Nadex has released a statement claiming that a scam “account management” service by the name of Peak Nadex Trader is targeting its clients. Despite the name similarity, Nadex states that they have no connection to this company and that it is a scam that traders should stay away from.
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According to Nadex, Peak Nadex Trader is pretending to offer its users a managed account service in return for a percentage of the earned profits. Apparently, Peak Nadex Trader is specifically targeting Nadex customers with one of the oldest scam favorites in the industry – managed accounts. Whether it be in binary options or forex, managed accounts have been used as scam bait for years in the retail trading industry. The service claims to help beginners become successful traders by giving investment advice or taking over their trading account entirely. Scams like Peak Nadex Trader then persuade you to deposit even more money, which they will then proceed to lose or refuse your request for withdrawal.
Nadex is IG Group’s fully-regulated US-based binary options exchange which takes such scams seriously, hence the official warning. In fact, Peak Nadex Trader is completely breaching the binary options exchange rules. According to the official Nadex terms and conditions, traders “may not give control over their account to any other person or entity and may not control the account of any other member”. This, of course, means managed accounts are not allowed. Nadex claims that any user in breach of this condition “may be subject to disciplinary action”.
Traders should always be careful before investing money with a company they don’t know. Always make sure to check the website carefully for red flags that may indicate the company is a scam. Be careful with managed accounts like Peak Nadex Trader, unlicensed companies, vague websites and get-rich-quick statements.
Nadex is a regulated, trustworthy binary options exchange that puts its customers first and remains one of our top recommendations.
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