How to Avoid Binary Trading Scams
The Online Video Binary Trading Scam
If you are like thousands of other people out there, you've been tempted to click on a link to find out what all the hoopla is about binary trading. People are supposedly making thousands and even millions of dollars trading this way. Before you click on that link, please keep the following information in mind to avoid being a victim of a scam.
The most popular way to rope in new people for a binary trading scam is to get you to watch a video. You'll receive an email directing you to click on a link, which then will connect you to a "broker" website. Alternatively, you'll find these videos on YouTube with links to another website or brokerage. I use the term "broker" in quotation marks because they usually aren't a verifiable broker of any kind.
Once you've landed on the "broker" website, you'll be encouraged to submit your name and email before you can gain access to their video or secret to making a million dollars in 30 days. This is where the trap is laid.
The video will begin with an actor or actress explaining how they went from flat broke to a millionaire in just a short period of time. It may have been a few weeks, a few months or a year, but they will assure you that you too can be just like them. For just $250-$300 deposited into the brokerage, they'll help you turn those dollars immediately into cash that you can take out that day, or anytime you wish.
Still skeptical? The narrator of the video will continue to assure you that your $250 is just a mere pittance compared to what you'll be earning, and at the end that you will indeed make the money they claim. After all, they just showed you someone who was successful doing it, and they were Just Like You! Often, the narrator will question your sanity if you haven't already clicked on a link to a brokerage firm they are recommending that day. They'll say something like, "What are you doing still watching this video? Your friends are already making thousands of dollars while you are still sitting in your chair, listening to me. You must not be very intelligent."
If you are lucky enough, you'll stop right there and ask yourself why are you letting yourself be manipulated by a stranger. Unfortunately, you may be like thousands of other people out there who are flat broke and in desperate need of cash.
Guess what - they now have your email address and they are going to keep emailing you with special offers like free signal software, offers to join millionaire in a month clubs, not to mention selling your email address to every other binary scam artist on the planet. They know you want to make money even if it seems too good to be true, and they are more than eager to separate you from your hard earned cash.
Do yourself a favor - unsubscribe from each and every one of those emails, or don't even bother opening them. Leave them in your junk mail folder, along with all of those offers from a solicitor in Nigeria telling you you've inherited millions of dollars.
The Binary Signals Software Scam
You may not even know what a "signal" is yet, but if you've been sucked into the never ending email bombardment from binary "brokers", you'll soon find out.
Signals are statistical data robots that make a guess which direction a binary option will go. Many binary brokers will charge you for the use of their robot on a monthly basis, and scam artists will suck you in by letting you use their signals software for free. What have you got to lose? A lot. You'll get the "free" software AFTER you've signed up for some con artist broker. The free software guy gets a bonus for sending you to the con brokerage, and you've lost your $250-$300 deposit because the brokerage won't give it back without a fight.
If you know absolutely nothing about binary options, this is the worst way for you to get into it. And your initial deposit may lead you to the next hook of the con artist - most of the binary brokers will pressure you to deposit $1,000 or more to get in on their auto trading platform, which uses a signals robot to make trades for you. They practically guarantee that you'll be rich beyond your wildest dreams. You're smarter than that, right? You'll just paddle your own canoe with your modest deposit and start trading on your own.
Not So Fast...
Think you're immune to that hook? They'll get you to talk to them by refusing to verify your account (after you've deposited money) until you call them up, and THEN they hit you with a hard sell. They will hound you and suggest all kinds of crazy things to get your money - borrow it from your poor old grandmother, borrow it from another credit card, it goes on and on.
Don't Fall For It! Just Say NO
The Truth About Signals Software, aka Signals Robot
What you need to know is that no signals software is 100% perfect, nor 97% as some cash machine scams claim, or even 90% accurate. The accuracy is more like 50-70% accurate, and even then you can still lose a great deal of money if you bet incorrectly. Markets are always unpredictable, and a binary option can change from a win to a loss in a matter of minutes, if not seconds, depending upon your chosen binary trade type.
I cannot, in good conscience, promote any signals software because of the volatility of binary trading. What I do recommend is that you pick a commodity, metal, or currency and study it. Follow the market though reputable financial reporters, and then place your bets ONLY if you have money that you can afford to lose. For heavens sake, don't pressure your family members to fork over their hard earned cash too!
How do you Tell the Good Guys from the Bad?
You aren't the first, nor will you be the last individual scammed by the promise of quick returns on an investment. Binary options are just the new kid on the block. The "brokers" aren't heavily regulated, at least not yet.
Are all binary brokers scam artists? No, they aren't, but unfortunately there are lots of bad apples in the bunch, and they keep changing their names to hide their identities. So, what can you do to protect yourself from future scams?
Find a reputable broker. Don't follow a link that some guy who knows some guy sent to you. Research brokerages yourself, and be wary of companies that have oodles of 5-star reviews. One way to find a legitimate binary trading brokerage is by visiting CySec - Cyprus Securities and Exchange Commission.
Read Reviews. No company is so perfect that there isn't at least one complaint against them. Someone always feels that they've had a bad experience and wants their money back or wants to complain online. Read the bad reviews first, then the good ones. If they have only good reviews available, odds are they've paid for 5-star reviews and have planted them all over the internet. If you want the real truth about the "broker" you've been funneled to, check out Forex Peace Army (forexpeacearmy dot com). They have the goods on just about every broker, broker scam, and signals scam on the internet, and it won't cost you a dime.
Binary Trading Scam Poll
Have you been a victim of a binary trading scam?
How do I Get My Deposit Back from a Scam Broker?
There is nothing more disturbing to me than con artists stealing money away from people, and usually the most vulnerable, poor people out there. $300 to a vulnerable individual can mean the difference between making a rent or car payment or buying groceries for their family for a month. While the scam artist may think, "hey, they were stupid in the first place to trust me, so they deserve it", it doesn't make it right to take advantage.
Get Your Deposit Back if you used a Visa or Mastercard. If you live in the U.S. and you used a Visa or Mastercard (Debit or Credit), submit a dispute for the amount of money you have left in your brokerage account. You won't be able to get back money you have bet and lost, but you can try to retrieve your deposit from brokers who don't want to give it back. Many of these brokerages aren't supposed to accept US customers in the first place, so you have a chance of disputing the charge and getting your money back. In other countries, check with your banking institution where the card was issued about disputing the deposit charge. One caveat - ask the broker for your money back first BEFORE you submit a dispute. You can do this in the form of an email, a copy of which can be used as proof you asked for it back in your dispute against the broker. As a matter of fact, save all of your correspondence that you've used in interacting with a broker, even if you've said a few negative things in an attempt to reach a resolution with them. This can all be used in a dispute case.
Speak with a Lawyer. Laws vary greatly from state to state, country to country. Speak with a financial lawyer if you have money in an account that you cannot access, or you have lost money due to unscrupulous traders. Many lawyers will speak to you for a short period of time with no cost to you, to discuss a potential case. There is no guarantee that you will get your money back, but laws are always changing, especially with this new form of trading.
File a Complaint with Forex Peace Army's Traders Court - This non-profit group is dedicated to exposing con trading schemes and may be helpful in getting some of your money back.
Stop Binary Trading Scammers by Writing Reviews
Write Reviews - especially submit one to Forex Peace Army (forexpeacearmy dot com). Your reviews can help shut down the criminals, especially if they've planted 5-star reviews everywhere. Just remember to keep it to the facts of your case when writing the review.
If you were scammed, do you remember searching, for reviews about the brokerage you were funneled to by the email, or video testimonial? Remember how hard it was to find a real review, other than a 5-star one? Write that review and help someone avoid doing business with a con-artist.