How binary options brokers lure clients

mlawson71 posted:
The Knesset State Control Committee, a body within the Israeli parliament overseeing the country’s executive branch, will hold a public hearing on the binary options industry today, January 2, 2017.
Karine Elharar, chair of the committee and member of the opposition center party Yesh Atid, said that she decided to call in the hearing on binary options after she concluded that the government has been too passive and there is no response to what is considered largely a fraudulent industry. (https://smnweekly.com/2016/12/27/israeli-parliamentary-panel-to-hold-hearing-on-binary-options-industry-opposition-lambasts-government-passiveness/)

How bad is the situation with binary options in Israel if they’re doing this after they have already banned binary options and their advertising in the country?

In this post they also talk about the time bomb in Israel about binary options. https://www.forexfraud.com/forex-articles/news-headline-alert-israels-vast-amoral-binary-options-scam-exposed.html

@mlawson71 Well, I think very bad so I can see.

Speaking of scams and binary options, let me quote the testimony of a former binary options broker employee who gave a testimony at the Israeli parliamentary hearings: “No customer ever made a profit in the company where I worked. I never saw it”. (https://smnweekly.com/2017/01/03/ex-binary-options-broker-employee-no-customer-ever-made-a-profit-in-the-company-where-i-worked/) It’s awful, but not surprising.

adam4 posted:
I just hope they can apply all the necessary restrictions and prohibitions.

Yes, me too!

mlawson71 posted:
Speaking of scams and binary options, let me quote the testimony of a former binary options broker employee who gave a testimony at the Israeli parliamentary hearings: “No customer ever made a profit in the company where I worked. I never saw it”. (https://smnweekly.com/2017/01/03/ex-binary-options-broker-employee-no-customer-ever-made-a-profit-in-the-company-where-i-worked/) It’s awful, but not surprising.

I guess this is honest truth about binary options!

is binary option same with option trading? I think the different only the closed time of trade

mlawson71 posted:
Speaking of scams and binary options, let me quote the testimony of a former binary options broker employee who gave a testimony at the Israeli parliamentary hearings: “No customer ever made a profit in the company where I worked. I never saw it”. (https://smnweekly.com/2017/01/03/ex-binary-options-broker-employee-no-customer-ever-made-a-profit-in-the-company-where-i-worked/) It’s awful, but not surprising.

... but some people pretend to make much money with B.O.!
Or at least the 'know someone who does...'

josephwong posted:
is binary option same with option trading? I think the different only the closed time of trade

I would say it is most closer to gambling in compare with option trading. The way of B.O. trading is when you bet and you loose, you lose more than if you win and the mathematical expectation is against to you (negative). In long term the total outcome would be lose.

Some interesting news – Banc De Binary the largest and oldest Binary Options broker on the market (which, by the way, was situated in Israel) is closing down. (https://smnweekly.com/2017/01/09/banc-de-binary-closes-up-shop/) All the fines, accusations of scams and bad press finally caught up to them. They have already stopped accepting new clients from the EU.

I used to really like the B.O (IQ Option) but only just for 6 months, and there is no problem with that broker. The problem is I benefit not commensurate with the pressure that is too high. Why should there any expiration time? It's a such silly invesment and who will win against time? we're all will loose. Although we get high gain with B.O, Our health will loose.

DIKIHENDARYANTO posted:
I used to really like the B.O (IQ Option) but only just for 6 months, and there is no problem with that broker. The problem is I benefit not commensurate with the pressure that is too high. Why should there any expiration time? It's a such silly invesment and who will win against time? we're all will loose. Although we get high gain with B.O, Our health will loose.

I think what you say is right. Maybe the whole story behind having expiration dates is to use urgency that can make you take emotional decisions which leads usually to losses. Stress is a good thing in trading but not if it goes over certain level.

The FBI recently issued a warning against ealing with unregulated binary options platforms and brokers. (https://www.forexbrokerz.com/news/FBI-Losses-from-binary-options-fraud-run-into-the-millions)

In a publication entitled “Binary Options Fraud, A Word of Warning to the Investing Public” the FBI notes that the binary options fraud is a growing problem and says that between 2011 and 2016 the number of complaints and sums lost to this type of scam have grown exponentially. “In 2011, our Internet Crime Complaint Center (IC3) received four complaints—with reported losses of just more than $20,000—from binary options fraud victims. Fast forward five years, and the IC3 received hundreds of complaints with millions of dollars in reported losses during 2016”, FBI said, adding that those figures reflect only the filed complaints. The true extent of the fraud, which is international in its nature, is not really known.

In its publication FBI lists the most frequent types of fraud employed by scam binary options platforms.

I was a victim of scam bo broker. That made me do large research and my conclusion is: legit bo brokers dont exist. You are always on lost position. 100% of them are market makers and that means if you win, they lose. It is them who pays profit to clients. Very common is closing accounts of winners, price manipulations, luring newbies with promises, asking for credit card details. What is more almost every single bo broker supports scam robots thanks to which you become millionaire overnight. I heard so many lies from manager who tried to convince me to try again. It is hilarious how far they can go to make you give them money. Just be careful with binary options bucket shop brokers.. They are really numerous. In my opinion bo industry is 100% scam so I advise everyone to stay away. If you make deposit your money is most likely gone.

PanMajk posted:

I heard so many lies from manager who tried to convince me to try again. It is hilarious how far they can go to make you give them money. Just be careful with binary options bucket shop brokers.. They are really numerous. In my opinion bo industry is 100% scam so I advise everyone to stay away. If you make deposit your money is most likely gone.

Absolutely true!
They still call me today, not the broker i have been, but others (they sell the contact details to other scammers). I shouted on the phone to never call me again, but they do. Now my girlfriend answers and tells them I don´t live there anymore. So they try with her!!! 😀
😁

The Financial Industry Regulatory Authority (FINRA), a US self-regulatory organization (SRO), joined a long list of authorities that warn about the high risks of binary options. (https://smnweekly.com/2017/03/17/us-finra-alerts-of-binary-options-follow-up-schemes/)

The regulator emphasized on two particular schemes for which investors should be on guard – recovery scams and IRS impersonation scams. Usually, scammers contact investors, telling them they know about their trading accounts and the money they’ve lost to binary options and asking for money to help them recoup the generated losses.

FINRA also lists the tricks scammers often use to pressure investors into paying the requested amount.