The binary options industry has seen better days after the once-promising marketplace has been largely revealed to be full of fraud and scams. For traders who still prefer to trade binary options, this means navigating a tough marketplace that’s fraught with perils, and sometimes having to deal with the unfortunate reality of being scammed. With lawsuits that range from tens to hundreds of millions for fraudulent binary options executives, it can be disheartening if you’ve traded on the market.
If you’ve lost money on binary options scams and fraud attempts, it may seem impossible to reach these companies, and when you do it can feel even harder to get anywhere. From obtuse rules and regulations to fine print that no one can read, binary options companies make it difficult to get your way. Fortunately, there are ways you can stay ahead of these companies and be aware of scams before they unfold. In cases where that’s not possible, you can always explore services like PayBack to help expedite and simplify the process. Read on to learn about the worst binary options scams, and how you can stay safe even in the direst situations.
Dealing with many binary options platforms’ customer support and legal departments can be a nightmare even for the most well-versed traders. Companies that run scams are not always happy to extend channels for clients to reach them, and if they do, they’ll make it hard to actually get anywhere. Fortunately, PayBack can help you navigate the murky waters of recovering your money back from scammers and fraudulent binary options companies. From collecting information and gathering the required documentation to confronting companies for your funds, PayBack can facilitate the restitution process you deserve.
Even so, it pays to know what a binary options scam looks like to avoid it better in the future:
Scam Trading Accounts: This is one of the most common scams in binary options, and though it varies between scammers, it follows similar steps:
Broker managed accounts: When you sign up, sometimes binary options firms will offer a “managed” account that lets “professional ex-Wall Street veterans” trade on your account with hard-to-pass promised returns. The caveat is that they require a significant upfront deposit, and have money locked up. This means you don’t control your money or your account. Trading Software: Sometimes you’ll see an offer for “revolutionary trading tools” that can take you from a newbie to a seasoned pro with a few clicks. However, it will likely take your money and either scalp to inflate its success rate, or simply lose it. Either way, you’re losing money as brokers are raking it in.
Withdrawal or platform issues: This seems innocuous at first, with platforms apologizing to customers who can’t withdraw their earnings. However, when clients try to get their earnings though support, they’re asked for an unreasonable burden of proof or other requirements, and in many cases simply vanish, leaving burned traders in the lurch.
Even with all the risks that abound across the sector, you can still navigate it safely if you’re careful. There are always warning signs that you can look for, and steps you can take to protect yourself from binary options scams. Here are some of the important aspects to search out to avoid being scammed:
Avoid returns that seem too high to be reasonable. Even the best traders in the world have returns that seem too bad to be true. Most professional traders are lucky to generate anywhere from 10% to 15% ROI annually, and brokers that offer significantly higher returns are likely lying. If websites can’t tangibly support their claims, it’s definitely too good to be true.
Consider any cold approach by “brokers” over the phone or email suspiciously. Cold calling is one of the most used plays in binary options to onboard new customers. Usually, callers will present themselves as “seasoned” or “expert” former Wall Street veterans and make claims that sound amazing but are hard to prove after the fact. Always ask for more information or ask to get called back after you’ve had a chance to do your own research first.
Check any company you’re thinking of giving money to carefully, and against regulators’ white lists. Most regulators around the world keep detailed lists of brokers and companies that are known to be fraud and scam risks. You don’t need to get a full financial history of the company, but knowing if they’re regulated in your country, and whether they’re considered safe is a good way to avoid being scammed.
Understand the difference between financial trading and binary options. This may seem basic, but it’s worth noting that binary options are not the same thing as buying shares or other instruments. Instead, you’re betting on whether the asset will move above or below a set price. Many people are fooled into believing they’re trading real assets, when they’re instead being taken in by scammers.
Binary options are very risky for most retail traders and can open you up to a variety of scams and fraud attempts. If you’ve fallen victim to one, however, you don’t need to start panicking just yet. Using services like PayBack make it easier to recover your money and gain some closure. Building a strong understanding of how these scams work can also help. Keep an eye out for the obvious red flags, and make sure to keep clear records of all your interactions to ensure your interactions are safer than they might otherwise be when trading binary options.
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