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Don’t Gamble On Binary Options
There are lots of ways to lose your money in this world but here’s one I hadn’t encountered before: binary option Web sites. They have become popular over the past few years with new ones appearing all the time: anyoption.com, bulloption.com, spotoption.com, binaryoption.com, etc. etc.
The sites appeal to the same type of people who play poker online. But they somehow have an aura of being more respectable because they represent themselves as offering a form of investing. Don’t kid yourself. These are gambling sites, pure and simple. It’s probably just a matter of time before regulators move in on them.
Until that happens, they seem to be doing great business. A Google search for binary option Web sites produced 870,000 hits with promotions like “earn up to 75 per cent every hour” and “81 per cent profit in one hour or less, trade all major markets”. You can buy these options, which are also known as all-or-nothing options, digital options, or Fixed Return Options (FROs), on stocks, commodities, indexes, foreign exchange, and other derivatives.
In fact, you can place a bet (which is what it really amounts to) on just about anything that is publicly traded, depending on which Web site you use (some offer a wider range of choices than others). Some sites provide free guides to binary option trading to get you started.
I was alerted to this phenomenon by a reader who sent me this email:
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“My dad has recently gotten involved with trading binary options online. The basic premise for the site he uses is at a specific time, say 1:25 p.m., you can put down perhaps $100 that XYZ stock will either increase or decrease in price within five minutes — by 1:30 p.m. If you are wrong, you get $15 back. If you are right, you win about $70.
“I’ve proven to him that, mathematically, the site has an edge and you must be right 55% of the time in order for your bet to have a neutral expected value. I am also a professional online poker player by trade so I have an extensive understanding of probability, the online gambling markets, and how these sites work.
The problem is he feels he is at a great advantage, citing his ability to read a bunch of charts, follow news, etc. He is a smart man, a former lawyer, and has been following stocks for years, but I feel that he may be overestimating himself here. I’ve looked into online binary options trading a bit and it seems to me that the consensus is that very few people outside of professional traders can beat the trading sites consistently for good money. My dad is up $2,500 or so betting $100 and $50. The best I could do is to warn him about statistical variance affecting his perceived ability and that short-term volatility along with the inherent disadvantage will make consistent winning incredibly hard.
“I’m looking for a way to definitively convince him to stop and that his edge isn’t as great as it seems. I tried talking to him multiple times about the subject but I’m not as knowledgeable about the field and ultimately that becomes my shortcoming when trying to convince him why he shouldn’t continue to be involved with this. Any help would certainly be appreciated.”
I found this correspondence especially fascinating because the writer is a professional online poker player — a gambler by trade. Yet here he is trying to convince his dad that online gambling is a bad thing. I agree, it is. But it’s understandable if the father is skeptical about advice from a son who does the same sort of thing, albeit in a different form.
But that’s for them to sort out. What intrigued me was to discover that binary option trading has become a kind of pseudo investing sub-culture. I went to the site our reader says his dad uses and did some research. It describes binary options as “an exciting new type of investment” — note the use of the word “investment”.
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“When a binary option is purchased on our platform, a contract is created that gives the buyer (known here as the investor) the right to buy an underlying asset at a fixed price, within a specified time frame with us, the seller,” the Web site explains. The option must be held until maturity (even if that is five minutes away); unlike regular options it cannot be sold before then.
These sites promote themselves as offering controlled risk (you can’t lose more than a specified amount), low cost, big gains if you guess right, and ease of use — you can trade from home whenever markets are open and set up an account with a credit card.
So what arguments would I use to convince dad to quit? For starters, this sort of thing can quickly become addictive, especially to market junkies. Although the amounts bet may be small, the total can quickly add up if many trades are done in a day. It wouldn’t take long for things to get out of hand.
Second, no one, no matter how knowledgeable, can consistently predict what a stock or commodity will do within a short time frame. Will Apple (AAPL) shares go up or down in the next 10 minutes? Unless there has just been some major announcement from the company, there is no way to even guess at that.
Third, the house definitely has an edge. This particular Web site pays $71 for each successful $100 “trade.” If you lose, you get back $15. Let’s say you make 1,000 “trades” and win 545 of them. Your profit is $38,695. But your 455 losses will cost you $38,675. In other words, you must win 54.5% of the time just to break even.
Finally, these Web sites are unregulated. No securities commission is protecting people’s interests. This is a financial Wild West.
If people want to gamble, that’s their choice. But let’s not confuse that with investing. Binary options are a crapshoot, pure and simple.
Binary Options Guide: The Truth About Binary Options
Trading binary options can seem deceptively simple, but leaning too far into that notion can blind people to some of the risks that often accompany this type of trading.
Before I go any further, I want to make it clear I’m not a binary options trader. I trade penny stocks and teach day trading. I’d love to see you join the Trading Challenge — it’s the result of over two decades of trading and a decade of teaching. It’s awesome.
If you’re interested in taking the binary options path, it’s critically important to understand exactly what you’re getting into and set appropriate expectations. And you should get a mentor who trades binary options. Seriously. Preparation is key.
Again, I don’t trade binaries. For the most part I think they’re scams. Can you trade them successfully? There are successful traders in every niche. But most traders lose. That’s the reality of the industry.
It doesn’t matter if you’re trading forex, penny stocks, options, big caps, or … binary options. Most traders lose and most trading teachers don’t want you to know about it. So I’m going to tell you about binary options in this post. But I don’t trade them and I don’t recommend it.
Will trading binary options enable you to buy a villa in the South of France next year? Probably not. Will they allow you to quit your full-time job and finally start on that novel you’ve always wanted to write? Don’t count on it.
Here, we’ll take a look at what binary options trading is all about and you can decide whether it’s right for you. As you read, keep in mind that binary options are getting outlawed in more and more countries. Companies are getting shut down. Or they’re based overseas in places where you can’t sue them. More on that later.
Table of Contents
What Are Binary Options?
Before we dive into specific binary options trading strategies, let’s review exactly what binary options are. According to Investopedia’s definition:
A binary option, or asset-or-nothing option, is a type of option in which the payoff is structured to be either a fixed amount of compensation if the option expires in the money, or nothing at all if the option expires out of the money. The success of a binary option is thus based on a yes or no proposition, hence “binary”. A binary option automatically exercises, meaning the option holder does not have the choice to buy or sell the underlying asset.
At the core, binary options are based on a yes or no proposition. You must decide whether you believe an underlying asset will be above or below a specific price at a specific time.
Binary trades are ruled by expiry times. These time constraints indicate how long you have to make your predictions regarding whether you believe an underlying asset will be above or below a specific price at a specific time. Once the expiration limit occurs, your predictions determine whether you gained or lost money.
Expiration times vary from binary option to binary option. Some of these minimums are known as short expires, which means the expiration date is actually within mere minutes of the buy-in.
There are medium and long expiries, as well. For medium expiries, the deadline could be anywhere from two to five hours. Long expiries typically last between two and 24 hours. Many experts believe that longer expiration times can help make predictions easier.
What Are the Underlying Assets of Binary Options?
In order to participate in binary options trading, you must first have ownership of an asset that can be optioned for a fixed amount. The types of assets common in binary options include stocks, indices, commodities, and currencies. Many binary traders chooses to trade with stocks, as this option can allow them to get high returns within a short span of time.
Along with indices and commodities, currencies are another popular binary option vehicle. Since currencies are liquid and often subject to dynamic price fluctuation, many traders choose to analyze their binary options across the complex — and often shifting — global currency market.
A quick aside since we’re talking about forex. Be aware that the forex market is among the most difficult to trade. Why?
Because it’s the biggest and most liquid market in the world. You’re up against the smartest, richest, and often most experienced traders in the world. Personally, I don’t want to compete against that. Plus, the forex markets move so fast on news you don’t have access to, that there’s no edge whatsoever.
And now, a new asset has emerged: cryptocurrency. I don’t trade crypto, either. I’ve traded the random crypto-based stock. But this is a whole niche unto itself and I’m happy with penny stocks. Crypto has its own version of binary options — which is why I’ve included it here.
Led by Bitcoin, this new, digital currency class is intriguing investors around the world who see the digitization of finances as the way of the future.
According to Options Advice, there are two prominent ways you can capitalize on Bitcoin binary options. The first strategy is by trading on what you think the imminent fluctuation of Bitcoin might be, and the second is trading regular options with Bitcoins as your currency.
If you’re interested in taking the cryptocurrency binary options route, I strongly suggest familiarizing yourself as much as possible with the trends dictating the ebbs and flows of the altcoin market.
An entire niche financial industry has been built up around educating consumers and future investors of digital coins and tokens. From resources like Cryptoslate to ICO listing sites like Coinschedule, there are many resources available to help you make the most strategic crypto trading moves possible.
There are also a lot of scams. And strange happenings. Like when a crypto exchange CEO died with the ONLY key to $137 million in crypto. Ouch. More than 100,000 cryptocurrency holders learned a very hard lesson. Back to binary options …
What is a Call and What is a Put?
Two of the most common terms you’ll hear throughout the binary options world are call and put. These two labels represent the market positions of binary options.
You typically choose to call if it looks like the value will rise within the confines of the expiry time.
Options also have a strike price, which is the price at which the security would be bought or sold.
If you choose to call, you’re signifying your confidence that a stock will rise within the time limitations. If the stock valuation moves upward at all, you’ll receive both your initial investment as well as the return.
On the opposite end of the spectrum, a put signifies your confidence that the valuation of a stock will drop within a certain time limitation. So if you predict that a stock valuation will decline before the expiration date, and the stock does dwindle, you will have succeeded at that trade and will receive your initial investment — as well as the trade — back.
What Are Other Types of Binary Options?
Beyond call and put options, there are other distinguishing factors that separate binary options from one another.
This guide from Binary Tribune delves more specifically into binary options types based on the number of interactions a trader must initiate with the trade. The levels include one-touch, no-touch, double one-touch, double no-touch, and paired options.
Let’s take a look one-touch and no-touch options …
Essentially, a one-touch binary option indicates that in order for you to receive a payout, a trigger (or predefined barrier) must be reached. Traders often choose one-touch if they feel confident that a stock will move in a certain direction at a minimum amount.
The option only has to meet the predefined trigger level once (hence the “one-touch” term). However, as indicated by Binary Tribune, this strategy is often accompanied by some risk.
Beyond simply calling or putting, you also must feel confident that a certain valuation threshold will be crossed. However, with greater risk often comes greater reward.
In contrast, a no-touch binary option essentially depends on a trigger level not being reached.
Rather than hedging your bets that the valuation of a stock will rise above or dip below a specified amount, you’re betting that the trade will not dip above or below an amount.
Because you’re making the trade with the intention that a threshold will not be crossed in either direction, it’s referred to as “no-touch.” Like their one-touch counterparts, these trades come with greater reward — and risk — potential.
I liken one-touch and no-touch calls and puts to something like an electronic stop-loss. The problem is, you don’t have control. You’d better be damned sure you’re right. Which is impossible.
What Are the Pros and Cons of Binary Options?
Now that you understand binary options basics and the different factors between them, you might be wondering whether this type of trading aligns with your goals. Let’s weigh the pros and cons.
We’ll start with the benefits …
Low Barrier to Entry. You don’t need a masters in economics to engage in this kind of trading. For this reason, many first-timers enter the trading arena through buying and selling binary options. Comparatively, binary trading is relatively simple. When compared directly to other types of trading, including quantitative or arbitrage, trading binary options is straightforward.
Fast Returns. Many traders are eager to see fast results and liquidate within a specific time frame. Those who play the long game (investors) are typically most concerned with growing their money steadily over long periods of time. Many opt to invest in index funds, IRAs, or bonds. Trading binary options is fast paced.
Thing is … you can get all the speed you need trading penny stocks. So, while binary options might be a fast game, the reward might not be worth the risk.
High Rewards. Binary options trading is touted by those who promote it as high reward. It’s possible to receive up to a 70% return on their investments if your binary trades reach your expiration dates in the money. This high average return is what makes this type of trading vehicle attractive to many novice and expert traders.
As explained by Investopedia, the risk on binary options is capped off, so while the rewards could yield high returns, you can’t lose more than the cost of a trade.
Low Cost. If you’re just getting started with trading, there’s a good chance you don’t have excess capital lying around to snatch up shares of the fastest-rising stocks on the market. Binary trades offer an alternative to other types of investments that require high-capital buy-ins.
In theory, you can experiment with a binary trade for any amount you’d like, whether it’s $5 or $50. Starting small and working your way up to bigger trade amounts incrementally is a great way to learn the lay of the land.
As you familiarize yourself with expirations, strike prices and — if you’re interested in one- and no-touch options — triggers, it’s best to gamble with an expendable amount that won’t derail your entire financial status. Notice I used the word gamble — just sayin’.
Accessibility. Binary trading platforms make it easy to trade on any day and at any time. When it comes to binary options, traders aren’t necessarily beholden to standard market times and broker availability.
Now, let’s explore some of the disadvantages of binary trading …
Scams. Conduct any Google search on binary trades and one of the first things you’ll likely notice are the abundance of hits warning against binary scams and shady binary brokers.
Remember when I said I’d get back to the part about shady companies? Here goes …
… and I say this to protect and warn you.
Like I said, these companies are often based overseas. Places like Cyprus. (I have nothing against Cyprus. It’s a beautiful country with amazing people.) Anyway, these companies are based in places where you can’t sue them if they screw you.
Then you sign away pretty much your entire life in the forms they make you fill out. Your odds of winning are so low the brokers who do it are pretty much laughing at you. They’re laughing that so many people fall for this crap. It’s like going to the casino.
So, if you come across a binary broker that sounds too good to be true, it’s because he or she most likely is. And if you come across a binary broker who doesn’t let you liquidate your investment, run in the other direction.
Short term. Binary trades have expiration dates that are often fairly short windows of time. Given this, it’s impossible to use binary options as mechanisms for long-term investments. Which, of course, I don’t mind because I day-trade and teach day-trading. But if you’re looking for buy-and-hold investing, binary options aren’t the right solution.
Can You Really Make Money with Binary Options?
Short answer: It’s possible, but you MUST know what you’re doing. Like I keep saying. Most traders lose. Doesn’t matter the niche. I would never trade binary options. Ever. Your choice, I’m just tryin’ to keep it real.
If you’re serious about binary trading, start small. By making small trades and working your way up, you give yourself breathing room to assess market trends and develop the necessary skills.
As is the case with many types of trading, history is sometimes the best predictor of the future. Many successful binary options traders experience trading wins and financial growth because they’ve spent time studying and familiarizing themselves with market movements.
Wait. Does this sound familiar? Yep. You guessed it: you can’t cheat your way to success. Doesn’t matter the niche. I don’t trade binary options. I don’t recommend you trade them. But if you decide it’s for you then prepare yourself. Study your ass off.
Learning common candlestick patterns can make it easy to spot recurring trading patterns. If you want to understand candlestick patterns — and you do if you are serious about trading — I recommend you get a copy of the classic “Japanese Candlestick Charting Techniques” by Steve Nison. Doesn’t matter which niche you trade, this book should be on your bookshelf.
Of course, trading patterns are never 100 percent accurate, so don’t fool yourself into thinking of them as absolute stock predictions. However, the more you can learn about patterns and begin to recognize them yourself, the more likely you’ll be comfortable making your own options decisions.
Is it Safe and/or Legal to Trade Binary Options?
Naturally, binary options contain risk. And by now you know my take. I pretty much think they’re scams. But there are differing opinions and some even consider them safe trading routes. I’m not gonna tell you not to trade them. I recommend you don’t. I’ll be interested to hear back from you. When you’re ready to trade the way I teach … apply for the Trading Challenge.
While it’s legal to trade binary options within the United States, they’re only available to trade on Commodity Futures Trading Commission (CFTC) regulated exchanges within the country.
Binary options traded outside the U.S. are structured differently to those traded here. You can learn more in this article on Investopedia: What You Need To Know About Binary Options Outside the U.S.
The Bottom Line
The good: Some traders like binary options because they are traded at fixed costs. You know where you stand.
The bad: Binary investments are too much like flipping a coin, there are too many scams, and your odds of winning are so low you might as well go to the casino.
The bottom line: Educate yourself like crazy. Avoid sketchy brokers. Start small and work your way up. Remain vigilant. Stick with these rules, and someday you might reach your trading goals. Will you do it with binary options? I doubt it. But you might prove me wrong.
Want to Try Binary Options Trading?
At this point, I hope I’ve shed enough light on binary options trading that you don’t do it. But … you might be thinking about giving binary options trading a shot. If you do, study your butt off. Get a mentor. Don’t screw around. The best of the best in every niche work with a mentor.
Trading — any type of trading — can quickly become complicated. Like any other sector of trading, it’s important to seek out an education before you attempt to invest in this way. I can’t help you trade binary options. But I can help you learn to trade penny stocks …
Is the Trading Challenge for You?
As a teacher I want to help my students forge long-term, sustainable careers as traders. The Trading Challenge can help you reach your goals through risk-averse, conservative trading.
Plus, my best students — those who have become millionaires themselves — join me in coaching you.
What do you get?
- Wednesday morning live trading webinar. I show you live trades so you can see how it’s done. And it’s not only wins. These are true live trades. Sometimes I lose. But you’ll see how fast I cut losses and why I get out so fast when things turn against me.
- Wednesday evening live lesson and Q&A. No matter where I am in the world. This is killer stuff.
- Thursday live trading & review with Mark Croock. @thehonestcroock is at it every Thursday. You don’t want to miss this. Mark is one of my best students/teachers. He’s constantly in the challenge chat room alerting students.
- Annual Penny Stocking Silver Membership. You need this. Thousands of hours of video lessons and archived webinars. Immerse yourself. This is how to get good fast.
- PLUS: Two monthly bonus webinars by my top student Tim Grittani. It won’t take long to understand how Tim went from $1,500 to where he is now when you see how meticulous he is about his trades. Learn from a master.
WAIT! There’s more …
I always wanted to write that. Anyway, there is more, but you have to apply for the Trading Challenge to get it. Simple.
Will you be my next success story?
As you’ve now learned, if you study hard, start small, keep your scam radar on high alert, and stay educated, then becoming a successful trader is possible. But it’s not easy. So don’t even think about doing it if you’re not willing to work hard.
As for binary options …
Look, whatever you decide, it’s about how much time and effort you put into learning. I don’t think binary options are a good way to go. Plain and simple. But there are success stories.
If you’d rather learn what I teach, then apply for the Trading Challenge. But no lazy losers allowed. Seriously. Only join the Trading Challenge if you’re willing to work hard.
Are you a trader? Do you trade binary options? Comment below and let your fellow traders know how it works for you. Even if you are brand new, I love to hear from readers. Comment below!
Binary Options Recovery Services – The Real Story
Back around 2009 a new type of investment machine started to take shape: the binary option. Also known as digital options, this type of derivative was a simplified version of regular options and soon started to catch on, especially with inexperienced users and mainly because it was advertised as very easy to trade and allegedly no prior experience was required.
Literally, hundreds of new brokers started to appear but many of them didn’t even bother to list an address or information about the owning company, all their names were fake and regulation was out of the question. If the client managed to make some profits and wanted to withdraw, he/she was offered a too-good-to-miss deal and asked to keep the money on the platform in hopes of even bigger profits. Whether he/she agreed or not, the account managers would then proceed to open trades without the client’s authorization and deplete the entire account or in other cases, they would cease all communication with the client. How can you withdraw if the broker doesn’t answer your phones and emails?
This behavior eventually led binary options to be called Scam as a whole and also triggered the emergence of Binary Options Recovery Services who claimed to “hunt” down the binary options scammers and retrieve the money from them through legal methods, in exchange for a fee or a percentage of the recovered money.
We went out on a mission to try to understand how these “recovery services” work and who they really are. Are they the solution to your lost funds’ problem or are they just as bad as the brokers themselves? We will let you know what we’ve found out, the tactics they use and whether you will ever see your money back or not.
Rise Of The New Type Of Con-Man: The Recovery Service
So what exactly is this recovery business? Their offer is pretty straightforward and easy to understand: a solution for recovering money that’s been lost due to a binary options scam. Some recovery services also claim to hack social media accounts and to recover lost passwords (whether those belong to the client or to someone else), so as you see, their means are not always completely legal.
Usually, a fee is paid upfront (for taking the case) or a percentage of the recovered amount, or both in some cases. The payment model varies depending on the website/service you’re choosing: sometimes you will pay them a time-sensitive fee (the longer they work, the more they get paid, even if they don’t recover any money) and sometimes you will pay only if they recover all or part of the amount you’ve lost. However, the initial fee is always paid.
Finding them is really easy. Just sift through the comments section of any binary options related article and you will find someone praising the professionalism and high success rate of such recovery services, or you can even find the representatives of the recovery company itself advertising and sharing contact information. Google is also an easy way of finding a binary options recovery service.
All in all it seems brilliant – for a small fee, this service could get your money back! BUT, here comes the problem…
Most of them have common traits such as fake addresses, little to no information about the company and absolutely nothing about the people who actually work there or about the exact (legal) procedures employed to recover your money. You would expect to see the names and credentials of the lawyers that will work the case, but most of the time that information is also missing, mainly because there are no lawyers involved. Let’s get “acquainted” with some of these services:
Dunde Wealth Recovery Group claims to be owned by Merrill Edge – huge online brokerage whose parent company is Bank Of America Merrill Lynch – and also claims to be regulated by the British Financial Conduct Authority, despite them being located (allegedly) in New York. Needless to say that all these claims are very hard to believe on trust alone so we headed to FCA’s Register to find out:
As you can see, Dunde Wealth Recovery is NOT regulated or registered with the British FCA.
Another company, with a generic name this time – Binary Options Recovery Specialist – is providing a set of hacking services on top of their binary recovery offering, as well as credit score repair, but fails yet again to offer any type of credible information about them.
And it doesn’t stop here: “Investigators247” is allegedly offering fund recovery services, social media account hacking, surveillance, infidelity/cheating investigation. You name it, they do it… or so they say at least. However, users of ScamWarners.com found that above mentioned recovery service was registered in Ukraine by a person named Qui Hoang, yet it listed only American phone numbers on the website.
Another example is “Wealth Recovery Now”, which claims to be located in Ohio, offers a US phone number but it is actually located in Canada and the registrant doesn’t offer any name or contact information. Yet this fake site boldly claims “Focusing on binary options, we have helped fraud victims from all over the world recover millions of dollars. The attorneys we work with have yet to lose a case using the intelligence we provide”. Obviously, no proof of their perfect record is delivered anywhere on the website.
Modus Operandi – The Recovery Services Marketing Strategy
Over the top marketing has long been a staple of binary options brokers and now it seems that tactic is being used by recovery services as well. They all say they can get your money back, they are the best, the most professional and whatnot but luckily Google and Facebook have banned binary options marketing so the days of flashy recovery ads are over.
So where can they take their marketing? To online forums. People that have been scammed are usually desperate to get their money back so they head to the forums to get some help and advice. And that’s where the “recovery” minions are lurking and spreading their lies:
The person that wrote the post in the pic claims to have lost $350,000 and then recovered it all with the help of a recovery expert. Then the poster proceeds to praise the “expert” and to offer his contact information for all to see and use. Just 2 posts below, another person claims to have lost $200,000 (successfully recovered with the help of another expert), then someone claims a loss of 65,000 Pounds and the thread goes on and on, with people who allegedly managed to get all their money back in exchange for a relatively small fee. Needless to say, these are all fake posts, with made-up usernames and let’s acknowledge the elephant in the room: they all have lost huge sums of money, which they then recovered. That’s only there to make you think: Well, if this recovery service can get back $350K, they surely can deal with my 5 or 10 thousand bucks.
This way of hooking new clients is a recurring theme characteristic to all recovery services. Check this scary Quora thread that’s filled with tens of shills working for so-called recovery companies or services.
By now you can clearly tell that most of these recovery services are just another scam that preys on the people’s desperation and hope of getting the stolen money back. But the good news is that most people are starting to see through the lies and thus avoid getting scammed a second time. A good example is this thread on ForexPeaceArmy regarding Birman Law and Wealth Recovery Int.
Also, forum mods are quick to expose the scammers and to warn others about their tactics:
Another mod edit on ForexPeaceArmy (red text):
The Authorities Are Catching Wind Of This
Evidence suggests that most of these recovery services are just scams and people are starting to become aware of that. But lately authorities are also clamping down on the crooks:
The US Financial Industry Regulatory Authority (FINRA) warned about the “recovery” scam in general, saying that “Following a significant loss, investors may be anxious to get back at least some of their money […] This can leave them vulnerable to follow-up frauds that add to existing losses with devastating financial consequences.” – Gerri Walsh, FINRA’s Senior Vice President of Investor Education. (read in full here)
The French Autorité des Marchés Financiers (AMF) warned against a certain Mr Villard, who claimed to be mandated by the AMF to help people recover sums invested in binary options platforms. In doing so, he was using the AMF logo, name and details fraudulently. See full warning here.
And while the AMF issued a simple warning against a recovery con-artist, Leonel Alexis Valerio Santana, an impostor claiming to be an employee of the US Securities and Exchange Commission (SEC) was sentenced to 63 months in prison plus an additional 3 year probation period upon release. He was also ordered to pay restitution fees in the amount of $105,869.74. The sentence was issued by Judge F. Dennis Saylor IV of the Massachusetts District Court, in line with requests by the US Government.
Under the guise of working for the SEC, the fraudster promised fund recovery and legal assistance to victims of binary options brokers but after the swift justice delivered by the US legal system, other such individuals will probably be deterred to engage in similar activities.
The Good Guys – Legit Recovery Services
Yes, there are some good guys out there but they are hard to spot in the multitude of scammers and impostors. The best way to avoid fund recovery scams is to not lose your funds to scammers in the first place, so whenever money is involved, make sure you are dealing with reputable companies that have been in business for a long time but more importantly, are regulated by a major financial authority.
If however, you find yourself in the unfortunate situation to need fund recovery assistance, make sure you perform a thorough check of the company that claims to offer said assistance. Ask for verifiable information about the company, their employees and cases they’ve worked. Emphasis on “verifiable”!
We cannot recommend anyone but a well-known law firm that also specializes in this type of fund recovery is Giambrone Law. They have received numerous international awards and have offices in more than 10 cities across the globe, so we can assume they are not out to scam you but as mentioned prior, you should conduct your own review.
Stay Safe, Use Common Sense
The last thing anyone wants after being scammed is to lose more money chasing the lost amounts. There are many ways to know when you are dealing with a recovery service scam, but the best one is to just use your common sense. Ask yourself how did you come across the company. Was it through a poorly written forum post or comment? Can you really believe a guy who says he recovered a quarter million US Dollars with the help of a company with a Gmail address? Bottom line is: most of these recovery services will simply scam you out of more money and you will never see the initial funds back. If you really want to chase the people who stole from you in the first place, go to the authorities or go to a big, well-known law firm. Getting scammed once is bad enough!
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