Binary Option Scams

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This is a question many traders would love to know the answer to. We decided to put all our experience with brokers and robots into one article to how to identify and avoidbinary options scams traders avoid being scammed. It is important to detect potential fraud before you make a deposit; otherwise, it could be too late. Binary scams are the sickness of the industry.

Binary options, as a trading instrument, have a bad reputation mainly because of the scam schemes. Too many traders have been ripped off during the years, and they spread negative comments all over the internet. There are many reputable and reliable brokers that are regulated and treat their customers fairly.

However, because of scams, the whole industry suffers, and some measures should be taken. We decided to help traders and reveal some of the most common dishonest schemes. Hopefully, you will learn to avoid them.

You know you are dealing with a bad brokerage when you have withdrawal problems or price manipulation in your trading. He or she will often offer you more bonus money, signals, free trades, or a higher tier account an upgrade from your current account to a Gold or Platinum, depending on the account structure.

If this happens, stay firm in your decision to withdraw and let them know you want your money, not some cheap offer. Usually, if you accept a bonus, you have to reach a certain trading volume before being able to withdraw even your own money. If this limitation only applied to the bonus amount, we would be okay with it, but some brokerages extend the limitation to your own money.

Brokers can manipulate the price they give you for a certain asset. If you are dealing with a scam brokerage, you can expect this to happen when you become profitable. When the broker sees you are making many profitable trades, it can change your strike price or closing price.

This is a big risk because a profitable trade will turn into a losing one. When you see sudden price reversals or volatility spikes, open a chart provider and check whether that movement also appears there. Netdania is a good source for free charts, but you can also find other options online. Account managers can promise you profitable trades if you give them access to your account.

This is a major issue, but unfortunately, it happens a lot with scam binary options brokers. It is also possible a manager will trade without your consent. That means he or she has access to your account, and no one but you should have access! The binary options robots are also very popular scams.

This auto-trading software is heavily advertised as the best money machines. You just need to make a small deposit, and the robot will double it or even triple it in a few days. This, supposedly outside, software that provides auto-trading is usually connected to a scam broker.

In theory, you deposit money at the broker, then you connect your trading account to the robot, and the cash flows run into your bank account.

Of course, this is a deceptive illusion, and this robot will only blow your account. Then, you will contact customer support, and they will how to identify and avoidbinary options scams you make a bigger deposit to experience the full potential of the robot.

To better understand how fraudulent this software is, you can think about the following. If this robot is so profitable and all traders make money, why is it free? How do these guys monetize? Where there is a lot of honey, there are also some flies buzzing around.

In our case, the flies are so-called binary gurus. They present themselves as seasoned pro traders, former university mathematicians who have created the ultimate These guys create fake accounts on Facebook and YouTube to spam testimonial messages. They promise you big profits in the short term and usually are trying to sell you how to identify and avoidbinary options scams trading system or an auto-trading robot.

What they are actually doing is creating a setup of some free MT4 indicators and trying to sell it for money. If you search Google, you can easily find these indicators and download them for free. Avoiding a scam robot is easy: So, you ask, how do I avoid a scam binary broker? Most scam brokers operate unregulated with registrations in offshore zones. Before you register at a broker, contact customer support via live chat. You can ask them all kinds of questions concerning withdrawals, price quotes and promotions.

If your questions are avoided and the representative pushes you to register and deposit, chances are you are dealing with a bad broker. The support staff should offer information, not try to sell you an account. If they offer you an account manager who is willing to trade with your funds, think twice. When you make profit, the company loses money; the binary broker simply works as a casino. Unfortunately, there are many naive people who believe someone will make them free money.

The brokers know that, and with a number of phone calls, they can even make you deposit more after you lose your first deposit. At how to identify and avoidbinary options scams fully regulated broker, it is absolutely forbidden for a third party to trade with your funds.

If you submit your account details to how to identify and avoidbinary options scams else, and this someone loses your funds, the regulator can do nothing about it. To avoid troubles, you should simply register with a regulated company that offers binary options.

This way, your money will be safe and you will be able to request a withdrawal at any time. We know there are good brokers for sure, but you still need to be a good trader to make profits.

If you are looking to make some quick bucks and skip studying the markets, you will most probably end up with empty pockets anyway. The binary options industry is not the safest out there because of all the scams that hunt your money.

If you keep on your toes and stay vigilant, you can learn to avoid them. Skip to main content. How to avoid binary options scams You are here Home. We strongly advise you to trade only at regulated brokers.

Scam binary brokers You know you are dealing with a bad brokerage when you have withdrawal problems or price manipulation in your trading. What are the risks if you trade at a scam broker? Bonus frauds Usually, if you accept a bonus, you have to reach a certain trading volume before being able to withdraw even your own money. Price manipulation Brokers can manipulate the how to identify and avoidbinary options scams they give you for a certain asset.

Fraud account managers Account managers can promise you profitable trades if you give them access to your account. Scam binary robots The binary options robots are also very popular scams. The binary gurus Where there is a lot of honey, there are how to identify and avoidbinary options scams some flies buzzing around. Customer Support Before you register at a how to identify and avoidbinary options scams, contact customer support via live chat. You should deal only with regulated companies To avoid troubles, you should simply register with a regulated company that offers binary options.

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Scams using binary options are unfortunately quite common, as you can tell from our list of fraud brokers and services. If you are concerned about falling prey, this guide explains how to avoid scams in the UK. Binaries are, in our opinion, a good product. There are, however, unscrupulous brokers and other service providers out there preying on uninformed traders. But with scam artists still out there, what can consumers do to avoid a binary options scams and focus purely on their trading?

Read this tutorial on scams and only trade with trusted brokers! A scams list may not actually be that useful though — operators are closing and re-opening so often that maintaining the list becomes a full time job. A better choice for consumers is to spot the warning signs, and if there are any doubts at all — simply move on to another provider.

A list of scams can only protect you from threats that exist today — learning how the con artists operate and mislead consumers can keep you safe for years to come.

There are a number of methods by which the scams associated with binary options will try and make money. There are however, also some pretty obvious red flags that can pre-warn consumers that all might not be well. If you have encountered any of the below, I would advise treading very carefully — and if in any doubt, leave that particular broker — there are plenty of legitimate, trustworthy brokers.

There is no need to take risks with any company that you may have doubts over. A service called MyChargeBack. They offer a free service to let you know if you have a case. Things like unpaid withdrawals, or unauthorised payments can be claimed via banks or credit card companies, and this firm specialise in dealing with those organisations. The range of services varies based on each case, but they may be able to help:. A reputable broker is unlikely to solicit new business by making cold calls and phoning you out of the blue.

These might include the promise of immediate, high returns, and downplaying any risk. In addition to telephone calls, some operators may also email directly, in some cases, suggesting an account has already been opened. Any of these methods of getting in contact is an immediate warning sign. Hang up, and delete any mails. One source of frequent issues is via deposit bonuses.

Dishonest brokers will often have some extremely unethical terms. These might include tying in the initial deposit until a certain amount of trades have been met turnover requirements. They will include the initial deposit not just bonus funds. Effectively making the deposit their money as soon as it is handed over. This warning includes automated robots and signals, but also managed accounts, where an account manager has promised massive profits.

There is an obvious conflict of interest for these account managers. If you make a long term profit, the brokerage makes a long term loss on your account. An account manager, employed by the broker, is very unlikely to have your trading interests at heart. While they may argue otherwise, letting someone else trade for you is very likely to end in losses.

These managers can also encourage traders to invest way beyond their means, which is particularly dangerous. The risks should never be hidden from you by your broker or account manager. Many of these warning signs are related — this form of marketing again hides the risks — just like the cold callers and account managers.

There are numerous websites, with high production videos that look very appealing. They will suggest making money is easy, possibly even suggesting they copy famous investors. These are all scams. Any promotion that hides, or downplays, the high risk nature of binary trading is not being honest. Binary options are not a way to make easy money, and should not be sold this way.

This form of advertising for binary options is generally the most dangerous for the consumer. If you encounter marketing of this kind, do not proceed. A funnel is a website that will drive traffic to a broker. As a visitor to that site, you may not even be aware you have been redirected to a broker.

The issue here is that the consumer will be passed to a broker, who they know nothing about. Having visited the funnel, the new customer will get a call from a random broker asking for a deposit. While this may sound odd to those who have not fallen victim to it, the effective selling of the binary options scam by the funnel website, will mean many people are duped. Some brokers will include a line within their terms along the lines of: Unfortunately it will not be worded as clearly as that, as the implications are obvious — they set their own prices.

If the broker is the counter party to any trade, and they also set the prices, it will be very very difficult to ever make a profit with that broker. Clients are trading against the broker, and they decide the closing prices.

One of the two parties will make a loss — and it will not be the broker. Research the terms of trading and beware of any references to settlement figures based on anything other than real world prices. So those are some key warning signs that should make any potential new trader stop and question what they are being told. If you have come across any of the above, identify the broker involved — and trade elsewhere. Even this however, might carry risk. The reason is, as well as the scam operators, there are review sites that are also dishonest.

There are a couple of ways that consumers can protect themselves and find the trustworthy reviews. The first method is in looking at the offerings elsewhere on the review site — if other scams are being promoted, then the reviews are not credible. Ask these question of the site:. The second method is regulation. If a binary option site lists FCA regulated brands as we do!

That site must be completely honest about the high risk nature of binary options, and it must have accountable individuals, based in the UK who operate it.

If it does not, then the FCA firms would not allow their brands to be marketed by them. Here however, is another level of complexity. Some binary options brokers have sought to register with the FCA. This is not the same as being regulated by them. A brand offering only binary options will not be 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 very small.

In addition to the services below, the FCA have published a list of firms who are not authorised to trade binary options in the UK. While stopping short of calling them scams, the list provides a picture of firms who are prepared to break the law by offering unregulated trading. They are almost certainly best avoided. The list can be found here:. The marketing in use here is an obvious red flag. Unfortunately the claims are not true. The Brit Method is a scam that has been used before.

Here is what you need to know to protect your money;. The Brit Method promises to be a binary options trading strategy that can make you hundreds of thousands of Dollars within a few weeks. The Brit Method is nothing new. It previously was called the Aussie Method and the Canuck Method, and each time the site had to close due to its bad reputation.

Even the guy who supposedly invented the genius trading style is the same. There are many fake testimonials on the website, but make no mistake all of them are made up statements with stock pictures of people who never heard of the method. Similarly, all the promises made by the Brit Method are lies. The site essentially promises immediate, unlimited gains, but provides little information on how it wants to accomplish this goal.

The site also promises to get you started for free, which is a lie, too. But even if you make the deposit, you still wont have access because there is no system. The money is gone, and you will never see it again. Avoid the Brit Method at all costs. Also, be aware of all future version of the scam. In all likeliness, there will be a German Method and an American Method and they will very likely to use exactly the same methods to con people.

The scam suggests that clients can enjoy wealth by following a method created by Warren Buffet. An investor famous for taking long term positions, this fraud has absolutely no connection with Buffet himself.

No system exists, and traders will not get any funds returned. The good news here is that the Ultimate4Trading website has been blocked for UK visitors. The operation is dishonest and should be avoided.

Another scam which again, is thankfully blocked in the UK. To the point which even the website is now a haven for malware. Below are some brokers for which we have received credible reports of poor customer care, or worse.