Recently there have been a stream of fraudulent e-mails that lure their recipients into a simple way of earning money, where you can literally in seconds earn up to thousands of dollars. Who are these people?
Many people from our country have certainly received an email, in the recent months with the offer to some kind of profit making that can’t be refused. After investing hundreds of dollars, you’ll have the possibility to start trading on the stock market and every 60 seconds earn from 100 to 1000 USD.
Trading binary options on the stock market is not a piece of cake as these reports suggest. It is a serious investment tool, which has been, in a slightly altered form, used since the last century, and it can’t be played around just by anyone. By using this investment tool, an investor can speculate on the future direction of the price movement of underlying assets, such as stocks or currency pairs. Fraudulent offers sent out as spam generally encourage investors towards a bulletproof strategy that does not lead to any loss on the stock market and you will miraculously earn 30 000 dollars a month.
The offer gives you a chance to sign up with a certain brokerage company with whom you will continue to trade. In fact, the system that you believed in does not work at all, and thus, it’s very likely that all your money deposited into your trading account will be lost and the profit splits between the brokerage company and the sender of the email campaigns that lured you by it. One of the most recent campaigns is everywhere mentioned The Brit method (about this fraud you can read more here – The Brit Method) they were so cunning that the author had actors with a professional crew shoot a very impressive video.
However, is this investment tool called binary options wrong? And if so, how is it possible that this kind of trading is legal? Is the trading on the stock market regulated at all?
The actual binary options are a real regulated investment instrument, as the Holland court decided (more info here). All transactions take place on the basis of real, unaffected market data that does not happen by accident, like for example a number in roulette.
All brokerage firms that are mediating binary options trading must be regulated by CySEC, the main European regulator for this sector, residing in Cyprus.
Similar investments to binary options are the so-called Vanilla options that have been in our world since 1973 and they have never had any issues. Everything started at a time when brokerage companies started to offer 60 seconds options trading. However, regulatory authority such as CySEC is trying to change it, according to the latest available information. It will soon forbid all the binary options trades with expiry time under five minutes. 30 second trades have already been banned in the past Circular, which has been sent to all brokerage company. Another reason why people look at the binary option as a scam is that in recent years there has been a lot of unregulated brokers who often commit various frauds, such as manipulating the asset values.
So if you will want to try binary options trading I highly recommend you to choose your broker wisely. My advice is broker IQ Option. Why? Because this broker is most trusted and reliable broker on the market you can find. They have demo platform where you can test their platform for not risking your own real money. And also you don’t need thousands of dollars for investing, because they offer to open trader just with 1 dollar.