Spread betting also includes a high degree of risk. It can lead to huge wins or losses. The amount of risks associated with spread betting in terms of the scams associated with it is far more than those involved in conventional gambling. Although the scope of spread betting is enormous, the scams involved are also huge.

No doubt spread betting in sports and politics is gambling, simple and pure; however, spread betting in finance can mean several things – it can be a tax-free method of hedging exposures in your personal finances, making several short-term investments for a couple of weeks or months, or even of day-trading shares. The advantages are clear. Share trading includes 0.5% stamp-duty and commission of the stockbroker. You also have to pay capital gain-tax to the government on the profits that are included in your annual income. If you make investment via spread betting, then you will get the same advantages as shares investments but you don’t have to pay any stamp duty or commission to the stockbroker. Thus, the next time your stockbroker asks for a commission, realize that it’s a scam and your broker is simply taking advantage of your ignorance. However, knowing only this much is not going to protect you completely from the various spread betting scams present in the market.

Bookmakers have their own expenditures which are included in your spread-betting that most people don’t have any idea about. Therefore, it will create a much wider gap between the offer prices and the bid prices on each share that you will be buying through the stockbroker.

Nevertheless, if seen in a practical light, spread betting on shares cost usually the same as buying stocks through the conventional system for a span of up to 6 months.  It is better to follow traditional methods because these will prove cheaper in long-term investments. The only risk in using this spread betting means is the number of scams involved in it. Since the benefits of spread betting are huge, the scam artists can profit from innumerable investors involved in spread betting.

The thumb rule of any betting field is that you must get engaged in such activities only after you have acquired proper knowledge about the subject. The Financial Services Authority regulates spread bookmakers in the similar way like any other corporation which renders the public with financial utility services. Although this authority provides investors with various services, it does not compensate for the losses that may occur due to the ignorance of investors. Hope you get the hint!

Here one must remember that money’s fast movement is like a double edged sword, which if on one hand offers handsome profits, on the other hand, can make you lose a lot of money quickly. Therefore binary options trading must be carried out with utmost care and attention.

Binary options involve trading through market speculation where the traders have to anticipate the movement of the price of the underlying asset. This speculation is based on market trends, economic factors and any such information that might affect the prices. Therefore due to the speculative nature of the trading, binary options must be dealt with care. Binary dealings as mentioned should be done with attention as the system is not error or scam free. The market is full of scam brokers and scam software that claim to make you earn guaranteed profits. Amateur and gullible traders fall into the trap of such brokers only to end up losing all the money.

The anticipation of the price movement as done in the binary options trading provides it the feature of being lucrative and profitable. This is because the traders are just required to anticipate the direction of movement of the price of the underlying asset and not the magnitude. Therefore if they are correct by even a single pip, they get the determined amount. However the scam that is usually noticed here is that since the assets that are traded are considered short term security options, the companies deliberately increase or decrease the value of the asset in a bid to book profits for them selves. This means that if a certain brokerage company has personal interests in a particular asset and the price movement is contrary to what he wants, he might increase or decrease the value by suggesting to his clients to buy or sell the options.

Therefore, binary options frauds can be committed by brokerage firms that have vested interests in particular assets. Similar to this is the fact that many binary options trading software have come up. The software claim to provide more than 100% returns on the investment and when the trader does make that sort of money, his account is not credited with the amount. Moreover the contact details and the telephone numbers of such fraud companies are just a hoax and there is no body to clear the doubts. Therefore binary option trading requires research and analysis to save you from frauds.

So, simply binary trading involves two possible outcomes, either the trader receives all or nothing. Due to the simplicity of the binary trading it has become the most popular form of trading products. Moreover it offers fixed returns that are governed by structured reward and risk ratio. Binary trading is available on a variety of assets like currencies, stocks, indices and commodities. Due to these very factors binary trading has become quite popular and with the added advantage of hedging features, it has taken the trading world by a storm.

However, the popularity of binary trading has also given rise to a number of scams that are lurking in the market to swallow the gullible and inexperienced traders. Scam brokerage firms and scam trading software are luring innocent and naïve traders into investing money with the assurance of guaranteed returns as high as 75%. Though there are certain platforms that might be able to pull off such returns, one must be aware of the fact that more than half of the software and the brokers are scams. Therefore investing money and time in these instruments should be duly considered.

The binary trading scam that is usually seen is the guaranteed return assurance by many brokerage and trading firms. True that if the anticipation of the price movement is correct even by a single pip, the investment can give a handsome return, but the same investment can be lost in its entirety if the anticipation is wrong by a single pip. Here the brokers usually ask their clients to invest money in such instruments in which they themselves have interests. When on the added increase in investments the prices rise or fall, the brokers quit from the market while booking the profit and leaving the clients lost.

The brokers entice the clients by a 15% money back guarantee in case of a loss. Though this may sound okay for an inexperienced client, the actual fact is that you would have to part with 85% of your investment in case your anticipation of the price movement is wrong.

Similar scams related to binary trading have been noticed in certain trading platforms that guarantee the customers an assured return. However as the price movement is affected by external factors it is actually impossible to guarantee any return. The trading platforms simply require their clients to trade by the given call and put options. This means that they tell the clients where and when to put in the money and when to withdraw it. Though the trading platforms could pull off one or two successful trades for their clients but this is just coincidence since there is no such guarantee of the price movement and any brokerage that claims such is surely a scam.

Betting can take its simple form in speculation whereby investors can simply predict or anticipate that whether DAX market would open at the same price or at a higher price than the previous day close. Similarly a bet can be placed whether the market will close at a higher price than its opening price.

One of the most promising features of binary trading is that the income generated is absolutely tax free. As binary betting is considered to be a gamble in some countries like UK, gambling profit is not treated as income or a capital gain thus enjoys the privileges of tax exemption. Thus investors are encouraged to plunge in binary trading and book huge profits there by benefit without incurring any tax liability.

But this is not universally accepted. For instance US government does not allow gambling. Thus financial betting is restricted in United States. For the very reason traders are actually not even allowed to open financial betting accounts, and it’s difficult to ascertain a financial betting company which would accept traders’ requisition on the same.

This reason leads way to financial betting scams, where bookmakers actively participate in financial bets and do not follow any particular trading rules and regulations. The scam paves way through a very well sought method of fixing the price in the form of bid and asks prices which differ from exchanges and trade them against their own clients to book profit for themselves. The innocent traders take the situation at its face value and apportion their losses to their own negligence or hard luck.

What these traders fail to comprehend is that since financial betting is not legal in some part, bookmakers have created their own lobby which regulates the entire betting system. It’s just that these traders fall victim to these organized bettors and lose their money in charm of multiplying it.

One must remember that had it been so easy to predict the price movement everybody would have joined in to binary trading and the world would not have gone into a recession. But it is not so as there can be no guarantee for the price movement until and unless they are controlled by few brokers in an effort to make them work in their vested interest.

Financial betting scams are being reported and discovered of late and the concerned authorities are taking requisite steps to lay down strict norms for binary and financial betting, so that investors can be spared from the clutches of these money and bookmakers.

Option trading is fast becoming popular among traders as it provides certain benefits over other forms of investment vehicles. Thus the option trader has the flexibility to place trades on very specific market conditions. However as the popularity of options trading is increasing, so are the scams associated with it increasing. The term trading scams is a subjective term as it is not necessary that the trading services actually engage in fraudulent activities, but if they are in a capacity to make their subscribers lose a lot of money, they are deemed to be scams.

Here are a few indicators of options trading scams:

1. Too good to be true claims: if the claims sound too good to be true, then probably they are a scam. Options trading services that suggest that you can make $100,000 from a small amount like $1000 then probably it’s a scam as there are no such strategies in options trading that might end up making profit to that tune.
2. Secret strategies: there are many scam brokers or platforms that are advertised to let you know of secret strategies. Remember there are no secret strategies. Option trading is a clear and clean way of trading and conducting business and if there are any strategies they are related to how to trade effectively to make neat profits. Therefore any mention of secret strategies is a scam.
3. List of calls or puts: another scam related to options trading is that of providing lists of calls and puts options. This list as indicated by the service provider gives you an insight into which options to call or put. Though you might hit one or two for a profit but mostly you would be losing substantially as these lists are not based on any analysis. Acquiring such lists is like paying someone to provide you with a list of lottery numbers.
4. Lazy investors: what options trading scams are looking for are lazy investors that believe that options trading are a way of making money quickly? True, that options trading can get you good profits but this is only when you delve into the strategies of options trading and not just depend on such scam services that offer out of the world offers. Working smart is different from working hard but at least you should work.

Therefore when you decide to indulge in options trading make sure to study about it and choose a broker that is reliable and genuine. There are many brokers that provide value service and therefore have gained credible reputation.

Now when we are aware of what binary options trading is let us get acquainted with what are the scams associated with it. As mentioned above, a trade is “in the money” if the price movement is above by a single pip. This calls for a 75% return on the investment. One might think this to be a very good deal of getting 75% return by just getting the anticipation right by a single pip. But there is a catch here and that is usually in favor of the broker.

No doubt the brokers promise a 75% return on the investment if the anticipation of the price movement is correct, even by a single pip, but what if the anticipation is wrong. When the anticipation of the direction of the price of the underlying asset, namely the currency being traded is wrong even by a single pip, you either lose the entire investment or the brokers entice you by offering a 15% money back guarantee. Again this sounds good as you are thought to believe that in case your anticipation is wrong you would get back 15% of your investment. To take it simply, this means that you are going to lose 85% of your investment if you are wrong.

As more and more people are taking interest in binary options trading, companies are coming up with binary options trading platforms that call for simple call and put options. Providing all details based on technical analysis and research, these platforms simply indicate where to put in money for a successful trade. However the fact is that there is no such guarantee of how the prices would move. It might be true that you might gain on one or two occasions but chances are that you might end up losing more than what you have earned. Therefore as a trader you must know that risk is associated with trading and there is no guaranteed way to make profits in the binary options trading and if any firms are making such claims, they are scams. There is no better way than personal research and analysis and therefore one should opt for trading platforms only when they have established themselves.

Similarly using Double Down bets or Double Up bets, you can place a bet that a particular index, share or currency might go up or down. Now you can double your stake if your predicted movement does happen, even if by a tick.

However, people are easily duped by brokers or binary betting companies as their inexperience and inconsistent strategies help them do so. You are aware of the fact that trading is impulsive and often the binary betting companies skew a ‘double or quits’ bets in their favor, though it be slightly. But since they do so, they easily make a profit resulting in a loss for the trader that is you. Moreover since the traders lose more than half the time, the binary betting companies make profits. In the end people lose due to the non pursuance of winning strategies.

How these betting companies are scams can be gauged from the fact that when an account starts showing consistent winnings, the binary betting company starts to hedge the bets. They bet on trades and win by over-hedging. Since traders are gullible and innocent these companies turn the cash in the client accounts into profits by turning capital into commission. The clients are unable to understand the offers or the instruments on offer and lose money.

Some binary betting companies might claim to provide such specialized software, courses, training or newsletters that help you in trading or making profits. Often these are scams as the information contained in these is available for free on the internet. Moreover they have such features that are unusable by the beginners and therefore are not at all feasible. Therefore if you are looking for any such subscriptions, you must first have a look and research.

Often binary betting companies provide tips to invest in particular stocks. The reason behind is that they themselves have vested interests in these stocks and therefore merely to bump up the price before making an exit and that too a profitable one, they offer the tips. These tips should be taken as leads for further analysis and investigation.

Therefore to avoid the binary betting scams, one must rely on his instincts and research well before putting in money. Treat binary betting as a full time job that requires your time and effort. Do not leave everything on the broker or the software as they are there to make profits out of your money.

Forex scams can be conducted in many forms. Some of these scams may appear to be very lawful and legitimate and hence, compelling. Almost all traders are looking for some magical solution to win the game of Forex exchange. This is their weak point and scamsters use this to their advantage. Unfortunately, no such magical answer exists in the real world. Following are some of the famous Forex scams:

1. Signal Sellers:

Each rising day gives birth to new companies who send signal services better than any other existing signal service providers. They claim that they have the expertise to send you valuable information which can form the basis of your trade. These services are, obviously, not free of cost and they charge you either on a daily basis, or weekly, or on a monthly basis and most of the times, they send information that is of no use or of no benefit to your trading sessions. The ground reality is that there is no key strategy to win the market and even if there was, why would anyone sell it to others!

2. Phony Funds:

From the past few years, there have been the so-called “High Yield Investment Programs” (HYIP) which promise great returns on your investments. There are innumerable companies offering such investment funds. Not all, but majority of them are scams. They will make all the promises in the world to give you great returns if you allow them to use a part of your money to invest in Forex market. Although the concept may be appealing to you, these schemes are nothing but Ponzi schemes in which returns are paid to the investors who had invested yesterday by using the money that was received from the investors today. Once the customers stop to come in, they close down their business and get away with the money they have.

3. Miracle Software:

Practically there is not a single software that will figure out the Forex market for you. However, if you search for these softwares over Google, you will conclude otherwise. There are several companies selling softwares claiming that these softwares will help you earn great profits in the Forex market. They market special packages whose price may even go up to $6000 and if you put in a little more effort in your search, you will find that the same package is also available for free on other websites. You must always keep in mind that no software, however good it may be, will help you earn huge profits. It might be able to help you with analysis of the past data, but it can never exactly predict the future for you. Avoid falling for such softwares.

If you follow strategies that resemble those used for gambling or betting, or if you blindly trust your sixth sense or intuition, then there is absolutely nothing you can do to protect yourself from binary options scams. Your chances of recognizing these scams increase only when your strategy considers binary options as a full-fledged business that requires some willingness to learn about how you can go about managing your business while protecting it from all possible scams. The main difference between risks and scams in a business is that it is possible to anticipate risks but not scams, and hence when it comes to avoiding binary options scams, some extra knowledge about them is always going to be of great help.

The most common binary options scam is the one that convinces traders to use a particular interface by blabbering stories of how thousands of people have benefited from that trading platform. The best way to recognize the legitimacy of such platforms is doing some critical evaluation. For instance, if there is a binary options trading website or broker asking you to download some ebook or make some other investments not related to your transactions, ask every possible question to know all details about the requirements of buying that product to ensure that you do not waste your money.

Moreover, check if the platform is going to work well for you regardless of the market. There are several binary options trading platforms that bring profits regardless of the current financial system. Although trading of binary options is different from stock market, it does get influenced by it to some extent.

Secondly, there are various scams that claim to offer valuable information and resources for profiting from binary options. Firstly, realize that nothing in this world comes for free. Everything comes for a price. Especially, when it comes to information regarding binary options trading, no successful investor is going to reveal everything about his trading strategies. You can check for get-rich-quick schemes, most of which are scams. One characteristic of such scams is that although they boast of enlightening resources about binary options, they have absolutely no business fundamentals in terms of concrete information related to expenses, overhead, profit, loss, and return-on-investment.

If you are a beginner to the field of binary options trading or even if you are a skilled trader, a better idea to understand binary option strategies will be to consult experienced investors. There are a number of investors sitting out there ready to explain you their binary options strategies for some price.

After you are done reading this piece, you know what you need to be aware of when planning to deal with binary options. At the end of the day, your ultimate goal is to profit from a genuine binary options system and not getting swallowed up by a scam!

If you have any problem with your broker or you find a scam please add it on the relevant forum.
Together we can protectect other traders from scams.

Thanks,
BinaryOptionScams.com team