Beware of binary option management mandates

Online trading of binary options is a very popular activity that is attracting increasing investor interest. In particular, the latter must be particularly vigilant with regard to management mandates. Behind a most legal activity lies a devious process based on phishing

Understand the management mandate

When we talk about a portfolio management mandate, it is actually a contract between two entities. The former delegates a certain power to the latter, who will then manage all or part of an amount stipulated in the contract in question. With this inherited power, the agent can carry out transactions to generate profits. It should be noted that he is remunerated for this activity, sometimes on a flat-rate basis. It should be noted that this is a practice that is strictly regulated in France. The law provides, in particular, for rules of conduct relating to the management of an account by the agent. In particular, the latter must be in possession of an approval to be able to practice this activity.

Derivatives of the management mandate

A priori, the management mandate is a very legal practice. Unfortunately, scams do exist and you have to know how to recognize them. First, we must look at the way in which “customers” are solicited. Scammers call or send letters without first contact. They then claim to represent well-known companies such as Boursorama or renowned brokers. And this is where you have to be careful: the companies in question simply do not offer a management mandate. In addition, it does not engage in “wild” solicitation.

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On the phone, the lobbyists are particularly convincing and promise significant gains, too significant. It should be noted that they present themselves as experienced traders in the reference financial centres (Paris, London, New York), boasting of knowing the best techniques to make the capital of their “victims” grow. They then expect to pocket significant amounts of money in a minimum of time. We must therefore be vigilant: we must never trust the telephone lobbyists, their overly exhilarating speeches and their way of saying bad things about your possible investments at the moment.

Despite everything, some people still fall into the trap. They then entrust a certain amount to the agents. At first, the gains are really there, everything seems to be going well. More and more important sums are then entrusted but the situation becomes more difficult when it comes to recovering the gains: fraudsters have already seized them… The best thing is still to go through the official websites of brokers like NessFx or BDSwiss as we propose in our tests.

If you are approached by email or phone by people offering a binary option management mandate, ignore them. Don’t waste time listening to them or talking to them, because they will never run out of arguments and there is a risk you were still being seduced. Otherwise, always check references and regulations carefully. If you discover a fraud, contact the AMF immediately, which will take steps to have the operator boycotted.