Scams in Binary Options still alive and kicking – Binary Options Hub

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Contents

Scams in Binary Options still alive and kicking

Binary options have been receiving nothing but hate in the past few years. They used to be very popular before everything came apart and all of the industry started crumbling in front of the eyes of the investors. Most of the brokers that used to work on Binary Options were legit good brokers, who promised their customers realistic returns and in all honesty, gave them those realistic returns.

What Happened with Binary Options?

Unfortunately, however, the gambling nature of Binary Options attracted a lot of scammers, who used to make this elaborate marketing campaigns, promoting their “successful” customers who made millions and are now retired living in the alps. Many people actually fell for these tricks, because they were quite new and nobody had experience in them. Soon enough everything came apart and the true face of Binary Options brokers was seen. Most of the scammers quickly scattered, leaving the reliable brokers to clean up the mess.

All the scamming and stealing forced the EU to ban the product completely. It decided that regulating them would be much more big of a hassle than just outright banning them. Plus the regulations would have been so harsh that most of the brokers wouldn’t even want to feature Binary Options because of the small profits. Unfortunately, however, the ban seems to have not worked.

It is so easy to mislead customers into believing that a certain broker is regulated by a well know regulatory body. Before everybody starts figuring out the scam and the official regulator issues a statement about them, they would have already made enough many to pack up, leave and then rebrand. This was the case when on October 4th, it was announced by the Cyprus Securities and Exchange Commision (CySEC) that two websites, Binatex and 24Traderush were misleading their customers by claiming to be regulated by the CySEC.

How these websites were scamming their customers

Even though the Binary Options industry has been pummeled into submission by the EU, some gullible citizens are still susceptible to promises of quick profits, promises of becoming millionaires an so on. All of the Binary Options that are a complete scam, are currently being advertised as life-changing investments that made people transfer from a 9 to 5 job to a financially independent life, with which they always travel and have lots of fun. They buy luxury cars homes and so on. Naturally, this was going to attract attention.

The next step was the call centers that would call you uncontrollably, trying to make you deposit some kind of fund in your account. What’s worse is that the calls look like they are coming from the UK, but it is obvious by the accents of the call center sales people that they are being outsourced somewhere outside the EU.

The only thing the regulators can do is to find, identify and ban these kinds of advertisements. However, before that can be achieved advise needs to go out to all the “get rich quick” enthusiasts to not get into trouble and stay away from those promises of quick money.

Author Archive | George

Best tips for binary traders to transition into FX trading

The age of trading Binaries is coming to a close as more and more financial regulators are starting to ban the activity. Although there are some cases where companies offer actual good opportunities to trade binaries, the bulk of the market eventually turns out to be either a scam or something unprofitable. If you are a binary trader and are looking for new opportunities then FX is your best bet. Let’s look at what’s best to do when you are switching.

DOJ to use alternative methods for binary options fraud victims

The United States Department of Justice has been given an approval to search for new methods, in order to quickly notify victims of fraudulent binary options schemes. The “green light” was given by Theodore D.Chuang of the Maryland District Court. The victims of fraudulent binary options schemes were mostly connected to Lee Elbaz, the former CEO of the Israeli Yukom Communications.

The notification will be published on a website that is maintained by the Department of Justice. If you are not already aware Yukom Communications, was connected to massive Binary options scams that also involved US citizens. Therefore on Friday, January 18th, 2020, the Judge signed an Order, that gave the Government the responsibility to notify the victims as mentioned above.

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Binary Options and bad history

You are probably already aware of the Binary options and CFD restrictions that ESMA has introduced to the EU market. However, not many people know as to why these trading methods needed to be completely banned, and here are the reasons. Lissa Mel, who was a co-conspirator with Lee Elbaz, was charged for conspiring a wire fraud. This meant that she conducted illegal marketing and sale of Binary options, which she masked with deceptive bonuses and the promise of high gains on these “investments”. Her case is one of many, that ESMA had to study.

Marketing & Sale of Binary Options

Yukom Communications was not directly involved in defrauding investors from their money, but they did have a big part in it. According to the reports, when Elbaz was the CEO of the company, they provided Binary Options marketing, traffic and customer “retention” services to two Binary Options “brokers”, BinaryBook and BigOption. Which were clearly scams, and Elbaz knew it. Therefore this makes her equally guilty as the owners of BinaryBook and BigOption.

Binary Options are a trading method that seems like it’s 50/50 when a trader is “investing”. However, it has been proven many times that the odds are weighed heavily against the investor. Even if the odds were fair, in most cases about 99% of the Binary Options brokers turned out to be scams back in the day when it was popular. Therefore in this day and age, every single broker tries to avoid the whole thing. The scams were the primary reason why ESMA cracked down on Binaries and there is absolutely no reason why they would absolve it now.

Banks are running away and Bitfinex is struggling with Fiat deposits

Fiat deposits are what actually started the cryptocurrency trend. It all began when everything was still measured in USD on the digital market. But today a lot of the times transactions are made in Bitcoin or Litecoin or any other cryptocurrency, sometimes confusing the traders. Bitfinex has identified the problem and has suspended all fiat deposits in order to make cryptocurrencies more effective in the circulation around the system. Bank transfers have also been stopped completely, because of the fact that the operations were in complete chaos, even though they denied it.

What’s next?

This latest suspension brings questions about the general future of the company and the industry itself. What will happen to all future deposits and what will they be like? Will Bitfinex be able to continue operating as it once could or will it fully cut off from the monetary system and start its dominance on the digital market? all of this questions need to be answered by Bitfinex itself or else it could be looking at a potential bankruptcy because of all the problems with these transfers.

It is known for a fact that Bitfinex has been banking with HSBC through numerous GTS (Global Trading Solutions). However, it is still unclear whether or not the crypto venue will be blocked by these companies and what other channels they have in order to face these challenges. These transmission delays are the top priority for every employee at Bitfinex at this point, because of the scale it may affect the market on a scale that nobody is expecting. Bitfinex had started assuring the customers that everything was under control and the situation would normalize within at least a week. But that week was going to be a hell of a ride for some investors as Bitcoin prices would surely react.

How is Bitcoin dealing with the news?

No matter what happened, Bitcoin was sure to react with its prices, some of the critics believed that the prices would go crazy and it would fall to the lowest it’s been this past year. But fortunately it managed to hold on to its number 1 place on the market and its relative price remained O.K. within the week.

What’s important to note here is that Bitcoin prices are one of the most responsive ones in the world. it is one of the most susceptible currencies regarding news and is sure to stay that way no matter who says what.

The Central Bank of Ireland warns population about a scammer

Numerous Binary Options traders were able to thrive on the market. However please note that we are talking about the legit and reliable brokers here. Unfortunately, however, no matter how many times we can talk about the legit binary brokers, they will still be outtalked by the scammers. Scammers have been around roughly the same time as binaries have been. After the industry was created it didn’t take much time for scammers to start emerging as well

Why was Binary so easy to scam?

Binaries were very easy to scam because of their gambling nature. Honestly, when you are trying to explain Binaries to a person who has never heard about trading it awfully sounds like gambling to them and they dont’t agree to it. This is what the legit brokers were doing, they were marketing it as it was and only getting customers who had fully understood the consequences and were ready to take the risk.

Scammers usually took a more charismatic approach to gain leads and bringing in customers. They mostly worked on elaborate schemes which included many online celebrities, promoting their web pages. Some of the biggest hoaxes were created to convince people that someone actually managed to make millions off of the market an now was living the dream life. Most of the times these scammers focused on the winnings which were sometimes ridiculous, like 100% or even 1000% being promised to these people. Many fell for the scams and soon the industry itself got banned in the EU.

However the ban was not able to kill off every Binary Options scam broker, some managed to slip through the cracks and a new one was found by the Central Bank of Ireland a week ago. 365BinaryOption.com was described by the CBI (Central Bank of Ireland) as a dangerous broker and advised the population to stay as far away from it as possible. There have been many cases of financial institutions taking a hands-on strategy to battle these brokers and the CBI is the latest example of them.

How did they appear?

The company markets itself as a regulated Forex broker within the territory of Ireland. However, the CBI warns that the broker is not regulated and is unauthorized to operate within the border of the country. This was a clear warning for the population to avoid them because such offenses are considered criminal in the country. The websites are a primary source of the company’s deceitful marketing. It shows up to potential customers as a trustworthy and reliable broker, which will take care of their investments and help them trade stocks, forex, and commodities. The list of warnings about the company has been growing and growing ultimately culminating with this official CBI warning. It looks like it’s days are numbered.

Next time you decide to choose a broker, please choose someone who doesn’t take pride in fancy words, but takes pride in actual numbers, numbers of people it has made rich with its services. Emphasize on its services, because trading binaries usually don’t require any.

Roubini is still attacking Cryptocurrencies

Cryptocurrencies have had rivals from the very second they appeared on the market. Those rivals now have doubled or maybe tripled in numbers calling these trading assets unreliable or too dangerous to trade. Cryptocurrencies have already proven multiple times that they are a reliable trading asset, they have encouraged numerous young generation traders to get themselves familiar with the trading world. In all cryptocurrencies have been nothing but an asset to the wallets of many people and to the transaction fees and speeds for many.

One of the most notorious people who are against the development of cryptocurrencies into a stronger trading asset is a man named Nouriel Roubini. Roubini has always been a vocal opposer of the adaptation of cryptocurrencies on a decentralized level. In his words, the blockchain technology is not reliable and is only strengthened by popularity and not a real commodity.

Who is Roubini

Nouriel Roubini was born in Turkey and moved to the United States where he finished Harvard University with a degree in International Economics. His advice has been heeded in numerous high authority institutions including, The US Federal Treasury, The Bank of Israel and the Federal Reserve. What’s most important about this man is that he is a very good economist. He has been around long enough to be able to predict pretty much all of the outcomes in the market, however it looks like he has met his match with cryptocurrencies.

Roubini became very popular when he predicted the 2008 market crash, stating 2 years before it that home prices were under so much speculation that in a matter of years the market would have to face a lot of consequences for its inadequacy to handle the situation. This was not the only shining moment for Roubini, he also earned the nickname of Dr.Doom when he announced that Italy, Spain, Portugal, and Greece would leave the Eurozone.

Decentralization was the primary argument in Roubini’s speech at the MIGC (Milken Institute Global Conference) in May when he disregarded the benefits and good applications of decentralized and useful cryptocurrencies. In his belief all of the decentralized industries that were hit by the same applications turned into pyramid schemes, being nothing but a bother.

Roubini’s arguments

As we’ve already established, Roubini is not a big fan of cryptocurrencies, but he is not just a blind hater, he has analyzed everything in his mind and now offers his analysis in the form of a 37-page statement. In this analysis, he states several key points on why the cryptocurrency bubble is soon to explode. Here are the statements:

  1. Roubini’s believes that Fiat currencies hold a lot more value because of their inclusion in the tax system, with this he disregards the usefulness of cryptocurrencies in every-day life.
  2. He calls Stablecoins a large scam.
  3. The security, decentralization, and scalability are very hard to have at the same time, actually, he deems it as an impossible scenario.
  4. Bitcoin’s limit of 21 million will be its downfall, because of the susceptibility to deflation.
  5. Blockchain is not the core of the popularity of cryptocurrencies, the main attraction is Data science and artificial intelligence.

Scams in Binary Options still alive and kicking

Binary options have been receiving nothing but hate in the past few years. They used to be very popular before everything came apart and all of the industry started crumbling in front of the eyes of the investors. Most of the brokers that used to work on Binary Options were legit good brokers, who promised their customers realistic returns and in all honesty, gave them those realistic returns.

What Happened with Binary Options?

Unfortunately, however, the gambling nature of Binary Options attracted a lot of scammers, who used to make this elaborate marketing campaigns, promoting their “successful” customers who made millions and are now retired living in the alps. Many people actually fell for these tricks, because they were quite new and nobody had experience in them. Soon enough everything came apart and the true face of Binary Options brokers was seen. Most of the scammers quickly scattered, leaving the reliable brokers to clean up the mess.

All the scamming and stealing forced the EU to ban the product completely. It decided that regulating them would be much more big of a hassle than just outright banning them. Plus the regulations would have been so harsh that most of the brokers wouldn’t even want to feature Binary Options because of the small profits. Unfortunately, however, the ban seems to have not worked.

It is so easy to mislead customers into believing that a certain broker is regulated by a well know regulatory body. Before everybody starts figuring out the scam and the official regulator issues a statement about them, they would have already made enough many to pack up, leave and then rebrand. This was the case when on October 4th, it was announced by the Cyprus Securities and Exchange Commision (CySEC) that two websites, Binatex and 24Traderush were misleading their customers by claiming to be regulated by the CySEC.

How these websites were scamming their customers

Even though the Binary Options industry has been pummeled into submission by the EU, some gullible citizens are still susceptible to promises of quick profits, promises of becoming millionaires an so on. All of the Binary Options that are a complete scam, are currently being advertised as life-changing investments that made people transfer from a 9 to 5 job to a financially independent life, with which they always travel and have lots of fun. They buy luxury cars homes and so on. Naturally, this was going to attract attention.

The next step was the call centers that would call you uncontrollably, trying to make you deposit some kind of fund in your account. What’s worse is that the calls look like they are coming from the UK, but it is obvious by the accents of the call center sales people that they are being outsourced somewhere outside the EU.

The only thing the regulators can do is to find, identify and ban these kinds of advertisements. However, before that can be achieved advise needs to go out to all the “get rich quick” enthusiasts to not get into trouble and stay away from those promises of quick money.

Facebook has once again appeared on the lips of the media, because of some more controversial news. The last time we saw Facebook in the news it almost destroyed their stock prices and all of the investors pretty much bailed, once the information was confirmed. Last time Facebook had a flop, it was because of the privacy of their user’s profiles. They were accused of selling the data that they owned to numerous companies, without the consent of their users.

Even though this was included as major news, nobody really reacted in a way that was too shocking. It was as if all of this info was known beforehand and everybody was in on it. But it still sent quakes around the world, making the companies update their privacy policies and informing their customers about the supposed changes.

Why is Facebook in controversy again?

This time, however, the reason Facebook is in the news may not be their fault entirely. The internet is a big place, it is the home of everything and everyone who decides to utilize it. One of the most dangerous residents of the internet is probably the hacker. These types of hacked were able to procure about $600 million worth of account data which they are selling in the deepest depths of the web.

The dark web

The dark web is a place where everything controversial, everything shady and sometimes everything illegal can happen without too much interference from the law. This is a place where sometimes the worst of the worst gather, even though data selling is not the worst offenses, it is still privacy infringement at its finest. Accounts are now worth somewhere between $5 and $10. Everyone who wants to obtain these account data will have to pay in digital currency or else the banks would be able to trace their transfers.

Because of a breach within the digital securities of the webpage, hackers were able to access Facebook’s token storage. With this, they procured as much as they could and then disappeared never to be seen again. Until these very tokens started to appear on the dark web as commodities for sale. Tokens are basically keys that you as a user are using in order to access your account.

Is Facebook saying anything?

Facebook has already denied allegations of being an accomplice of these hackers and leaving the breech intentionally. It is still quite disturbing to think that Facebook has the capability to do that even if it didn’t do it. The account data is now sold on the deep web, on a website called Dream Market. This is where people can buy multiple digital products with digital currencies like Bitcoin and etc.

The CEO of Facebook, Mark Zuckerberg has also come out with a statement, saying that the reason behind these attacks is the weakness of the tools they have against hackers. He expressed his willingness to start working on more advanced defense mechanisms to prevent the same issue in the future.

ScoutChain and Block Crafters are now partners

Blockchain has become so popular within this 1 year, that more jobs were created in the industry than it could keep up with. Data analysts, blockchain programmers and financial analysts suddenly saw a spike in the demand of their professions. Therefore the salaries increased exponentially, nearly tripled in size. All of this chaos of finding the right people for the job required a contractor, a recruiter who would only specialize in blockchain, that came to be in the face of ScoutChain.

ScoutChain is somebody to look into because of their latest partnership with a blockchain accelerator. Block Crafter was able to procure this partnership with ScoutChain on October 4th. The core of the collaboration was with accelerating all the processes connected to blockchain recruitment and the transformation of the experience. In order to make a lot more good decisions over the staff, more acceleration was needed in their system.

How does ScoutChain recruit?

The easy description of the process that individuals go through when applying for a job in ScoutChain is that they basically exchange data through a blockchain, which in turn guarantees their privacy and security. The whole platform was built on blockchain technology and doesn’t even require an operator because it already has a life-long one, artificial intelligence. ScoutChain is trying to tap into the global market, because of the reason how international the blockchain industry has become. Some countries who have some of the biggest capital sometimes don’t feature enough local experts for their business processes and have to hire internationally. ScoutChain is aiming to make this process easier by letting its platform process all of the data sent in by applicants and only give the green light to the ones most qualified for a potential blockchain job. After this companies will be able to easily access the information given by the candidates and choose their desired ones to interview.

Who are these companies?

Block Crafters are sort of like angel investors for any tech or financial startup. They have not been prevalent only in the Blockchain industry, but have touched numerous other aspects of fintech. They are basically an accelerator, helping startups in IT to get started, become popular and get established as good and reliable businesses. For large corporates, they act as contractors or developers with an outsourcing service. They provide the acceleration of newly implemented fintech related proceedings in large companies. They are very proud to be able to provide such services and promote investments in blockchain technology and other IT startups.

ScoutChain was a primary target for Block Crafters because of the fact that, they were one of the biggest recruiters in the industry. Some of the staff in Block Crafters actually found their jobs with the help of ScoutChain. The CEO of ScoutChain Moon has also agreed that a partnership with this company was pretty much always on the horizon. They admire all of the projects that Block Crafters enable and the angel investment attitude that their company promotes to others.

Scams and Blacklist

Scams are unfortunately all too common in the field of binary options. Dishonest brokers and reviews, or rigged robots and other auto trading services – the scams can come in many forms. So we feel it’s necessary to create this blacklist and list all known frauds and dishonest techniques in one place. We also go through the steps you can take to identify a potential scam and how to deal with the situation after the fact if you’re already a victim. If you know or suspect something is a scam, and we’re missing it on our blacklist, please let us know and we will look into it!

Why Are Stories of Scams So Common?

When any new financial instrument or form of trading first emerges, a whole range of businesses tend to get involved. It’s a fact of life that some of those product providers are going to be more trustworthy than others. This is certainly true of binary options. It is, after all, an accessible and popular method for individuals to trade the markets. What’s more, at least in their early days, binary options trading platforms tended to operate under the radar of the regulators and from any country over the internet – so it’s hardly surprising that unscrupulous operators seek to take advantage. Thanks to better regulation, a strong online trader community and honest reviews, it’s now a lot easier to tell a scam from a legitimate broker. But as with any international online marketplace, there are still some shady outfits who will leave you with less than you bargained for. So what are red flags to look out for? Here are the points to consider as you go about choosing your binary broker.

MyChargeBack.com are a company who specialise in helping binary fraud victims recover their money. They liaise with bank or credit card firms in order to get charge backs made to reclaim deposits. They will tell you if you have a valid claim via a free consultation.

Are Binary Options A Scam?

The term “scam” covers a wide range of behaviour, from providing misleading information to lure you in, through to vanishing account balances – and even dishonest trading advice. Likewise, a particular broker might not be technically fraudulent in its behaviour; it’s just that the service available on the platform (such as highly unreliable uptime or failure to reimburse funds in a timely manner) means that this is a broker that really ought to be avoided.

In all of these cases, the problem isn’t with binary options as a concept, it’s with the broker.

So it’s a matter of doing your homework before you commit to any particular platform. User reviews can be helpful (if they are genuine), but always treat such reviews with scepticism – and never make a decision on the basis of testimonials published on the broker’s website. Even trader forums can be problematic – look closely and you’ll often find that the forum is an offshoot of a particular broker’s website. Independent, thorough and comparative reviews are the safest way to ‘scam-check’ a broker. Ideally, focus on review sites that allow and encourage real-life users to get in contact and report and problems with particular brokers, so you can be sure that what you are reading is up to date.

Trusted Brokers in Russia

Below is an always up-to-date list of our top 3 trusted brokers. You can find a list of all the brokers we recommend here.

Broker Regulated Min Deposit Payouts Bonus
Binary.com $5 90% » Visit
Binomo $10 90% » Visit
BDSwiss $10 N/A » Visit

Regulation

The UK’s Financial Conduct Authority (FCA) does now regulate binary options. They have already created a list of unauthorised firms. While they are not calling them scams, they are making it clear that these firms are breaking the law by trading with UK visitors – so they are best avoided. The full list can be found here: FCA Unauthorised List

By contrast, the USA along with most other EU countries do regard binary options as financial products. Depending on where they are based, many platforms will, therefore, be subject to oversight from a regulatory body. Examples include the CFTC in the US and CySec in Cyprus. A platform’s regulatory status can be a highly valuable trust-indicator for traders seeking to avoid scams. It shows that the broker has to abide by certain minimum standards when it comes to service and transparency.

Marketing “Too Good To Be True”

Taken in isolation, the act of placing a trade should be a straightforward one; and indeed, the usability of a platform tends to be a big selling point for brokers. Although this aspect of binary options is “easy”, it’s something quite different to claim that profits are guaranteed. Realising a profit through regular trading requires knowledge of how markets behave, the ability to read market conditions and an understanding of strategy. If the risks are downplayed – or outright false assertions are made (along the lines of “95% trades are successful”), these are false assurances. It’s a sign that the broker may be less than scrupulous in other important areas and that the platform ought to be given a wide berth.

Terms and conditions

Transparency is essential. Read the smallprint, and be especially wary of needlessly convoluted procedures for withdrawal of funds. Terms regarding your initial deposit can be another source of contention; for instance, if you are denied access to the deposit until a certain number of trades are made – so your money is tied to the platform from the moment it is handed over. This deposit retention is often part of wider terms associated with a ‘bonus’. CySec have sought to ban these sorts of terms by stopping the use of ‘deposit match’ bonuses. Non-CySec brands are still free to use them however, so T&C’s must always checked.

Cold calling

These tend to fall into two categories. The first is where you are called out of the blue and invited to sign up to a particular platform. The second occurs where you are already tied to the platform and you receive a call (or email) from a “senior broker” pointing you in the direction of particular trades. Reputable brokers do not need to make cold calls. Bear in mind “cold calls” might include emails too – any form of unsolicited approach should be considered a “cold” contact and be treated with extreme suspicion.

Channel sales

You should always be clear about who you are dealing with. In some situations, you might visit what appears to be an actual broker’s site, click the link to sign up only to be redirected to another broker. Alternatively a trading “service” may dictate that you use only their recommended broker. These “funnel” sites are sometimes used as a front by brokers with a poor reputation, or are working alongside them to dupe visitors (often using the misleading marketing mentioned above). A good broker will be upfront about its identity from the outset.

Managed accounts

It’s one thing for a broker to give you access to the data and analysis tools to work out your own strategies (in fact, this is one of the signs of a great platform). It’s quite another for that broker to also offer trading advice. After all, with ‘over the counter’ binary options brokers, you are betting against the house; if the ‘house’ is making the trading decisions for you, it’s hardly likely that those decisions will be in your best interests. This form of “upselling” is often the most lucrative for the broker, and is usually the where traders lose the most. Encouraged by an “account manager”, traders are advised to deposit beyond their means and to over trade. On occasion large accounts will be wiped out in hours. The “advice” goes against any sound money management, and increases risk hugely. Always take responsibility for your own trades. Never allow a broker to make trading decisions for you.

Price Manipulation

There has to be a fair and transparent benchmark against which the broker sets its prices. This benchmark should be what’s happening in the real world; i.e. real-time market prices. If the broker reserves the right to set its own prices, you can assume that those figures will be skewed against you; in other words, a loaded deck.

Blacklist

The brokers listed below have generated a lot of complaints both directly and on the forum. The disputes vary from upselling and encouraging traders to over trade, to non-payment of withdrawals and price manipulation. There is little recourse for traders to raise a dispute with unregulated brokers, so it is generally advised that you look for trusted binary options brokers – preferably regulated in your own country where possible. “Scam” has become 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 nothing dishonest or illegal, but have attracted higher than normal levels of complaints. If in doubt, trade elsewhere. There are plenty of honest brokers out there.

Robot And Signal Scams

These signal providers, or robot services, are either scams or not recommended for other important reasons.

Instagram And Facebook

Beware of scams operating on social media. Again, binaries are not a get rich quick scheme. There are a huge number of accounts promising to trade on your behalf and turn $2k into $8k in a week. If these claims were true, the people behind them would not need to be running ads or signing people up – they would simply trade themselves.

Screenshots of successful trades are exceptionally easy to get – even genuinely. But these operators are unlikely to even bother trading – once you send them money, it is gone and you will not hear from them again (unless they think they can get you to deposit more). Always select your own broker, and always take responsibility for your own trades – dont let someone else trade on your behalf. If you do not understand binary options, or do not have time to trade – then do not trade at all. These scams often prey on people who lack experience.

What To Do If You’ve Been Scammed

Do you think you’ve fallen prey to a binary options scam? Read on to find out what you can do if you’ve been scammed. There are many ways to help ensure that you don’t fall prey to a scam but the reality is that even if you follow all those tips there is still a possibility you will be scammed. If that happens, what do you do? Do you sit back and take it? Do you give up on trading? No, you need to stand tall and look out for yourself. Trading is good, it is rewarding and can lead to a life in which you don’t have to go to a job and punch a clock. You can’t let the actions of one broker, signal service, robot or guru dissuade you from that path. This article is a look at what you can do if you think you’ve been scammed. It’s likely that once an issue arises you won’t be able to get your profits, it is possible to get back your initial deposit but it might take some work.

MyChargeBack.com are a firm specialising in helping victims of binary options fraud. They help claimants to explain the incident to the bank or credit card company, so that they fully understand what has happened. Some banks are unaware of binary trading and are unwilling to listen to claims. MyChargeBack help in this situation. They have a solid record of recovery from genuine claims.

If you are not yet looking for third party help, here are some steps you can take yourself:

  • Document everything. The very first thing to do is to make records of everything you can. This includes the brokers, or SSP’s, terms&conditions, copies of any emails/Skype/live-chat you have had with them, confirmation of your deposit, turnover requirements for bonuses and your trading history. 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.
  • Try to withdraw. Broker won’t let me withdraw. Contact the broker and try to find out why they won’t let you withdraw. The most usual reason is that you’ve not sent in the right ID documentation, something required by international law, and is an issue easy to fix. The next most pressing reason why withdrawals are not allowed is due to bonus terms and turnover requirements. If you haven’t met conditions you will not be allowed to make any form of withdrawal which is why you want to keep track of all your trading volume and turnover. If you didn’t accept a bonus in the first place your documentation will help you prove it. 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. If your broker is giving you the run-around and won’t address your issues the next best avenue for satisfaction is to let the community know what is going on. 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.net. 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. The broker won’t help, now what? At this point the chances that you have been scammed, and not just suffering from miscommunication, are quite high. If you can’t get satisfaction from the broker you will have to take more drastic measures. 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. They withheld payments until the broker satisfied the claims.
  • Contact the regulator. Time to call out the big guns. The great thing about expanding binary options regulation is that there is an alternative for many traders who think they’ve been scammed, you can contact the regulator. In some cases this can be a challenge as many brokers are located off-shore and hidden behind holding companies and virtual offices so be sure to do your homework. If the broker is regulated contact the agency overseeing them, if they are not regulated contact the agency which oversees financial regulation in your country. If the broker is regulated they will have to address your issue, to the satisfaction of all parties, in order to remain compliant. If they are not regulated at least you can be assured at least they will have a harder time scamming any more people from your country. At best cooperation between regulators could result in the broker being shut down for fraud.
  • Be persistent. Shady brokers like to hire people who are good at deflecting questions and complaints, don’t accept what they are telling you. It may take time but eventually you will talk to the right person, or persons, and your case will be addressed. What is most likely to happen is that the combination of your contact requests, forum complaints and charges with regulators will add up to one thing, the broker giving you your money back to avoid a much bigger hassle.

How to Spot a Trading Strategy Scam

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.

A System or Only a Strategy?

First and foremost, trading strategies aren’t really going to help you become a good trader. 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. It also may not provide guidance on position size or whether you can trade multiple assets at the same time – issues which are very important to address. In other words, a strategy may have missing pieces of information you need to be successful. We need a complete trading system…but marketers are smart, so they can easily just call the product they are selling a “system” to make it sound more complete. But is it? Here are several things to watch for which could tip you off the product is probably a waste of money:

Boxed System

A boxed system is one where you don’t get to know how the strategy works – it’s an opaque “black box”. For example, the product may just be a series of indicators or a service that tells you when to trade, but not why. This isn’t going to make you a better trader, because you don’t know what is happening behind the scenes. If a product or signal service stops operating you are left with nothing. Even if you made money with the product/service you have to start from scratch all over again. Make sure if you buy something it explains how it works, so that eventually you don’t have to rely on the product/service.

Extremely High Win Rates

Is it possible to have a 90% win rate? Absolutely, yet it is also possible to lose money with a 90% win rate. Stats are easily manipulated to tell partial truths or fabricate lies. Other popular tactics are saying things like “Made $500 in one day!” So what? That doesn’t actually tell you anything. If that was on a $1,000,000 account then making $500 isn’t so grand. And if they lost $3000 they day before, then making only $500 today and bragging about it is rather paltry. Read between the lines. What isn’t being said? To understand performance you need several bits of information: Account size (capital), percentage return, amount at risk on each trade, amount of profit per trade, win/loss ratio, biggest winner, biggest loser, average winner, average loser, number of trades and period over which the strategy was tested/profitable.

There are also some other metrics that could help you out, but if you ask the company for these bits of information, and they can’t or won’t give them to you, be suspicious. 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. It doesn’t necessarily have to profitable in each of these environments, but it should have at least been traded through them all so you know that the system is profitable overall. Often marketers will only publish results for a period where strategy did very well. But this doesn’t give you a real idea of how the strategy or system works over the long-term.

  • Related to stats there is something else you need to consider. If a system is profitable, that result is based on all the trades. If you buy the product or the service, are you going to trade them all? On issue many traders face when subscribing to a signal service is that they don’t trade all the signals. If you don’t trade all the signals then your personal results could be dramatically different than the typical results of the service.

Only One Direction

Avoid a system that only trades in one direction, for example only buys assets but won’t short sell them. Markets rise and fall, you want to participate in both trends.

No Trial Period

You should be able to test a product and be able to cancel without a fuss if the service isn’t for you. Usually a quick trading forum search on Google will reveal what others have shares about a product or service. No trial, no deal. Don’t trust anyone, test things out for yourself. If they won’t let you, then be wary.

Final Words on Identifying Scams

A product or service shouldn’t make you reliant on it. It should show you behind the scenes so that eventually you can trade on your own. Good products will always have customers since there are people who don’t want to do the work themselves, and there are always new traders. There is no reason to make every customer totally dependent. Be wary of stats that are thrown out. Ask yourself what the stats aren’t telling you. Also, if the stats they provide are legitimate, then you’ll need to trade all the signals to take advantage and get results typical of the service. Of course remember though, past performance is not indicative of futures results. That is way it pays to do some homework, and make sure the strategy/system/service/product is based on a long history, and has proven itself profitable over all types of market conditions. Test out a product/system/service before buying it. If they won’t let you try, be suspicious.

Case Study – JV Affiliate Marketers

In this section we will look at how you can avoid being scammed by Binary Options JV Affiliate Marketers. Its not so hard, but requires you to let go of your emotions and examine things in a logical manner, as many of the scammers use emotional greed/fear tactics to get your money. Once you understand this you can quickly and simply save your time and money with these unscrupulous dolts. Some scams are simply comical in how stupid they are, while others can be very well done con jobs that lure you in with seemingly genuine people/systems/reviews which later you find are the exact opposite, as you look at your $0 balance wondering “Where did my money go!?”.

As you will see in the numerous scam videos, all you have to do is “NOT DEPOSIT” then these scams no longer work. So next time you see videos that are of a similar nature, just know they are supporting scam systems/marketers. Understand if they require a deposit they are fly by night and even if they were not they are supporting the scammers by the nature of requiring you to deposit with a new broker. So just refuse to deposit and they go away. Not the same stories kind of stories and promises over and over all to get you to sign-up to their “free” system/bots… They are not free you have to deposit and they get paid on those deposits… So remember limited time/fast money/can’t lose!/just fund your account = don’t do it!

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 reason you see so many of them is after a few weeks of the new story line wares off and becomes boring they will start production on another one and keep it all fresh and new thus avoiding the wrath of their old scams being complained about and those complaints shared with others. If they keep it new they avoid this along with the fact most newbies jump from one scam to another hoping one of these will work, which none of them do because trading is a learned skill/job… So again, understand their stories and how they work, and don’t deposit .

Case Study – Scams on Social Media

Social media is a “perfect” platform for scammers and can be even more insidious and convincing, and unlike the JV marketers these people will talk to you directly, but only to a point. Once they figure they can’t get any more from you or you no longer have value to them, they will un-friend you in a heart beat. 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. Videos such as those used with both “The Green Room” and “FB Wealth Group” will pretend to be traders/friends, while they are really just out to get your money through either signups or even trying to have you pay them directly.

Also – if you see them mention anything MLM (Multi Level Marketing) related, they are trained to lure you in, so run the other way. These people don’t play around and will say whatever is needed to get you to sign-up and invest. There is a 45 minute long interview of a person that was scammed by both “The Green Room” and “FB Wealth Group”. 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.

Scammers will repeat the common element of wanting you to deposit or even asking for money directly and from there you can tell them “no thanks” and make sure to unfriend them.

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