Full List of Binary Options Scam Brokers
Unfortunately, scams are more of a common occurrence within the binary options industry than what we would think. The Industry has been battling almost since its inception with harmful individuals and organizations that take advantage of profit seeking investors to steal money. This page will display a comprehensive list of scam brokers and details about the methods they use to scam investors. We will keep the list updated, and will include any important updates in our newsletter as well. We hope that this page will become an integral part of our contribution to the binary options industry. Above all we hope that the information in here will help investors stay safe.
Freeing Binary Options from the Scam Bias
Scam is a word that has been associated with binary options trading, mainly because bad brokers have tricked enough investors. These brokers have generated an environment of mistrust among the people interested in binary options. That is the reason why it is important to make an effort to debunk some of the myths about binary options and make sure that no one will equate the industry as a whole, with the concept of scam. Binary options in and of themselves are not a scam. The industry is even regulated by powerful regulators in the European Union and the US. In order to free the industry from the scam bias, it is necessary to understand how the reasons behind this misguided perception.
24Bulls is a Scam Broker
LBinary is a Scam Broker
This broker is closed for trading. Their website displays a message for clients regarding withdrawal policies and refunds. Although their reason to cease trading is not clear from the information available on the site, it might not be due to a scam. It is strange to find a broker that engaged in a scam that willfully displays this kind of information to allow clients to withdraw their money from their accounts once they ceased trading. There are many reasons why a broker might close its trading operations; it doesn’t necessarily have to be a scam. Nevertheless traders should read the reviews thoroughly and find out which broker suits their needs and is the most stable before they begin trading.
Regal Options was a binary options broker registered in Cyprus. It opened for business in December 2012. The broker chose a very successful platform, but their case shows that succeeding in the binary options industry takes much more than the right choice of platform. Traders have to understand that the use of a great platform does not guarantee that the broker is not a scam. They should understand who the broker is before they deposit money in an account, or they risk having withdrawal problems. Although we cannot state why Regal Options closed down with any degree of certainty, we have received information claiming that the broker is a scam. Traders claim that there are withdrawal problems. Some have been looking for a phone number to speak to the broker and make a claim to get a withdrawal from their accounts. There are a few phone numbers associated to Regal Options but traders should be careful because anyone can place a phone number on a site to prey on traders that have already been scammed. If the broker is a scam, then there is no guarantee that even if traders can contact Regal Options through these phone numbers, the company will agree to authorize their withdrawal.
This broker closed down after numerous scam allegations. There are numerous testimonials on chat rooms and videos about false promises made by the broker. This is one of the indications that investors have to look out for when they chose their brokers. There are quite a few brokers that use false testimonials as a way to scam traders, and although we cannot be sure that Cedar Finance engaged in this kind of behavior, the exaggerated promises about their system do raise suspicions. Ultimately reviews are the best way to determine which system works better and which brokers are engaging in scams.
Option Time was a licensed broker that closed down. We have no specific information about why this broker closed down or if it was a scam. What we can say is that sometimes traders place a lot of value in the broker’s license. Certainly regulated brokers are less prone to be scams, but whether they succeed or decay depends on a lot more than just regulation. Also, some brokers that are not regulated offer their traders a higher added value than regulated ones, so regulation is not a silver bullet. In the case of Option time and any other regulated broker, it is not enough to trust regulation. Traders must read the review before committing funds. This is the only way they will be able to assess the added value that regulation brings to the table, correctly.
The fact that there are many binary options brokers that go out of business is not a surprise. The problem is determining whether they are a scam or not. In the case of Traderxp it seems that they did scam some clients, or at least that is what people claim in industry forums. Truth is there is not enough evidence to establish that this broker is indeed a scam. If you still have money in an account and they are preventing the withdrawal, then it is quite possible that you are being scammed. In any case, their website is still up and running, so you should be able to contact their support. Since this broker could be a scam, and as far as we know it has closed down, there is no way of knowing if their operation is real or fake. This highlights the need to read the review before you start investing with any binary options broker.
With all the brokers closing down for trading, it is difficult to tell which are scams and which just went out of business. BTG Option is quite likely to be part of the first category. Our team has been unable to establish exactly why BTG closed for trading. Nevertheless, considering the accusations against this broker, it is pretty safe to say that it was a scam. It is also pretty evident that many traders unfortunately did not read the review before they started trading with BTG. Although the review could also be mistaken – after all, good scammers find a way to trick everyone – it is much more difficult to fool experts with years of trading experience. Always make sure you read the review and check the information thoroughly before you start trading.
This broker shut down and its website is down as well. This is a clear sign of a scam. It is still not clear whether traders had withdrawal problems or the broker engaged in a different kind of scam. Brokers can scam traders also by rigging the financial information they feed to their platforms and not only by refusing withdrawal. It is always important to understand what is happening with a broker before investing, and in the case of NRG a lot of people are complaining on forums about various scams. Ultimately the binary options industry is not different from any other, and as much as there are scam brokers, there are plenty of people who are willing to share their bad experiences in order to make other potential traders consider their options.
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. The sheer amount of reviews labeling Lbinary as a scam, supports the information we have gotten from traders. Some people have complained about withdrawal issues. Others claim that their funds have been invested without their consent. This is clearly the behavior of a scam broker. That is why we advise traders to do their due diligence using the information available online about a given broker, before they go ahead with a deposit. Remember, to avoid a scam, read the review.
People are Seduced by the Thought of Quick Money
Believe it or not, there is a lot of research and understanding behind investing in any industry. The fact that investing in binary options is easier, doesn’t mean it requires less thought. Some people believe that binary options will make them rich overnight, and although there are incredibly skilled traders who have made sizeable fortunes instantly, most investors need some time to gain experience before they profit. Moreover, any investment made comes at a risk to the investor. Some inexperienced investors actually blame their brokers for the loss of their money and they feel scammed. It is important to take the comments from angry investors with a grain of salt. Although in some cases the broker might be at fault, it is important to analyze the problem on a case by case basis since many times the investor just failed to factor in the risk. No broker should be held responsible for overzealous investors looking for quick money, but there are definitely norms and standards that binary options brokers must follow in order to help rid the industry from the scam bias.
Scam Brokers Exist, Beware!
Brokers can scam investors in a number of ways. Investors must always look out for these scams, and make sure they can trust their brokers. Brokers who are looking to scam investors are not different from scammers in other industries. This is a list of the most common tricks that a broker can use to scam investors:
- Broker manipulates market data (graphs) presented to the investor on the trading platform
- Broker withholds funds for withdrawals or significantly delays a transfer once requested
- Broker carries out unauthorized credit card charges
- Broker offers a bonus that locks investors funds into the investment account
- Broker uses investor’s personal information collected when the account is opened (identity theft)
What Should Investors Look Out For?
Like in any other industry, investors must make sure they can trust the broker is not a scam. These are some of the things they should do in order to make sure that they are not being scammed:
- Read reviews about the brokers and make sure the information on those reviews is objective
- Make sure the broker has gotten positive reviews from trustworthy sources
- Make sure the fund withdrawal policy is clear and the broker will abide by it
- Understand the bonuses offered by brokers and which conditions are attached to them
- Make sure the minimum deposit has no other strings attached
- Avoid letting any broker withdraw funds from a banking account or digital wallet on a monthly basis
- Payments should be made through a credit card that allows the investor to challenge fraudulent charges
- Avoid using a debit card to open an account
- Knowledge about investment is the key to manage investor expectations and avoid blaming otherwise dependable brokers for trading risks
Can the Government Help?
Regulators can help reduce the chance that a given broker will be a scam. This does not mean that regulation is a silver bullet. Not all the brokers that are not regulated are scams, just as all regulated brokers are necessarily scam free. Regulation does reduce the chance for a broker to scam people significantly, but regulators also make mistakes. Some brokers that are operating may also be waiting for regulation, which is a time consuming process. That doesn’t mean they are a scam. In any case the check list provided above should serve as a good starting point to make sure that a given broker is not a scam.
There is a bias against the binary options industry. It is up to the brokers to conform to basic norms and standards in order to take the scam tag off the industry. It is up to the investors as consumers to do their research and manage their investment expectations. That way they will be able to spot scam brokers, and avoid labeling honest brokers as scammers on binary options forums. The Best Binary Options Reviews team will keep on watching out for broker scams and will keep updating the list, in order to help investors tell the trustworthy brokers from the scams.