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Binary Options Scams

As in any business, there are good companies and bad companies. There are scams and there are misunderstandings. Binary option trading is no different and many articles and even entire websites are devoted to simply badmouthing brokers and declaring that they are a binary options scam. Of course, there are many instances where such a story or rumor is in fact true. But most of the time these are low level misunderstandings and labeling them as a binary options scam is very improper and rather unfair.

What do people say constitutes a binary options scam? Most of the time, a customer of a binary options broker will use the word “scam” for a number of reasons. These generally fall into the following categories (in order of frequency of complaints of binary options scams).

  1. Withdrawal related issues
  2. Trading issues
  3. Deposit related issues
  4. Support issues

Withdrawal related issues are probably the most prevalent reason for labeling a binary options broker a binary options scam. Traders need to understand the process of withdrawals prior to depositing. More times than not, a customer is unaware of broker policies regarding withdrawals and as such claims that the binary options broker is a scam. For example, bonuses are not known to be capable of being withdrawn and as such, if a trader who has $1000 in his account but received $250 in a deposit bonus (meaning the actual deposit was $750, assuming no trading was done) and yet requests a $1000 withdrawal – will be DENIED. The customer can get angry about this and start venomously disparaging the broker as a binary options scam on every web site that will listen. But had he read the terms of the bonus, he would have known the truth.

Again, there are loads of bad apples out there. A bad broker might not want to send funds based on the winnings of a trader. This is obviously a binary options scam and should be shouted from every rooftop. But we recommend reading the terms of business at the broker you trade with before opening an account so you don’t get mixed up in a bad situation where you end up entering forums just to say you experienced a binary options scam.

Trading issues are another source of binary options scam claims. Many times a trade is not honored or an attempt to close a trade failed. Traders need to try to be objective. Technical issues occur at every broker and every company in the world. This is not necessarily a binary options scam.

Deposit related issues are rarely labeled as a binary options scam and neither are support related issues. But sometimes these issues raise a red flag that causes traders to associate the broker with the possibility that they are in fact a binary options scam. Such signs include a live chat button that is never answered by anyone. A telephone number that simply leads to an answering machine or answering service. A deposit that doesn’t get an automated receipt message.

These are the reasons many find themselves labeling brokers as binary options scams. 

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