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CFTC Producing Videos to Warn Traders About Binary Trading
Financial regulators that appear to be more and more concerned about protecting investors are coming up with more and more ways to warn traders about potential investing dangers, including dangers related to binary options trading.
In the United States, the Commodity Futures Trading Commission (CFTC) has come up with a new, creative way to reach potential investors – online videos. The U.S. regulatory body that has oversight over the bulk of commodity and derivatives trading, including binary options trading, is producing a series of videos to be Published online, titled “True Fraud Stories”, that will reveal the many ways in which even very knowledgeable investors have been lured into various fraud schemes. The videos feature real-life scam victims relating their true stories.
Cautionary Tales
The CFTC hopes that the video series will serve as cautionary tales that will hopefully educate and alert traders to help them avoid losing money to investment fraud schemes.
As part of the video series, the CFTC has stated that it plans to dedicate two complete episodes to discussions of binary options trading fraud.
Bob Bauman’s Story
The first video produced in the series deals with a commodity investment fraud scheme. It tells the story of Bob Bauman, who, despite holding an advanced business degree and doing diligent research, was nonetheless fleeced of his retirement savings through a fraudulent investment scheme trading silver. In the video, Bauman relates how he was scammed despite even going so far as to meet the broker in person who eventually scammed him out of his money.
Although Bauman thought he had done his homework sufficiently before investing, the one thing he failed to do was check to see if the broker was registered with the CFTC and authorised to offer investments in commodities.
As part of the video series, the CFTC has stated that it plans to dedicate two complete episodes to discussions of binary options trading fraud.
Always Check Out New Investments
While registration with the CFTC doesn’t provide a guarantee against investment fraud, it does offer considerable protection since registered individuals or brokers must meet standards regarding customer protection, disclosure, and reporting.
The video series is designed to stress that even very intelligent, experienced, and knowledgeable investors can still fall prey to investment fraud, and to dispel the notion that investment scams are only perpetrated on new or uneducated investors. The CFTC hopes that by communicating that message, they will encourage more investors to always check things out very carefully before committing investment capital to any new investment.
How to Check Out Binary Options Brokers
One of the laments of binary options traders has been, and still is, that most fraudulent brokers are fairly quickly found out and exposed by client comments in binary options trading discussion forums. Unfortunately, many traders invest money with a broker without first checking the broker’s reviews in such forums or bothering to check things out at the CFTC’s SmartCheck.gov site. In addition to specific warnings, the site offers a number of helpful educational resources that can help investors avoid investment fraud.
Bob Bauman’s video tale can be viewed here.
Anatol has been writing for our news site for a year and is the newest member of our team. While he’s new to us, he’s certainly not new to trading with over 10 years’ experience being a professional financial journalist and working in the markets.
