Scam Alert December 2014
It seems that the lull in binary options scams we experienced over the summer has come to an end. A new round of products has recently hit the market and there is no limit to the lengths they will go to try and convince you of their legitimacy. The first to gain notoriety was Ataraxia7, a fail safe signal software that turned out to be just a fail. The software is being distributed via the internet and introduced to traders through forum posts. The posts are disguised as a friendly, informative and completely unbiased third party reviews but are obviously nothing more than SEO marketing BS. You can click here for a real review of Ataraxia7.
Two newer scams to hit the ether are BinaryApp 810 and Michael Freeman Signals. The Binary App 810 is another of the “free” software systems that you will be lucky to avoid. The scam is set up in much the same way as the Ataraxia7 scam in that it is being introduced through forum posts and other media. The posts are meant to be reassuring and soothing but in the end require deposit. “Insiders” claims to have used the software successfully and even to have won trading contests.
Michael Freeman on the other hand is another story entirely. Mike Freeman, operator of long time binary options website Mike’s Binary Options Channel, has turned to the dark side. For many years Mike was a proponent of safe binary trading but has now teamed up with the brokers. He is offering an “auto trader” free, with a deposit of course. According to many reports the win rates of the signals are below 50% and will wipe out your account very quickly. Shady brokers are always on the lookout for new and profitable ways to lure unsuspecting traders and what better way to do it than to use forums and gurus to do it. You get can the full low-down on Michael Freeman and his signals in the BinaryOptions.net forums.
Another new trick being used, and no doubt perfected, by serious black hat affiliates is to create false certifications. It is nothing new to find stamps and seals of approval all over any binary options broker, service or product but now the scammers are getting down right dirty. Some are claiming to be CySEC regulated, a move that gets them by for a while but usually ends up in a warning. Binaryfloor.com is only the latest to have received such a warning. CySEC states that this broker is not registered in Cyprus, has not applied for registration or is even actually located on Cyprus. Other scams, such as Ataraxia7 and NYStockOptions have to the extreme length to not only make a name for a supposed regulator, but have also created websites and electronic paper trails to support them.
Even as the scammers renew their efforts CySEC is being called to strict. A new article on ForexMagnates calls the regulator into question as the number of new brokers being approved has fallen drastically. One reason are increasingly tougher standards for the new brokers. Bowing under pressure from other EU regulators CySEC has recently raised capital requirements as well as others related to transparency and honest business practices. Notable EU members that may be pushing for even stricter measures include France, Luxembourg and Switzerland. These three have already applied sufficient pressure to put unregulated and fraudulent brokers such as FutureMarket right out of business.
Canadian regulators are also cracking down but it is unclear whether they are seeking to shut brokers down, or to have them register in Canada. Canada allows over the counter binary options, but only with registered brokers. Canadian authorities also regulate financial matters of this kind on a province to province basis so any broker who does receive approval may have to do so in each one. To date there are over 100 brokers on the warning list but it is apparent the only reason why is because they are all unregulated in Canada. Many prominent and well regulated brokers such as MarketsWorld and others are included on these lists.
There Is Good Binary Options News Too
On the bright side, regulated binary trading is gaining widespread acceptance in the EU. Several leading brokers have announced new partnerships over the past few months. These partnerships are with high profile athletic teams and more specifically football. That’s right friends, if you haven’t already noticed you soon will start seeing binary brands such as EZTrader, 24Options and others alongside your favorite teams in the Netherlands, Germany and Italy. These partnerships are by far one of the more positive signs that binary options brokerages are viable as businesses and entering the mainstream.