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How to avoid a binary options scam?
When discussing any potential binary options scam the most important thing to recognize is: if you do your due diligence, you will be armed with the right information, If you do your due diligence, you will have nothing to worry about and can implement your binary options strategies with peace of mind. Having said that, it is important to acknowledge that the internet and financial industry are home to some unscrupulous actors. Armed with the right information, you will have the tools to avoid the pitfalls along the way to earning extra income through binary options.
To avoid binary option scams, you should have in mind the following 4 rules of thumb when looking to open an account with any binary platform.
4 Rules of Thumb for Avoiding Binary Options Fraud
- Make sure the platform is regulated – Any reputable broker will feature their regulatory credentials with pride, because they have nothing to hide. Each country has its own regulation so make sure the platform is registered with a respected, competent regulatory authority such as CySEC.
- Pay attention to broker reviews – The internet is filled with customer reviews. The best companies know the way to success is through customer satisfaction. If you see a large amount of negative reviews about a broker claiming fraud or scams, and the broker hasn’t responded, it should raise a red flag. Be extra careful about using this broker.
- Listen to what others are saying – Play an active role in online communities that discuss binary options. Chances are somebody in a forum or chat room is also interested in avoiding online scams. By sharing information, you will be sure to only use highly regarded platforms.
- Don’t go all in too soon – Make sure to thoroughly review each new binary options platform before you commit. You can prevent many scams by making sure the platform offers everything you need to implement your binary strategy including quality customer service, and helpful and accurate advice.
What are types of binary options scams are there?
As I mentioned above, credible brokers are registered with internationally recognized regulatory bodies and thus are transparent about their activities. If you come across a binary platform that advertises non-credible regulatory authorities, or even worse, is not registered at all, chances are it is a scam.
The U.S. Commodities Futures Trading Commission has categorized the various scams to look out for. According to the CFTC, fraud complaints fall into one of at least three categories: refusal to credit customer accounts or reimburse funds to customers; identity theft; and manipulation of software to generate losing trades.
Refusal to credit customer accounts:
The first category involves the refusal of certain binary options trading platforms to credit customer accounts or reimburse funds after a customer deposits money on the platform. When customers later attempt to withdraw their original deposit or the return they have been promised, the platforms make the withdrawal process very difficult. This can be avoided by making sure you receive quality customer support before depositing on the platform.
Alleged Identity Theft:
Customer have complained to the CFTC that certain platform have requested consumer information for unspecified uses. This can be easily avoided. If a binary options platform requests a copy of your credit card or driver’s license, don’t provide it.
An important footnote: New binary option traders may accidentally confuse the standard identification process implemented by all brokers for the purpose of user safety for an identity theft scam. This is necessary to make sure that the customer asking for the withdrawal is the same as the account’s depositor.
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These complaints allege that binary options trading platforms manipulate the software to alter binary options prices and payouts. An example of this sort of complaint is that when a customer’s trade is “winning,” the expiration is extended until the trade becomes a loss. This is another reason why it is important to test the software before you make a financial investment.
Make sure to review a list of credible brokers that have the highest level of regulation.
What to do if I fall for a binary options scam?
Okay, so you’ve fallen for one of the binary option scams floating around out there what do you now?
If you are completely confident that you accidentally signed up with a fraudulent broker, you can dispute the the transaction with your credit card company. In some cases you will be able to cancel the entire transaction, but the burden of proof will fall on you to prove that it is a scam. Depending on your credit card disputes can take up to 30 days or longer. Additionally spread the word in reviews, forums, and chat rooms so other investors to fall the scam.
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.
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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.
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.
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.
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.
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.
Scam Brokers and Not Recommended Operators
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:
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.
How to file a complaint with CySEC?
By Markus Silvester – January 5, 2020 2:13 pm
Binary options trading has become surprisingly popular in the past few years, but unfortunately, every time the industry grows the number of scams related to it. The binary industry is no exception, and more and more traders have bad experiences with scam brokers.
Why Choose a Regulated Broker?
Even though some countries consider binary options the grey area in financial industry and are not sure how to categorize them, there is a great number of countries who gave their approval. Some see them as financial instruments, other as gambling. CySEC, or Cyprus Securities and Exchange Commission, is among the most renown regulatory bodies, as it is in charge for regulating binary options not only in Cyprus but EU as well.
List of regulated brokers can be found here.
There are many benefits of choosing a regulated broker, but the main is that customers have additional protection. All regulated brokers must follow a strict set of rules and laws in order to provide the service of binary options trading, but the most important, their work is also under constant surveillance.
This gives traders the opportunity to contact the regulatory body in charge for the broker, that will help them in returning their investment.
What to Do Before Filing a Complaint with CySEC?
Unfortunately, sometimes even regulated brokers rely on bad business practices. In order to prevent trading with a scam broker in the first place, make sure to sign up with a reliable and trustworthy broker. It is always recommended to trade with brokers from FBO’s Top List
In most cases, everything is fine until one moment, when a trader tries to withdraw funds. After signing up, trader sometimes gets a bonus and makes some money afterwards. After having a nice sum on the account, trader requests withdrawal and that’s when it turns out the broker is a scam. No replies, customer service that doesn’t care, emails that underestimate trader’s intelligence and asking for additional funds are among most common things that happen afterwards. There are also other practices that should be considered scams like cold calling, unauthorized bonuses or unauthorized depositing by using client’s credit card.
More about types of scams can be found here.
The same second one realizes there is suspicious behavior going on, it is advised to save all correspondence and make screenshots of the user account. It is highly recommended never to share them online, on forums etc. as brokers can easily change settings or T&C. Resist the urge and contact the regulatory body first.
How to Submit a Complaint with CySEC?
CySEC recommends always to contact the broker first, which is easier said than done. If the broker is still cooperative, make sure to let them know that you are familiar with your rights. CySEC is not investigating individual complaints, but is a regulatory body that supervises all brokers, and takes all complaints into consideration.
Many traders except fast reaction from CySEC, but keep in mind there’s bureaucracy involved and there are no quick solutions. Sometimes traders on binary options forums complain how slow it is, but be patient.
Dealing with a broker
CySEC advises dealing with the broker in the first place. CIF (Cyprus Investment Firm that is your broker) will give you a unique reference number. This number is important as it will be used in all possible future processes, and it is best to see it as ID of your complaint or problem. Make sure to state your full name, email, country, the cause of complaint, the financial instrument you’ve been trading and disputed amount. This detailed approach will protect trader as a customer as broker won’t have a chance to slip because of technical difficulties.
The broker is obligated to respond within five days and confirm that the complaint is received. Afterwards, the broker has a period of 60 days to respond the complaint in writing. The broker can inform you that complaint is successfully resolved or request more time (maximum 3 months from the day of complaint). More info on this procedure can be found here.
Conducting the Financial Ombudsman
It often happens that the trader is not happy with broker’s response or the lack of thereof. The next step is contacting the Financial Ombudsman. Financial Ombudsman is a mediator between the trader and the broker.
There are also many rules to follow while doing this step. The Ombudsman must be contacted within 4 months following the final CIF’s decision, as otherwise it will be impossible to make a complaint.
If trader files a complaint, there is a chance of financial compensation.
Taking Things to Court
Not many traders will be happy to hear this, but sometimes the last resort is a civil action in court. This process is usually time, money, and nerve consuming and doesn’t have to end in trader’s favor. It would be best to resolve all complaints in preceding steps, and it’s even better to prevent the entire scenario from happening.
Filing complaint about unregulated broker
CySEC gives traders the opportunity to report unregulated brokers as well. Unfortunately, in this case, there is no chance for a trader to get their money back as the company is not under the supervision of CySEC and civil action is the only possibility to get compensation.
This action can, however, help other traders to protect their money from foul brokers. Just like all other regulatory bodies, CySEC publishes occasional warnings about scam companies, so if you direct their attention towards bad broker it can be helpful for other traders and investors, as well.
This type of complaint can be submitted here.
What are the Alternatives to CySEC?
When such situations occur, it is easy to feel helpless and frustrated. It is important never to give up, as there are few other things every trader can do, in addition to filing a complaint with CySec.
Reaching out for Other Regulatory Bodies
Visit the broker’s website and see where exactly it is regulated. Some brokers are regulated with more than one body, so besides CySEC, it can also be regulated by AMF (France), IIROC (Canada), ASIC (Australia), CONSOB (Italy) etc.
List of all regulatory bodies and how they work can be found here.
Fighting the battle against scam broker on more fronts can be more successful than relying only on one regulatory body. Keep in mind that different bodies have different procedures when it comes to filing a complaint and some are reacting faster than the others who are drowned in bureaucracy
Fair Binary Options was created with the mission to create a safer trading environment for traders from all around the world. We already helped many traders dealing with foul brokers who couldn’t get their money back, but also blacklisted brokers who were demonstrating the unethical or suspicious behavior. FBO has zero tolerance for scam brokers.
We always like to help our readers, and members of the FBO community have priority when it comes to providing help and advice. Make sure to register and become a member in order to protect your funds and succeed in trading.
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