretending to be a potential high-value investor.
Roy, ironically, is also a member of the Canadian Securities Administrator’s (CSA) special working group on combating Binary Options investment fraud.
I grabbed my notebook, and after confirming some details with an operator, I was connected to an individual identifying himself as Sean Bessi,” said Roy. “Bessi started to pitch me on the exact sort of illegal investments I’ve been investigating for the past two years. It was a bit surreal.
The Central Option rep claimed to be working from a Central Option office in Toronto, and that the firm maintains offices in London and Hong Kong. The MSC has since confirmed that the Central Option Toronto office does not exist. Central Option’s phone number is a VOIP number that forwards the call outside of the country.
The rep explained that Binary Options trading was “very safe,” and “not gambling.” Roy was offered a free education package and a $100 credit to do some trading. Roy was then walked through the whole trading process, repeatedly being suggested that he fund the new account by using his credit card or by wiring money.
Roy was also told he would not have to pay any taxes on any profits earned in the account.
The MSC on Wednesday alerted the public that Central Option is not authorized to offer investment services to residents of the Canadian province. The MSC warning comes less than a month after Central Option got a warning from another Canadian regulator, the British Columbia Securities Commission (BCSC).
Over the last two months, Manitobans have reportedly lost nearly $160,000 to unregistered, offshore binary options firms. The regulator suspects losses may be higher, as not all cases are reported.
#3: Binary options scam watch: FCA warns against RBS Bourse
Here’s another one again:
About a month after the French financial markets regulatorAMF added RBS Bourse to its “Black List” of unauthorized binary options firms, the UK Financial Conduct Authority (FCA) has also issued a public warning regarding this firm.
The company, which operates via www.rbsbourse.com, offers its clients to trade binary options.
RBS Bourse claims to be a name of FCA-regulated RBS Asset Management (ACD) Ltd (FRN 437090), and thus to be regulated in the UK. The FCA, however, stresses that RBS Bourse has no affiliation or connection to RBS Asset Management (ACD) Ltd.
Below are the details of the unauthorized entity:
- Name: RBS Bourse
- Telephone: 0182889382, 0176390063
- Email: email@example.com, firstname.lastname@example.org
- Website: www.rbsbourse.com
You can view the full warning from the FCA against RBS Bourse by clicking here.
Avoid binary options trading like a plague.