LONDON, U.K. -- This past Friday an obsure website made mention to the fact a large binary options broker would be going out of business. When traders checked the brokers website there was no mention to them closing their doors.
By the time the markets opened on Monday morning, the brokers site, although still operational was not allowing traders to the ability to make deposits.
Traders are left wondering, will they be able to get the money out of their accounts? Other reports mention that the company fired their entire staff and there is no one answering the phones and no response from customer support. See report on http://scambroker.com/broker-scam-reports/ .
The real issue here is broker regulatory oversight. Why were traders using a broker who was not regulated by the Cyprus Securities and Exchange Commission? Traders using an unregulated binary option broker have no one to turn to in the event of a bankruptcy.
And yet traders continue to run, blinded by dreams of huge succes, to brokers who are nothing but wannabe casinos. Interestingly enough, the large online casinos of the world are regulated in countries like the United Kingdom. British traders have options FCA regulated brokers, http://www.binaryex.com/united-kingdom-binary-options-ind... .
According to BinaryEX, there are over 200 binary option brokers online today. Of those, less than five percent are actually licensed.
It is important for traders seeking to make their millions trading binary options to thoroughly research the broker they choose to go with. BinaryEX has a lengthy discussion about regulated binary option brokers here http://www.binaryex.com/regulated-binary-options/ .
On June 6th 2013 the United States SEC put an investor alert regarding binary option scams.
Investor Complaints Relating to Platforms Fraudulent Binary Options Trading. The SEC and CFTC have received numerous complaints of fraud associated with websites that offer an opportunity to buy or trade binary options through Internet-based trading platforms. The complaints fall into at least three categories: refusal to credit customer accounts or reimburse funds to customers; identity theft; and manipulation of software to generate losing trades.
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John Caseman
