The Best Binary Options Broker 2020!
Perfect Choice For Beginners!
Free Demo Account!
Free Trading Education!
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Only For Experienced Traders!
What are Binary Options? – Honest Review
Binary Options is a financial instrument to trade on long or short markets in a certain period of time. The Trader only got 2 options: Win a high amount of money (75% – 95%) or lose the investment amount for this trade. It is like betting on rising or falling markets. Binary Options are very flexible. It is possible to trade any financial market and use different time horizons (starting from 30 seconds).
- Call (Higher): Make a forecast for rising markets
- Put (Lower): Make a forecast for falling markets
Make a forecast for the future price direction
In this article, I will show you exactly what are Binary Options and how do they work. Knowledge is the key to success. Read about the risk and the opportunities to make money in the following text.
Where to trade Binary Options in 2020?
In the next steps, I will show you how Binary Options (Wikipedia article) work. You will understand it in a few moments. But first of all, where to trade Binary Options?
You will need a Binary Options Broker (see the table below). I searched after the safest companies which give the highest return for traders. There are different companies around the world who provide this financial service. You can open a free demo account. This is an account with virtual money so you can learn how to trade without risk.
- You need a company (broker) which provides the financial service (Binary Options)
- Open a free demo account with virtual money (Virtual trading without risk)
|1. IQ Option||(5 / 5)
High Yield 92%
Is Binary Options Trading safe or not?
Safety is the most important point in online investing. You should choose a good and reliable broker which is safe. I recommend using a regulated company for your investments. Have a look on my full Binary Options Broker Review to find the best one. There are regulated and unregulated companies for trading. It always depends on the broker to trade safely Binary Options.
I did a lot of research and clearly, I can say that a regulated broker does not cheat to its clients. Normally unregulated brokers do not cheat too. But it is not 100% safe because sometimes these are small and unknown companies.
It is safer to trade with a regulated broker than with an unregulated one.
The Best Binary Options Broker 2020!
Perfect Choice For Beginners!
Free Demo Account!
Free Trading Education!
Get Your Sing-Up Bonus Now!
Only For Experienced Traders!
In conclusion, you should use a regulated broker for trade Binary Options safely. It always depends on the Broker if it is safe or not. Do the research by yourself and read my review about the broker on this website.
Example of regulation or license
Safe and well-known regulators are:
What you really need to know about online platforms:
There is a huge diversity of Binary Options Platforms and you have to check out what is your personal favorite. Nowadays developed software is very flexible and available for any device. It is possible to trade with the computer (browser and desktop), smartphone and tablet. That means you can trade from everywhere around the world if you got access to the internet.
Especially for a beginner sometimes it is hard to learn to trade with a new platform. There are a bunch of options which can confuse you. Most brokers will give you education material like video tutorials or step to step guides. Also, you can ask the support for help by phone, chat or email.
A platform for any device
Flexibility and charting are provided by the platform. You can do a personal chart analysis with indicators, technical tools, and different chart types. Sometimes you will get access to economic news directly in the platform. Indicators are known for giving you feedback on the market price at the moment. They are customizable like you want. So it is possible to analyze different timeframes.
Today Mobile Trading is one of the most important factors for trade successfully. It is a great opportunity to boost your profit. In the past traders could not trade online or via mobile phone. So the options were much lower for making a profit. Apps are available for Android and iOS users or any other device. Check out your trading account 24 hours per day via your mobile phone.
In my opinion, it is better to use the web-based platform with your computer for analysis. Often there are a lot more functions than in the app. Furthermore, you can see the chart more detailed and a higher range of it. Professional analysis can be made by using a computer.
Binary Trading Tutorial | Step by Step Guide
As a trader, you can choose between a lot of different assets on a Binary Options Platform. You can trade Forex, Stocks, Commodities, Cryptocurrencies and more. This trading tutorial will show you how it exactly works to trade the financial product. The process is always the same as you see in the video and picture below. Just practice it in a free Demo Account.
Learn how to trade successfully
Now you have to imagine and predict the asset price direction for the future (forecast):
You can use the specially programmed trading platform of a Binary Options broker to analyze the charts and get trading ideas. It is very important to have a good working strategy for maximum profit. Beginners should use technical analysis for trading the chart. On the broker platform, you can learn more about it in different education videos/centers.
Therefore every Binary Option expires after a specified time. You can use the time horizon between 30 seconds or 5 months or more. Sometimes it depends on the broker. As you see you can trade short-term or longterm Binary Options.
After you have decided on the direction and the expiry time for your trade you can “sign” the contract with your broker. Just click the call or the put button. On some platforms, you have to confirm the trade.
- Call (Higher): The price will go up in your expiration time
- Put (Lower): The price will go down in your expiration time
If you are right in your decision, the broker will pay you a high asset profit of 75-95%. The trade automatically closes after the expiry time. Sometimes the broker allows you to close the trade before the expiry time ends. That is a way to reduce the impact of a wrong decision.
That means if you invest the amount of 100$, you can earn the amount of 195$ on a certain time horizon. 100$ is the return of your investment and 95$ is the profit.
Binary Options Platform Tutorial for beginners
- Search for an asset with a high profit. If you trade the assets with the highest yields in conclusion from my experience the result will be much better in the end. Some Binary Brokers offer you different account types with different asset profit.
- Analyze the chart on the platform. You can choose different time frames, indicators or financial news for your strategy. Every Binary Broker offers you some educations, too. Learn in webinars, videos or coaching the best strategies of the world.
- Now you should select the expiration time of your Binary Option. There a lot of possibilities for your trade. Some traders like it to trade short-term options and some other traders like it to trade longterm options.
- Choose an amount you want to invest in your trade. The most time it starts at 1$.
- At latest trade the Binary Option with a call or put. There are only 2 options in the market, that’s why it is called “binary”. In the end, you earn a high yield or you lose your selected amount.
What are the conditions Binary Options Trading?
You can trade any asset with Binary Options. It can be stocks, commodities, forex or cryptocurrencies! Most brokers give the option to trade more than 100 different assets. The expiration time depends on your broker. Some companies provide Binary Options with a time horizon of 30 seconds or less. These days you get a lot of different options on every broker.
- Trade stocks, forex, commodities, cryptocurrencies, and more markets
- Choose between a diversity of time horizons (short-term – longterm)
Yield – The return of investment can be high as 95%+
As the time horizons, the yield (return of investment and profit) depends on the broker. Often there is a possibility to get a high payout of more than 90% of your investment but there is no rule for the value of the yields. Sometimes short-term trades got the highest payout and sometimes long-term trades got the highest payout. In comparison to my experience, the yield is between 70% and 95% for standard accounts.
Another way to boost the yield is to get a VIP account type. Most of the brokers offer different account types, which are linked to the deposit amount. For example, you will get a VIP account if you deposit more than 3000$ on IQ Option. Not every broker got the offer of account types but you should search for it if you plan to invest a high amount of money.
Are Binary Options risky or not?
Binary Options are risky to trade, but there are advantages why the risk is less than trading other financial products. Especially new traders fear the loss of a high amount of money. With binary trading, you can only lose your bet amount. Traders clearly see what they can lose in a trade. Compared to other trading instruments this is a big advantage because the risk is limited always.
Another advantage is that you get a high asset payoff no matter how much the market moves. The asset price just has to be above or under the entry point. Traders like this financial product because it is so easy to understand and to calculate the risk and the trade profit.
Only invest the money which you can afford to lose in the worst case.
Binary Options Demo Account – Yes or no?
It is very important for beginners and new traders to practice the Binary Options Trading. Most brokers give you a free demo account. It is an account with free virtual money. You can always recharge the account with one click. It is risk-free trading.
Every trader should learn more about the trading platform before he is going to invest real money. Also, you can learn new strategies or try out different methods on the market. First, develop your own strategy with virtual money.
Most brokers offer a free demo account.
Opening your first real account
For trading with real money, you have to fulfill different criteria. On most brokers, you can trade and deposit without verification of your account. In my opinion, every trader should verify his account before deposit money. This can prevent annoying errors and waiting times. For a full verification, you need to complete the account setup.
Sign in with your real personal data. That includes full name, birthday, real address, email, and your phone number. After that, sometimes you have to upload the required documents for the broker. The company checks if you are a real person. Upload a picture/copy of your Passport. Sometimes they require a utility bill too. In most cases, the verification only takes 24 hours or less. With some companies, you do not need this verification process.
How much money do I need for Binary Options Trading?
You can start trading with a very low amount of money. Especially on IQ Option, you can open a live account with a 10$ deposit. The minimum trade amount is 1$. The upper limit is open for your trades. Have a look at my reviews to find a broker which fulfill your requirements
From my experiences as a trader, it is possible to make a huge amount of money with the right strategy. Binary Options are the tool for trading with a small or big amount of money.
Facts about the deposit:
- Start with only 10$ in your account
- Trade with 1$ per trade
- You can easily trade with high amounts too
- The minimum deposit depends on the Binary Options Broker
Easy deposit and withdrawal
As mentioned before the deposit is easy as the withdrawal of profits. On most brokers, there are not any fees for deposit and withdrawal money. For payments, you can use more than 20 different methods. It is possible to capitalize on the trading account in a few seconds. In most cases the payout takes the time of 24 hours depends on your broker.
Payment methods are depending on the broker:
- Credit Cards (Master/VISA)
- E-Wallets: Skrill, Neteller, FasaPay, ePayments, Yandex, and more
Get a free Bonus for your deposit
The most brokers offer a free bonus for your deposit or risk-free trades. The bonus amount depends on the deposit amount. It can be a 20%,30%,50% or 100% bonus. In other words, they give you a higher bonus for a higher deposit. Furthermore, some brokers allow trading risk-free trades. If you lose a trade, the broker pays back the lost money in the form of a bonus.
The bonus is not completely free. Sometimes traders have to trade a high turnover of the bonus. For example, make a turnover of 30x of the bonus to get the bonus withdrawn. If you are not satisfied with the conditions in most cases you can deactivate the bonus. A bonus is a good opportunity to grow a bigger account and trade with more money.
Get a free bonus now
Can you really make money with trading Binary Options?
The key to your success is to get a good education and find a professional strategy. In addition, you have to control the risk with sensible money management. In this article, I showed you an insight into profitable trading with Binary Options.
It is easy to make money with Binary Options but you have to be prepared. The markets are not easy to trade for beginners and it takes time to trade profitably. You will not see success directly. From my experience educated traders do not blow up the account. They earn money constantly. Read through my other pages to get deeper knowledge.
- Education: This is the most important point for beginners. You should be prepared for the markets and know how the financial product works. There are different tutorials on the broker webpage or on my website to learn the functions. In addition, it should be easy for you to use the trading platform of your broker. Just practice in the demo account until you feel comfortable. Moreover, most brokers offer deeper knowledge. There are webinars, coachings, and tutorials. Education and knowledge is the key to making money with Binary Options.
- Strategy: Develop or learn a professional strategy for trading. You have to know what you are doing in the market. It is like a system for you which always have to repeat. Without a proper strategy, you will blow up your account. There are different ways to learn a strategy. Use the knowledge of a broker or my website.
- Money Management: most traders fail to control the risk. In my opinion, money management should be sensitive by using 0,5 – 3% of the account balance per trade. Sometime a losing streak will occur. By using sensitive money management you can trade without emotions and you can trade enough trades without running out of money.
In conclusion, you can really make money with trading Binary Options but you have to learn and invest your time in the right knowledge. The demo account is the best way to practice before you start investing real money.
Are Binary Options legit or not? – My scam review
In my opinion, Binary Options are not a scam for your money. The financial product gives you the possibility to invest in short or longterm opportunities in the market. Binary Options are so popular because they are so easy to understand and you can make a lot of money in a short time.
It is very important to choose a good broker. Some small brokers are scamming users, that’s why a lot of people think Binary Options are a scam. Definitely, it is not a scam if you trade with a safe company.
Basic trading checklist for beginners:
- Choose an asset you want
- Forecast the price movement
- Choose a variable expiry time of the trade
- Bet an amount starting 1$
- Trade a call (long) or a put (short) option
- Get profit
- Payout the profit
On this site, I have shown you how the financial product is working. I think you can easily understand it now and start trading with more security. On my other sites, you can learn more about Binary Options. Happy trading.
How to avoid scams as beginner
The problem of Binary Options is that they are not a scam, but some brokers or financial educators are scammers. Every time before you start investing real money you should do a sort of research. You should pay attention to real reviews or advice from professional traders.
6 Ways Binary Options Scam Can Cost You Money and How to Avoid It
By Markus Silvester – June 11, 2020 4:01 pm
Binary options scams are in essence one of the reasons Fair Binary Options came to existence. We saw a niche that has potential but is full with fraud and unethical activities. As the binary options phenomenon has grown, so have various ways fraudulent binary options brokers found to trick their customers. While regulation from the side of CySEC and other bodies such as the FSA, ASIC and others did help to bring a minimum set of standards binary options brokers must adhere to, we are still seeing widespread use of shady practices that can cost traders money. Read more about regulators in binary options.
AMF Study Reveals Many Brokers Are Not Disclosing Risks Properly
In this respect it is also fair to say that not always binary brokers are those who cause losses. Many customers are not aware of risks that binary options trading carries. As with any other form of financial speculation, short-term trading can be very risky and this is one of the reasons customers who did not attain desired results sometimes make internet noise. However, this is not only their fault, as the recent research by the French stock market regulator – AMF revealed. Sometimes these risk disclaimers get lost under loads of advertising, pushy phone calls and false promises.
Yes, Binary Options Trading is Risky
We will show some of their results in this article, along with some binary options scam tactics we encountered while reading numerous e-mails on our support mail. In short, AMF found that some binary options brokers do not follow all standards and regulatory guidelines, and that they use advertising tactics that can trick customers into believing that binary options trading is not risky or in some cases that profits are even guaranteed. As we try to improve the transparency of binary options industry, this report, along with our own experiences can be used as an excellent guide for beginners who understand the risks to binary options trading and like the fact that there is an easy way to take part in financial markets.
As the number of traders grows, so does the number of brokers in this very competitive industry. Many of them are regulated now and are bound to provide good service most of the time. It is rarely that Fair Binary Options experienced complaints about regulated binary options brokers, however there were instances when they have managed to steal from customers. Also there are many examples of binary options brokers that we never got any complaints about.
See FBO Blacklisted Brokers
AMF reports a year to year increase in blacklisted binary options brokers that already passed the number of Forex brokers (Picture 1). However we can imagine in the relation to sheer volume traded, forex brokers are much larger entities. We also want to say that many of brokers that are on AMF blacklist actually do not exist anymore and the real number is smaller.
Binary Options Scams in Mainstream Media
It is only natural that once something becomes popular as binary options did, that scams will show up and try to take their piece of the cake. Also, considering how only few years ago regulators didn’t pay much attention to scams (but enforced more and more measures towards regulated brokers), many traders had only one solution – to contact local media and tell their story about trading with binary scams.
Of course, scam brokers are ruining the reputation of the entire industry, but at the same time, unfair and unbalanced reporting caused maybe even more harm. Media outlets were flooded by stories about binary scams and warnings not to trade binary options, without any understanding of what binary options really are and how markets work.
Such stories grew bigger and bigger, even though they didn’t apply the basic rules of journalism, but were a mere witch hunt focused on the entire industry. Unfortunately, even the big and important websites and magazines, such as Times of Israel, frequently published stories where the other side wasn’t represented at all, or where the basic journalistic principle of “5W’s +H” (answering questions like who, what, when, where, why and how) remained unfulfilled. It was common to read a story published without a single fact and without additional research on what other side has to say. Even though it is completely understandable that media is in service of people, this is a great proof how good intentions don’t have to result in fairness for everyone. By focusing on victims, journalists often seemed to forget how they are reinforcing stereotypes about an entire industry. Undoubtedly, Times of Israel helped a handful of readers to warn others about scams and raise awareness about binary options scams.
Balance is the Key in Binary Options Industry
Instead of responsible reporting, media created an atmosphere of fear, and Times of Israel even urged to support the policy of banning all binary related industries from Israel. These stories took their toll, and many brokers decided to leave Israeli territory in every way and take their business elsewhere. Considering how the new law was planning to ban customer support companies and IT companies involved in the development of binary platforms and software, this decision is not surprising.
However, after initial enthusiasm, the Israeli Knesset decided to take a summer break and now it seems that the new law will be much less repressive. However, the damage is already done, and more than a few brokers went offshore.
That scams create an unfriendly environment for a specific type of business or industry is no news. The same thing happened not only with forex industry, just a couple of years ago, but also every time some novelty occurs in our lives. It can be concluded that despite the unfriendly treatment by the media, binary options are now entering a new, more serious era, as we all witnessed many brokers being closed down due to new market regulations and rising competition.
It would also be fair to remember our readers how we witnessed regulator’s ignorance for quite a long time. Instead of focusing on the safety of traders, they were acting in typically bureaucratic manner – always passing new bills, policies, rules, and fines focused on regulated brokers while leaving unregulated entities to operate as they like. Now even regulators are becoming more proactive and even stricter when it comes to ensuring a safe trading environment for the trader.
Examples of Retail Trading Forex Scams
There are many examples that these scams have hit the media, especially when it comes to Forex brokers. There was a case of Joel Ward which at the time rose to become a prominent speaker on trading on Forex and even spoke on topics of ethics in trading shortly before he was arrested for taking more than $15 million of his customers, of which he lost more than $1.8 million and spent much of the rest on a huge salary, “trading retreats” and other perks. Other prominent case is that of Russell Cline, whose brokerage firm promised huge returns only to notify customers they lost all the funds. Bloomberg reported on forex scam with a firm that targeted “safety” as marketing pitch, only to destroy their Indian customers’ investment. In binary options, which is a smaller industry, scams are usually smaller, but it does not mean they hurt people who got scammed less because of that. However, AMF shows, the number of complaints is growing.
So, take a look at our 6 ways binary options can cost you money to avoid them in the future!
1. Downplaying Risk of Binary Options Trading
We have already mentioned that one of the ways binary options brokers trick customers into depositing is to downplay risks to trading. This is outright fraud since in most cases they rely on uninformed customer. This binary options scam happens even before customer deposits money. While it is normal in every business to highlight pros and hide cons, with financial investing it is a good case practice not to hide risks from the customers. One of the worst things binary options broker representatives can do is make false assurances about returns, like, “3 out of 5 trades are won” – as AMF experienced during their mystery shopper tests.
According to a former employee of one scam broker who decided to give an interview to Times of Israel, operators who work with such brokers are taught to talk about binary options in a specific way, in order to convince the potential trader to make a deposit:
“Guralnek says he was told to present himself as a broker who made a commission on the trades and to emphasize how much money the customer could make while downplaying the risk. In fact, rather than helping customers to make smart trades, the “broker’s” true interest was for them to make unsuccessful predictions and lose their money.”
Yes, it is easy to trade binary options operationally, but some effort is needed to master skills that will make traders better at fundamental and technical analysis. Exaggerated claims of earning $17,000 per week as we are seeing all over the internet by people who promote BinaryBoom are really over the top and in our opinion can be qualified as binary options advertising scam. Also, one former US agent managed to recover $2 million stolen by BinaryBook scam. AMF highlights various cases where risk of losing the invested money was downplayed or not even mentioned. Also, some binary brokers were found not to do any due diligence by finding out more about the customer – like asking for job, income. In some cases not even. One of the big cases was the one of R. Swannel who showed results that did not stem from actual trading. He was sued by CFTC.
No Risk in Binary Options Automated Trading?
This scam technique is extremely popular among different binary trading robots that lately pop up from nowhere. Unlike in the past when there were only few reputable binary software available, nowadays everyone who has some programming knowledge can create basic software that looks legit. Such binary software are usually accompanied with catch phrases and elaborate storylines that have only one goal – to convince you that binary trading can make you a millionaire.
Here are some of the most important characteristics of such auto trading scams:
- very little to no information about the product
- great promises about certain amounts that can be made in limited time (for example $3,765 in the first day)
- video testimonials made with (mostly bad) actors
- pressuring trader by using psychological methods of manipulation
- displaying a fake number of available spots left
We at Fair Binary Options frequently wrote about this type of scams to help traders learn the difference between the good and the bad binary trading software. For example BinaryTrustMethod is a binary scam trying to convince traders they can make $2100 daily on auto pilot.
The worst type of binary options auto trading scams are those that downplay the risk while hiding behind the disguise of expertise. Such was Professional Binary Robot scam that was hiding behind the face of prog. George, but we managed to prove how this is just another fraudster trying to take traders’ money. Even though we prevented many traders from losing money, they were also traders who din’t read our warnings and ended up scammed and broke.
2. Cold Calling – Binary Options Scam with Privacy Breach
So, you are at home one day, minding your own business when a phone rings. A guy from some company is calling you to present you with an amazing investment opportunity. He is calling from a binary options broker XX and is asking you to deposit as little as YY to earn huge returns as high as 80% or even more. This sounds interesting so you say “tell me more”. Within this call the customer will in most cases receive information that is close to the binary options scam we described in the first point.
There is another problem with this, the binary broker representative has your phone number and you have no idea from where. The same thing happens with other products so it may not ring alarm. However, the same binary options scam happens with e-mails. This is something that is not always shared in public directories as the phone number. We call this cold calling – it usually involves binary options broker who buys user lists with personal information and calls potential customers. In some cases they buy leaked and stolen databases and call customers that already trade with different brokers.
Sometimes they even go further by using the data and calling the customers as if they already made a decision to deposit. In case the person is reluctant, they simply use simple manipulating techniques and make trader think less of himself as they wonder why is he unable or unready to grab this amazing opportunity.
One woman in Cyprus was arrested, trying to sell stolen data. She was employed with a broker who reported her to the police after suspicious behaviour. She will press charges soon. Read more about this interesting case.
One of the most interesting cases that involved cold calling was the one regarding SW1options broker. SW1options scam called a man, out of the blue. The man, who never took interest in binary trading before, quickly understood that there is no chance it will be possible to achieve returns promised. He simply declined the offer but warned British media about it. What happened later involves unlicensed business operations, false claims, and promises, and offshore account. Read more about SW1options binary scam.
We have had several situations where our own staff received e-mails from companies that they never signed up with. This is extremely bad since people must trust a broker when they promise to keep their information private. This way these scammers are destroying the reputation of the broker where they got the data and the whole industry. We already blacklisted some binary options brokers for this. Traders can see which ones are we talking about in our black list.
3. Hidden and unclear Terms & Conditions stipulations
This is a very broad area but we will try to explain this on an example, while other examples can be found in parts of this article discussing bonuses, withdrawal processing problem, etc. Recently a customer sent us an e-mail about not being able to withdraw profits from CTOption. We contacted the broker and they cited part of their T&C that mentions some 5%. This rule is not mentioned under section on withdrawals. In any case, the rule gives the broker right, according to T&Cs they wrote, that if the trader invests more than 5% of total capital in a trade, they have the right to stop the withdrawal for reasons that something suspicious is going on. This is the simple version of a very confusing paragraph in their T&Cs, that can be found on page 9.
Let us try to make this easier to understand – if a trader deposits $250 which is minimum with CTOption (under investigation), and invests the standard, at some places minimum $25 in a trade, the broker automatically has reason to stop withdrawals. So, only $5 trades, for 60 second trading are allowed. We see this as vey unethical and we have asked the responsible person about this, but never got an answer. T&Cs should not be a way for brokers to legitimate everything they do. We consider this a binary options scam. You will be able to read more about this on our blacklist soon. We also encountered T&Cs saying that initial deposit has to be traded at least once, and others where withdrawal is not allowed a month after last deposit.
Scam Brokers without Terms and Conditions
Some traders will find it interesting how there are brokers that support forex and binary options trading, or even binary trading robots that have no terms and conditions at all!
It is completely understandable how some may say that terms and conditions are completely redundant, especially nowadays when we must accept terms and conditions for every service, product etc. In case of any form of trading, make sure to take a good look at terms and conditions as they often help to tell a good broker from a bad one.
Some scam brokers simply don’t have terms and conditions, they are impossible to find or the link gets redirected to the homepage. Also, sometimes they copy terms and conditions belonging to another broker, and use them as their own. Scams are so careless that they live the name of the broker they stole from.
Serious terms and conditions are not few paragraphs that could have been written by a 1st-grade student. They are legal documents and they define every situation that may occur. Also, they are written in easy to understand way without any ambiguous sentences that can be translated in whatever the broker finds suitable. Also, keep in mind that every type of service, promotion, financial transaction etc. has to be described in terms and conditions.
ESMA and CySEC both took this issue seriously, especially regarding binary options bonuses that were the main tool of manipulation when it comes to funds. Their worry resulted in the termination of all bonuses offered by regulated brokers, and ban of any bonus offerings in the future. Unfortunately, this didn’t prevent scams to use terms and condition (or lack thereof) to practice unethical behaviour. Read more how binary scams use false data and vague terms and conditions to take your money.
4. Managed Accounts
Many binary options brokers offer 1-on-1 sessions, personal account managers and more to make their traders feel special by providing them with personalized care. However, we do not think it is ethical for brokers to offer managed accounts to clients. At this point, big part of binary options industry works in a way that broker takes the other side of the trade. It is a risk for the binary broker, however, if they found a customers, by doing 1. point, they have the upper hand. In this respect it makes no sense that anyone from that broker trades with the funds of the customer, since they have interest for customer to win. This is why we urge all customers never to cede the control of their account to account managers, senior analysts etc. They will mostly try to get traders to deposit more for this perk. In our experience, the broker first scores some winning trades, before something goes wrong, as did with the funds of this customer who lost $10,000.
One of the most famous cases of a scam involving managed accounts is the case of uTrade and their controlling shareholder Aviv Talmor. Mr. Talmor was prosecuted by Israeli authorities for misleading around 600 clients in the period from 2020 to 2020. According to the accusations, Talmor was using false advertising when trying to persuade people to do business with him. He was managing their money, without the license necessary to do that kind of business necessarily.
More about the regulation of binary trading read here.
ISA is also persuaded that every trader was presented with an account that contained only imaginary money, while at the same time, the real money was deposited to another account controlled by the company. This accrued 12 million USD difference between the fake accounts and the real cash that was being held in the uTrade bank account. So, according to this case, Talmor provided account management without having necessary license, mislead traders in the very beginning, used fraudulent ways like fake accounts to motivate traders to invest even more, and held their money in the special account, unavailable to traders. Keep this in mind before accepting any offers for account management.
If Tommy and Ronald Rutgersson knew this information, this would save them €100,000 they lost with SecureOptions scam. The two brothers first god a cold call by a flirty agent who convinced them to make a nice and big deposit. Then, they communicated with their 3 managers and, unfortunately lost all their money. This also proves that account management is not limited to allowing someone else to trade for you, but it also comes in different forms such as advice by ‘trading experts’ who put their own interest in the first place and basically know nothing about trading strategies.
5. Bonuses as Binary Options Scam
As of December 2020, CySEC regulated brokers can no longer provide binary options bonuses!
Bonus terms and conditions are one of the most frequent cases we get. All brokers offer bonuses and that is fine for the most part. The crucial thing is that the customer understands the terms and conditions and accepts them. In most cases, bonuses are a great way for traders who understand what they are doing to score well, however, many traders do not understand terms and conditions. We think brokers need to explain this to binary options traders before they get a chance to accept it. Recently we also wrote about the stand that CySEC made about the matter. In short, traders should be informed and binary options brokers should make sure to get the acceptance of a bonus in written.
We at Fair Binary Options will not accept any explanations that the customer said yes over the phone. We think brokers should make sure the bonus is accepted in some sort of written form – as regulator requests in order not to be seen as binary options scam. It is just a small effort. Also, turnover rules must be confined to bonus alone and not include deposited money. We want to warn all traders here that widely accepted practice, after bonus was received, is that all trades that end in the money are counted as bonus profits, while all trades that are lost are subtracted from the money deposited by the trader. This is an unfortunate rule that everyone should be aware of.
Still, brokers who don’t operate under a license are under no obligation to respect CySEC directives or regulatory guidelines by any other government body. This means that they operate in an area that leaves traders unprotected, which is a fertile ground for many scam brokers. This doesn’t mean that all unregulated brokers are scams, but traders should still be careful and research brokers before making a final decision (and initial deposit in the end). Here you will find 3 binary scams you should definitely avoid!
6. Refusal to Process Withdrawal
This is one of the worst binary options scams, the one that usually is the last step, before regulators or sites such as Fair Binary Options get involved. There are some cases when traders just do not understand the procedure and everything gets solved after their ID verification documents are submitted. This is not a binary options scam. ID verification is important for binary options brokers, showing they obey AML regulations – you can read more about it in our post on money laundering. If this was done, than problems involve bonus terms and conditions as well as other types T&C restrictions.
Read more about Money Laundering in Binary Options
In most of these cases, binary options brokers do not answer calls, do not return emails. Sometimes their support personnel just quotes T&C without any connection to the case or claims that bonus turnover has not been reached when in fact it has. There are many ways to do this. In most cases, if it is really a binary options scam, the broker will not return calls and in many cases they ask for more money to be deposited. In some cases, scam brokers make it hard, probably hoping the customer will give up. Since we cannot see all the volume of scams in the industry, we cannot tell how many people give up. AMF noticed this too
“It is sometimes necessary to insist in order to receive a promise of withdrawal over the telephone, but not without being asked, once again, to add more funds or send a bank card number. Some sites use the same sales techniques as when the account was opened to dissuade the client from withdrawing their funds.”
The already mentioned former employee of a scam broker explained how the basic practice is to keep the customer waiting. Withdrawal process would take extremely long amount of time during which the customer would be convinced to make further investments. In case the trader is persistent to get his money back, things take ugly turn:
“…very often the company would stop taking their calls, or send them an email saying ‘we suspect you of fraud’ and freeze all their funds. Because the customer didn’t know the real name or location of their salesperson, “they had nowhere to turn to get their money back,” explains Guralnek.
Scam brokers are often registered in one country, have their funds located in another, and customer support in third. This way, the customer is left confused and helpless in case something goes wrong.
One day, FBO team received an email sent by a reader who encountered exactly this type of scam. The trader made a deposit with BinaryDas, and then lost all his money, all because of their ‘risk-free’ trades. His designated manager simply downplayed the risk. Our reader was determined to balance out his losses, so made another deposit. He managed to achieve incredible profits, but as soon as he wanted to withdraw, he was informed how that is impossible. They made different claims: how his account is under investigation and how he has to pay a hefty fee. As it turns out, he was not the only one, as many other BinaryDas traders reported that broekr blocked their accounts as soon as they became profitable. Find out more about BinaryDas scam.
Binary Options Scams Complaints
In this article we tried to show several most common ways that people can lose their funds from unethical and fraudulent brokers. These binary options scams are actually easy to avoid if traders do their due diligence. Fair Binary Options is trying to provide the best info on binary options scam brokers as well to direct traders toward legitimate service providers.
This is not an easy task since ever more binary options brokers are entering the market and being market as a fraud by regulators (see Picture 1). In many cases our experience is good, however, later, the broker turns out to be a scam. This is where customers come in and give us info by sending us e-mails about their experiences. We try to investigate and sort things out with the broker if possible. If not we will blacklist these brokers, labeling them binary options scam.
Internet Safety: How to Avoid Online Scams
Internet fraud is alive and well, and it’s costing victims thousands of dollars. In fact, the FBI’s Internet Crime Compliant Center (IC3) received 351,937 complaints of online fraud in 2020, with $2.7 billion in reported losses —that’s an average of over 900 per day at $7,672 per person.
Anyone can become a victim of online crime, but older adults tend to be more at risk. According to the IC3, almost 40% of all internet crime victims are over the age of 50. Sadly, this group also reports the greatest number of victims who lose more than $100,000.
We don’t expect you or your loved ones to unplug from the internet, but we do want you to stay safe online. So familiarize yourself with these common internet scams and the proactive measures you can take to avoid them.
Scam: Coronavirus Emails
The new coronavirus impacts everyday life in surprising ways including its side effects on internet security. One trend is an uptick in scams posing as the Centers for Disease Control and Prevention (CDC), selling bogus cures, and offering great deals on the unofficial COVID-19 currency: toilet paper.
How to Avoid This Scam
Scare tactics aren’t new to scammers, but there’s plenty you can do to skip the scams and protect your personal data:
- Delete emails that claim to come from “official” sources. Instead, you should directly visit the websites of official sources like the CDC and the World Health Organization (WHO) for news and information.
- Never click links in emails from unknown senders. Killer deals are usually too good to be true and news of vaccinations won’t come in your email. Instead you’ll learn about these from government officials, usually via the local or national news.
To learn more about avoiding COVID-19 scams, check out these articles from the Federal Trade Commission , Food and Drug Administration , and Norton .
Scam: Fake Credit Report Websites
By law, you’re entitled to a free copy of your credit report once every twelve months. AnnualCreditReport.com is the only government authorized website for ordering your free annual credit report, but the internet is full of imposter sites. These websites claim to offer “free credit reports,” but oftentimes they’re trying to collect personal information, like your Social Security number or date of birth, that can be used to steal your identity. Other websites might offer “free” credit monitoring, but then charge a fee to your credit card after a trial period.
SafeWise recommends checking your credit report at least once per year. If you find unauthorized activity and think you’ve been a victim of identity theft, place a fraud alert on your credit report.
How to Avoid This Scam
Don’t respond to emails, pop-up ads, or social media ads that offer a free credit report. Go through AnnualCreditReport.com instead. Be aware that some fake credit report websites have URLs that are very similar to AnnualCreditReport, so type the address in your search bar carefully and verify you’re on the legitimate site before entering any information.
Scam: Online Romance
Dating websites can be great for meeting new people, but unfortunately, romance fraudsters also use these sites to find their victims. And, according to the FBI, romance scams result in greater financial loss than any other internet-facilitated crime, with the average victim losing over $100,000.
This type of fraud takes on many different forms, but typically it starts with the scammer developing a supposed online romance with the victim. Once the scammer gains the victim’s trust, they’ll ask for money. They often claim to need money due to a personal emergency or to buy a plane ticket to visit the victim. Romance scammers have even gone so far as to persuade their victims to give them access to private financial accounts. It’s also not uncommon for these conniving criminals to convince their victims to commit financial fraud on their behalf.
How to Avoid This Scam
Older adults should be especially cautious using online dating websites, as some romance fraudsters specifically target older citizens. What’s more, women are victimized at a much greater rate than men. No matter what your age or gender, review our tips for dating online safely to help minimize the chance you’ll get duped. Don’t hesitate to break contact with anyone who tries to scam you, and you should always report them to the dating website.
Scam: Bogus Pop-Up Security Warnings
This scam preys on consumers’ fears. A bogus pop-up warns the user that their computer has just been infected by a virus, and directs them to download security software immediately.
Sometimes, the goal of this scam is to make money by tricking the victim into purchasing rogue software. Other times the supposed security software is free, which helps encourage the victim to download it. Once installed, the software takes control of the victim’s computer, where it can wreak havoc or burrow into your private, stored information. Even experienced internet users can be fooled by this scam, as many phony pop-ups look like legitimate messages coming from Windows or a leading computer security provider.
How to Avoid This Scam
One of the most effective ways to help avoid this scam is to protect your computer with genuine anti-virus software from a reputable security company. A good option is Norton AntiVirus, which helps defend your computer against scams as well as viruses and phishing attempts.
What to Do If You’re Scammed
Cyber criminals are always thinking of new ways to fool people, so use caution anytime you’re on the web. If you fall for a cyber scam (or think you may have), don’t be embarrassed. Gather any relevant information about the incident and then file a complaint with the IC3. An analyst from the IC3 will review and research your complaint and send out information about the incident to the appropriate law enforcement or regulatory agencies.
Talk to your loved ones about these common online scams, and encourage them to tell you if they think they’re being scammed. Whether they’re being scammed or have narrowly missed being scammed, recommend reputable antivirus software for their use and protection. Particularly if you have kids, make them aware of these and other potential online dangers before they encounter them. SafeWise also recommends using parent control software to help protect your kids from cyber criminals . With your friends and family properly warned and informed, you can rest at ease knowing the people you care about are cared for.
How to detect Binary Options scams
Detecting binary options scams is not an easy task,but it is a noble idea to do since people are being robbed daily of their money in binary options trade. BestBinaryOptionsWatch.com is dedicated to fishing out those scammers that come in sheeps clothing just to rip you off your money. One question that traders ask,especially those that have been conned is, -How to know binary options scam? Of-course,if you have once been scammed its enough reason to know that that binary option broker or signal provider is not legitimate. Prevention is better than cure, so it is better to avoid the paths of these scammers than learn your lessons after you have lost your money. So we are going to reveal to you some ways you can identify them:
Ways in which scammers work
- Enticing bonuses: Who doesn’t want to make a huge profit, more especially within a short period? These brokers feed on this human psychology and present huge tempting bonuses to make you invest your money.This is just a bait to lure you in. Now don’t get it twisted, legitimate and good binary options brokers also give bonuses but scam brokers present theirs telling you that you will always win.This are fake guarantees.
- Fake testimonials and reviews: They go ahead and put up jaw-breaking testimonials on their website and other websites of how people have been making huge profits with them and how their method is the best you can ever come across, they also go ahead and write fake reviews recommending them. Be careful because the people you see on those testimonials are non-existent and are fake.
- Refusal to withdraw your money: After you have started making profits and you want to withdraw your money, they come up with stories, then they stop picking your calls and replying your mails, making it impossible for you to get back your money.
How to detect binary options scam brokers or signal providers
- Check if the their website has an SSL certificate, you can know this by checking if their website has (https://), note the ‘s’. Since you are going to put your card details in,this would be very important.The https:// shows that your information and card details are encrypted and safe .
- Ensure that the broker is regulated: This is very important, check to see if they are regulated by a reputable financial body, note their license number and go ahead to verify it. This is very important because when things start going bad you can always report them to the regulating body and your money could be refunded.
- Check to see if their platform is easy to use and their website is properly designed.
NB: The presence of all of these does not mean that a broker or signal provider is not a scam.However when you notice these things then be suspicious.
To trade with trusted brokers click here
- Start little, then when you make some profit try withdrawing it. This is to enable you test the waters and notice any suspicious activities.
- Always read the Terms and Conditions, sometimes some things are hidden there that might not be in your favour.
- Always keep a record of your earnings so that if any changes or irregularities happen you would quickly detect them.
- Don’t keep your money for long with a broker.
- Don’t accept bonus offers from brokers because their terms are stringent,However if you wish to accept their bonuses make sure you read the terrms and conditions to know if you are satisfied with it.
- If you think you have been scammed, file a complaint to the regulatory body.
NOTE: Don’t always say when you lose that the broker is a scam , like every other business you could win or lose and finding a good broker does not guarantee your success.
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