Binary options scams and fraud are a huge concern for financial regulators. Certain companies that pretend to be authorised scam millions of euro every year from individual investors all over the world using binary options fraud. Some brokers promise a high return on investment and then seize investors money once the deposit is made on the trading account, this type of scam is very common in the binary options market.
The report from the Financial Market Authority explains that 64 complaints related to this type of binary option scams were recorded in 2011. In 2015, 1,656 new complaints have been made to the french financial authorities. In other words, the quantity of complaints have multiplied in just 5 years.
If the number of binary options scams is increasing that much, it’s in part due to the new popularity of the binary options. In order to emphasise this point, the AMF published some interesting statistics in its report :
-44% of french citizens have heard about binary options
-22% have been contacted by a broker or a similar service
-6% decided to invest money in binary options
-4% feel that they have been the victim of a scam by these companies
Furthermore, the evolution of the number of binary options brokers blacklisted by the AMF can shock investors. 46 in 2011, more than 300 nowadays !
The AMF also warns against the agressive marketing methods that are generally used by the unauthorised binary options brokers. Most of them make binary options sound easier than what they really are. The Sales representatives of these brokers use marketing methods to explain to future investors in their ads that binary options are really easy to understand. These same individuals who work for these brokers regularly forget to specify that binary options training is required to be able to handle this type of activity. In response to these agressive and dishonnest ads promising easy money, the investors can’t keep a cool head, and hastily deposit money on their trading account and eventually are robbed or are disapointed with the results they get.
It’s important to understand that binary options allow you to earn money but the AMF emphasise the fact that it’s not risk-free. Without money management (for example to risk 2% of your capital per trade) and without knowledge about financial markets (cf lessons and training in binary options), you will probably dislike your experience on the binary options platform.
Like the majority of financial regulators, the AMF is quite worried about binary options. It asks potential investors to be careful of the promises made by brokers and their ads. The AMF also warns the public via its blacklist and reinforces its actions and rules to be able to protect the customers (traders) even more against binary options scams in France.
To avoid the risk of binary options scams, we only have one piece of advice to give you : choose a regulated binary options broker ! There is a multitude of regulated binary options brokers in Europe whose activities conform with the local financial regulators rules. 24Option is an example of a binary option broker that the traders can trust. This company is regulated by the financial regulator CySEC, a reference in this domain in Europe. Furthermore, 24Option’s company is also regulated by the financial regulators AMF (France), BaFin (Germany), CNMV (Spain), CONSOB (Italy) and FCA (UK).
Binary options traders, you have all the reasons to open an account at 24Option ! Besides, using one of the links present on our website, you will have the possibility (if you wish) to obtain a bonus of 100% on the deposit and will automatically be granted with the BonusBinaryOptions.net guarantee. Our Guarantee allows you to be protected by our team in case of a dispute with one of our brokers partners.