Are Binary Options Scams?

Are Binary Options Scams

In A Hurry? Click Here To Download This Post As A PDF To Read Later

In March earlier this year, the FBI released an article online warning of the dangers of binary options. Opening with a ‘word of warning to the investing public’, the fact the FBI has now got involved and is monitoring binary options heavily perhaps suggests all we need to know about the niche. However, it would be unfair to assume that all binary options are frauds just out to get your money. Therefore, we’re going to dig beneath the surface today and find the truth behind the topic!

What Is A Binary Option?

In 2008, exchange-traded binary options were approved by the US Securities and Exchange Commission which opened the door to this niche. Essentially, a binary option provides investors with a method of trading price fluctuations across several global markets. Compared to traditional trading options, binary options are different in payouts, fees, risks, and liquidity. Today, they’re classed as ‘exotic’ options and, by investing, you’ll either receive a payout or your money will be lost.

Available Binary Options

Before we address the ‘are binary options scams’ question, we should first note the two major types available. With the first, we have an option called ‘cash or nothing’ and this one pays out a fixed amount when ‘in-the-money’ at the expiry date. Meanwhile, the second option of ‘asset or nothing’ will pay the underlying security’s value.

With the most common form of binary options, the idea is to bet on the price of an individual stock. For example, perhaps you think it’ll increase in price to $70 by the end of the day. For this reason, you purchase a binary option at the cost of $50. If the stock price reaches $70, you’ll be in for a small profit while anything under $70 will automatically lose your money. Depending on the information you have or how confident you feel, you might buy several binary options to improve your winnings (or increase your losses!).

Are Binary Options Scams?

Despite the niche having good intentions at first, this was seen when they were approved back in 2008, they’re now a hub for scammers. According to the FBI, over $10 billion is stolen each and every year through binary options and the scammers are only getting more adventurous with their schemes. Just recently, they used Sir Richard Branson’s name in an attempt to convince people into purchasing fake investments.

While reading this, you might be wondering how it’s allowed to happen and it’s actually a story of two halves. On the one side, we have binary options that are listed on registered exchanges and this means they’re regulated by the Commodity Futures Trading Commission (CFTC) and numerous other entities. However, the problem arises online because the majority of the industry uses websites that aren’t regulated by US authorities and don’t comply with the regulations. For some of these unregulated websites, they’re being controlled by criminals all around the world as they commit fraud.

For the first three years, binary options were a serious investment idea and many chose to put their money into this niche. In 2011, however, things started to turn when the Internet Crime Complaint Center (IC3) received four complaints from victims who had lost a combined $20,000. Today, in 2017, as we’ve already seen, this number is in the billions and thousands of lives are being affected on a yearly basis. In many countries across Europe, they believe that binary options account for around one-quarter of all fraud complaints which shows you how they now dominate fraud issues all around the world.

How Do the Scams Work?

Are binary options scams? Well, we’re going to provide you with some advice on how to avoid the scams a little later but first, we want to explain how the scams work. For the most part, the scam artists are located overseas and they only have one goal; to take as much of your money as possible. In recent years, they’ve achieved this through three different techniques;

Identity TheftIdentity Theft
For some binary options websites, they send an email or message saying the government needs photocopies of utility bills, credit cards, driver’s license, passport, and various other pieces of personal information. Unfortunately, some people fall for this trick as soon as they see the word ‘government’ and the information they provide gives the scammers enough to drain their bank account within seconds.

Lack Of Refund Or EarningsNo Refunds
Elsewhere, other binary option companies will refuse to give a refund or the earnings to their customers. For the customer, all will be going well until they try to withdraw money only to find the request has been denied. From here, the customer support becomes impossible to use because emails and phone calls are ignored. In some cases, we’ve seen accounts frozen while the company themselves accuse the customers of fraud.

Trading Software Manipulation
Trading Software
While they promise to do their best on the surface, some trading platforms such as this will change the algorithms of their programs to purposely create a loss for all those investing in their service. By changing payouts and prices, losing trades are generated and the consumer simply feels as though it wasn’t to be when they’ve actually been conned out of money. For example, a common tactic is to extend the expiration time on all winning trades until they’re in a losing position.

Legitimate Solutions

When answering the question of ‘are binary options scams’, perhaps we should actually ask ‘are ALL binary options scams’ instead. If this were the case, we could come to an answer of ‘no’. In the market, there are still legitimate services trying their best in shark-infested waters. To finish, we want to provide you with some advice for finding real brokers.

Research Brokers
Broker
When we say ‘research’, we really mean research (like you’ve never done before). Rather than looking for brokers on Google and then trusting everything the website says, open the second tab and see what people are saying about the company. If you read nine reviews and eight of them are negative, chances suggest you won’t enjoy your experience. If you type in the broker’s name with ‘scam’ into a search engine, you should see any complaints that have arisen. If it’s clear, you can be confident but we have another step to be sure.

Ensure Regulation
Regulations
Secondly, only choose a broker from countries that have a strong regulatory system in place. At all times, you need to know that the company is being regulated otherwise they could be doing anything with your money. As we’ve seen, the US uses the Securities and Exchange Commission while the UK market is regulated by the Gambling Commission. If you’re choosing a company from a country with no regulation, you’re risking your investment since we’ve already discovered the number of overseas scammers in this corner of the market.

Summary

Are binary options scams? Yes and no. Compared to other niches, there are significantly more scams in binary options and it makes the whole process a minefield. Although you will find legitimate services using the two tips above, we believe there are much better (and safer!) ways to make money online!

I hope you enjoyed this post and if you have any questions about Binary Options or you just want to leave your own personal experience with Binary Options, leave a comment below. I would love to hear from you!

wealthy affiliate banner

Check out some of our most popular product/service reviews…
Please follow and like us:

About Moni

I'm Moni, founder of Online Income News. This site was created to help you learn how to make money online. My team and I search and review online money making or business opportunity programs. I only recommend programs I feel are top legitimate making money programs. I also tell you which ones to avoid. You can learn more on my About Moni page. Feel free to connect with me through this site or through the social media icons in top menu, and If you want to LEARN and EARN on the internet from the comfort of your own home from anywhere on the planet check out My #1 Recommended Program

View all posts by Moni →

56 Comments on “Are Binary Options Scams?”

  1. Excellent interesting article Moni. You take a balanced view against Binary Option.
    I really enjoyed the section on regulation, a very important consideration.
    Thanks for sharing!

    1. Hi Nick
      Thank you for dropping by and leaving a comment.. I appreciate your kind words!
      Overall with Binary Options I do feel there are better and safer ways to make money online than Binary Options.

  2. Thanks for sharing this Moni. I was looking into Binary options with similar thoughts as yours but I think I’ll be staying clear and moving with your other recommendations.

  3. Hi Guys. Don’t feel bad. These arseholes took me for 165,000. I would be happy to join a lawsuit, and even happier to locate these clowns. Very sneaky. Feel like an absolute idiot and have to admit they’re pretty good at this. At one stage they turned 125,000 of profit in a single day, so I thought “hey this works”. 165k later down the drain. However good news is a friend in New York put me in contact with this hacker who helped me recover all my lost funds from this scam brokers Geminihacks (dot) (com) thanks so much guys and best of luck to all of those genuine people who have been ripped by these scam brokers.

    1. Hi Alan.. thank you for dropping by and taking the time to comment.

      I am sorry you got caught by a scam broker and suffer stress but I am very happy you managed to recover your funds. Sadly, most people I speak with have not been so lucky in recovering their funds.

      Thank you for bringing to my attention Gemini Hacks who may be able to help other people who have been or may be scammed in the future.

      For anyone who has been scammed speak with GeminiHacks.com and see if they can help you.

  4. I lost hundreds of dollars in binary option. I thought it was an easy game by using 60 seconds strategy that learned from youtube, but apparently, it was not.

    1. Hi Kalis
      Thank you for dropping in and taking the time to leave a comment.

      I am sorry to hear you lost money Binary Options. You are not the first and sadly you will not be the last!

      People look for get rich quick schemes when in reality there are no shortcuts to success. In fact there is a process to making money online. I covered this in my article on this site, “What Is The Process Of Making Money Online?”

  5. THIS IS STRICTLY FOR THOSE WHO ARE UNABLE TO WITHDRAW LOST FUNDS FROM THEIR BROKER&SCAMMERS AFTER TRADING.
    If you know you have lost above 10,000 and you lost all by trading either to your broker or you where scammed , kindly let us know so you can get your money back direct from your broker because your money was supposed to be insured , this is applicable to both IQ Options, Binary Options and Forex traders,we the CFTC ( Commodity Future Trading Commission) have decided to help traders regain their funds back from their broker and also scammers. kindly get back to us so we can help you get the full funds back in one month, this can only be done if your broker is among regulatory broker laws. contact us on refunds@******.com . we can give you guide lines on what to do.?

    1. Hi Anna… thank you for dropping by and taking the time to comment.

      For any of our readers who have been scammed we advise, in the first instance, visit the Commodity Future Trading Commission by Clicking Here and contacting the CFTC.

      Anna, in order to protect our readers we don’t publish unverified email addresses. If you have a website that can help our readers please let us know and after verifying it we will be happy to publish it on this site.

    1. Hi Wolfgang… I am sorry to hear you lost money with Binary Options.

      Maybe speak with GeminiHacks.com and see if they can help you recover your funds.

  6. I am writing this post because one broker named John, from such called: Optionbot 3.0 on the basis that Optionbot will make 100% PROFIT of my deposits I wired that day 70 000$. The broker took over my account and started trading. After half an hour, the margin level was under threat and I received a call and broker started to ask for more money. I sent another 5,000$ from my Credit Card!

    Long story short, all my money is lost, days have passed away, trying to call as well as several emails, but without answers. Health deteriorated so bad i almost had a stroke. I wanted to catch this broker which robbed my money, and made hundred of trades on my behalf without my consent but more importantly getting back the funds was my priority and thanks to the help of ****@******.com (email deleted by admin) i was able to recover my hard earned savings and once again putting my life back on track.

    1. Hi Jim.. thank you for dropping by and taking the time to comment.

      I am sorry to hear about your bad experience but happy to hear you managed to recover your funds.

      Jim, we don’t publish unverified email addresses however if you have a valid website that can help our readers please let us know and after reviewing it we will be happy to publish it here.

  7. I don’t even know where to start from. At first, the software seemed to be really professional and authentic. I found many favorable reviews about its performance and delivered results. So, I decided to invest in it and try to achieve success in the online trading sphere. Soon, I realized that the software was swallowing all my investments.I am telling you, people, you should avoid dealing with those scammers. spotssoption is nothing more than a dangerous and fraudulent platform. I invested over $140k and couldn’t withdraw my money, months passed and still nothing. So, I contacted *****@*****.com (email deleted by admin) to help me recover my funds, I have been able to recover $100k and the remaining $40k is in progress. I really can’t tell how happy I am.

    1. Hi Michael… thank you for dropping by and taking the time to leave a comment.

      I am sorry to hear of your bad experience however I was very happy to hear someone helped you to recover your funds. I am sure an experience you will not want to have again!

      Michael, we don’t publish unverified email addresses however if you have a valid website that can help our readers please let us know and after reviewing it we will be happy to publish it here.

  8. After several suicide attempts, weeks of turmoil and sadness that GToptions brought upon me and my family after I lost GBP110, 000. I was introduced to ********* VIA Skype and he is the best and helped me recover all of my funds without any hassle in no time, I am so happy doing this because I know so many people would benefit immensly from this useful information to get their lives back on track.

    1. Hi Anthony.. thank you for dropping by and taking the time to leave a comment.
      Anthony, I am so sorry to hear of your experience with GToptions but I am very happy to hear that someone helped you to recover your funds.
      If someone is concerned about their broker they can check the Binary Options Blacklisted Brokers List by clicking here

  9. Capital Recovery is an absolute Scam recovery manager.
    The firm was founded in 2003 on the belief that internet persistently exhibit artificial segmentation as a result of Scam and online irregularities.
    If you have been scammed in any way and you want your money back then we are the best people you will want to talk to. contact us today.

    Key Contact: *********
    WhatsApp: ********
    Email: ********
    Instagram: *******

    1. Hi Peter.. thank you for stopping by and taking the time to comment.

      Peter, we don’t publish unverified email addresses or other contact details, however if you have a valid website that can help our readers please let us know and after reviewing it we will be happy to publish it here

  10. With the help of a recovery expert i was able to recover my money from a fake binary options expert , happy to share my experience and to also enlighten people on what is going on out there.

    1. Hello.. thank you for stopping by and taking the time to comment.
      I am happy to hear you managed to recover your money.
      If you have any information that can help our readers please share it with us.

  11. I have lost funds to different binary options brokers and this almost ruined me because i had to hire a lawyer to look into it but nothing worked to get my funds back. I trusted this last broker at IQoptions with 150,000GBP and lost it but i found a Recovery Firm that specializes in funds recovery and they helped me trace the funds and recovered 80% of the investments with the profits. if not for this Firm, my life would be in total ruins, i dont think its right to lose your hard earned money to fake brokers when there is a Recovery Firm available, email recovery@*****com to reach them or via their complaint request form on their site.

    1. Hi Abraham.. thank you for stopping by and sharing your experience with us.

      I am sorry to hear of your bad experience with IQoptions. I am very happy that you managed to recover most of your hard earned funds.

      Abraham, in order to protect our readers we don’t publish unverified email addresses however if you have a valid website that can help our readers please let us know and after reviewing it we will be happy to publish it here.

  12. I lost some funds to a binary option scam, its pathetic how heartless these cyrptocurrency pundits are.. Thankfully I was able to recover my funds after stumbling upon a testimony of another victim of these pundits online. I am forever grateful to john@*******.com for helping me out. I’m sure he could also be contacted for other forms of online scams.

    1. Hi Emma.. thank you for stopping by and taking the time to leave a comment.

      I am sorry you lost some funds and had a bad experience. I am, however, happy you managed to recover your funds.

      Emma, we don’t publish unverified email addresses however if you have a valid website that can help our readers please let us know and after reviewing it we will be happy to publish it here.

  13. Same story here. Lost $25k in just a month. I think the algorithm of the program is made to let you lose money in any way. How come I never had a second thought? That’s the question I keep asking myself.

    1. Hi Jane.. thank you for stopping by and taking the time to comment.

      I am sorry to hear you have been scammed. For anyone that has been scammed with Binary Options we advise, in the first instance, visit the Commodity Future Trading Commission by Clicking Here and contacting the CFTC.

      Good luck and I hope the CFTC can help you recover your funds.

  14. I have been able to recover my lost funds of about $190k i invested in Banc De Binary. I never believed i could get my funds back after trading capital for over 3 months , they denied me access to to my trading account and i couldn’t withdraw the money.

    I was unable to reach them until i met my friend who referred me to ****@****.com , a Certified Binary Option Recovery Expert, who took his time to guide me on steps to take to recover my funds in weeks.

    Right now i have been able to recover $170k and still working on the balance. I’m writing this to those that have lost their money in any way, you should reach out so you can get your funds back on time.

    1. Hi Jane.. thank you for stopping by and taking the time to comment.

      I am so happy to hear you have managed to recover most of your funds.

      Jane, we don’t publish unverified email addresses however if you have a valid website that can help our readers please let us know and after reviewing it we will be happy to publish it here.

      For anyone that has been scammed with Binary Options we advise, in the first instance, visit the Commodity Future Trading Commission by Clicking Here and contacting the CFTC.

  15. I am here to tell you not invest with any broker that is
    known and registered, and please do not invest with people
    you can not trust with money some promise fake profit
    i want to tell you if you are cheated or scammed you can also
    recover but it might not be all your profit you can only get your
    deposit out . please past this information to many who need help
    and contact, ,,, *****@GMAIL.COM

    1. Hi Peter.. thank you for stopping by and taking the time to comment.

      In my opinion MOST of the binary options are scams and it is difficult to know who to trust so we advise our readers to stay away from binary options.

      For anyone looking to start a legal online business our top recommendation is Wealthy Affiliate for the fact their platform helps people turn their passion into a thriving online business. They provide the 3 things needed for online success, Education, Website and Expert Help. The 1.2 million strong community and the owners support gives anyone the best chance of success online!

      Peter, in order to protect our readers we have a policy not to publish unverified email addresses. If you can give us a website that can help our readers we will be happy to publish the website address after verification.

  16. My experinece with 24options was the worst i ever had all my life. I invested $341,098 into 3 accounts and i was able to only withdraw $70, 000. Nothing can beat the way i was struggling to get my money back.

    I made no profit and lost my colateral. My liberating moment was when i was referred to a professional wealth recovery team.

    I messaged *****@*****.com, Very smooth and professional wealth recovery team. They have recovered 79% of my lost funds as of last week Make sure you have a proof of your transaction and you’ll also be guided on what to do to retrieve your money.

    1. Hi Sean.. thank you for stopping by and taking the time to comment.

      I am sorry to hear of your bad experience with 24Options but happy to hear you managed to recover most of your money.

      Sean I am sorry in order to protect our readers we don’t publish unverified email addresses, however, if you have a website that can help our readers who have been scammed through binary options then please let us know and we will be very happy to publish it after we have verified the authenticity of the site.
      Best wishes.. Moni

  17. Hello everyone im so happy i got my refund of 450k USD back from this heartless broker. When it comes to Binary Options, there have been quite a few examples of people who have been taken for a ride by a Broker and have lost a large amount of money and i was a victim.
    Many of these brokers misappropriate traders money thinking these traders will not act. Beware of where you invest in,Binary Option Scams are quite common and come down to a number of factors including improper due diligence and manipulation by the broker we should be very careful with these so called brokers.

    1. Hello, thank you for stopping by and taking the time to comment.
      I am very happy for you that you managed to recover your funds. It is so sad for me to see so many people losing their money to binary option scammers.
      By making people aware of the con men hopefully we can stop the innocent people from getting hurt.
      Thank you for sharing your experience.

  18. Finally I have been able to retrieve all my lost funds of about $350,000,which I never believed I would get again from an unregulated broker who stocked my trading capital for over 3 months now, and denied my access to my trading account. I’m so glad that I have gotten back all my funds back without stress, All thanks to my neighbor who introduced me to a certified binary option recovery expert. Do you have funds that you wish to withdraw from your account, is your Broker manager asking you to make more deposit before you can place a withdrawal, have you last money from any investment online? , are you confused and you don’t know how to go about ? Contact (****@gmail.com)

    1. Hello Dr Michelle.. thank you for stopping by and taking the time to leave a comment.

      I am very happy to hear you managed to recover your lost funds using a certified binary option recovery expert.

      Dr Michelle, in order to protect our readers we don’t publish un-verified email addresses. However, if you can give us the website details of the binary option recovery expert we will be happy to publish the website after our verification process.

  19. With the help of a recovery expert i was able to recover my money from a scam binary options broker, Happy to share my experience and to also enlighten people on how i was able to recover my money.

    1. Hello.. thank you for stopping by and taking the time to comment.
      I would be happy to hear about your experience and how you managed to recover your money.
      It could be something that can help our readers who have been victims of binary option scam.

  20. I Dont even know where to start from , At First the website seemed to be Professional and Real, To shot the story ****@yandex.com helped me to recover 83 thousand dollars i lost from binary options and i was so glad …you are the best . i am sharing this great story to people in my shoes you all can mail ****@yandex.com for help

    1. Hi Scott.. thank you for stopping by and taking the time to comment.

      I am happy you found someone who helped you to recover your funds.

      Scott, in order to protect our readers we don’t publish unverified email address. You say you went through a website please supply us with the website name and we will be happy to publish it here after verifying it.

  21. Fortunately our foundation got money back with the Recovery Firm’s help. All binary options trading is a scam. If money lost is a lot of money to you like we lost £145,000 to IQoptions and £76,000 to Banc-de-binary and you feel you need to get it back.

    My advice is to seek professional legal aid immediately, so they can tell you what you can potentially do, contact the Recovery Firm on their complaints support team via *****@***.com and get your funds recovered.

    1. Hello.. thank you for stopping by and taking the time to comment.

      I am sorry you had a bad experience with binary options but happy to hear you managed to recover your funds with the help of a recovery firm.

      In my opinion most if not all binary options are scams and we advise our readers to stay away from binary options as there are other safer ways of making money online.

      Thank you for sharing your experience with us and providing an email address in your comment. However, we have stripped away the email address in order to protect our readers. We don’t publish unverified email addresses.

      If however you can point us in the direction of a recovery website we will be happy to publish it to help our readers.

  22. Is your broker asking you to deposit more money? are you having dificulties making withdrawals? Are you confused and you feel you have been scammed?. I was scammed of $65k to TraderVC. I never believed i will be able to recover my funds again until i stumble upon a recovery expert online. ****@***.com is absolutely great.

    1. Hi Sophia.. thank you for stopping by and taking the time to comment.

      I am sorry to hear you got scammed by binary option trading however I am very happy to hear you got some expert help and managed to recover your funds.

      Sophia in order to protect our readers we don’t publish unverified email addresses. However if you have a website of the expert you used please let us know and we will be happy to publish it after we verify the site.

      Thank you for sharing your experience.

  23. Trading binary options with 24options has been a nightmare for the past couple months. After denying my request for a withdrawal countless times, I was finally able to recover all my money with the help of an expert I read about online. Happy to share my experience and also to enlighten people on how I was able to get my money back.

    1. Hi Thomas, thank you for stopping by and taking the time to comment.

      We would love to hear of your experience in recovering your funds so please provide us with a website.

      With so many scams on the internet, we want to verify the company is legit before we recommend it to our readers.

  24. Hello everyone, are you new to binary options or you are looking for an expert to trade and manage your account for you or Do you have funds you wish to withdraw from your binary broker? or you are having problems with the withdrawing of your funds and you don’t know how to go about it. kindly get back me on..Email:********** and I will guide you on how to get back your funds in an interval of 48hours

    1. Hi Levy, thank you for stopping by and taking the time to comment.

      Levy in order to protect our readers we don’t allow any email addresses to be included in the messages.

      If you truly feel your information can help our readers who have been scammed with Binary Options please provide that information and after vetting the information we will be more than happy to share it with our readers.

  25. I am a victim of Binary options investment brokers. It destroyed my dream and almost ruined my children’s dreams too. My advice to everyone who hasn’t invested yet is to stay away from this fraudulent scheme.

    1. Hello, thank you for stopping by and taking the time to share your experience with Binary Options.

      I am sorry you had a bad experience with Binary Options and I agree with you the best people can do is stay away from them.

  26. Yes, binary options are bunch of fraudulent scheme. I did lost bunch of dollars to this scheme but with some guidance, I got a good percentage back.

    1. Hello, thank you for sharing your experience with us. I am sorry it was not a good experience for you.

      We advise our readers to stay away from Binary Options as it is nothing more than a 50/50 gamble.

Leave a Reply

Your email address will not be published. Required fields are marked *