The Best Binary Broker 2020!
Perfect For Beginners!
Free Trading Education!
Free Demo Account!
Get Your Sign-up Bonus Now!
Good Broker For Experienced Traders!
Binary Options Scams
For about ten years, online binary options scams were ubiquitous.
Don’t Let Them Mislead You – It’s All Smoke and Mirrors
Challenging binary options scams can be very complex and mistakes can cost you. MyChargeBack analyzes your case and assists you throughout the entire recovery process.
In the first two decades of the 21st century the internet became Ground Zero for binary options scams and binary options fraud.
Perhaps what first drew you to their website was a pop-up ad. Or a social media post. You clicked and found an attractive, professional -looking presentation promising you:
- A quick, profitable return
- A huge immediate bonus just for joining
- An easy-to-manage online binary options platform
You signed up and soon their representatives contacted you. They introduced themselves as your “brokers.” And then you transferred funds, most likely using your Visa® or Mastercard.® Soon, you found yourself trading stocks or foreign currencies, indices and commodities. To help you out, your “broker” courteously provided personal coaching. And timely recommendations. (Real brokers cannot do that because it’s patently illegal).
While legitimate, government-regulated online brokerages do exist, their many more unregulated firms – especially those offering binary options – whose operators based their business models on swindling unsuspecting and inexperienced investors over the internet.
It’s a Video Game
You assumed the unregulated firm’s state-of-the-art internet site would allow you to trade. Actually, however, it’s nothing more than a video game. The binary options platform it features does not follow obligatory trading rules and procedures. In fact, it’s not even plugged into a true market exchange. The gains you supposedly made and the losses you supposedly suffered, are all imaginary. Nothing more than smoke and mirrors intended to convince you it’s for real. Oh, and that bonus you supposedly received? It was just as imaginary as everything else.
What Happens with Your Money?
Unregulated brokers promise you that they deposit your money in a segregated bank account. They like to think that they will prove their integrity and convince you that they guarantee your access to your funds. However, no such personal account exists. That also is a fiction. Your money went straight into their own bank account instead.
Sure, they promised that you could withdraw your money whenever you want. But you will soon find out that’s easier said than done. Some firms will ignore your requests to access your funds outright. Others will bounce you back and forth between different departments in order to exasperate you. To the point when you’ll just give up. And then there are those that will point to the small print on the Terms & Conditions page. Squint your eyes and you will see that you agreed to first reach an unattainable amount of trades. Or repay that huge bonus they gave you before you even apply to withdraw your money. Or both.
A Binary Options Scam by Any Other Name Is Still a Scam
For about ten years, online binary options scams were ubiquitous. The damage they inflicted on consumers was enormous. In response, a growing number of countries banned binary options trading by retail investors. In 2020 the European Union (EU) enacted a temporary ban as well. It renewed that ban on an ongoing basis until July 1, 2020. By then the last online binary options site registered in the EU finally shut itself down. In addition, Google and Facebook ceased accepting ads linked to binary options sites. These actions, as welcome as they were, however, merely encouraged many operators of phony binary options sites to re-brand themselves. They now claim to be online forex brokerages and even private banking firms.
The Best Binary Broker 2020!
Perfect For Beginners!
Free Trading Education!
Free Demo Account!
Get Your Sign-up Bonus Now!
Good Broker For Experienced Traders!
Beware. The terminology changed but the scam remains the same.
Forex and Binary Options Broker Complaints
Nowadays, complaints regarding Forex, Crypto and Binary Option brokers are increasingly common and can be for many reasons. South African investors that choose to trade with licensed or regulated brokers rarely face such issues.
However, if you have invested in a non-regulated or unlicensed broker, there is no government agency that can help you get your money back.
MyChargeBack is a service created especially for cases such as these – their job is to hunt down the broker and help you get your money back if possible.
Complaints to Regulated Brokers
If your broker is authorized by the Financial Sector Conduct Authority (FSCA), referred to as the new Financial Services Board (FSB) in South Africa, follow the instructions below:
The Financial Sector Conduct Authority (FSCA)
If you have any complaint regarding the entities regulated by the FSCA, you can fill in the form on their website that asks for your details, the type of complaint you want to file, the name of the regulated entity and a description of the issue.
Finally, the FSCA asks you to attach any supporting documentation that is relevant to your complaint like your policy document, any correspondence with the entity etc. These documents all get submitted along with your complaint form.
The smartest way to invest would be with the licensed broker IQ Option.
Withdrawal Complaints – If You Cannot Get Your Money Back
If you are having problems withdrawing your money from your broker, we suggest using MyChargeBack.com, a service which helps you get your money back.
MyChargeBack is a company whose mission is to assist investors who have lost over $1.000. They urge victims to not give up if they are scammed by a broker and “fight back” to get their funds back. In order to use their services, you will be charged an upfront fee as well as a percentage of the funds that they manage to recover for you.
These are a few points to keep in mind when a broker is not processing your request to withdraw:
- Withdrawing money is, in many ways, a more complicated process than depositing money.
To withdraw your funds from your broker, you will be asked to verify your identity with several different documents. The most common of these are: National ID/ Passport/ Driver’s License, Proof of Residence, Utility bill, credit card/bank statement and local authority tax bill. Finally, deposits made by Credit or Debit card always require a front and back scan of your card.
- When you request a withdrawal from your broker, never rely on a simple phone conversation or Skype message. Alwaysmake sure to contact the compliance department via email or the customer support.
- If your withdrawal request is not processed in a timely manner, you can contact your bank and ask for a charge back.When people are facing issues withdrawing their funds from a broker, in most cases it is because they are dealing with non-regulated companies often associated with fraud.
Managed Accounts Issues
The situation is increasingly common: a Forex broker calls you offering to invest your money and trade on your behalf. The only problem is that trading Forex and Cryptocurrencies, no matter your level or experience, can be incredibly risky. You essentially risk losing all the funds in your account, and when you authorize a broker to trade for you, in reality you are giving away all that money.
Instead, if you have decided to invest in Forex, do the research and discover what it takes to be a real trader. Never trust that someone else is going to help you get money. As a matter of fact, most brokers make money through your own losses – so helping you make a buck is not even slightly in their interest.
Think about it: If a broker is such a professional in investing money, why are they not out there trading their own money? Why are they so keen on trading yours?
Trading Software Scams
Investors often see advertisements for “secret systems” that magically generate money and open brokerage accounts. Some examples of these are Bitcoin Code, Crypto Trader and Tesler app, among many others.
These systems, often referred to as “automated trading”, create you an account at a scam broker, convince you to make a deposit, and reassure you that now, with absolutely zero effort on your side, the money will start flowing into your bank account. Now, even though many like to believe this to be the perfect “money generating system”, it is in fact a scam and uses unregulated and unlicensed brokers to take advantage of users.If you take a look at a broker’s terms and conditions, you will see a specific clause that prohibits the use of automated trading software.
This does not mean that all auto-trading robots you see are scams. You should just always make sure to use a robot that works with regulated and licensed brokers.
Bonus Policy Complaints
Another main reason that traders have problems withdrawing their funds from a broker is because, more often than not, they received a bonus.
Always think carefully before and if you decide to accept a bonus. Before anything else, you should closely read the broker’s bonus policy. Unregulated companies often require investors to trade 30 – 60 times more than the bonus value. There is a reason why you will never see regulated brokers offering investors bonuses.
Allow us to paint you a picture to help you understand how this works. Say you deposit R5.000 and receive a bonus of R2.000. This may appear generous at first, but what it actually means is that you will now have to generate the trading volume R5.000 x 200 = R100.000. Take a minute and think about this – it is a lot of money. The catch is that when you decided to accept the bonus, the R5.000 that you deposited can only be withdrawn if the trading volume above is met. In the scenario we just suggested, you will now have R7.000 in your account (R5.000 + R2.000 bonus). Now let’s say you decide to place a trade and profit R850, which automatically makes your account balance R7.850. This amount will not be eligible for withdrawal.
In the worst case scenario, which, unfortunately, can be more common than you think, brokers automatically give bonuses with each account and without asking for any permission from the trader. Cases like this are exactly why many unlicensed brokers receive such a high number of complaints and bad reviews on a daily basis. People all around the world want to spread the word and warn potential victims to look out for these scams – it could happen to you.
Unauthorized Credit Card Charges
If you have received an unauthorized credit card charge from your broker, there could be two explanations:
- Your payment was processed twice and it was an honest mistake.
- The broker that claimed to double your invested money, lost it all. They often call you after this to convince you to make a second investment and give them more of your money to trade with.
Whatever the case may be, the moment you see an unauthorized charge to your credit card, you should contact the credit card fraud department immediately and try to dispute the charges.
In conclusion, it is important to always remember that trading is a huge risk and before you decide to invest your money with a broker, do the research and always be aware of the types of scams out there and exactly how to avoid becoming a victim yourself. On the other hand, if it is “too late” and you have already been scammed by a broker, make sure to carefully read and follow the steps outlined above according to each case.
Recommended Binary Options, Forex, and CFD Brokers
There are a plethora of binary options, CFDs and Forex brokers sprouting every day, and the vast majority of these are here today and gone tomorrow. It seems opening up a new online broker can be done so without much efforts or startup capital, but it is exactly these types of offshore operations you should avoid because they are in it for the short term and disappear once they feel their ability to steal your money is over or not effective anymore due to negative reviews. It’s also worth noting that some brokers will pose as legit and claim they are regulated, when in reality they are not. For all intents and purposes owning a Belize license does not really mean you are regulated. Contrarily, some regulated brokers will do everything legally within their power to withhold funds or create bureaucratic difficulties in order to get you to delay or cancel your withdrawals. Still, even if this is the case, its much better being in the hands of a broker like that then someone who is just out to defraud you and steal your money.
Quick Update: Binary Scam Alerts Does NOT endorse or recommend ANY binary options brokers or any type of binary options trading. All of our brokers are either Forex or CFD brokers.
For all intents and purposes classify our brokers into 5 categories:
- Unregulated But Operating in a Legit Way
- Unregulated – Status Pending
- Scam Broker
- Broker Shut Down
If you have been scammed by a broker and wish to complain or voice your concern, simply leave a message below and tell us your story. Please keep in mind that brokers which have been around for a long time have proven their resilience and ability to continue trading operations despite the dicey and unpredictable nature of the online trading business. Conversely, the more you have been around the more you are exposed to complaints and unsatisfied customers. So it’s important to be critical and alert, but also to put things in perspective and understand what you are dealing with. As we have mentioned in our extremely viral post about the most used binary options brokers scam tactics, there are certain tells or red flags that should immediately arouse your suspicion. However, there are 2 criminal-type behaviors which top everything, and whenever we receive these types of complaints an investigation immediately starts and we get the information out rather quickly. These two scam tactics are:
- Withdrawals that are unjustly declined.
- Credit card theft, which usually comes in the form of over-charging.
These two crimes take precedence over everything else, and whenever we endorse a broker we make sure we know who we are dealing with since we receive endorsement requests on a daily basis. After that we are looking at other issues such as manipulation of software to generate losing trades and identity theft, but it mostly leads to the same thing (delaying or annulling your ability to cash out). Again, before you sign anything or send a broker a scanned photo of your ID or credit card information, we kindly ask that you contact us for a quick consultation which is free of charge. If you have already deposited and feel frustrated since you have been promised by your broker that a certain strategy or trading tool will generate profits for you but has not, make sure to file a complaint in our report a scam section and also leave a detailed comment below for everyone to see.
We recommend that anyone reading this post listen to a real live audio-recording that we received from one of our members who got scammed by a broker named “bigoption“. If you have not gone through our site and partnered via our recommended trading robots or brokers, then we can’t guarantee that you won’t get scammed. Regardless, no one can guarantee anything, but at least we have some securities and leverage in place so that we know who to turn to if and when the problems start.
Our recommended broker section will only accept up to 3 reputable brokers. They are either fully licensed by CySec, MIFID, ASIC, Financial Services and Markets Authority in Belgium, AMF, MFSA, FMA, MGA, FCA, and of course the SEC in the United States.
Or alternatively unregulated but operating in a very legit way. We have found a few brokers which answer to this criteria, and they decided to forfeit their license for a variety of reasons namely having to do with exorbitant licensing fees and strict guidelines about what kind of clients they can accept. For example, 24Option has recently declined to accept all traders integrated with an automated trading or signals app as this was mandated by CySec. This means if you wish to open an account with 24Option while utilizing the services of a trading robot or signals provider you will NOT be able to do so. So, assuming not every broker out there has 20 Million dollars in monthly revenues, we think it would not be fair to exclude them from being endorsed as long as they play fair and don’t cheat their paying customers.
Criteria for Endorsing a Broker
Our first choice will be to partner with a regulated broker, and this is for a variety of reasons. First and foremost because they are required to hold a separate budget which is used for paying clients. This has noting to do with the profit and loss statements, and already factored into the main budget. Secondly, we know that there are protections set in place and the broker has much to lose if they violate these rights and customer protections.
|Broker||Trust Level||Visit Site|
Now, when recommending an unregulated broker we make sure we know who we are dealing with on a personal level. Secondly, we establish direct communications and ask for a written commitment guaranteeing our customers will not be cheated out of their money. Finally, we have a bunch of our members open trading accounts and start executing winning trades. Eventually we accrue a combined balance which is significant to use as leverage, and when push comes to shove we can use this leverage and have our traders start cashing their money if our members are not paid in full.
What Traders Are Searching For – Tips
Reasons Why Most Traders Get Scammed
Additional Features to Look For
Best Binary Options Brokers 2020: