Binary options offer a high-risk, high-reward trading opportunity, but unfortunately, they also attract scammers. Dishonest brokers, fake reviews, and rigged software are just a few ways fraudsters steal from unsuspecting investors.
This guide will help you identify and avoid common binary options scams.
Why Binary Options Attract Scammers
New financial instruments often attract bad actors. Binary options are particularly vulnerable because they’re easy to understand and appealing to new investors. Also, many binary options platforms operate outside regulated markets.
What are Binary Options?
Binary options are a type of wager on the price movement of an asset (stock, currency, etc.). You predict if the price will be above or below a certain point at a specific time. If you’re correct, you win a fixed payout; if you’re wrong, you lose your entire investment.
