October 20, 2015 at 2:33 pm
As you may or may not know there are many trustworthy Binary Options brokers in the industry, but there are also quite a few scam brokers in between. None of us want to get scammed. Thus, we need to do everything in our power to ensure that we end up with a broker who we can trust. Should we for some reason end up with a broker who we think are scamming us we need to take action. Before we get into the steps you should take, let’s first look at ways how Binary Options brokers could scam you:
–Expiry Times – This is one of the most common tactics that brokers use to scam you. They will manipulate their expiry times. Say you are in a winning trade. The trade is meant to expire at a particular time but for some reason the clock keeps on running. When the trade finally expires you find that your trade turned out to be a loser that should have been a winner had it expired at the right time. When you take up this problem with the broker, they will claim it’s a site error and refer to their terms and conditions that state that they are not responsible for this. There is no doubt in my mind that this is a tactic used by the broker to scam you.
–Spreads – Brokers that incorporate spreads into their prices can be really frustrating for traders. They will add or minus a few pips from the actual market price. This is a huge disadvantage when trading short expiry times. Say the broker has a spread of three pips added to the market price; you will need your trade to go more than three pips in your favor to win the trade. This makes it extremely hard to win. You can take all the screenshots of the spreads you want. When you show it to them, they will again just point you towards their terms and conditions. My opinion is that if it were not a way to scam traders, they would have fixed the issue at the first problem they encountered.
–Withdrawals – Scammy brokers will give you the runaround when you are trying to make a withdrawal. They will ask you to send in paperwork even though you already submitted everything that they asked for in the beginning. Some brokers will just ignore your withdrawal request altogether, and others will plainly refuse to pay out your money for some or other excuse they came up with.
Now that we know how brokers could scam you, it’s time to move on to what you can do when you are involved in such a scam. I strongly advise traders to resolve the issue on their own. If they fail to do so, it is time to take action against the broker. Let’s have a look at a few steps that you can follow if you have a dispute with your broker:
Traders should always do their homework before they join a broker. Maybe you made a mistake and rushed in without doing research before signing up with the broker. If this is the case, now is the time to do so. Look around to see whether you are the first one to raise this complaint or if there have been others before you with the same problem.
If you find that you are the first one to have this problem, there could simply just be a misunderstanding. However, if you find that there are other traders before you with the same problem, there is definitely something else wrong. Look for ways how other traders solved this issue and follow the same steps as they did. If you fail to solve the problem like this, move on to the next step.
Before you plan on raising a complaint with a broker, it is always a good idea to check if you are not the cause of the problem. If you find that you were the cause of the problem, you can quickly resolve it yourself without having to wait for who knows how long until someone else can do it for you.
Start by reading through the broker’s terms and conditions. Maybe you need to send in some documents in order complete the withdrawal. Perhaps you accepted a bonus and have not traded the required volume to be able to withdraw yet. Is your withdrawal amount too big for a particular withdrawal method?
Sometimes you can figure out the problem by doing this and other times the problem lies deeper. If so, you should continue to the next step.
The problem could be due to miss-communication. Maybe the broker sent you an email, and it landed in your spam folder. Perhaps you emailed your broker, and they misread your email or missed your email in between the thousands of emails they get. Go through your spam folder to see if there is an email from the broker or send them another email. Find out whether the problem is lying with you or them.
Should you find yourself unable to solve the problem on your own, you need to make contact with the broker. Before you do so, give them a reasonable amount of time to address the issue. If the problem is still not resolved after a week, it is time to give customer service a call and speak to them directly.
At this point, you are understandably angry and at this stage it is all too easy to fall into a destructive, accusing pattern. When dealing with customer service you should refrain from attacking them as this will only put them on the defensive side. Instead, be polite and calmly explain to them what your problem is. Tell them all the steps that you have taken and that you could not sort out the problem yourself. Being kind and polite to customer service will make them want to help you.
Hopefully, the problem will be resolved at this stage. Give them a few days’ time. If the issue still is not fixed, you can move on to a more drastic step.
Now it is time to kick it up a notch. You have tried everything you could do and have waited long enough. You have given the broker more than enough chances to comply. Now you can finally feel free to express your frustration and anger. The broker will more than likely try to refer to their terms and conditions, but it doesn’t really matter. Tell them if the problem is not fixed within a certain timeframe you will have no choice but report them to the authorities and take public action against them.
Hopefully, you will get your money at this stage. If they still refuse to do so, you have no choice but to move on to the last and final step.
The broker has made their choice. Now it is time for you to report them to the applicable authorities. Regulated brokers should be reported to their regulatory agency. Some of the top regulatory agencies are CySEC, ASiC, GSC, and FSA. Unregulated brokers can also be reported to the authority that granted them the license to do business.
After reporting them, you can share your experience with the broker online. Post to different forums and review sites. You can start with our website’s Broker Review section.
Following the above steps will not guarantee that you will get your money back. What it will do is draw business away from the broker and save other traders the misfortune that you have suffered. It will give legitimate and trustworthy brokers the business that deserves it more. Be safe out there!
October 20, 2015 at 6:38 pm
this is a great post! Also, scammy brokers like to give bonuses where you have to trade so much in order to be able to withdrawal and only than can you withdrawal the amount you intitally deposited
October 21, 2015 at 11:55 pm
Yes, bfairo. I was caught out like that a while back. I tried everything to get my money back as I did not know that a bonus worked like that. Well to say the least, I failed and lost all my money attempting to trade the required amount of volume.
October 30, 2015 at 1:22 pm
This article is an absolute must read for all traders!
I see a lot of traders jumping on their horses too quick and calling brokers scammers. In the meantime they have not read their terms and conditions or they just simply don’t understand how a bonus works.
Actually I don’t even know why brokers still offer demo accounts. Yes I know that they are guaranteed basically that the trader will lose his or her money before they can withdraw their deposit and the bonus, but most traders that fall for bonuses will eventually wipe out their account without a bonus attached to their deposit.
According to me – bonuses is where all the negativity starts towards a broker. You will see most of the complaints on websites and forums are about the bonus that they took or something. So if brokers didn’t offer bonuses, there would be much less complaints about them.
Anyway enough of my ranting. If you come across a problem with a broker, follow the steps mentioned in this article. Chances are you will quickly sort out the problem and be able to move on.
October 20, 2016 at 2:39 pm
You need to trade with a licensed broker, otherwise you will never see your money again.
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