How Сan Binary Options Brokers Cheat You?

How Сan Binary Options Brokers Cheat You?

Scammers can be found anywhere.

Binary options brokers can scam you too.

Are you surprised to hear that?

Let’s investigate how a binary options broker can cheat you.

Saqib Iqbal 300 Updated:

Content

Binary options scam

Binary options scam

The brokers may manipulate pricing to influence trade results.

Binary Options brokers manipulate the trade’s expiration time (more on that later).

Just before the trade expires, the server disconnects.

Lastly, your withdrawals vanish without a trace.

It is how binary options brokers may cheat you.

The vast majority of binary options brokers are operating online today.

Many are unregulated, and you should avoid them in all instances.

Otherwise, you may get scammed.

WHAT DO YOU NEED TO KNOW ABOUT BINARY OPTIONS?

WHAT DO YOU NEED TO KNOW ABOUT BINARY OPTIONS?

Are you curious to know about the binary option?

We are at your rescue!

All you need to know is mentioned below.

So, let’s start digging in.

What do you need to know about binary options

A binary option is a contractual option.

The payoff relies on the preposition “Yes” or “No.”

Binary options have a predetermined gain and loss sum.

If the binary options are profitable, the dealer may be compensated.

The dealer loses money if it expires out of cash.

You can only use the binary option once; the initial pick is your last.

A binary option does not allow the customer to buy or sell the asset.

Put call binary options

Binary options illustration

Binary options have an expiration date linked with them.

When a binary option expires, the trader will get a certain sum of money or nothing.

For the trader to gain profit at expiry,

The product’s value should be on the right end of the target price.

Binary options traders bet on assets such as gold, equities, and markets.

The trader trade on the price movement of the above assets and gain profit.

Further reading

IS BINARY OPTIONS A SCAM?

IS BINARY OPTIONS A SCAM?

There are many options available to you as a trader.

But do binary options are a scam?

Here, I’ll explain how secure binary options are.

Let’s get started.

Is binary options a scam

Computerized trading platforms dominate most of the binary options industry.

Many trading companies do not adhere to the country’s regulatory regulations.

It is impossible to dismiss the possibility of such businesses engaging in criminal behavior.

Such sites are also notorious for their deceptive marketing tactics.

You should be well-informed about the brokerage firm they are considering.

It does not imply that binary options are a rip-off.

It’s simply not a wise investment.

Binary options providers, for the most part, are legitimate enterprises.

Your cash will not be lost/deceived because they are authorized brokerage firms.

The issue is that most brokers make promises that are impossible to keep.

These kinds of results are not available to the typical user.

Most of the time, the brokers show examples of people winning bucks.

Such circumstances do occur.

However, they are exceptions rather than the rules.

Many customers, unaware of this, register with the Binary options platform.

Most people end up losing all of their money.

Binary options trading can be successful or lose-making, just like the two sides of a coin.

Preventing binary options fraud is simple if you tackle each broker with diligence.

There is no such thing as a tiny or large sum of money, so do some study before investing.

Also, thoroughly study their website, and be skeptical of exaggerated marketing.

Do not attempt to withdraw any more funds if you think you can’t.

Instead, get in touch with the appropriate authorities.

Finally, if you’re cautious, all associated hazards will be minimized.

Further reading

TEN WAYS BINARY OPTIONS BROKER CAN CHEAT YOU

TEN WAYS BINARY OPTIONS BROKER CAN CHEAT YOU

Now you know the main idea of the binary options scam.

Let’s explain the top ways how a broker can scam you.

Here I’m going to cover ten ways.

Let’s dive in!

Ways binary options can cheat you

1. Manipulating the expiration time

Options have expiration dates that are predetermined.

Therefore, you must pay great attention to the timeframe you enter a trade.

Does the order start and end at the precise time you specified?

Is the timer correctly counting down?

Lastly, does it expire at the scheduled time?

Some brokers will manipulate their timers to make them run quicker or slower so that your deal loses, thus generating a profit for them.

Binary options expiration time

Binary options expiration time

2. Identity theft

The regulatory organizations also get various kinds of complaints.

Binary trading platforms can gather customer data, including credit card numbers, passport numbers, and driver’s licenses.

These are priceless details that should under no circumstances be shared.

These data may be used unlawfully by the trading platforms.

Thus, it is advised that no personal information be disclosed.

These fraudsters may also allegedly request copies of your utility bills and other personal documents.

If one is not confident in the company, one should not comply with these standards.

3. Luring for bigger fish

Brokers are aware of how confidence-boosting little wins can be.

You may be tempted to invest more money in subsequent trades.

However, trades frequently don’t go in your favor if you make a significant investment.

The strategy keeps you active as a trader on their platforms.

They will lure you in with little wins to give the impression that you are profitable when trading options.

They will start stealing your money if you deposit a significant sum in a single trade.

So, they may reclaim your gains and a sizable portion of your account balance.

These brokers know that most traders who lose money in this way will likely make another deposit to compensate for their significant losses.

Then the cycle goes on and on.

4. Platform manipulation

Some broker options or platforms like to scam their clients through platform manipulation.

The platform manipulates the prices, time of the trade, and payouts to result in the trade-in loss.

The platform manipulates its software to show losing trades.

This sort of misrepresentation leads to altering the prices and payouts.

When the platform sees that the client has a 100% chance of a good trade, the software expands the expiry time, so the trade results in a loss.

Every trader has its techniques to trade on different platforms.

However, it is the broker that controls the technology and thus has the power to change prices whenever they want.

If a trader wins, the platform manipulates the prices with artificial prices, so the trader starts losing money.

It happens when all of a sudden, the prices are changed by a single tick right before the trade is set to expire.

5. Disappearance of withdrawals

The most well-known approach to deceiving you from acquiring your profits is the delay or disappearance of withdrawals.

You find that your withdrawals are being delayed, and you are not receiving them.

In that case, it most probably seems that your broker manager has manipulated your account.

Sometimes the brokers offer deals and discounts or bonus statements.

At first, they seem very good to the eye, but if not read or handled carefully, they can lead to withdrawal restrictions or disappearance.

Some brokers trick clients into a series of significant commissions and fees, resulting in the disappearance of withdrawals.

Some brokers and platforms have allotted a specific timeline in which the client should make the withdrawals.

After that, they are disappeared.

Assuming this timeline expires, you’re expected to contact their support team, which should help you get your money back.

However, the fraudulent brokers usually delay this process by generating false.

6. Fake sales pitches

The trading platform employees often use fake sales pitches to lure clients into their trap.

They use fake names, countries, addresses, qualifications, experience, and positions.

They will captivate you to put your cash on their platform.

They do this by expressing that the binary option you are right now putting resources into is deceitful.

Such tricksters attempt each piece to acquire your trust and persuade you to deposit your cash in their trading platform.

These people will greed you.

How? By assuring you that their trading platform will provide you with the best returns, luxury goods, and fake experts.

These tricksters will make you believe that binary options are a quick fix for all your financial problems.

But it is far from the truth!!

Fake sales pitch

Fake sales pitch

The salespeople provide details and products far different from those shown on their website or advertisement.

And if you read the terms and conditions thoroughly, it will surprise you how different it is.

Very often, scammers make counterfeit surveys of their trading platform.

So ensure that you use information from trustworthy sources.

7. Connecting to other brokers

Many brokers now offer their trading systems to other brokers and experts on the market.

They say their strategies will help you in trading, like copy trading.

However, in reality, these strategies are designed to make you lose.

They might seem beneficial initially, but in the long run, they ensure your loss if you keep working on them.

You might be trading with a specific broker, and then suddenly, you might be trading with another.

It usually means that the previous broker has disconnected.

Sometimes these brokers create duplicate websites of a leading trading platform.

And manipulate you into trading on their platform while you keep losing money.

So always use a trustworthy and regulated broker who doesn’t lead you to other brokers.

8. Credit card fraud

Credit card fraud is identity fraud.

Some second person uses your confidential data.

Fraudsters are stealing a piece of your identification; your credit card information is used to get cash withdrawals.

Credit card fraud can happen through a lost or stolen card.

Fraudsters use your credit card to make purchases without your consent.

A hacker can hack your computer and steal your data to commit fraud.

Fraudsters can trap you by calling for bogus prizes or electronic payments.

Credit card scam

Credit card scam

A fraudster may do operations at spoofing, such as sending bogus emails.

Although there is no way to avoid credit card fraud,

But you can educate yourself to protect yourself.

9. Working with the unregulated brokers

There are a lot of brokers in the forex market, some are licensed, and others aren’t.

A forex broker acts as a go-between a trader and the exchange market.

Hundreds of unregulated brokers operate throughout the financial market.

Some are highly competitive, while some are downright con artists.

Unregulated brokers provide financial services to international traders.

The dark side is that they risk traders’ money when trading.

Following are some of the dangers of dealing with unregistered brokers.

  • You cannot assure the security of a client’s finances.
  • If a trader encounters a fraudulent broker, they may risk their investments.
  • Due to the broker’s unregulated nature, a trader cannot file a fraud complaint.

To avoid dealing with an unregulated broker, you must research whether the broker is licensed or not.

10. Ponzi and pyramid schemes

Significant similarities exist between the pyramid and Ponzi schemes.

These are both built on the same principle promising those profits.

Shady investors deceive naïve individuals.

Ponzi schemes offer to invest your funds and earn a maximum return with no risk.

The scammers in many Ponzi schemes do not make investments.

Ponzi schemes require a steady influx of new money to continue

Because they have little or no revenue.

Pyramid scheme

Pyramid scheme

Pyramid schemes are more difficult to establish than Ponzi scams.

They are protected since corporate legal teams are formidable.

Pyramids allow victims to “earn” money by hiring new individuals for the fraud.

The only person guilty in a Ponzi or pyramid scheme is the one who started the fraudulent business operation, not the investors.

Further reading

HOW TO AVOID SCAM BINARY OPTIONS BROKERS?

HOW TO AVOID SCAM BINARY OPTIONS BROKERS?

Now you know some of the ways brokers can scam you.

I think it’s the right time to tell you can avoid falling into the trap.

You got to remember these points!!

So, let’s find out!

Avoid scam binary options brokers

You can avoid the binary options broker scam in the following ways:

Always look into a firm’s or financial professional’s background

Before investing, look into the past of any firm or financial professional you’re considering working with, including their registration or license status.

Please don’t give them your personal information until you can’t verify their registration.

While remaining within the rules and regulations, firms may operate unethically.

Binary options companies that are unregulated don’t need to be always scammers, but it is surely safer to use a registered platform.

CySEC has fined many binary options brokers, which were not insignificant.

Second, a licensed broker is concerned about his reputation since he will lose his license if he is fined.

Only check that the broker’s license is still valid, as some have revoked their licenses because of various misconducts.

Visit the website

On their trading scam website, you may find various red signals.

First, a website is possibly dangerous, poorly designed, or always faces technical issues.

However, it’s not a big deal for some fraudsters to create unique, real-looking websites.

So, this is not a precise test.

Second, all legitimate brokers will publish detailed information on their websites regarding deposits, withdrawals, and payouts.

Try to read fine prints on websites to see if there is anything odd.

If you see some information that does not match what is being shown on the website, the broker may not be reliable.

Brokers are known to utilize joining bonuses against traders.

For example, if a customer loses money after obtaining a bonus, they may refuse to let them withdraw funds.

It’s probably a scam if a broker says something like their prices are not the same as those on the open market.

It is a red signal that they are scammers if they claim to have a low loss rate.

Always read the reviews

Going through user reviews might help you spot binary options fraudsters.

For your information, online binary trading scammers may occasionally generate fake reviews praising themselves on the internet.

So investigate your information thoroughly from reliable sources.

Looking for binary options companies on online blacklists is always a good idea.

Regulatory authorities administer legit binary options brokers, such as the Financial Conduct Authority (FCA), which maintains an internet warning list of trading scams.

Also, FINRA’s BrokerCheck service keeps track of brokers facing legal action.

You can check out the list of regulated binary options brokers here. 

Check out for customer support

Authentic binary options brokers will always provide an easy approach to the customer support teams.

A well-administrated customer service department of the customer support teams keeps in mind the trading experiences of their clients.

Scammers are frequently tricky to find or only interact with messaging apps.

Be watchful for deceptive marketing experiences

These scammers focus on high profits on investments and ignore upcoming risks and losses.

Remember that there is no guarantee that a profit of thousands of dollars in just a few days of trading is possible.

Many fraudulent brokers use targeted social media ads like YouTube and Facebook to hunt potential customers.

Some may claim more realistic results.

So, all binary options trading scammers do not use this promotion form.

Furthermore, the brokers with a reputation will never cold-call their potential clients on the phone without their consent.

Some scammers may send you fake emails stating that you are already registered with them.

Immediately shut the call and eliminate the emails in each stated circumstance.

One last thing any broker who demands quick payment should not be done as it may be a scammer.

Further reading
FAQs

FAQs

Is it safe to use Binary Options?

In general, binary options are considered to be risk-free investments. However, be careful while investing funds/capital. You must research to verify that you are working with a reliable source.

Can we use binary options to create money?

Investing in options likely to expire in a fixed period can produce money, especially for anyone well-versed in the marketplace dynamics.

Can Binary options make you lose money?

Binary options trading is simple to understand. But their success is contingent on the firm or service you invest in. Many traders incur losses due to broker fraud or other issues.

What is the big deal about Binary Options?

Regulatory organizations continue to receive numerous accusations of scams. These deceptive trading sites offer different ways to buy/sell binary options. Two issues come up time and time again.

Which binary options trading method is the most effective?

If you’re seeking a method that assures profit, disappointment awaits you. Everyone would be wealthy right now if any such plan existed. Focus and knowledge are the only ways to achieve success.

What is the smallest deposit you may make with an options trading broker?

A trade’s minimum investment’s value varies from broker to broker. The minimum amount for level 1 is typically below $1,000. For further details, you can contact them through their helpline.

What exactly do we mean by demo accounts?

Beginners can practice trading with virtual money using a demo account. It is until you have gained the necessary experience to trade with real money.

 Is it possible to trade options while I’m on the go?

Sure, you can. The top binary options providers are compatible with iPhones, iPads, and Tablets. You have the option of trading on your browser or downloading trade apps.

The concept of binary options intrigues me. What should I do?

We recommend being receptive to new information. The top options trading sites may also serve as fantastic educational tools. For several months, set up a demo account with one of them and practice.

Read stuff, take online classes, read eBooks, and see training videos.

FINAL THOUGHTS

So, there you have it!

Now you know how binary options brokers can scam you.

But I have mentioned the ways to avoid it also.

So, you can make your decision confidently.

If you are looking for the best binary options broker, we suggest looking at our list. 

We have searched and experienced these brokers, and they have proper regulations.

So, make sure to give it a read!!

Further reading