Binary Options Scam Brokers
Although the binary options industry is a serious and legitimate one, there are organizations and individuals trying to take advantage of it to scam people. To make sure that the reputation of the binary options industry is not compromised by a few bad apples, and to make sure that investors out there can carry out their trades in an environment as free from scams as possible, we have decided to compile this list of scam and untrustworthy brokers. Our team will keep on actively searching the web on a daily basis to update this list and include any new scam brokers it may find. The information compiled will include the reasons we believe a given broker is either a scam or untrustworthy. Our goal is to help protect the binary options industry as a whole, including investors, from binary options scams.
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Here is the list of Scam Brokers
From all the information that our team searched for in connection with the closure of BTG option, we couldn’t find out why the broker ceased trading. Our team did find various scam allegations related to this broker. Some users have complained about withdrawal issues. Our team has good reason to believe that BTG Option was a scam. Unfortunately brokers that engage in this kind of behavior, cast a shadow on the whole binary options trading industry. Traders should read broker reviews always before trading. The review is the best way to understand whether or not the broker is a scam.
This broker opened up for business in December 2012. They were registered in Cyprus, but they have now shut down. Regal Options was one of many brokers to use the Tradologic platform, which is a highly professional platform, but it seems that they either had management issues or scammed a few traders. This proves that it takes more than a great platform to make it in the binary industry. Traders have to be aware of scams and understand the nature of the broker before they make a deposit, or they risk having withdrawal problems. We do not know why they shut down for certain, but there is information claiming that the broker was a scam. Some traders claim that there were withdrawal issues and have been looking for a phone number on different forums to make their claims and get their withdrawal. Our team has seen a few pages and forum responses claiming to have Regal Options’ phone number, but traders should be careful. These phone numbers can also be a scam, and in any case if they reach Regal Options’ staff, there is no guarantee that they will be able to make their withdrawal.
iOption has closed down for trading. At a glance, it seems that this broker is not a scam because they have displayed withdrawal information on their website. Nevertheless, its customers cannot engage in trading through their website any longer. Although our team cannot rule out that this broker is a scam, it is unusual for a broker to put up this kind of information on its website once it closed its trading services, if it wanted to scam traders. This broker might have gone out of business for a variety of different reasons. That is why we always advise traders to check all the reviews and engage in a thorough market research exercise before they open an account. This can help them avoid scams, withdrawal issues and unstable brokers that will sooner or later cease trading.
This was a regulated broker, but it seems to have gone out of business anyway. Although we do not know the reasons why Option Time decayed and closed down, we can say that sometimes traders exaggerate the value of a broker’s license. Although regulated brokers have a smaller chance of being a scam, whether they succeed or fail to do so does not depend on just regulation alone. The binary options industry is highly competitive, and many brokers do fall into decay regardless of whether they are licensed or not. There are unregulated brokers out there that offer their traders higher added value than the regulated ones, and are less likely to decay and close. In the case of Option Time or any other broker, traders should read the review before they open an account. That way they will be able to understand if there is enough value in the fact that the broker is regulated or not.
Cedar finance officially closed down. The broker faced numerous scam allegations, including testimonials on chat rooms and videos claiming that Cedar Financial made false promises. Brokers have various systems to scam traders, and the fact that a significant amount of people complained about Cedar Financial’s practices, is a critical scam indication. There are quite a few brokers that take advantage of testimonials to make false promises and scam traders. This system has been used before, and although we cannot be sure that Cedar Finance used it, the exaggerated promises about returns might have wrongly enticed traders. Reviews are the best way to determine whether a given trader is a scam or not, and which system they use to scam traders.
A shut down or unavailable website is the first indication that a broker could be a scam. NRG’s website is down and on top of that, many traders have been complaining about their withdrawal policy. These are clear scam signals. Although our team cannot asses with certainty that NRG is indeed a scam, it clearly looks like one. It is very rare for a scam broker to leave its website running and actually inform its clients about the withdrawal policy. Mainly only legitimate brokers that have gone out of business resort to this practice and disclose the withdrawal options to their clients once they are closed. This is why it is always important to do some due diligence and check all options before choosing a broker.
Lbinary is closed for business although their website is online and open. We have received numerous emails from people complaining about this broker, claiming it is a scam. There are a lot of Lbinary reviews claiming that the broker is a scam. You can find people in various forums claiming that Lbinary had withdrawal issues or even that they used trader funds to invest without the consent of the traders. Since their website is still open, we would advise you not to let that mislead you and invest with a more suitable broker. It is important for traders to read broker reviews in order to avoid scams and make sure they know enough about binary options before they invest.
Bee Options has shut down. This case does not seem like a scam, but rather like a case of poor management choices. Their website is still up and running, and our team couldn’t find any special withdrawal instructions or a phone number to contact them. Traders trying to withdraw their money from their Bee Options account should try to contact customer service via the website before they go looking for a phone number to call the broker, or check the available withdrawal options on the site. The binary options industry shifts quickly and some brokers don’t manage to keep up, that does not mean that they are a scam. Our team thinks that Bee Options got caught up in one of these drastic shifts and couldn’t pull itself out.
Another binary options broker to close down. It is widely believed that Traderxp is a scam. Our team has not been able to confirm this fully. What we do know is that there have been various complaints and a negative review in a couple of websites. Their site is still up and running, and their live assistance button on the menu is highlighted green. In the binary options industry it is very hard to tell whether a given broker is indeed a scam or not. In this case it is equally difficult to assert whether Traderxp engaged in unduly behavior or scammed its customers. That is why you should always read the review before you start trading.
Binary Options are not a Scam
Many people relate the binary options industry with scams. It is important to understand that not all the brokers in the industry are out there to scam investors. Binary options are legitimate investment tools that can be used to make a profit, and in that sense they are not different from other investment tools. Other areas of finance have also been hit by scams and fraudulent agents. Still the legitimacy of those industries is not questioned. This is why it is important to understand how binary options scams take place and what can be done to avoid them. This will help the binary options industry to recover its rightful place.
Spotting Scam Brokers
Brokers and agents can recur to a number of tactics to scam investors. Investors have to know which precautions they should take to spot the scammers. The following is a list of tactics to watch out for:
- Brokers can manipulate market data presented to investors through graphs on their platforms
- Brokers may withholds withdrawals that were rightfully requested or delay the transfer of funds
- Brokers can use credit card information to keep on charging the investor without his or her approval
- Brokers may offer bonuses that serve to hold investor funds locked in
- Brokers could attempt to use an investor’s personal information (identity theft)
These are some of the precautions investors should take to make sure that they are not being scammed:
- Look for reviews about the broker they want to trade with, and make sure the information on those reviews is trustworthy
- Make sure the broker has a good reputation not only among investors, but within the industry as well.
- Make sure you know the withdrawal policies offered by the brokers
- Check that bonuses will not lead to fund lock in
- Don’t allow the broker to withdraw funds from any banking account, virtual or otherwise.
- Pay through a credit card that allows the you to challenge fraudulent charges
- Never use a debit card to open an account
Binary options as a financial instrument are regulated. Regulation can help reduce the chance that a given broker will be a scam, but cannot eliminate it. There might be regulated brokers that scam investors, although it is less likely. On the flip side, there might be unregulated brokers that are honest and credible. Not all the brokers that are not regulated are scams, just as all regulated brokers are necessarily scam free. The check list above should serve as a good point of reference to verify that a broker is not a scam.
There is a no doubt that there are enough binary options brokers and agents that scam investors. The binary options industry is not different from any other. This is why investors have to be aware at all times. We recommend that you keep on reading the reviews and make sure you follow all our updates on scam brokers.