Fraud and manipulation at binary options brokers binaryoptionstradorscom
We decided to put all our experience with brokers and robots into one article to help 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 suggest 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 have a solid record of recovery from genuine claims.
The internet is loaded with ads, articles, companies and individuals trying to provide you with the next big trading strategy that will make you rich overnight. Take pause my friend, here are tips to help you spot the scam.
What you actually need is an entire system. When you make a trading plan it needs to cover how you will enter markets, exit markets and how you will manage your money. It also needs to tell you under what market conditions you do all these things. That is a system, it tells you everything you need to know about how you will trade. A strategy on the other hand only tells you when to enter and exit, and may not tell you under what conditions it works best or poorly.
In other words, a strategy may have missing pieces of information you need to be successful. Here are several things to watch for which could tip you off the product is probably a waste of money:. For example, the product may just be a series of indicators or a service that tells you when to trade, but not why.
If a product or signal service stops operating you are left with nothing. Stats are easily manipulated to tell partial truths or fabricate lies. Read between the lines. To understand performance you need several bits of information: You can usually get a sense of what vulnerabilities and tendencies a system has by looking at the above stats.
One of the main things is that the strategy should be tested over a long period of time, and in all market conditions—up trends, down trends, ranges, volatile and sedate conditions. Often marketers will only publish results for a period where strategy did very well.
Markets rise and fall, you want to participate in both trends. Usually a quick trading forum search on Google will reveal what others have shares about a product or service. No trial, no deal. It should show you behind the scenes so that eventually you can trade on your own. There is no reason to make every customer totally dependent. Be wary of stats that are thrown out. Of course remember though, past performance is not indicative of futures results. Once you understand this you can quickly and simply save your time and money with these unscrupulous dolts.
So just refuse to deposit and they go away. In this image above you can see many of the scam systems are connected to each other on the same servers most often. These JV marketers have tons of these turnkey scams as they are very low maintenance. The one thing they are all after is your money, so be on the look out for them asking for deposits or sign-ups telling you about amazing profits and opportunities, which will have you end up with empty pockets.
We named it Binary Options Horror Story because that is exactly what it is in all its gory details. If you are new to binary options read, and absorb the above warning signs fully to see how they scammed people out of their money so it does not happen to you. Notice also how the worked with the brokers directly, which implies that they can be directly involved as well.
Are Binary Options A Scam? Trusted Brokers in Germany Below is an always up-to-date list of our top 3 trusted brokers. Terms and conditions Transparency is essential. Cold calling These tend to fall into two categories. Channel sales You should always be clear about who you are dealing with. Price Manipulation There has to be a fair and transparent benchmark against which the broker sets its prices.
Cheating The Odds 4. Will They Never Learn? Banc de Binary Beeoptions Binaryinternational. If you are not yet looking for third party help, here are some steps you can take yourself: The very first thing to do is to make records of everything you can. No matter what you do next, this information will be required in order to get satisfaction.
What you do next will depend on the type of scam you have fallen prey to. The next most pressing reason why withdrawals are not allowed is due to bonus terms and turnover requirements. A good broker will try to solve your issues, a shady one will give you the run-around. Make your voice heard. Broker keeps giving me the run-around. After all, it is the squeaky wheel that gets the grease.
You can do this by posting complaints, with details, in forums like the one here at Binaryoptions. When you do this be sure to let the broker know and send them a link. They may not care, a sign of a shady broker, but when it comes to reliable brokers they will want to address your problems to avoid poor publicity.
When posting complaints give as much detail as possible, just saying that a broker scammed you is not enough, proofs of fraud are what get results. Contact their payments provider. At this point the chances that you have been scammed, and not just suffering from miscommunication, are quite high. If you deposited by credit card this may mean calling the card company and requesting a charge-back. Let them know the initial charge was fraudulent and that the company in question is not returning your contact requests for best results.
The Times Of Israel reported that a victim of fraud was able to get a full refund of his deposit after contacting the financial institution that processed the brokers payments.