Investor.gov (US Securities and Exchange Commission)
Protect Your Money: How to Avoid Investment Scams
Investor.gov says that there is no such thing as high guaranteed investment returns, and warns about false urgency.
Promises of safe, guaranteed profit are the oldest hook in investment fraud. This page summarises what Investor.gov, the investor education site of the US Securities and Exchange Commission, says about such promises and about pressure to act quickly. It does not assess any broker or any trading product.
What Investor.gov Says About Guaranteed Returns
The guide states: "Scammers often promise to help you get rich – with little or no risk." It then gives the counterpoint: "But there’s no such thing as high guaranteed investment returns, and every investment involves risk." A claim of guaranteed profit, a fixed daily gain or "risk-free" trading is therefore a warning sign in itself, whatever product it is attached to.
Pressure and False Urgency
Investor.gov also describes the pressure that often comes with these promises: "Fraudsters may create a false sense of urgency to pressure you to invest." Deadlines such as "last places" or "bonus ends tonight" fit that pattern. Its answer is to slow down: "Take your time to research on Investor.gov before deciding to invest." For related warnings from other regulators, see binary options scam warning signs and fake trading signals scams.
Checking the Person or Firm
The guide also points readers to the site's background check tool to confirm that an investment professional is currently licensed or registered. For checking firms in other countries, use the steps in how to check whether a broker is regulated and the binary options regulator list by country.
What This Means for Binary Options
A binary option has a fixed payout and a fixed risk, but it is not guaranteed to win, and the chance of losing the stake is part of the product. For the arithmetic, see how binary options payouts work and unrealistic win rate expectations. If you were promised a guaranteed return, read how to report a binary options scam.
Frequently Asked Questions
Does Investor.gov say any investment can guarantee high returns?
It states: "But there’s no such thing as high guaranteed investment returns, and every investment involves risk."
What does Investor.gov say about pressure to invest?
The guide says: "Fraudsters may create a false sense of urgency to pressure you to invest."
Does the Investor.gov guide mention binary options?
The page reviewed does not name binary options. It is general guidance on investment scams, so it applies to any product promoted with guaranteed returns.
Does this page address whether an individual could face liability?
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.
Sources and Official References
- Investor.gov: Protect Your Money: How to Avoid Investment Scams (no date shown on the page)
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.