Advisories & Articles

Feature

Binary Options Fraud

Binary options — a yes/no position on a future market condition — can be traded on registered U.S. exchanges. But there are many other websites, social media posts, advertisements or online videos that promote unregistered binary options trading platforms. Many times these platforms are operated by offshore companies that are committing fraud. Learn how these frauds work and how to protect yourself.

 

Futures Market Basics
 |
 | [PDF]
Trading vehicles that use futures contracts or other commodity interests may be organized as exchange-traded products or mutual funds, but that does not necessarily mean they will behave like traditional exchange-traded funds or mutual funds that invest in stocks, bonds or other asset classes.
Spot and Avoid Fraud
 |
Social isolation and financial strain can make people more vulnerable to fraud. If someone approaches you with an investment or trading opportunity, consider running it by someone you know and trust first.
Spot and Avoid Fraud
 |
 | [PDF]
Unregistered brokers selling binary options, foreign exchange (forex) programs, and cryptocurrencies are targeting people who lost their jobs due to COVID-19. The scams promise unrealistically high profits, but later force victims to pay excessive “fees” and “taxes” to get their supposed earnings.
Spot and Avoid Fraud
 |
 | [PDF]
Fraudsters commonly use major news events, such as the spread of COVID-19, to add credibility to their cons or manipulate emotions. You can better protect yourself by learning to recognize common mental biases that everyone has, as well as common fraud tactics—and by taking a few preventative steps.
Spot and Avoid Fraud
Before you make a trade, be sure you understand these basic principles that will help you spot and avoid fraud.
Futures Market Basics
Learn the fundamentals of the futures market, who uses futures how market professionals are regulated, and what to consider before getting started.
Futures Market Basics
Futures markets allow commodity producers and users to hedge price risk. This allows them to conduct business with greater certainty and helps stabilize prices for consumers.
Futures Market Basics
Learn the nuts and bolts of trading commodity futures and options contracts, and the intermediaries involved in the trading process.
Futures Market Basics
Prices are available from a variety of sources, here’s a general rundown of how prices and volume are reported with explanations of key terms.
Futures Market Basics
Look up specialized terms and phrases of the commodity futures, options and swaps markets.
Spot and Avoid Fraud
They may damage crops or disrupt production, but well-known events do not necessarily increase the likelihood of making profits in commodity futures or options trades.
Spot and Avoid Fraud
The schemes may change, but the common tactics fraudsters use stay the same. Learn how to spot them.
Spot and Avoid Fraud
Check the registration and disciplinary history of your financial provider, and ask questions before you invest.
Binary Options Fraud
Many online binary option trading platforms operate in violation of the law. Some of these unregistered platforms have refused to credit customer accounts, denied fund reimbursement, committed identity theft, and manipulated their software to generate losing trades for customers.
Bitcoin and Digital Currencies
 | [PDF]
The market for digital coins and tokens is still very young and there is no widely-accepted standard for placing a value on a particular coin or token. You need to ask about your rights, research what could affect the future value of a digital coin or token, and exercise caution.
Forex
Check out companies, understand the basics, be skeptical about claims of big returns and low risk, and don’t risk money you can’t afford to lose.
Bitcoin and Digital Currencies
 | [PDF]
The CFTC and SEC have recently observed investment scams where fraudsters pose as “ctryptocurrency” advisory trading businesses touting proprietary trading systems or mining farms.
Bitcoin and Digital Currencies
 | [PDF]
Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Learn more about the risks associated with this digital asset.
Bitcoin and Digital Currencies
 | [PDF]
Be cautious of sales pitches touting “IRS approved” or “IRA approved” virtual currency retirement accounts. Virtual currency prices sometimes experience wild price swings. This volatility is not reduced or limited just because the virtual currencies are held in an IRA.
Bitcoin and Digital Currencies
 | [PDF]
Pump-and-dump schemes occur in the largely unregulated cash market for virtual currencies and digital tokens, and typically on platforms that offer a wide array of coin pairings for traders to buy and sell. Learn the warning signs and how these schemes operate.
Bitcoin and Digital Currencies
 | [PDF]
Use extra caution when considering trading advice, products or services touted on social media. It’s easy for fraudsters to create a profile that hides their true identity, or use multiple profiles to promote their schemes. Find out what to look for, and how to avoid getting lured into their frauds.
Binary Options Fraud
These websites commonly are operated in other countries with fake U.S. addresses. They also regularly feature unreasonable claims of “wins” or big returns, phony testimonials, and fake social media comments.
Binary Options Fraud
The number of binary option trading websites has increased significantly in recent years, and so have the number of fraud complaints related to them.
Binary Options Fraud
Mobile apps make finance more convenient, but some binary option trading apps may be linked to unregistered offshore platforms. Here’s what to watch for.
Spot and Avoid Fraud
Not all educational seminars, web courses, or training software can deliver the A+ results they promise. Before you pay for classes or training materials, try out these free resources first.