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“Binary options” put buyers in a bind

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Over the years, lots of rip-offs have been built around exotic “investment” strategies that were pitched as simple. Recently, the Securities and Exchange Commission and the Commodity Futures Trading Commission issued warnings about investment scams using “binary options” as a hook.

Not familiar with binary options? Then you’re probably better off keeping your money in your pocket. In fact, you can stop reading now, unless you’re fascinated by financial products with poor performance records and a tendency to attract scammers.

In theory, a binary option is a financial product in which the buyer’s profit or loss is determined by a yes/no proposition. If the proposition occurs, there is a set payoff: usually a pre-determined percentage of the option price. If the proposition doesn’t happen, the buyer usually loses the entire cost of the option. For example, a binary option would pay a percentage if a certain stock is above a predetermined price at a specific time. But if it’s not, the buyer loses the entire purchase price.  Binary options are often sold through trading platforms that operate over the web or through mobile apps.

Here are some other problems with binary options:

  • Binary options sellers have engaged in troubling practices such as advertising bogus profitability claims; taking positions counter to their customers’; and, requiring customers to purchase many options before they can cash out. Remember, if you’re wrong once, the money is gone.
  • Investment professionals have noted that the payout structure usually favors the seller.
  • Securities regulators have gotten complaints about binary options sellers who refused to credit customer accounts or process reimbursements; manipulated software to generate losing trades; or committed identity theft.
  • Many sellers are overseas where it’s difficult for law enforcers to investigate.
  • Many binary options trading platforms may be violating SEC and CFTC rules.

Some people who lost money to binary option scams have been contacted by people who promised to get that money back for them. If they paid for the “recovery service,” they lost that money, too.

Spotted a shady binary option deal? Report it to the FBI’s Internet Crime Complaint Center at, or call the CFTC at 1-866-FON-CFTC or the SEC at 1-800-SEC-0330.

Blog Topics: 
Jobs & Making Money


This is important real blog play about the government

Empire option a frudulent company: Empire option is a fuad!they have terms and conditions sectio on line at   empireoption.  com they saything they donot do. please do something about this people and help collect my money will you know mewhen you do not have my conttact address?

You can tell the FTC about a problem with a company. Go to and make a report. The information you give will go to law enforcement agencies for large investigations.

You can also report to the Attorney General in your state. This website lists the state Attorney Generals for every state.

I got ripped off by this scam broker recently, I had to hire a refund professional to recover my funds. I'm glad I got a refund others weren't so lucky. Happy to share my experience.

Chris - Please tell me how you got your money back. I was recently scammed out of ALOT of money. Who was your refund professional? PLEASE help me. I'm desperate....

I had to seek the help of a solution professional to get my money back.

Please tell me who your solution pro was. I just lost a LOT of money to binary scammers.

we need active investigations on the companies well known in websites Ultra Solutions MG UK limited, Algo Capital investments Limited, IC Options in defrauding people with hindered of thousands of dollars worldwide

If you want to report a problem with a company, please go to You can provide information about the company, what it promised, and what you received. The information you give goes into a database that law enforcement uses for investigations. The comments you put here on the blog don't go into the law enforcement database.

It is advisable that you plan your trading so that you are able to minimize the loss and maximize the gains from your investments.

How come I never had a second thought? That's the question I keep asking myself. That's how it goes, I lost £65,000 in just a month. I think the algorithm of the program is made to let you lose money in any way.

DON'T do it. They are experts at bleeding you dry. Always another fee to get your payout, more and more and more. Do NOT use an account manager ever. Even in 2019. They have no conscience at all.

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