FINRA stands for Financial Industry Regulatory Authority, they issued alert for the new investors. As in the binary option trading there are also some frauds and scams. FINRA aware fresh traders that in binary option trading the chances of risk are very high. Binary option trading is considered as all or nothing options as in this trading technique at end trader get profit on invested money or lost everything they invested. And frauds and scams in binary option make it more risky.
Gerri Walsh Senior Vice President for Investor Education in FINRA said that there are live scams and frauds in binary option trading. As in the market there are so many firms available who did not deposit money in traders account and when the trader complaint it refund money then the firm deny their request and even require money to refund there amount.
Helpline from the senior recommend that go for the trading companies which are legal and authorized. The trading firm which offer demo trading so that traders can trade without risks. Some firms do fraud as they offer account to new traders for trading in which there is no risk but after some time they suggest there customers to invest money in real accounts and after that they can do fraud with the traders. As the account that fraud platform offers are live just for some time and when you came to know about that somebody has done fraud with you then it’s too late.
Important points to consider before investing in binary option trading:-
- Use some authorized firm to check the legalization and authorization of trading company in which you are interested to do trade.
- Check the Website having CFTC’s means that the trading company is attached with market or working individually.
- With SEC you can check the registration of the firm from which you want to do trading.
All these will surely help to find the genuine platform as it is the matter of money you cannot invest on anything without knowing about that so beware from frauds and scams
FINRA is alerting traders that invest your hard earned money in fraud platform must check before investment, registration, customer feedback, website reviews and many other things tell you that particular platform is genuine or not. And the most important thing is don’t share your personal data with any of the firm without knowing that firm is genuine or fraud.