Binary options generally offer a manageable risk. Manipulation and fraud are difficult to achieve with this financial instrument. But wherever there is a lot of money involved, there are always some who want more than everyone else and who have every means to do it. But with binary options, the trader can check the price development of his positions with the broker at any time. Where is there a loophole for fraud?
The "Times of Israel" published an article on binary options at the end of March. This exposed a large-scale scam that shook the world of Forex. Numerous customers are said to have been ripped off with their money. Simona Weinglass's report shows that a large business with binary options has built up in Israel. At least one black sheep was found underneath.
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The incident in detail
Apart from the well-regulated brokers, there are always providers on the net lure the traders into a trap. They promise particularly high returns and unsuspecting investors are trying their luck with binary options. Greed, so to speak, led them here and punished them.
At first glance, the companies and websites look absolutely serious. It is paid up because customers hope for high profits, but in reality their money ends up somewhere else. Namely on the accounts of the illegal companies and they make a nice living of it. Until the dizziness blows up.
The acquisition is usually done by phone or email. The quick money calls for the gullible traders and they strike. As is usual with binary options, customers bet on rising or falling prices. But the apparent brokers play wrong from the start and according to their own rules.
Such companies do not act in the interests of their customers. They just want to bag their traders' money quickly. Honest brokers try to offer their customers the best opportunities with sufficient information, charts, background knowledge, etc. But the companies from Israel that we mean want to see their users lose.
Most customers of such dubious platforms do not come from Israel. The scam is very popular abroad. And why Israel, of all places, as the center of binary options fraud? Because it has so far been very easy to implement here. Legislation so far only regulates regional customers, but not those from other countries.
A kind of wake-up call was started with the article in the Israeli Times. More and more cheated traders report there and write about their experiences. Thus, the problem is at least increasingly in the public eye. Even if the government does not yet see any need for action.
Traders must be able to recognize dubious brokers
As long as the legislature does not move, it is up to the traders to recognize the dubious brokers. The customer must find out all about a potential broker before he deposits money.
For example. the support can be tested and there may already be reviews of brokers XY online. The most important aspect, however, is the regulation of the side or the company behind it. Most brokers in Europe receive their regulation from CySEC. This financial regulator is based in Cyprus. This is the first and very important indication for a reputable binary options broker.
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IQ Option is leading by example
Binary options allow good returns with relatively little money generate. This attracts many small investors in particular. In addition to security, the special trading instrument is linked to other factors. It is about trading fees, the minimum deposit limit and the minimum stakes. The lower the limit begins, the more potential traders will be interested in it. That's why a broker isn't necessarily dubious.
At the moment we're only hearing and reading good things about IQ Option. The broker has been offering binary options since 2013 and its customer base has grown rapidly since then. The minimum deposit of 10 EUR / USD / GBP is very low, as is trading from just 1 EUR / USD / GBP per option.
There are still numerous assets available. A good basis for varied trading in binary options. To get started, we recommend trying the free demo account from IQ Option. The "play money" is $ 1,000, which means that all functions and assets can be tested. If the trader has gained enough security with the broker, he can convert his account into a real money version by making the first deposit.
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