Scammers Target IG Group's Binary Options Business in the US

Less than a week after announcing its first US introducing broker partnership, IG Group's binary options exchange in the country, Nadex, has released a statement saying scammers are targeting its client base.

According to the Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, a company calling itself Peak Nadex Trader is targeting its clients.

Despite the name, Nadex said that it has no connection to the people operating Peak Nadex Trader.

According to the statement, the scammers have been pretending to offer a managed account service in return for a percentage of any profits earned.

Managed accounts, whether it be for foreign exchange or binary options, have long been a favorite for scammers operating in the Retail Trading Retail Trading In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade Read this Term industry.

It generally involves someone taking control of your trading account or advising you on which trades to make.

Initially, those trades are likely to be successful, allowing the account manager to encourage their victim to pump more money into their account.

Once they have deposited as much as they think they can get from a trader, the account manager will then make them lose all their trades or simply refuse to let the trader withdraw their funds.

Still breaking the rules

It seems most likely that the people operating Peak Nadex Trader are running this same scam.

But even if they aren't, they're still breaching the binary options exchange's rules.

According to Nadex's own terms and conditions, a trader "may not give control over [their] account to any other person or entity and may not control the account of any other [m]ember."

Thus, and without wanting to be too much of a tattle-tale, if you are letting some random person handle your account, you are breaching Nadex rules.

It is unclear as to what the punishment for doing this can be.

Nadex only said in its statement that users who pass their details on to someone else "may be subject to disciplinary action."