Binary Options Scams in the UK – How to Trade Safely

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    Top Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
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  • Binomo
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How To Avoid A Binary Options Scam?

Is it a secret that the Binary Options industry is pestered by scammers? I don’t think so. Even if you are new to this, you’ve probably heard about some guy wanting to share an “extremely profitable” way of making money or a special trading bot that will make you thousands per day – on autopilot of course – or a guy who wants you to follow his signals that will supposedly make you rich. And if you’re old to this… oh, then you surely know all about the brokers’ tactics to get a hold of your money and never let it go: here, take this highly “experienced” Account Manager and let him bust (*ahem* I mean “trade”) your account. When you are getting close to zero balance, don’t worry, we will give you a huge bonus so you can trade some more… you’ll get your money out by the year 2057, but they’ll leave out that part. Unfortunately, scam is present in this industry and we cannot eradicate it completely, but we can find ways to decrease the risks considerably.

A History of Scam – Where It All Began

Two hundred thousand years ago, two Homo Sapiens talking:

“Give me a piece of your meat now and I will share my mammoth with you. I have it in a cave nearby but I am too hungry to get there.”

“Ok, I will trust you. Have a piece”

“Now let’s go get that mammoth”

“Oh, you actually believed me? What a fool. There’s no mammoth.”

That’s how scam was invented (don’t take my word for it, I wasn’t there) and believe it or not, the structure remains the same to this day: a wild promise is made and something is asked in return. The scammed party foolishly believes the promise and agrees to pay the price. The finality is always the same: the promise is not honored. Unfortunately people still believe too easily that a mammoth is stored in the next cave or that someone will share their money making secret in exchange of a measly sum of money or even for free.

Now let’s take a look at modern times: ever since Binary Options were introduced to the large public in 2008, scammers made wild promises and people believed them. The reason why so many scammers roam this industry is because it’s easy for regular people to get into Binary Options (you can open an account in minutes), so there are a lot of traders (aka prey). Whenever there’s lots of prey, predators will flock to the scene, trying to get a piece of the action. Whether you are a gambler, a trader or someone who never had anything to do with the financial industry, you can get into Binary Options with ease but there’s one thing everybody needs: a broker. This is where it all begins: they will offer you an account manager, a bonus, insured trades, maybe signals, maybe this, maybe that. If you are dealing with a scam broker, accepting anything from them is a really bad idea. Here’s why:

Beware Of Account Managers and Managed Accounts

So as I said, once you register with a broker, you will be offered an account manager. He will try to give you all kind of stuff in exchange for a bigger deposit from your part. He will give you the classic speech “If you deposit more you can make more and you can manage risk better”. He will probably throw in a bigger bonus incentive too, but everything you are offered comes with strings attached: a bonus requires a turnover (you need to reach a certain trading volume until you can withdraw your money) so your money will be tied to that brokerage. He will say he is a trader for 20 years, tons of experience, tons of money made, tons of happy clients and that he will teach you how to trade. Heck he will trade for you, forget about teaching anything…

My basic advice to all of this is: don’t accept a high bonus (or at least go for one of our Recommended Brokers because their bonus conditions are fair), never deposit more than you want because your account manager promised you something and more importantly – never invest more than you can afford to lose. I’ve heard of people loaning money just to deposit more so they could get the VIP package and then the account manager traded the account into the ground. Don’t be that guy! And don’t allow your account manager to trade for you. If you don’t know how to trade, don’t trade. Learn first, trade after and never forget that your account manager works for the broker, not for you. Most of the times when you win the broker loses so why would the employee want to harm his employer?

Even if you’ve managed to escape the trap of the market-master-guru account manager who offers you bonuses and sells you dreams, you’re not out of the woods yet because sometimes that account manager will offer you another thing: a managed account. Yes, a twist of words and sometimes a way to twist your arm and make you do what they want. They will say something the lines of: “you sit back and relax while we trade your account, make lots of money and we will give you a monthly return”. In this case you don’t have to know anything about trading because they will not only give you trading advice, but place all the trades. It’s just like the Blackjack dilemma: you don’t know how to play so you let the dealer play for you… will he have your best interest in mind? Even if that means directly losing money from the casino’s (his employer) pocket? Hmm, let me think about it: NO! If you want to find out more reasons why going managed is not a healthy option for your money, read: Risks of Managed Binary Options Accounts Revealed.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education How To Trade!
    Free Demo Account!
    Big Sign-up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

Let’s dwell a bit longer into the realm of managed accounts and talk about 3 rd party managed accounts. This one is the most terrifying in my opinion because this 3 rd party can very well be a scam. A brokerage has a reputation to maintain (well, some of them do) so they will not just wipe your account in a week and then shrug their shoulders. Now when it comes to 3 rd parties, you have to be extra careful who you are dealing with; they don’t have to be regulated, they don’t have to have a physical address, they don’t have to give you their real name, so double and triple check whether you can trust or not that service. Most importantly, never use wire transfers if you are dealing with an unverified service. A credit card can be charged back (sometimes) but a wire doesn’t. Be extra careful when dealing with 3 rd party managed accounts.

The Signal Provider / AutoTraders Shuffle

When binary options as we know them today were born, along came a great evil: the scam of the signal providers, autotraders and all sorts of trading bots. These guys will tell you to trust them because they will give you super-extremely-magnificently accurate trading signals or even software that trades for you and does all the hard work. Sounds too good to be true? Maybe because it’s not. Sure, among these service providers and software sellers you will find a few good guys, but you have to choose wisely who you trust because most of them promise you the world, saying they have found a secret formula to trade and make millions, they have a mammoth in the next cave… you get the picture. I ask you one question: why would they sell a money making machine? Out of the kindness of their heart (yea, sure) or because they need money? But they have the Holy Grail of trading – why would they need money? The reason is much simpler than that: what they are selling is not as good as they want you to believe, so simply don’t buy it. We’ve covered this subject in more detail in the articles Signal Service Providers – Know How to Avoid Scams and Resentments and Binary Options Robots – Is it a Scam or Should I Choose the Robot. Read them and avoid getting scammed.

Got Regulation?

You want to decrease the risk of Scam – you have to deal with regulated brokers. Trading with a broker that is not regulated by a financial authority is like going outside when it’s cloudy without an umbrella. Does it mean it will rain? Nope, but if it rains you will surely get wet. Your broker’s regulation is your umbrella; it protects you against scam but hey, if the summer rain turns into a storm, that umbrella won’t do you much good anyway. In other words, regulation decreases the risk of scam but is not 100% bulletproof. A good trader is an informed trader and that’s why I urge you to read this complex article that covers many of the questions you might have regarding regulation: Binary Options Regulation – Everything you need to know.

I am not saying that you won’t run into any problems if dealing with a regulated broker, but the risk is decreased and besides, if something happens, at least you know who you are dealing with and you have the option to file a complaint with the regulator. If your broker is not regulated, you don’t know their address and not even their company name, who are you going to complain to? Who are you going to sue? To avoid scam, you need to know who you are dealing with. It’s common sense. If they don’t give information about themselves, why would you give them money? However, the lack of transparency is likely to come to an end because recently we’ve seen a lot more activity coming from the regulator’s part: in the past CySEC was more like a rubber stamp but lately it starts to be more active, issuing warnings and even fines. Moreover, other regulators step in and nowadays we are seeing more than one authority working to make Binary Options safe: CFTC and American authorities have radically improved the safety of US citizens with strong warnings, FCA UK has already started dealing with binary options regulation and I believe we’ll see even stronger UK rules in the future. Local agencies (France, Italy, Germany, and more) have already started working on local rules and regulation. Bottom line is: the authorities recognize the problem and are working on fixing it. Things can only get better from now on.

Don’t Give Trust Lightly

Before investing in a signal provider, bot/autotrader or depositing with a broker, it’s wise to read reviews online. But be careful because not all websites have the reader’s best interest in mind. I don’t want to point fingers or anything but when you see stellar reviews of brokers that are known scams, you have to wonder if that review website doesn’t have a hidden agenda. So my advice is to read more than one review and if one website says broker X is the best while others give bad reviews, just beware and turn to real traders for advice. And if you don’t know where to turn to real traders, I have the perfect place: our Forum. Open a thread if one doesn’t already exist and simply ask the crowd.

Totally Eradicating Scam – Is It Possible?

As much as I would like to see a binary options world without any type of scam, I know that’s not possible. As long as money will be involved, scammers will try to profit from gullible traders. Tune in to our monthly binary options scam watch for evidence. Question everything, don’t accept free lunches or things that sound too good to be true. Learn to decrease the risk of being scammed because trading the market is tough enough on its own. I don’t like losing money trading but I prefer it to being scammed; at least I lost it because of me not because of a scam broker or a black box trading software. On the bright side, comparing things now with how they were 2 or 3 years ago, I can tell you that we’ve seen a decrease in broker scam and also some very reliable brokers have risen. Regulatory authorities are really starting to make their presence known and this of course drives the scammers away from the industry. The biggest problem in my opinion remains the fake autotraders, scam signal sellers and shady unregulated brokers with funny names which should be avoided at all costs. We’re expecting a brighter future and you can be a part of it, especially if you stop feeding money to the scammers ;)

What are binary options?

Binary options are a sort of exchange-traded contract used for getting income from the performance of assets (currencies, shares, goods) in the global financial markets. In making a deal, the purchaser of binary options forecasts the asset’s price change. This financial tool has a fixed price, contract expiration time. and paper profit margin known in advance.

Are binary options a fraud? A professional assessment

FraudBroker.com is an investigation center for shady transactions of binary brokers, along with Forex and CFD brokers, stock brokers, cryptocurrency exchanges, etc. Our team of experts – professional traders dealing with various brokers – is ready to provide our website guests with precise information about whether any given financial market broker is a scam artist or not.

Our customers ask: «Are binaries the real thing or a scam?», «Is Forex a scam?», «Is cryptocurrency a real thing or a scam?» – everyone is concerned about professional opinions. That is because in trading in various markets there are many fraudulent brokers whose sole mission is to get trader’s money and do their best to make him lose. They may tamper with price behavior charts, may leave a trader without a payout, may just disappear and go silent or tap into other contrivances just for one purpose: to play you. Our professionals are ready to assist you in finding reliable brokers.

The most reliable binary options brokers for March 2020

Broker Bonus Min Deposit Payout Review Open Account
Up to 100% deposit $10 Up to 90% Review Visit Broker
$10 Up to 91% * Review Visit Broker
10 USD Review Visit Broker
2 types of bonuses $100 Up to 90% Review Visit Broker
Up to 100% on deposit $5 Up to 100% Review Visit Broker

*Amount to be credited to the account for a successful trade.

«General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all of your funds. You should never invest money that you cannot afford to lose».

Our aim is to expose scam schemes and provide traders with reliable information on which they can based safe trading decisions. Please check our completed reviews to know if a broker works according to terms imposed by regulatory institutes. If you are not able to find information on our site, make a request to initiate a review scrutinizing the broker in which you are interested. Just fill out the application form. We will investigate the broker’s activities and send you the results by email. Due to a large number of requests to investigate the activities of brokers’ who show signs of cheating, we will provide you with an answer in the shortest time possible, likely a few weeks. We strongly recommend you send your request us as soon as possible to secure a place in the queue.

Binary options – is this a scam or not?

The idea that binary options mean cheating novice users comes from the fact that sometimes even the best brokers may be marked as not being utterly honest. Our goal is to provide complex reviews that are based on the real trading experience. Only then can we be sure that a particular broker is cheating. Binary options trading is one of the most rapidly growing financial industry sectors. That’s why the scammers are trying to get in on this market. We would like to help you to expose that kind of market participant and avoid possible harm. Our team of experienced binary options traders has worked professionally for over 5 years in the financial markets. We know how to spot the scammers.

Is Forex a scam?

Apart from investigation of the activities of binary brokers, we study companies that give traders a chance to earn income by investing in other financial markets. The currency market forex is for good reason among the best ways to get a decent income from trading currencies. It works 24 hours a day, is available for traders of any wealth, and, due to internet technologies, it’s easy to become a part of it just by going online from a home computer. Of course, apart from various advantages, it has also led to the emergence of a huge number of scam brokers. They seduce traders by promising them high earnings, unreal payout percentages, and lucrative bonuses, but instead disappear immediately after the funds are collected.

The mission of FraudBroker.com is to study the activities of market brokers providing trading services on Forex and to caution traders against problems they may face by catching scam artists. How do you identify a swindler and a cheat among many Forex brokers? Check brokers for possession of a license and work on their demo accounts carefully. Also have a look at the current rating of verified Forex brokers and read the references of traders about them right now on the specific webpage.

Is CFD a cheat and a scam?

CFD (contracts for difference) have been especially popular with traders recently as they allow traders to essentially make money on the difference of prices of various assets: raw materials, metals, currencies, etc. There is no purchase of assets here, no solution offered for the issue with title documents and so on. This aids interaction between trading parties, lets a trader earn both from assets appreciation and loss. Dealing with CFD is lucrative, quick, and easy.

Taking into account the high popularity of this market many brokers immediately started offering access to its capacities, which is not bad in general. However, today there are a lot of suspicious companies, too, with unique bonuses in their arsenal and guaranteed high income from investments in CFD from small traders’ efforts. How do you choose a reliable CFD broker and not lose your money? For our website users, we have prepared an urgent rating of CFD brokers, where they can not only read the detailed brokers reviews, but also study real traders’ feedback about them.

Is cryptocurrency a scam or the real thing?

Cryptocurrency is popular and one of the most volatile assets of our time. It is among the most vital financial markets and lets you obtain income by purchasing and selling digital coins. This growing market resulted in the whole cryptocurrency boom, and we all are unintentional witnesses of its rapid development, have hot discussions on the latest news of digital assets dynamics, become tokens holders etc.

Such attention to cryptocurrency couldn’t help but generate a large number of scam lottery websites and fraud projects in the market, which were created just for one purpose – to take over traders’ cryptocurrencies and disappear. How «not to fall in their hands» and to keep and multiply your digital money are the topics the team at FraudBroker.com works on. You can read a lot of informative articles about cryptocurrency and digital assets trading strategies, along with detailed reviews of cryptocurrency exchanges and brokers allowing trading digital tokens.

Is the stock market a scam and a fraud?

The stock market is one of the oldest financial markets allowing any concerned user to make money investing in shares of the major companies and brands, and it is popular all around the world. For instance, a trader may easily become a holder of shares of Coca-Cola, McDonald’s, Apple, Adidas, Starbucks, Gasprom, Nornikel, etc. Shares have always been among the safest assets, and the chance to become a holder of assets of famous brands is appealing to solid investors. With the emergence of the huge market of internet technologies, the chance to get a decent profit from stock trading only increased, and ordinary people became concerned about them, too.

Obviously, there are not only fair stock brokers in this oldest market, but also websites promising naïve traders heaps of money when in reality they are fraudulent scams. How do you choose a reliable stock broker? On the project website FraudBroker.com you can not only study the up-to-date ratings of stock brokers but also read a huge number of reference materials about trading in the stock market.

Our team

John Reichard, 38, New York City, USA

Hello! I’m John Reichard. I will be glad to help you. Not many people could boast that their profession and hobby are the same thing. For more than 5 years, I have analyzed binary options brokers. I devote my time to trading and market research, and I’m ready to share my experience. My goal is to guard myself and other traders against thieves. I have opened accounts with different brokers to check their trading platforms and payout obligations, so everyone knows what firms are honest and which are just running their scam schemes and robbing the clients.

Floyd Lewis, 33, Toronto, Canada

For over 8 years I’ve specialized in binary options, robots, and signals. I have been a computer engineer and programmer. After my second daughter’s birth, I started working from home. I personally check the binary options robots and signals, different trading strategies and tactics. My aim is to verify whether programs are working properly or not, in order to determine winning strategies in these systems.

Kevin Murray, 29, London, England

I have a master’s degree in finance management and specialize in Forex trading and binary options. I’ve been the senior consultant with a project called FraudBroker.com since 2020 and have devoted most of my time to lead traders in the right direction. The latest articles on this site are mine. Now I’m a daytime trader with over 5 years’ experience in the binary options industry. People regularly contact me to ask my professional opinion on various things, including binary options scammers.

Recognize how to avoid scamming

Cheating is possible. First of all, you must ensure that your broker has a certificate issued by one of the regulatory institutes. Verify if there are any positive or negative remarks on the Internet. Pay attention to the conditions of the services that brokers provide, including trading conditions and bonus-receiving conditions.

You can ask your questions online using an online chat application or request a telephone call and ask your questions this way. Furthermore, you can request the broker’s verification and wait until we determine if there are signs of cheating and deceiving.

How to choose a decent binary options trade broker?

The choice of the right binary options trader is the first step to a successful trading career. Actually, it is really hard to choose an honest broker out of the more than 350 working firms on the market. That is why we at FraudBroker.com decided to intervene and help visitors on our site. We have ample knowledge about how to choose a binary options broker. Our site is a good place to do the first steps in binary options trading. If you are not utterly sure that your broker is reliable, we would advise you to choose a broker number 1 from the list above and start trading safely by having a broker whom the FraudBroker.com team members trust.

Dear guests, please give us your opinion about binary options and answer a few sociological poll questions:

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Tired of lies ?! Binary options are evil and scam? РЎhecking the brokers for a fact of fraud

Binary options have become so widespread and a popular tool for earning that they have become overgrown with an incredible number of myths and diverse opinions. At what the opposite attitude to the instrument is observed. Let’s take a look at what binary options are-evil or an opportunity for investors, divorce or a way of earning, and also bring brokers of binary options to clean water. We will not go into complicated analyzes of technical characteristics and approaches to work with these contracts, but take information that lies on the surface. We hope that our material will be useful to you.

Lies all this ?!

Let’s start with the question of the legality and algorithm of the action of binary options. Many people say that this tool is a lie and no binary options actually exist. The adherents of this opinion are not entirely right. The fact is that binary contracts really exist and are used by investors on exchange trading floors. A striking example is the Chicago Stock Options Exchange OWN. By the way, it was this platform that created such a mode of trade for a binary contract. It became a kind of derivative of the standard vanilla option, in which for investors the list of settings was expanded and the algorithm of work was simplified. Binary options in the form offered to us by online brokers for supposedly trading, not quite an exchange contract – it’s rather a betting bet, which is used as an object of valuation or, if you want to bet, quotes of financial assets. Therefore, it is wrong to consider binary options as blatant lies! In addition, speaking about the legality of the tool, it should be noted that binary contracts, which are used as an online trading tool, are recognized as regulators of the financial market. And they are evaluated differently by these bodies, but nevertheless licenses brokers receive regularly and legally. Summing up this section, we can say that binary options are not exactly lies and deception, but rather variations on the interpretation of the concept. If you treat this type of instrument as a game mode using market liquidity indicators, then it becomes an interesting and simple method of obtaining income.

Binary options are evil and scam!

Most traders, especially those who fail in the binary options trade, call the tool a divorce and an evil! Yes, it is very easy to lose money here, but also just to make money. The reason for all the failures of investors lies in the plane of their own mistakes of traders and unprofessionalism.

Many losers can see themselves in the following example: a novice trader who has heard about the potential for earning money in a binary market, or reading an advertising article, thinks that I can earn as well – nothing complicated. The next step is to register the first broker on the site, completely thoughtlessly and unprofessionally. Then a quick study of simple instructions – such as how to work with options and terminal, crediting funds to the account! And, of course, after half an hour, thinking that he is already a professional, and can guess all the market movements such a “trader” starts trading. Another hour later, the deposit goes to the broker! And at that moment a feeling is born that you were deceived! But analyze your actions!

– What kind of trading platform did you choose? There are many companies in the brokerage market that deceive customers with a variety of techniques and approaches, including theft of funds
With what deposit did you start. Maybe its volume is trivial enough to properly manage the risks and so you quickly merged the deposit.
– Trade without skills and knowledge does not work! This is the truth and motto of professional traders. Only knowledge in technical analysis and other modes of market evaluation, effective strategy, extremely clear discipline of the trader in financial matters and psychological stability of the investor can lead to a good result
– But on the basis of their unsuccessful experience of this kind, investors create an opinion about a trading instrument. Is it not easier to realize your mistakes? To become a true professional requires a lot of time and effort. To put it simply, a successful trader in his career takes such steps:

  1. Completely studies the technical algorithm of the contract for trading
  2. Gets knowledge in technical analysis of the market and forecasting issues. This includes the development and study of strategies, and the choice of the most effective way to assess the market
  3. Correct choice of the risk management regime
  4. Discipline of the investor in the issue of rules of contract execution according to the indicators of the strategy

Having tempered their excitement, and acting according to the rules and restrictions of trading, any investor will be able to get a good profit in the binary market.

Therefore, do not be unfounded to blame the reception of profit in deception, the whole reason is only in the user!

РЎhecking the brokers for a fact of fraud

We came to a more practical issue of binary trading – a deception from the binary option brokers. The problem of fraud brokerage companies today is not so pronounced – many small operators have left the market, scammers who steal customer funds, have themselves exposed investors. Large platforms have received licenses and now can not widely use tricks of deception. But still in some moments the company uses certain tricks:

– Deriving trading positions on the financial market – in most advertising materials, brokers state that each trader’s trading position is displayed on the world market. This is an outright deception! In fact, online brokers are dealing centers that form the client base of investors playing against each other and the company itself. No one puts your contracts on the market, and they do not affect the quotes of a financial instrument, even if you use billions in trade, it will not shift the liquidity on the asset chart by one point! Therefore, treat this trading mode as a game of elimination!
– Technical operations with quotes – there are times when traders, on the basis of predictability of the market situation, draw up a huge number of potentially profitable contracts and this can cause financial losses to the broker, which the company can not afford. The output for the company is simple – to tighten quotes at the time of expiration of the bulk of options. Believe me, they will not be stopped even by regulator supervision and fines. It’s simple, the amount of lost funds can significantly exceed the amount of sanctions. Therefore, it is more profitable to deceive traders. But such nonsense today is engaged in a very small number of companies.
– Complex verification – you are a successful trader, and you get a good income, chose a seemingly safe trading platform, got the result and want to monetize the funds. But here there is a problem – the broker requires verification of the client and at the same time puts forward conditions that are absolutely impossible to fulfill. Such a technique is used by companies in the hope that the investor will simply surrender, refuse the deposit and the funds will remain with the company. Therefore, before you start trading on the platform, learn the verification process, so as not to get a surprise at the most interesting moment.

The result of this analysis is a simple recommendation – for trading you need to choose the most secure and trusted brokerage platform. We consider as an example of such a site resources from our TOP 3.

This trading platform for trading is the most secure, professional and client-oriented. Here, investors can work in the most comfortable mode with the use of a wide range of technical forecasting tools. In addition, the broker at all important stages of the activities of investors, including verification, offers the simplest technical modes of operation, based on interactive information techniques.

Conclusion

Binary options are without a doubt not a deceit and not a divorce of traders. With the correct use of the instrument in optimal financial and technical conditions on a professional platform, it is guaranteed to bring profit, and in a stable mode!

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education How To Trade!
    Free Demo Account!
    Big Sign-up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

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