As you know, and as we often repeat it you on the website, there are lots of online trading scams that try to make a profit out of people that are new to the trading world and that don’t pay attention to the key aspects of their broker. The binary options universe is not exempt from these scams. It is indeed one of the most competitive and dynamic market. It has thus become the target of a number of fraudulent companies that try to steal traders’ money. Ending up being scammed is one of the worst feelings in the world and we have tried many times to give you the key tips and precaution to avoid binary option scams and fraudulent brokers.
Most of these complaints are unfunded
Everybody can end up being scammed. This is not something that only happens to stupid people or beginners. Scammers have developed advance methods to trick you and it can happen way faster than you think. Nevertheless, there is a difference between pure scams and traders’ mistakes. We often receive complaints from readers that believe they have been scammed but eventually only lost their money or didn’t pay attention to the terms and conditions of the related broker. We have listed below the most common scam complaints we receive from our reader and why some are unfunded.
Lack of understanding or precautions
Most complaints we receive and find on specialized forums are not due to scam brokers. They are either due to a lack of understanding or a lack of precaution from traders that did not pay attention to the general terms and conditions of their broker or the specific restrictive conditions of a promotional offer. Yes, some brokers may try to hide this kind of information or make it extremely complex to understand. But if this information is displayed on the broker website or on your contract, you will not be able to do anything about it. This is why you have to pay a particular attention to the details of your trading account contract. Make sure to also understand the product in which you are investing. Many scam complaints turn out to simply be a bad investment decision.
Problems with cash withdrawals
From our experience, all the respectable brokers are honoring the withdrawal requests of their clients. The only ones that do not are pure non-regulated scams registered in tax havens and there is nothing you can do to recover your deposit if it happens. The complaints that arise from regulated brokers are often not justified. The reasons for withdrawal delays are not only down to your broker. Regulatory requirements and bank processing times also add to the delay that can be apparent whey trying to get hold of your funds. Once again, make sure to cautiously check the general terms and conditions pertaining to the withdrawal process of your broker. Many traders also complain about the necessity to provide the broker with a long list of identification documents before they are able to withdraw their funds. The reason for this is to prevent money laundering but also to make sure your funds are not withdrawn by someone that would try to steal your identity. This is indeed an additional security layer that is attached to your deposit.
Bonus related complaints
This is also one of the main complaints we face with traders that believe they have scammed. Bonuses represent a really sensitive subject. Many people tend to forget that these bonuses are subject to strict withdrawal restrictions. Brokers need to attach such restrictions in order to limit fraudulent clients that would just open a trading account in order to cash in the bonus and then close their account with a free profit. This is why you will have to re-invest your bonus amount multiple times in order to be able to withdraw the promised cash reward. Sometime, you won’t be able to withdraw the profits you made on your deposit because you still haven’t reached the withdrawal threshold of your bonus. You should be aware of that before you accept any bonus on your account. This is the reason why we recommend you to avoid welcome bonuses and focus on the binary option brokers that don’t need such incentives to recruit their clients.
All our recommended brokers are fully regulated and 100% proven safe with an extensive track record of client satisfaction and deposit security. Before signing up with any online broker, make sure to follow all the steps from our article binary options broker tips. Do not hesitate to also have a look at our detailed reviews of OptionTime, 24Option, AnyOption, TopOption and IG binary if you want further information about their offers. They all propose educational contents that will help you to learn about binary options and improve your trading skills.