Recycling Binary Options into CFD Scams

It took far too long, but binary options finally has the bad name it has so justly earned. Some people have unfortunately yet to be convinced, so the market hasn’t totally died out, but the crooks behind the countless binary options scams that inundated the internet from 2010 or so until early 2018 have discerned the sea-change and are getting out of the business.

Well, not exactly.

What they’re really doing is recycling their scam platforms in order to market them as different, allegedly legitimate, investment systems. One of the most popular of these is CFDs.

What’s a CFD? It’s a contraction of “contract for difference.” This trading model involves an investor (buyer) making an agreement with a broker (seller) in which one will pay the other the difference between the present value of some asset (gold, currency, public stock, or almost anything else that is traded) and its value at a certain time in the future (the contract time). If the the asset’s value went up, the seller pays the buyer, and if it went down, the buyer pays the seller.

For example, let’s imagine there was a contract for $100 worth of Microsoft stock with the contract expiring 24 hours later. If the value of Microsoft the next day were $110, the seller would owe the buyer his original investment plus an extra $10. The basic difference between a CFD and a stock, however, is that a CFD doesn’t involve any ownership of the asset. The investor is basically just betting on the trends in the asset’s value. In this way, trading CFDs and binary options is so similar that switching over platforms from one to the other was a snap. The con artists are back in business.

In fact, the new CFD scam is actually more hazardous than binary options. In the case of binary, the worst that could happen on any trade would be losing the entire investment. But if there’s a volatile market, contracting for difference potentially exposes the investor to losing far more than the investment, resulting in crushing debt.

Of course, getting paid assumes that the CFD broker is licensed to offer such investment services by your country’s financial regulator. But scammers are generally not registered at all, are not trading anything at all and are not located in a place where they can be easily found. All they are doing is stealing your investment the moment you deposit it. Understand this: they’re thieves.

Sooner or later the victim gets it, but by then a lot of money has been lost.

Have you been the victim of a CFD scam? And where is your so-called broker now? Bringing him to justice, if you can even find him, can be nigh impossible.

But at the very least, don’t you deserve to get your money back? If you paid the scammer with a credit card or wire transfer, it could be possible. Regrettably, successfully opening and winning a dispute in such cases is encumbered with an astonishing amount bureaucracy and red tape. The good news is you have someone on your side.

If you believe you have fallen victim to a CFD or any other online scam, contact MyChargeBack today for a free consultation.