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Binary Options: It is a New Online Trading Scam or No ?

Binary options are also becoming increasingly popular among investors and traders. Numerous reports of positive experiences with binary options as well as various forum posts promise easy and quick profits. But it is not uncommon for this information to be plain and simple wrong or represent hidden advertising.

As with traditional warrants, indices, stocks, exchange rates and commodities can be used as base values ​​for binary options. You can bet on falling or rising prices. Binary options belong to the category of futures.

The terms of the options vary from provider to provider and are optionally 60 seconds, 15 minutes, 30 minutes, 1 hour or until the end of the respective trading day. The US Securities and Exchange Commission approved cash-or-nothing binary options in 2008. The American Stock Exchange (Amex) has been offering European cash-or-nothing binary options since May 2008. Binary options have been traded on the Chicago Board Options Exchange (CBOE) since mid-2008. The standardization of binary options made it possible to quote the price on an ongoing basis.

In the past, binary options were initially traded over the counter and issued directly to the buyer by the issuer. Such an option can only be liquidated during the term if the broker or the platform allows this option.

Binary options are short-term options with which returns between 65 and 85% can be achieved within a few minutes. To do this, traders only have to predict whether the prices at the end of the respective trading period will be higher or lower than when they submitted their option. Theoretically, no previous knowledge is required for trading binary options.

Seduced by the supposedly simple function of this financial derivative, more and more investors are hoping for quick profits by betting on rising or falling prices. Many overlook the fact that binary options are associated with considerable risks. A total loss of the capital invested is quite common.

Binary Options – Fraud Model?

Binary options trading cannot be broadly described as a fraud. However, there are many dubious suppliers on the market, so special care should be taken. To avoid most binary options scams, you should only trade with serious binary option brokers and avoid frodulous companies. The lawyers at the Herfurtner law firm are getting more and more inquiries from those affected who have lost a lot of money while trading binary options or who have not received the money.

Often in Internet forums large profits are reported within a very short time. However, these positive testimonials rarely make a credible impression. These experiences are often shared by suspicious users who, among other things, also use so-called stock photos. These are pre-produced photos, which are mostly sold through picture agencies and therefore certainly do not show the forum user behind the profile.

In the last few years there has also been a certain tendency for Internet research on the subject of “binary options” to lead to untrustworthy search results. This tendency has the following background – many dubious providers very actively publish information about binary options that advertise their own platforms as particularly trustworthy and profitable. Often you can find supposedly neutral information on a rating portal or in a forum. Numerous videos are also intended to “inform” about binary options, the associated chances of winning and the successful providers. However, this information should be treated with caution, as “honest” and supposedly non-commercial publications often conceal fraudulent providers.

Many new websites have also emerged that are supposed to investigate whether binary options in general or individual providers of binary options are fraudulent. Various criteria are mentioned, which are supposed to prove that the offers are trustworthy and not fraudulent. Interested parties can then usually not recognize which of the numerous pieces of information are truthful and which have been manipulated.

Meanwhile, there is often advertising on television. In principle, the more serious providers are more likely to present their services on television. Nevertheless, caution is advised there too. A TV advertisement is not a “carte blanche” for the providers of binary options. Because the TV broadcasters usually do not check whether the advertised products or services are fully compatible with the legal requirements.

If you get to one of the fraudulent providers, then you only have to go to the lawyer, who should take care of the reimbursement of the lost money. The lawyers of the Herfurtner law firm are increasingly being commissioned by affected investors to enforce their claims against providers of binary options and are committed to the interests of the injured party.

Binary options – Applicable law and competent court

Online providers of binary options are generally not based in your country. Most providers are based in Cyprus or Malta, as reported by Wall Street Online. This raises the question of the law applicable to the contractual relationship and the competent court in the event of a dispute.

For example, the platform anyoption makes it clear in its terms and conditions that the use of the website should be subject to the laws of Cyprus and that the courts in Larnaca, Cyprus, are responsible for all matters. A German version of the terms and conditions is also available on the website. In the German version of the GTC, however, important sections can only be found in English, such as Appendix E “Guidelines for order execution” and Appendix G “Procedure for customer complaints”. Such a “mixed language” design of general terms and conditions can hardly be observed in reputable companies.

The BDSwiss platform also determines that use should be subject to the laws of Cyprus. The competent court should be the court at the company’s head office. This is currently in Cyprus. In Germany there is only one postal address. Contrary to what the name and the logo suggest, BDSwiss is registered in Cyprus and not in Switzerland. The company’s terms and conditions are currently only available in English.

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