The world would be a nicer place if we did not have con artists and people who develop scams in an attempt to steal our hard earned money. But the fact is, there are scams and cons, and there probably always will be. The wisest move anyone can make is to educate themselves about possible scams, and to be intelligent in the decisions they make and the information they provide.
Scam artists have found binary options a great system to use their techniques to rob the money of unsuspecting victims. In this article, we will focus on educating you, the reader on binary options scams.
Binary options investing can be a great way to make a lot of money, but when dealing with the wrong people, it can be a fast way to lose large sums of money. We hope that when you are finished reading this, you will be able to determine the differences between trustworthy binary option systems and the scam artists.
My Brokers Scam Blacklist
Do not join any of the following brokers as they have proven to partake in fraudulent practices!
Beeoptions and Binary8.
My Signals and Auto Trading Scam Blacklist
Avoid all of the following fake money making signal services, rubbish robots and associated scam operations.
Channel Ranger and Passive Profits.
What Is A Binary Options Scam?
Binary options scams are simply a system that is developed to separate investors from their money. There are a plethora of types of binary options scams, with new ones developed on a monthly, weekly or even daily basis.
As you scroll down, you will learn some of the systems con artists use. Even though new systems are developed, the thieves will still be using many similar fundamentals.
Types Of Binary Options Scams
I must mention before we move on that just because you lost money in binary options trading does not mean you were scammed. There is risk involved in binary options trading, and money can be lost. But, there is the possibility you were scammed. Here are some types of binary options scams:
- Get rich quick scams. The first thing you will notice with these type of binary options scams is the hype of making thousands, if no millions of dollars in a fast period of time. In many cases, these scams are aligned with a fake signals service so they can easily take your money.
- Fake auto trading services. This is a software that is developed with claims of using special algorithms that create winning trades. Usually, the software is just guessing like any inexperienced trader would do.
- Broker withdrawal scams. We have noticed a large amount of these scams. A person does well in trading and when it is time to withdraw, the broker either refuses or does not respond.
- Auto bonus scams. Brokers give bonuses with the requirement that a certain amount of trades must be made. Many wise traders will not accept a broker bonus because of this. When a broker gives an auto bonus, it can force a trader into a contract they did not agree with.
- Sales calls. While sales calls may not be a scam per say, the high pressure techniques that these sales people use in pressuring traders into depositing more money can be considered unethical.
- Deposit fraud. When a broker charges a credit card and does not credit the trader’s account, it is fraud, which is a serious crime. Other types of deposit fraud include charging incorrect amounts or double charging a person’s credit card.
- False account closure. Some scam brokers have been known to accuse traders of breaking their terms of service. They then close the trader’s account and essentially “steal” all the money in his/her account.
- Unfair software. A trader starts using a software that seems to be working well. Suddenly, the broker changes the parameters creating an unfair advantage for the broker.
Managed accounts. This is a scam in which the broker hires someone to make losing trades on the trader’s account to separate them from their money.
How To Avoid Binary Options Scams
You are taking the first step in avoiding binary options scams just in reading this article. Educating yourself is the first step, but following these steps can help you not be caught in a binary options scam:
- Only trade with regulated brokers.
- Read all the broker’s terms and conditions.
- Read all the broker’s bonus and promotion terms and conditions.
- Don’t accept bonuses.
- Complete all of the broker’s client verification processes.
- Trade only on your own account.
- Beware of fake signal services. You may want to compare the signals with other signal services.
Just always keep in mind that if it sounds too good to be true, it probably is.
I’ve Been Scammed! How Do I Get My Money Back?
We are sorry to hear this has happened to you. There are some ways you can retrieve your money. To start with, if your complaint is against a regulated broker, you need to contact the regulator with your complaint.
If you deposited via credit or debit card, you can contact your banking institution and stop or reverse the charges.