Convicted Ponzi schemer Bernie Madoff who stole 50 billion dollars from unsuspecting victims may be the last person from whom you would accept investing advice, but in fact, his advice, as contained in a 2014 jailhouse interview Madoff gave to the Wall Street Journal does have good advice for people hoping to avoid the fate of Madoff’s many victims. With great “chutzpah,” in the interview Madoff blamed his victims for their losses.  He said that his investors were “sophisticated people” who should have known better.  “People asked me all the time, how did I do it.  And I refused to tell them, and they still invested.  Things have to make sense to you.  You should ask good questions.”  About this he is correct. No one should ever invest in anything that they do not totally understand. And this leads us to binary options.  Binary options are a legitimate form of investment, but while they offer potential rewards, they also carry the risk of losing your entire investment.  There also are many instances where the sales of binary options have been done without complying with registration requirements and with fraudulent promotional advertising  and improper disclosures.

TIPS

The bottom line is that Bernie Madoff was right about one thing.  No one should ever invest in anything without totally understanding the investment and the inherent risks.  If you understand binary options and still wish to invest (I would say gamble) in them, that is fine, but all investment decisions should be made  only after being properly informed. You may want to check out the SEC’s investor education website at www.investor.gov.

Before investing with anyone, you should also investigate the person offering to sell you the investment with FINRA’s Central Registration Depository.  http://www.finra.org/industry/crd   This will tell you if the broker is licensed and if there have been disciplinary procedures against him or her.  You can also check with your own state’s securities regulation office for similar information.  Many investment advisers will not be required to register with the SEC, but are required to register with your individual state securities regulators.   You can find your state’s agency by going to the website of the North American Securities Administrators Association.http://www.nasaa.org/2709/how-to-check-out-your-broker-or-investment-adviser/

If you are not a subscriber to Scamicide.com and would like to receive daily emails with the Scam of the day, all you need to do is to go to the bottom of the initial page of www.scamicide.com and click on the tab that states “Sign up for this blog.”