Investor Alert: Binary Options Websites May Be Used for Fraudulent Schemes

The SEC’s Office of Investor Education and Advocacy is issuing this Investor Alert to warn investors that fraudsters may conduct investment schemes through purported online binary options trading platforms. While some binary options are listed on registered exchanges or traded on a designated contract market that are subject to oversight by U.S. regulators such as the SEC or the Commodity Futures Trading Commission, respectively, this is only a portion of the binary options market. Much of the binary options market operates through Internet-based trading platforms that are not necessarily complying with applicable U.S. regulatory requirements. For a comprehensive overview of binary options, including information about investing in binary options that are subject to U.S. regulatory oversight, read our Investor Alert: Binary Options and Fraud.

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