Similar to gambling, binary options work much like a wager. All or nothing “bets” are invested based on how an asset will perform within a certain timeframe. The asset could be a stock, a currency or a commodity. Websites are designed to attract users to trade binary options, by offering high rates of return and by claiming to be risk free. Initially, a virtual gain is seen, but there is no way to access the profits because they are non-existent. Currently in Canada no business is registered or authorized to sell or market binary options.
It is always risky to invest in offshore companies; investors who buy into a binary option run the risk of having their identity stolen, accumulating losses for unauthorized withdrawals on their credit cards and incurring high interest payments on an investment that doesn’t exist.
For more information, please visit the Competition Bureau’s website for even more ways to keep yourself safe.
