Unfortunately, scams are all too common in the binary options arena. Dishonest brokers and checkers and blacklists, or rigged robots and other car trading services – scams can come in many forms. So, I think we should create this blacklist and list all known scams and dishonest techniques in one place. We will also guide you through the steps you can take to identify potential scams and how to deal with the facts if you are already a victim. If you know what a scam is and if you suspect anything is missing from our blacklist, let us know and we’ll look into it.
Why are stories of scams so common?
When a new financial product or form of trading first emerges, a whole range of businesses tends to get involved. It is true that some of these product providers are more reliable than others. The same is true for binary options. After all, it is an accessible and popular way for individuals to trade the markets. Besides, in their early days, binary options trading platforms tended to operate under the radar of regulators and in every country on the internet, so it’s no surprise that unscrupulous operators are looking for an advantage. Thanks to better regulation, a strong online trader community, and honest reviews, it’s now much easier to spot scams from legitimate brokers. However, as with international online marketplaces, there are still shady outfits that will leave you with lower prices. So what are the red flags? Here are some things to consider when choosing a binary broker:
Are binary options a scam?
The term “fraud” encompasses a wide range of behaviors, from providing false information to entice users to wiping out account balances and even dishonest trading advice. Similarly, certain brokers may not technically be fraudulent. The services available on the platform (such as reliable uptime or failure to repay funds on time) mean that this is a broker to avoid.
In all these cases, the problem is conceptually related to the broker, not binary options.
So, you should do your homework before using any particular platform. User reviews can be helpful (if they are genuine), but you should always treat such reviews with skepticism and never make your decision based on the testimonials posted on the broker’s website. Even trader forums can be problematic. If you look closely, forums are often an offshoot of a particular broker’s website. An independent and thorough comparison review is the safest way to ‘scam check’ a broker. Ideally, the focus should be on review sites that allow real users to get in touch with a particular broker, report them, and solve their problems. So you can be sure what you’re reading is up to date.
Trusted Brokers in Korea
Below is a list of the top 3 brokers you can always trust. You can find a list of all the brokers we recommend here.
regulation
The UK’s Financial Conduct Authority (FCA) now regulates binary options. They have already created a list of unapproved companies. I wouldn’t call it a scam, but by doing business with UK companies, you are making it clear that these companies are breaking the law, so it’s best to avoid them. A full list can be found here: FCA Unauthorized List
Conversely, the US, along with most other EU countries, considers binary options a financial instrument. Therefore, depending on where they are based, many platforms are subject to regulatory oversight. Examples include CFTC in the US and CySec in Cyprus. A platform’s regulatory status is a very important trust indicator for traders who want to avoid scams. This shows that brokers must adhere to certain minimum standards regarding service and transparency.
Marketing “too good”
The act of transacting in isolation should be straightforward. Indeed, the usability of a platform tends to be a big selling point for brokers. Although this aspect of binary options is “easy”, it is quite different from the claim that profits are guaranteed. Realizing profits through regular trading requires an understanding of how the market behaves, the ability to read market conditions, and strategies. If the risk is ignored – or an outright false claim that “95% of the trades were successful” is made – then it is a false assurance. This is a sign that the broker may be less than meticulous in other important areas and that its platform needs breadth.
Terms of use
Transparency is essential. Read the postmark and be especially wary of unnecessarily complex procedures for withdrawing funds. The terms of the first deposit can be another source of contention. For example, if you are denied access to your deposit until a certain number of transactions have been made – your money is tied to the platform from the moment it is handed over. This deposit holding is often part of a broader term related to ‘bonus’. CySec tried to ban this kind of term by stopping the use of ‘deposit match’ bonuses. Brands other than CyCec are still free to use, so T & C should always be checked.
Cold calling
They tend to fall into two categories. The first is where you are called out of the blue and invited to join a specific platform. The second happens if you are already connected to the platform and receive a phone call (or email) from a “advanced broker” pointing you in the direction of a particular trade. Reputable brokers don’t need to call. “Call call” may also include email. Any form of unsolicited approach should be considered “cold” contact and treated with extreme suspicion.
Channel Sales
You should always be clear who you are dealing with. In some cases, after visiting what appears to be a real broker’s site, click on a link to sign up to be redirected to another broker. Alternatively, we may instruct you to use only recommended brokers under your trading “service”. These “funnel” sites are sometimes used as a front by disreputable middlemen, or working together to trick visitors (using the misleading marketing mentioned above). A good broker is upfront about their identity from the start.
Managed accounts
It’s one thing for a broker to have access to data and analytics tools to build your own strategy (in fact, that’s one sign of a great platform). It’s another thing for that broker to provide trading advice. After all, with a binary options broker ‘over the counter’ you can bet on the house. If ‘the house’ is making trading decisions for you, it’s highly unlikely that those decisions will be in your best interest. This form of “selling” is often the most lucrative for the broker and is usually where the trader loses the most. Traders encouraged by “account managers” are encouraged to trade beyond their means. Sometimes large accounts can be wiped out in a matter of hours. “Advice” is against sound money management and greatly increases risk. Always take responsibility for your own transactions.
Price Manipulation
There should be a fair and transparent benchmark by which brokers set their prices. This benchmark should be what’s happening in the real world. i.e. real-time market prices. If your broker has the right to set their own prices, you can assume that those numbers are skewed towards you. In other words, a loaded deck.
Scam Brokers and Not Recommended Operators
The brokers listed below have generated a lot of complaints both in person and on the forums. Disputes range from selling and encouraging traders to overtrading, to non-payment of withdrawals and price manipulation. Since traders are rarely willing to open disputes with unregulated brokers, it is generally a good idea to find a reliable binary options broker. “Scam” has been widely used as a term to refer to any form of poor service, but it should be noted that many of these brokers may have done anything fraudulent or illegal, however han a higher than normal level of dissatisfaction. dragged high When in doubt, trade elsewhere. There are many honest brokers out there.
Instagram and Facebook
Beware of scams that operate on social media. Again, binaries are not rich fast schemes. There are tons of accounts that promise to trade on your behalf and turn $2k into $8k in a week. If these claims are true, the people behind them won’t need to run ads or sign up people. They will simply trade themselves.
Screenshots of successful trades are very easy to get. But these carriers won’t bother trading. Once you send money, it’s gone and you’ll never hear from it again. You should always choose your own broker and always be responsible for your own trades. Make sure no one else transacts for you. If you don’t understand binary options or don’t have the time to trade, don’t trade at all. These scams often prey on inexperienced people.
What to do if you’ve been scammed
Do you think you have fallen for a binary options scam? Read on to find out what you can do if you’ve been scammed.There are many ways to avoid falling for a scam, but the truth is that even if you follow all these tips, you can still be scammed. What should I do if that happens? Do you sit down and have it? Abandon the deal? No, you have to stand tall and be careful. Trading is good, it’s rewarding, and it can lead to a life where you don’t have to work or tick a clock. No single broker, signal service, robot or guru’s actions will dissuade you from the path. This article takes a look at what you can do if you think you’ve been scammed. Once something goes wrong, you won’t be able to get any returns, and you can get your initial deposit back, but it may take some work.
MyChargeBack.com is a company that helps victims of binary options scams. They fully understand what happened by helping the claimant explain the incident to their bank or credit card company. Some banks don’t know about binary trading and don’t want to hear the claims. MyChargeBack helps in this situation. They have a solid record of recovering from true claims.
If you are not looking for third-party help yet, follow these steps.
- Record everything. The first thing to do is log everything you can. This includes your broker or SSP, terms and conditions, copy of email/skype/live chat, deposit confirmation, turnover requirements for bonuses and transaction history. Whatever you do next, you will need this information to be satisfied. What to do next depends on the type of scam you fed.
- Please withdraw. The broker cannot withdraw. Contact your broker and find out why you can’t opt out. The most common reason is that you have not sent the correct ID documents as required by international law and this is an easy problem to resolve. The next most pressing reason why withdrawals are not allowed is because of the bonus terms and conditions and turnover requirements. You will not be able to make any form of withdrawal if you do not meet the conditions, so you must track all your trading volume and turnover. If you did not accept the bonus in the first place, documentation will help prove this. A good broker will try to fix the problem.
- Listen to your voice. The broker keeps coming back to me. If the broker fails to fix the problem and doesn’t fix it, the next satisfaction is to let the community know what’s going on. After all, it’s squeaky wheels that get grease. You can do this by posting a complaint with details on a forum like Binaryoptions.net. When you do this, notify your broker and send them a link. They might not mind the shady broker’s mark, but when it comes to a reliable broker, they’ll want to work things out to avoid bad publicity. Posting a complaint will give you as much detail as possible just to say that you have been scammed by a broker and proof of fraud will result.
- Contact your payment provider. Brokers don’t help. At this point, it’s very possible that you’ve not only been scammed, but also suffered from miscommunication. If you are not getting satisfaction from your broker, you need to take more drastic measures. If you deposited by credit card, this could mean calling your card company and requesting a chargeback. Let them know that the initial claim is bogus and that the company will not return your contact request for best results. The Times Of Israel reported that victims of the scam were able to get a full refund of their deposit after contacting the financial institution that processed the intermediary payment. Payments were withheld until the broker met the claim.
- Ask your regulators. Time to call the big guns. The great thing about expanding binary options regulation is that many traders who believe they have been scammed have an alternative. This can be a challenge in some cases, as many brokers are located offshore and hidden because they have companies and virtual offices. If your broker is regulated, contact the body that oversees it. If not regulated, contact the agency that oversees financial regulation in your country. When a broker is regulated, compliance requires that issues be addressed to the satisfaction of all parties. If they are not regulated you will spend more time trying to buy more people, at least in your country.
- Be patient. Shady brokers want to hire people who are good at deflecting questions and complaints, but won’t take what they say. It may take a while, but eventually you will talk to the right person or people and your case will be resolved. Most likely, the combination of your contact requests, forum complaints, and charges with regulators will add one thing, and the broker will give you your money back to avoid much bigger hassle.
How to spot a trading strategy scam
There are ads, articles, companies and individuals all over the internet trying to give you the next big trading strategy that will make you rich overnight. pause my friend Here are some tips to help spot scams.
System or strategy?
First of all, no trading strategy actually helps you become a good trader. All you really need is a full system. When creating a trading plan, you should cover market entry, exit markets and how to manage your money. They also need to be informed about market conditions that do all of these things. It is a system, and it tells you everything you need to know about how to trade. Strategies, on the other hand, only tell you when to enter and exit, and may not tell you what situations work best or worst. They may also not provide guidance on position size or whether multiple assets can be traded simultaneously. In other words, you may be missing information you need for your strategy to succeed. We need a complete trading system… But marketers are smart, so it might sound more complete if you call the product you’re selling a “system.” But is it? Here are a few things to look out for:
Boxed system
A boxed system is an opaque “black box” where you don’t know how your strategy works. For example, a product might be a set of indicators or a service that tells you when to trade, but not why. This won’t make you a better trader because you don’t know what’s going on behind the scenes. When a product or signal service stops working, there is nothing left. Even if you made money with your product/service, you have to start all over again. When you buy a product, we explain how it works so you don’t have to rely on the product/service.
Extremely high win rates
Can you have a 90% win rate? Of course, you can lose money with a 90% win rate. Statistics are easily manipulated to tell partial truths or fabricate lies. Another popular tactic is saying things like “I made it to $500 in one day!” doesn’t actually say anything. If it was in a $1,000,000 account, making $500 isn’t that grand. And if they lost $3000 the day before, making only $500 today and bragging about it is awful. read between the lines What didn’t you say? Understanding your performance requires several pieces of information: account size (capital), rate of return, amount risked on each trade, amount of profit per trade, win/loss ratio, biggest winner, biggest loser, average winner, average loser, number Required. Strategies and Tests / Profitable trades and timeframes.
There are other metrics that may help as well, but be suspicious if you can’t or can’t provide them by asking the company for these. In general, looking at the statistics above, you can identify vulnerabilities and trends in your system. One of the main ones is that strategies should be tested over long periods of time and in all market conditions – uptrends, downtrends, ranges, fluctuations and eradication conditions. It doesn’t necessarily have to be profitable in each of these environments, but it should at least trade in all of them so that you know that the system is overall profitable. Publish results only while. However, this doesn’t give you a real idea of how a strategy or system will work in the long run.
- There are other things to consider regarding statistics. If the system is profitable, its results are based on all trades. If you buy a product or service, will everyone trade it? The problem many traders face when signing up for a signal service is that they don’t trade all signals. If you do not exchange all signals, your personal results may differ significantly from the typical results of the service.
One way only
Avoid systems that only trade in one direction. For example, buying only assets but not selling short. When the market goes up and down, you want to be on both trends.
No trial period
If the service doesn’t suit you, you should be able to test the product and cancel without a fuss. Usually, a quick Google search of the trading forums will help you find out what other people have shared about your product or service. No trial, no deal. Don’t trust anyone, test it yourself. Be careful if they don’t let you.
Final words on identifying scams
A product or service should not make you dependent on it. It should show you behind the scenes so that you can eventually trade yourself. Good products always have customers because there are people who don’t want to work and there are always new traders. There’s no reason to make every customer completely dependent. Beware of the stats thrown in. Ask yourself what the stats aren’t telling you. Also, if the stats they provide are legit, trade all signals to get typical results from their service. Remember, of course, that past performance is not indicative of futures results. It’s a bit of homework, a strategy/system/service/product based on a long history, and a way to prove profitable in all types of market conditions. Test your product/system/service before you buy it. If they won’t try you, be suspicious.
Case Study – JV Affiliate Marketers
In this section, we will look at how binary options JV affiliate marketers avoid scams. A lot of scammers use emotional greed/fear tactics to make their money, so it’s not that hard, but you have to let go of your emotions and examine things logically. Once you understand this you can quickly and simply save time and money with these unscrupulous donuts. Some scams are simply comical for being silly, while others can do a very good job of scammers luring you through real people/systems/reviews. Where did the money go!?”
As seen in numerous scam videos, simply “no deposit” and the scam will no longer work. The next time you watch a video of a similar nature, just know that you support scam systems/marketers. Whether or not a deposit is required is flying over the night, and even if not, we are supporting scammers with the nature of having to deposit with a new broker. So, if you reject the deposit, it will disappear. It’s not the same story and it’s not a story and a promise that you can join a “free” system/bot… They don’t require you to deposit and get paid for those deposits… So limited time / fast money / can’t lose! / Just don’t fund your account =!
In the image above, you can see that many fraudulent systems are most often connected to each other on the same server. There are numerous turnkey scams out there because these JV marketers are very low maintenance. The reason you see so many new storylineware disappear over the course of a few weeks and you get bored, so start production on something else and keep everything fresh and new, so you can avoid complaints about old hoaxes. Complaints shared with others. You can avoid this along with the fact that most newbies jump from one scam to another if they keep things new, hopefully one of these will work. Work and don’t deposit.
Case Study – Social Media Scams
Social media is the “perfect” platform for scammers, they are more sneaky and persuasive, and unlike JV marketers, these people can talk directly to you. If they think they can’t get it from you anymore or that you’re no longer valuable to them, they won’t be friends with you in a heartbeat. Be wary of people asking you to deposit or sign up to tell them about amazing profits and opportunities that will end up with you empty pockets, as they are one thing at a time, your money. Videos used with “The Green Room” and “FB Wealth Group” allow you to pretend to be a merchant/friend, but you can also try to earn money by signing up or pay directly.
Also, if you mentioned something related to Multi Level Marketing (MLM), run it the other way, as you are trained to entice customers. These guys will tell you everything you need to do to sign up and invest without playing. Here’s a 45-minute long interview about someone who was scammed by “The Green Room” and “FB Wealth Group.” It was called Binary Options Horror Story. If you are new to binary options, fully absorb the warning signs above to see how it happened because people scam people out of their money. Also note how we worked directly with the broker. This means that brokers can also participate directly.
