Latest posts by Marcio (see all)
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Over the past couple of years, we have come across literally dozens of complaints lodged against Forex and Binary Options Brokers. These complaints arise owing to a number of reasons. While some are legitimate complaints, many others may not be. If anything we found that traders using licensed and fully regulated brokers will rarely run into problems or have complaints.
Any trader who chooses to trade with a broker that’s unlicensed to provide the service will apparently run into issues. Plus, when there are issues you don’t have any authority to report the problems to and so there is nothing you can do.
There are a few things you can do, or should consider:
Brokers that are regulated by CySEC are based in Europe. Investors can CLICK HERE to complain against those brokers.
You can also CLICK HERE to see the complete list of popular brokers.
IQ Option is one of the most popular Binary Option and Forex brokers. They are also licensed, so traders have never faced any issues. CLICK HERE to read the review.
If the broker you are using is licensed by the ASIC which is an Australian regulator, then you can complain against them CLICK HERE.
Complaints regarding withdrawals
Any trader who finds themselves becoming a victim of fraud can hire an attorney’s service like MyChargeBack.com to help get their money back. If the broker is not yet processing a withdrawal request, you need to keep a couple of things in mind. The first being the requirements set forth by the broker for withdrawing money.
Keep in mind that the requirements for withdrawals are different from depositing. To withdraw money, brokers require identification and verification documents, the list of which should be on their website. The standard forms of identification required is a passport or drivers license or a national identification card.
They may also need a scan of the front and back of your debit/credit card. After having requested a withdrawal traders should email the broker’s compliance department and customer support too. You should never rely just on a phone conversation or a bunch of Skype messages with your dedicated broker.
Now if the withdrawal is not processed in a timely fashion, it’s imperative to call the bank and request a chargeback. In our experience, the vast majority of people who have a problem getting their money out of a broker are in most cases dealing with a fraudulent unlicensed broker.
Automated Trading Systems
The vast majority of traders will choose to open an account because they saw an ad online about something that’s often touted as being a so-called ”secret system.”
Now the way in which the software works is by creating an account for you at the scam broker they are affiliated with and then asks you to deposit money. The real issue is that the software rarely ever works, but the traders are almost instantly scammed.
It goes without saying that many legit brokers have a clause on their website which states that using automated trading systems are not allowed. You will find a lot of information about automated trading robots that are available at licensed brokers by CLICK HERE.
Complaints regarding the bonus policy
One of the prime reasons why traders are unable to withdraw the money they earned is because they accepted a bonus from the broker. We strongly recommend that traders should read the bonus policy before accepting it. Many unregulated brokers demand that traders be able to make 30x to 60x the value of the bonus before they can withdraw any money.
It is for this reason that the vast majority of unregulated brokers have a long list of complaints filed against them online. Interestingly, there are also many scam brokers that will give traders a bonus automatically and so they are trapped.
Back in November 2016, CySEC officially banned using bonuses by Binary and Forex brokers.
Fantom credit card charges
Interestingly there are two primary reasons why you end up with unauthorized or phantom credit card charges. The most common of which is it being a mistake and the broker processed one payment twice.
The second reason for phantom charges it that you assumed that broker would double your money but in actuality, you lost it. Then the broker called to sell you on the idea of adding more money to the account.
The issue can be avoided by using an e-wallet like PayPal of Skrill to fund the trading account. That way if you are charged for something you get a notification. You can then contact the e-wallet and get the charge removed.
Using Managed Accounts
Many times traders will receive a call from the brokerage offering a managed trading service. The managed facility will have a person trade on your behalf. The issue with this proposal is that trading is extremely risky. So, there is a good chance that you can end up with no money in your account.
Also, having a great deal of experience makes little difference. So if you authorize a trader at the firm to execute trades from your account it means that you’re giving away cash for free. It is interesting to note that brokers will only make money in the event you lose money. So, its naturally in their best interest that you lose.
So, if you receive an offer from the broker to trade on your behalf say no! Traders who are in the binary options industry should do their research and learn to trade correctly. Never let someone else trade on your behalf because there is no such thing as easy money. If these people were such good traders, then they would be using their own accounts and not managing yours for peanuts.