Even worse than day trading are "binary options". This allows betting on, for example, whether the price of gold will go up or down in the next minute. Most of those are total scams. There are about 100 binary trading firms based in Tel Aviv, Israel, and most of them are telemarketing operations for a software platform called SpotOption.[1] Features of the scam include 1) they're not brokers, they're the other party, so you're betting against the house, 2) the house controls the price info and may tweak it slightly to make you lose, 3) there's a "margin trading" system which prevents you from withdrawing until you've done a certain amount of trading volume, and 4) even if you win, they make it really hard to withdraw money. Most "investors" lose 100% of their money.
Read "The Wolves of Tel Aviv" in the Times of Israel.[2] All these outfits are prohibited from operating in the US (the CFTC catches some of them trying; "Banc de Binary" was forced to return all US customer losses) but they've been able to operate in the European Union by registering in Cyprus and using that as a passport to the entire EU.
Read "The Wolves of Tel Aviv" in the Times of Israel.[2] All these outfits are prohibited from operating in the US (the CFTC catches some of them trying; "Banc de Binary" was forced to return all US customer losses) but they've been able to operate in the European Union by registering in Cyprus and using that as a passport to the entire EU.
[1] http://www.spotoption.com/ [2] http://www.timesofisrael.com/the-wolves-of-tel-aviv-israels-...