Binary options: be careful who you deal with
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Scams using binary options are unfortunately quite common, as you can tell from our list of fraud brokers and services. If you are concerned about falling prey, this guide explains how to avoid scams in the UK.
Binaries are, in our opinion, a good product. There are, however, unscrupulous brokers and other service providers out there preying on uninformed traders. But with scam artists still out there, what can consumers do to avoid a binary options scams and focus purely on their trading? Read this tutorial on scams and only trade with trusted brokers! A scams list may not actually be that useful though — operators are closing and re-opening so often that maintaining the list becomes a full time job.
A better choice for consumers is to spot the warning signs, and if there are any doubts at all — simply move on to another provider. A list of scams can only protect you from threats that exist today — learning how the con artists operate and mislead consumers can keep you safe for years to come. There are a number of methods by which the scams associated with binary options will try and make money.
There are however, also some pretty obvious red flags that can pre-warn consumers that all might not be well. If you have encountered any of the below, I would advise treading very carefully — and if in any doubt, leave that particular broker — there are plenty of legitimate, trustworthy brokers. There is no need to take risks with binary options are evil and scam uk company that you may have doubts over. A service called MyChargeBack. They offer a free service to let you know if you have a case.
Things like unpaid withdrawals, or unauthorised payments can be claimed via banks or credit card companies, and this firm specialise in dealing with those organisations.
The range of services varies based on each case, but they may be able to help:. A reputable broker is unlikely to solicit new business by making cold calls and phoning you out of the blue. These might include the promise of immediate, high returns, and downplaying any risk.
In addition to telephone calls, some operators may also email directly, in some cases, suggesting binary options are evil and scam uk account has already been opened. Any of these methods of getting in contact is an immediate warning sign. Hang up, and delete any mails. One source of frequent issues is via deposit bonuses. Binary options are evil and scam uk brokers will often have some extremely unethical terms.
These might include tying in the initial deposit until a certain amount of binary options are evil and scam uk have been met turnover requirements. They will include the initial deposit not just bonus funds. Effectively making the deposit their money as soon as it is handed over. This warning includes automated robots and signals, but also managed accounts, where an account manager has promised massive profits.
There is an obvious conflict of interest for these account managers. If you make a long term profit, the brokerage makes a long term loss on your account. An account manager, employed by the broker, is very unlikely to have your trading interests at heart.
While they may argue otherwise, letting someone else trade for you is very likely to end in losses. These managers can also encourage traders to invest way beyond their means, which is particularly dangerous.
The risks should never be hidden from you by your broker or account manager. Many of these warning signs are related — this form of marketing again hides the risks — just like the cold callers and account managers. There are numerous websites, with high production videos that look very appealing. They will suggest making money is easy, possibly even suggesting binary options are evil and scam uk copy famous investors. These are all scams. Any promotion that hides, or downplays, the high risk nature of binary trading is not being honest.
Binary options are not a way to make binary options are evil and scam uk money, and should not be sold this way. This form of advertising for binary options is generally the most dangerous for the consumer. If you encounter marketing of this kind, do not proceed. A funnel is a website that will drive traffic to a broker.
As a visitor to that site, you may not even be aware you have been redirected to a broker. The issue here is that the consumer will be passed to a broker, who they know nothing about. Having visited the funnel, the new customer will get a call from a random broker asking for a deposit. While this may sound odd to those who have not fallen victim to it, the effective selling of the binary options scam by the funnel website, will mean many people are duped. Some brokers will include a line within their terms along the lines of: Unfortunately it will not be worded as clearly as that, as the implications are obvious binary options are evil and scam uk they set their own prices.
If binary options are evil and scam uk broker is the counter party to any trade, and they also set the prices, it will be very very difficult to ever make a profit with that broker. Clients are trading against the broker, and they decide the closing prices.
One of the two parties will make a loss — and it will not be the broker. Research the terms of trading and beware of any references to settlement figures based on anything other than real world prices. So those are some key warning signs that should make any potential new trader stop and question what they are being told. If you have come across any of the above, identify the broker involved — and trade elsewhere. Even this however, might carry risk. The reason is, as well as the scam operators, there are review sites that are also dishonest.
There are a couple of ways that consumers can protect themselves and find the trustworthy reviews. The first method is in looking at the offerings elsewhere on the review site — if other scams are being promoted, then the reviews are not credible. Ask these question of the site:.
The second method is regulation. If a binary option site lists FCA regulated brands as we do! Binary options are evil and scam uk site must be completely honest about the high risk nature of binary options, and it must have accountable individuals, based in the UK who operate it. If it does not, then the FCA firms would not allow their brands to be marketed by them.
Here however, is another level of complexity. Some binary options brokers have sought to register with the FCA. This is binary options are evil and scam uk the same as being regulated by them. A brand offering only binary options will not be fully regulated by the FCA. This is because binary options are currently regulated binary options are evil and scam uk licensed by the UK Gambling Commission. So the list of binary options brokers regulated by the FCA is actually very small.
In addition to binary options are evil and scam uk services below, the FCA have published a list of firms who are not authorised to trade binary options in the UK.
While stopping short of calling them scams, the list provides a picture of firms who are prepared to break the law by offering unregulated trading. They are almost certainly best avoided. The list can be found here:. The marketing in use here is an obvious red flag. Unfortunately the claims are not true. The Brit Method is a scam that has been used before. Here is what you need to know to protect your money. The Brit Method promises to be a binary options trading strategy that can make you hundreds of thousands of Dollars within a few weeks.
The Brit Method is nothing new. It previously was called the Aussie Method and the Canuck Method, and each time the site had to close due to its bad reputation. Even the guy who supposedly invented the genius trading style is the same. There are many fake testimonials on the website, but make no mistake all of them are made up statements with stock pictures of people who never heard of the method.
Similarly, all the promises made by the Brit Method are lies. The site essentially promises immediate, unlimited gains, but provides little information on how it wants to accomplish this goal. The site also promises to get you started for free, which is a lie, too. But even if you make the deposit, you still wont have access because there is no system.
The money is gone, and you will never see it again. Avoid the Brit Method at all costs. Also, be aware of all future version of the scam. In all likeliness, there will be a German Method and an American Binary options are evil and scam uk and they will very likely to use exactly the same methods to con people.
The scam suggests that clients can enjoy binary options are evil and scam uk by following a method created by Warren Buffet. An investor famous for taking long term positions, this fraud has absolutely no connection with Buffet himself.
No system exists, and traders will not get any funds returned. The good news here is that the Ultimate4Trading website has been blocked for UK visitors. The operation is dishonest and should be avoided. Another scam which again, is thankfully blocked in the UK.
To the point which even the website is now a haven for malware. Below are some brokers for which we have received credible reports of poor customer care, or worse.