Binary Options Pressure and Secrecy Red Flags (What FINRA Says)

Urgency and secrecy are two of the oldest signs of an investment pitch that deserves a second look. This page summarises FINRA's red flags page. The page does not mention binary options, so it is used as general guidance, and this page does not assess any firm.

Pressure to Decide

On its red flags page, which shows no publication date, FINRA says: "If someone pressures you to decide on a sale or purchase, steer clear." Countdown timers, "last places" and calls that push for a same-day deposit fit this pattern. Time to read, compare and ask questions is a reasonable thing to expect.

Guaranteed or Lofty Returns

FINRA states: "Be suspicious of anyone who guarantees that an investment will perform a certain way or promises a lofty return." It adds: "All investments carry some degree of risk." For a longer look at such claims, see guaranteed returns claims.

Secrecy and Recruiting

The page says: "A legitimate professional won't ask you to keep secrets or to recruit additional investors." A request not to tell family, a bank or a regulator is worth treating as a reason to stop. See also trading group scam warnings.

Claims of Exemption

FINRA warns: "Scammers might claim an investment is exempt from registration, which, even if true, raises the risks immensely." To check a firm yourself, read how to check whether a broker is regulated. General signs are collected in binary options scam warning signs, and reporting steps in how to report a binary options scam.

Frequently Asked Questions

What does FINRA say to do if you are pressured to decide?

FINRA says: "If someone pressures you to decide on a sale or purchase, steer clear."

Is a guaranteed return a red flag?

FINRA states: "Be suspicious of anyone who guarantees that an investment will perform a certain way or promises a lofty return."

Should a professional ask you to keep secrets?

The page says: "A legitimate professional won't ask you to keep secrets or to recruit additional investors."

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

• FINRA: Watch for Red Flags (no publication date displayed)

This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.