Israel is on it’s way to ban “binary options” operations. Companies like Forex that engage in online trading with different stocks and monetary values, have proven to be a little less effective than everyone thought. It’s also about the mechanism, that can be very tempting at first, but proves to be less profitable for many people that choose to invest. The Israel Securities Authority -ISA- takes a look at the situation from the perspective of “how other people tag such activities”.
And it’s not just that. Reputation is also suffering, much because there have also been signs of fraud and specific strategies to obtain money in not-so-legal ways. The results? The situation was much worse than thought.
It’s nothing new, these binary-option-industry has been around for quite a while. It’s still uncertain how this will affect the business of those companies, or if they will survive much longer, knowing that not only are they banned from targeting or engaging activities with israeli citizens, but will soon face a ban to sell their products worldwide. The Israel Securities Authority have also called upon other nations, in an effort to control this industry better.
Thus, even though companies like Forex might soon be forced out of the game, knowing that a complete ban on their sales might incapacitate them for good, there is still work to be done. Many people claim, that the image of their country must be fixed, while others worry about the so-called “future victims” of this system.
Yes, there is a huge number of such companies, and not only in Israel. Many people, even though they had a solid promise of protection, as an investor, were later on exposed to much greater risks than expected; thus making this industry profitable to those who were running in the background. Many of these ways have already been exposed, but who knows how many others things we are missing?
Knowing this, the new laws that are about to come up, are nothing but good news. The number of scams, of people that have been tricked into investing in what appeared to be huge winnings in a very short period of time; and actually been left bankrupt, has risen too much. Cases of people loosing everything including their homes, to people that took their own lives, committing suicide, had the authorities forced to find a solution to this expanding problem.
Israel isn’t the only country to take this measures against the binary-options-industry. Other countries have announced similar banning projects, that will soon be discussed by those in charge.
The problems is, how can we tell whether a company that has this kind of business is real or fake? There are indeed, out there, companies that promote a fair dialogue with their customers, protecting them from risks in a real way, and offering solutions to the problems they might encounter.
But like in gambling, there’s always a risk. For those who wish to engage in such business, we can only tell them to watch out, be aware of what you are doing, and the risks; and always step back if you feel something is wrong. Once you made a decision, it might be hard to go back.
It’s better to prevent,rather than to struggle.