Russia remains lucrative target for binary options fraud due to lack of regulation financefeeds

There have also been cases where brokers forcibly withhold clients payments citing bogus reasons. In other cases, brokers simply trade against their clients and create an adverse environment where traders are guaranteed of losing their investments.

Some companies may also use illegal and potentially dangerous means of syphoning money from their clients, which can attract severe penalties in several countries. A brokers regulatory status cannot guarantee 100 authenticity to its users, as several regulated brokers have indulged in financial frauds, while non-regulated brokers still continue to offer genuine and reliable binary options services. In the case of regulated brokers, the regulating authority is responsible for investigating claims of financial discrepancies and may issue several sanctions against regulated members, including hefty fines and termination of licenses.