There are many technology companies who are providing online trading platforms. They are benefiting from the profits generated from these scams as well. The price feeds may be real – but for the most part the trades are not being “passed” into the market. Binary option, forex and CFD scams operate like a Casino – all the trades stay in the house.
The only platforms that are safely not rigged against the trader will be those used by only the most professional traders, in very regulated jurisdictions such as in the US and Europe. Always take council from the home regulator as to who one can trust.
They are largely helpless, and they know it. They can do very little in the internet age to defend their citizens against the peril of this need breed of scammers – ie. unreglated offshore binary option “brokerages”. Perhaps they can somewhat regulate those operating in their own jurisdications – but they are obsolete in the face of this billion dollar threat facing their own innocent citizens.
Some regulatory authorities, like in Belgium, recently banned Binary Options. Many jurisdications are thinking about banning Binary Options as well. However, will this stop the unregulated binary option providers from operating within their countries? Hardly – it will open the doors for the criminals, in our opinion.
All they can do is warn the public. They cannot arrest anyone because the enforcement agencies largely do not have the time or the skills to devote to revealing who the true owners and operators are. Without fear of punishment, the owners of the scams will continue to thrive.
According to our experts, they can’t do anything. They cannot shut down websites and search engines like Google allows these websites to appear in their Search Content worldwide. They cannot catch the owners of these scams because they hide behind corporate structures. This is why we created the BRC.
In our experience, it may be a necessary step. However, ombudsman are again only effective inside their own jurisdiction. Therefore, those binary option companies operating or registered offshore are untouchable by any ombudsman.
Home regulators – like the CFTC (USA), FCA (UK0, ASIC (Australia), BaFin (Germany), CYSEC (Cyprus) are all effective regulating online trading entities who have registered or operate inside their jurisdictions. They can do very little if anything when faced with a binary option or forex broker who are registered offshore.
Because they are offshore, they are not regulated by any real regulator with any power. Therefore, they can do as they wish. When they have your money, they have a great interest in keeping it and making up rules which suit their wishes. Offshore binary option, forex or CFD companies are running wild, without any authority to control their criminal behavior.
If you notice, many of these offshore companies register a small company in the E.U. in order to process their payments. Or, they utilize other companies to process their transactions for them.
Either they don’t know – or they are turning a blind eye to their activies. Since when have Banks been protective to their own customers, let alone those who aren’t their customers.
Are lawyers effective? This is a good question. In general, lawyers show a great self-interest in all professional matters. We advise to be careful and to avoid never-ending lawsuits against offshore companies. It is hard to find the owners of these companies. Expectations must be very clear at the outset of any lawsuit.
Although every victim has a similiar narrative, not every case is the same. We suggest to submit a complaint on our site and we will do our best to refer you to a viable solution.
The most effective approach a law firm would take would be to file a lawsuit against the controlling companies or individuals – wherever they may be. Usually, such a strategy assists in forming a settlement of some sort.