In the previous lesson, we learned what is Binary Option Scam. Now, it time to know what we can do against Binary options Scam.
Are you being scammed?
It is a simple task to avoid these binary options scams if you can do your due diligence. I will continue to give you more insight into this matter and try to review some of the binary options brokers who are legit. On the other hand, it is not to avoid them because new binary options brokers are entering the market. For us to be able to filter these scammers from legit brokers, we need customers to share their experience and if they experience any fraud experience with this agent they are free to report because this is the people who are trying to kill this industry. Before you call any binary options firms scammer, please ensure you understand their terms well.
As traders, aside from the dangers we are exposed to by the market itself, we are constantly faced with the risk of being scammed. Crooked brokers, software sellers, signal providers who ask you to sign up with their “recommended” broker because their “signals only work on that broker’s platform”… they all try to slip their hands in our pockets. The following article is a guide to help traders recover their money from any binary options service. It will help you re-organize your thoughts before posting the first thing that comes into your head and help you coming up with a better plan to recover your money.
Binary Options Scam Checklist
- Don’t sign up to a broker that is from a country which does not have a strong regulatory system. There’s no point in having the best binary options strategy if the broker you are working with is not carefully regulated. This can lead to problems with withdrawing funds, slow trading platforms that get stuck and may result in you losing your money, little to no customer support, and the list goes on.
In early 2013, the Cyprus Securities and Exchange Commission (CySEC), declared that all brokers involved with binary options operating within the Cyprus jurisdiction would have to apply for a CIF License. This regulation means that all EU binary options brokers who are CYSEC regulated have taken all the necessary steps to ensure that all your funds are protected through segregated accounts where your funds are kept, you get accurate market data and trading results, and have the right framework in place to protect you against any unforeseen issues.
- Look out for different binary options complaints about the broker you are interested in joining. If you find any negative comments or scams about the broker, then you need to be careful. If, after doing all your research, you find that this binary broker has not responded to the negative comments out there, then it is advisable that you reconsider joining this broker since this shows that this broker is not active in fixing problems or improving their reputation.
- Try before you buy – it is important to test out the broker before you make any financial commitments. You can prevent a fixed return options scam by seeing if the broker’s platform has all the useful features necessary to compliment your binary options strategy, responds quickly, answers your questions and offers you professional and reliable advice.
- Join forums or chat rooms and see what binary options scam is currently being discussed. You will be amazed how much information you can collect from other people’s experiences by simply asking around. You can also apply similar steps of caution if you are thinking about joining a particular binary options signals provider.
How to Get Your Money Back : Things you should do
When traders lose money, they become frustrated and the last person they blame is themselves so they want to find a scapegoat; this results in angry and emotional complaints that don’t tell us anything about the real problem. How can we help if this happens? You have to do it right and think about the situation before crying “Wolf!” if you want to get your money back!
You need to have a plan for the worst case scenario. Next I am going to put this plan together for you in simple step by step instructions.
- Collect as many evidence as possible:
If you want to make a strong case against a brokerage, you have to collect emails, screenshots, documents, live chat transcripts. Basically get as much evidence as possible, everything you need to strengthen your case. People won’t just take your word for it so make sure you can prove what you are saying.
- At first, Try settle the matter by yourself:
Once you have evidence and feel you have a strong case, contact the brokerage and try to solve the problem with them. It would be the easiest way and the fastest also.
- If broker do not respond, go public and to the right authorities:
If the above didn’t work and your problem is still not solved, it’s time to take all the evidence you’ve gathered during step 1 and share it with the world. Explain your case, keep cool, don’t trash, do not go personal on this, be as objective as possible and always let your broker know what you’re doing. If you’ve sent a complaint somewhere through email, put your broker’s address in the CC field. If you posted the evidence somewhere, send link to the broker. This step is linked to the previous – it’s still you trying to reach a settlement. After all, it’s between you and the brokers, and it’s better to reach a settlement before waiting for the authorities to act (some of them are incredibly slow to lift a finger). One more thing: do not release all the evidence at once – if you do that the broker will think: “The damage is already done so why give him the money back”. Another part of this step is where to post evidence and complain:
- Complain on Forexcomplain.com:
This site is becoming very popular among traders because of their fight against Scams. You have a lot of ways to complain here and I would suggest you to use them all.
- Post your Complain on other major websites dedicated to exposing scams (forexpeacearmy.com, ripoffreport.com)
When you do that, make sure you follow their rules and again, keep calm, be objective and as clear as possible.
- Just go to the regulation authorities and take legal action
This is more than just talking or posting evidence on websites. It is a tedious process. But you must do this.
- Cancel your deposit transaction, if you can:
Contact your credit card company (if you deposited through card), your bank or your electronic payments provider and ask how you can do a charge back. This is not always a viable option and is affected by many factors, but it’s worth a shot.
Don’t do these mistakes! You wont get your money back by doing this!
Some people see scams everywhere and then they go all over the internet, on all forums they can find and cry Scam! First of all, not everything that doesn’t go your way is a scam: if price spikes up or down, against your trade, it doesn’t necessarily mean that somebody is manipulating it; if brokers don’t send your money because you didn’t provide them with the required personal identification documents… again, no scam. So, before complaining you should think of the situation: what happened, what went wrong, what can you do to solve the problem, can the broker help, are you actually convinced that foul play is involved? We encourage complaints because when a trader has a genuine problem with a broker or software vendor and he shares it publicly, it prevents others from falling into the same trap, but if the whole thing is just a misunderstanding, it’s not fair for the broker to be put in a bad light. The idea is to make your complaint as authentic as possible, to get the facts right and start complaining on forums only if you’ve reached a dead end. A genuine complaint has a high impact and gives you more chances of solving the problem.
The Bottom line – Don’t Give Up!
Once you’ve done all of the above, it’s time to see what happens and hope for good news. Taking matters to court may be the last resort but this is a tedious and long option. Not all complaints are solved but if you follow our guide, have all the right evidence and documents, stay calm instead of emotional, you might just have a chance. Of course, the better advice I can give you is to open your eyes before opening your wallet – be careful who you are doing business with and maybe you won’t need to go through all the steps above. Finally, I can say the binary options industry is safer than it was 5 years ago, but you still need to check the facts and always be on your guard.