Categorized | Investing

Legal Issue in Binary Option

Earning money from binary options trading could be considered as easy money although the fact on the trading floor and trading platform could be completely different. Now, another reason why some people are still reluctant to invest their money on the binary options trading is because some unfortunate clients or investors are being scammed by their brokers. Some investors and clients are appointing brokers to represent them on the trading floor because they might unable to trade during certain trading sessions. As part of their job descriptions, the binary options trading brokers are usually able to access their clients or the investors’ trading account because they already sign the letter of procuration.

The letter of procuration could lead or trigger legal issues in the binary options trading when the brokers are not trust-worthy and using the credibility that the clients given to them and trade without the clients’ and the investors’ knowledge. At the, the legal issue between the brokers and the clients are explained on the terms and conditions and it is suggested that the clients should check their trading accounts in case there are suspicious activities are happening without their knowledge, especially when the clients and investors do not give any letter procuration to the brokers to represent them on the trading floor.

If the clients and investors are filing law suit against the brokers for the violation of the trading right, the binary options trading provider does not have any involvement in it because the provider already mention on the term and condition about the relation between the brokers and clients or the investors. What the binary options trading provider can do is to check the clients’ and investors’ trading record and monitor which trading session that the brokers are using and to check whether the clients are logging into their account at that time or not.

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