Scams with binary options are unfortunately very common, as evidenced by our list of scam brokers and services. If you’re concerned about falling prey, this guide explains how to avoid scams in the UK.
Are binary options a scam?
In short, Binary is a good product in our opinion. However, unscrupulous brokers and other service providers prey on uninformed traders. Since binaries were largely unregulated and unmonitored when they first came to the market, thankfully a lot has changed in recent years. But with scam artists still out there, what can consumers do to avoid binary options scams and focus purely on trading? Read this tutorial about scams and only trade with trusted brokers!
Scam lists may not actually be very useful. Operators have to close and reopen frequently to maintain lists and remain full-time. A better choice for consumers is to check the warning signs, and if in doubt, go to another supplier. A scam list can protect you from threats that exist today. How scammers work and mislead consumers can keep them safe for years to come.
There are many ways that scams related to binary options make money. But there are also obvious red flags that can warn consumers forewarning that not all may be good. As before, the old-fashioned “if something looks so good, it probably is” applies. If you find any of the below, we recommend that you tread very carefully. When in doubt, leave a particular broker. There are many legit and reliable brokers out there. There is no need to take risks with a company that is in doubt.
Top 3 Trusted Brokers
For those of you who haven’t read this full guide and simply want to avoid scams and start trading, stick with the following brokers.
Recovery
A service called MyChargeBack.com provides consulting services to help victims recover their money. We offer a free service to let you know if there is a case. Things like unpaid withdrawals or unauthorized payments can be charged through your bank or credit card company, and these companies specialize in organizing them. The range of services varies for each case, but we can help.
How to avoid being scammed
Look out for the warning signs listed below!
cold call
A reputable broker won’t call and call you to ask for new business. Calling it this way will include unrealistic claims about binary options and the potential gains you can make by trading them. This can include promises of immediate, high returns and risk mitigation.
In addition to phone calls, some operators may also directly send an email suggesting that an account has already been opened. This method of contact is an immediate warning sign. Hang up and delete the mail.
Bonus Terms
One of the frequent causes of problems is the deposit bonus. Dishonest brokers often have very unethical terms. This may include tying up your initial deposit until a certain trading volume is met (rotation requirement). This includes your initial deposit (as well as bonus funds). As soon as you withdraw money, you effectively deposit it. PLEASE READ THESE TERMS BEFORE RECEIVING OR DEPOSING A BONUS.
Auto Trade
This alert includes automated robots and signals as well as managed accounts whose account managers have promised huge profits. This account manager has an obvious conflict of interest. If you make long-term profits, the brokerage takes long-term losses in your account. An account manager hired by a broker is unlikely to have your trading interests in mind. They may claim otherwise, but letting someone else trade for you is likely to end in losses. These managers may encourage traders to invest beyond their means, which is particularly risky. Binary options are high risk/reward investments. No broker or account manager should hide the risk.
‘Make money online’ marketing
Many of these warning signs, like call calls and account managers, these forms of marketing again hide risks. The “Make Money Online” and “Get Wealthy Fast” marketing surrounding binary options are largely responsible.” There are numerous websites that produce very engaging videos. They suggest that making money will be easy, and you can even imitate famous investors. These are all scams. Promotions that hide or discredit the high risk of binary trading are dishonest. Binary options are not an easy way to make money and should not be sold this way. These advertising formats for binary options are usually the most risky for consumers. If you encounter this kind of marketing, do not proceed.
Sales Funnel
A funnel is a website that drives traffic to your broker. Visitors to that site may not even be aware that they have been redirected to the broker. These funnels usually operate the ‘get rich’ marketing described above, but this is not always the case. The problem here is that the consumer gets passed on to a broker they don’t know about. New clients who come through the funnel receive calls from random brokers asking for a deposit. While this may sound strange to those who have not been victimized, the effective sale of binary options scammed by funnel websites means that many people are cheated.
Price Manipulation
Some brokers include a line in their terms along the lines of “our prices may not reflect prices in the actual market”. Unfortunately, since the meaning is obvious, it is unlikely to be articulated clearly. They set the price themselves. If the broker is the counterparty to the trade and also sets the price, it will be very difficult to make a profit with that broker. The customer is trading with the broker and determines the closing price. One of the two parties will incur a loss and will not be the broker. Research the trading terms and be wary of any mention of settlement figures based on anything other than actual prices.
So, these are some key warning signs to stop potential new traders and question what they’ve been told. If you notice any of the above, identify the relevant broker and trade elsewhere.
New traders can also try to ‘due diligence’ on the brand. But even this can pose risks. The reason is that there are fraudulent actors as well as dishonest review sites. There are several ways consumers can protect themselves and find reviews they can trust. The first way is to look at products offered elsewhere on our review site. Reviews cannot be trusted if they promote other scams. Ask the following questions about this site:
- Are robot ads proliferating?
- Is there a promise of high returns?
- Are there adequate risk disclosures?
- Can I contact the site or the site owner?
The second way is regulation. In the UK, the Financial Conduct Authority regulates some binary options brokers. This will only happen if the broker offers a form of trading that is already covered by FCA rules – Contracts for Difference (CFDs).
The reason this is important is that FCA regulated companies have to be careful who promotes them.
If a binary options site lists an FCA regulated brand (here!), this indicates their level of trust and protection. This site must be completely honest about the high risk nature of binary options, with responsible individuals based in the UK. If not, the FCA company will not be selling their brand.
But here comes another level of complexity. Some binary options brokers tried to register with FCA. This is different from being regulated by them. For a company to be regulated by the FCA, it must offer additional forms of trading, not just binaries. Brands that only offer binary options are not fully regulated by the FCA. This is because binary options are currently regulated and licensed by the UK Gambling Commission. So, the list of binary options brokers regulated by the FCA is actually quite small.
references
- FCA – Consumer Advice
- Gamble UK Commission Binary Options Trading (Search for a list of Licensed Brokers on this page)
List of FCA Unauthorized Brokers
In addition to the services below, FCA has published a list of companies that are not authorized to trade binary options in the UK. While not calling it a scam, this list shows companies ready to break the law (providing unregulated transactions). They are best avoided almost. A list can be found here.
FCA unauthorized list .
Blacklisted services
The British Way
The marketing used here is an obvious red flag. A video that made over £500 million in less than a month is almost certain. Unfortunately the claims are not true. This is an outright scam, avoid the “Brit Method” or related schemes. These include “Jason Taylor” and the “Millionaire Made” scheme, or Brit Method, connected to that name.
The Brit Method is a scam that has been used before. Here’s what you need to know to protect your money.
What is the Brit method?
The Brit Method promises to be a binary options trading strategy that can make hundreds of thousands of dollars in a matter of weeks. Unfortunately, this is the latest iteration of an old scam.
The Brit Method is nothing new. It was previously called the Aussie Method and the Canuck Method, and each time the site had to be closed due to bad reputation. Probably the one who invented the genius trading style as well.
Jason Taylor
It’s always the same stock photo, just the name changed from Jake Mason to Jake Pertu and now to Jason Taylor.
There are many fake testimonials on the website, but the statements with stock photos from people who have never heard of the method are not all mistakes.
Likewise, the Brit Method’s promises are all lies. These sites essentially promise immediate and unlimited profits, but offer very little information to help you achieve this goal.
The site also promises to get you started for free. It’s also a lie. After completing the free registration, you will be denied access to the system if you do not deposit $350. However, even if you deposit, you still cannot access it because the system is not there. The money is gone and you will never see it again.
Avoid using the Brit Method by all means. Also, beware of scams in all future versions. In all likelihood, there will be a German way and an American way, and it’s very likely that they will use the exact same way to fool people.
Copy Buffet
Once again, a sales pitch is an obvious red flag. It’s a scam.
This scam suggests that customers can enjoy wealth according to the method created by Warren Buffet. As an investor known for long positions, this scam has absolutely nothing to do with buffets.
The process required visitors to sign up with a specific broker (another scam tactic described above) and make a deposit to gain access to the “system”. The system does not exist and traders do not get their funds back. avoid.
Ultimate4Trading
The good news here is that the Ultimate4Trading website has been blocked for UK visitors. The work is dishonest and should be avoided.
Millionaire Blueprint
Another scam has thankfully been blocked in the UK. Once again, promises of “get rich” are at the forefront of marketing, but the entire operation is a scam. Now, even websites have become a haven for malware. stay away
Instagram & facebook
Many scams promote themselves on Instagram and Facebook. Most fall into the categories listed above. Mainstream media have whispered themselves in the past as well, including the Daily Mail. These promotions or accounts make wild claims about the profits that can be backed up by images of flash cars and other trappings of success. It’s all lies and these operations should be avoided at all costs. Why advertise on social media if these people can actually turn £2,000 into £8,000 a week? They could make as much money as they needed in the market and spend time on the beach. Screenshots are easy to fake and don’t need to show lost trades.
The use of binary options to promote ‘getting rich fast’ is unreliable and comes to a complete halt. Also, Martin Lewis (of MoneySuperMarket fame) is considering legal action because Facebook isn’t doing enough to get rid of Facebook-sponsored ads. His Martin Lewis doesn’t advertise. If an ad mentions him, avoid it at all costs – it’s pretty much a scam.
Broker blacklist
Here are some brokers who have received credible reports of poor customer care or worse. Again, many of the tactics used are covered in our article on avoiding scams, this list is unfortunately not exhaustive, so if the actions below sound similar to other brokers, please contact us.
Many of the worst brokers are thankfully shut down, but you should always be aware of using unregulated brands if you can’t verify their quality. Not all unregulated brands can be trusted, but that means more ‘due diligence’ is needed.
72 Options
Bonus conditions are locked to the initial deposit until turnover conditions x30 are met. Your deposits are yours until you choose to trade them. Intermediaries must not block withdrawals of deposits before they are transacted. avoid.
Op Tech
Opteck is now closed for business. Tighter regulation introduced by CySec (which monitored Opteck) forced them to stop trading. Tighter regulation is helping the industry by putting pressure on companies that use misleading marketing or scams to make money off their customers.
Boss Capital
Boss Capital was a popular broker accepting US traders. The lack of strong regulation allowed them to operate in questionable ways. They’re another company that closed as a result of regulatory improvements.
StratX
StratX is adamant that disgruntled customers bring it to our attention (see the Testimonials page). The company uses call calls, account managers and makes withdrawals very difficult. Not recommended.
CFDSocks
Another company we got a lot of correspondence from is CFDSocks. It uses most of the tactics described above, including cold calling. Most reps I’ve received from Google say account managers encouraged larger deposits before disappearing.
NRGB
WM option
24 Winner
OptionNow
Safe24Option
binary
LBinary
buzz trade
CTOption
OneTwoTrade
PWRtrade
great options
GT option
R binary
OptionFM
AG capital
If you don’t see a broker listed here, it doesn’t mean you’re safe. We try to list as many dishonest brokers as possible, but new operators appear regularly. For peace of mind, stick with our reviewed brokers and use our comparison table to find the one that suits you best.
Details on specific scams
