A lot of scams and fraudulent activities have undermined the binary option trading business reputation over the last months. As a retail trader you must be extremely cautious about the choice of your online broker if you want to avoid scam binary options brokers. A lot of the binary option brokers offering their trading services in the UK are only regulated by the CySec in Cyprus and are not necessarily authorized by the FCA (Financial Conduct Authority). You must absolutely check that your chosen binary option broker is at least regulated by the CySec. If it is not the case, we highly recommend you to avoid this broker and to keep your money safe.
Regulated broker website clones
After the traditional scams related to non-regulated brokers or binary option broker websites that disappear overnight with their clients’ deposits, there is currently a new form of fraudulent activity emerging in the market. The FCA already reported three different cases of fraudulent broker website clones in the forex industry, the most respected category of online trading.
FXCM and Alpari and Cargill website clones reported by the FCA
In October, the FCA reported that retail forex giant FXCM had been the subject of an attempt by a bogus company to extort clients by creating a similar name to that of the world’s largest retail FX firm. The fraudulent website used a means increasingly being referred to within regulatory authorities as ‘cloning’. FXCM Money Central, which was operating under the url http://www.fxcmoney.com, was proposing High Yield Investment Plans to traders and was using the same name and graphic charter as FXCM. It was clearly a clone of FXCM’s website. FXCM’s officials took the issue with extreme severity. They firmly expressed that FXCM Money Central had no connection in any way whatsoever with retail forex giant FXCM.
The FCA recently reported the same fraudulent issue for Alpari UK, another popular forex broker, and Cargill, a trading house specialized in commodities. In making a recent public announcement, the FCA made it clear that there are broker website clones in existence, and that potential investors should exercise caution to ensure that they are dealing with the correct company.
How to choose a safe binary option broker?
As explained above, several British companies have been the subjects of clone sites recently, largely due to the solid reputation of the British financial services sector among retail clients. All the binary option brokers presented on the website and the hyperlinks leading to their official websites are 100% safe. Don’t hesitate to have a look at our detailed reviews of OptionTime, AnyOption, TopOption and 24Option to be convinced. We highly recommend that you only deposit with brokers that you find listed on our site. This will secure safe payouts and should you face any difficulties we can assist you.