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Many investors have made complaints to the SEC on how they have lost money to offshore brokers. It is very likely that these losses were incurred on platforms of unlicensed brokers. The fact that unlicensed brokers are also competing with the licensed ones for the Filipino market makes it hard for many Filipino traders to know who is who. Therefore, binary option trading with offshore brokers is prohibited in Philippines. However, there is very little enforcement being done to stop local traders from trading with offshore brokers.

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To trade, all you need to do is bet on whether the price of something will rise or fall below a certain amount - if it is correct, you win and get paid. If not, you lose all of the money you originally invested. Action Fraud has received multiple reports whereby Binary Options companies have refused to credit customer accounts despite the customer believing they had made a profit.

The brokers were simply trying to get the victims to invest further money. The current situation Advertisements for Binary Options traders appear online with many companies aggressively targeting social media platforms with flashy commercials promising impressive returns.