Broker Complaints
There are many complaints about binary option brokers and the complaints are for a variety of reasons. Some are legitimate complaints and others are not.
Traders who use brokers licensed in Australia or Europe usually have very few complaints. Traders in Europe can take their complaint directly to CySEC. Click here to see the CySEC complaints department. Traders in Australia can complain to ASIC, see here .
If you chose to trade with an unlicensed broker, your complaints may be explained below.
To avoid problems, you should think about using one of the brokers we don’t get complaints about, see here .
Automatic Trading Software
Many traders open a binary options trading account because they saw an ad for some “secret system” that generates money. These systems go by the names FastCash. Biz. Binary Boom , and Millionaire’s Blueprint just to name a few.
Their software creates an account for you with some shady broker, and then tells you to make a deposit and you will make money while you sleep. The problem is that the software doesn’t work, and the brokers are usually just a scam.
Read about legitimate trading software from good brokers here .
Managed Accounts
You received a call from a senior broker at the firm offering to trade your for you, almost like a money manager.
The problem is that trading options is extremely risky. Risky enough to lose all the money in your account. Experience does not make a difference. By authorizing a broker at the firm to trade your account, you are giving away your money.
Do you know that this broker only makes money when you lose your money?
Any time a broker offers to place a trade on your behalf, tell them no! If you want to trade binary options, then do your research and learn how to become a trader. But do not think that someone else is going to make money for you. If they are such a good trader, then they would be trading their own account, and not trying to manage your money.
Bonus Policy Complaints
The main reason why traders cannot withdraw their money from a binary options broker is because the trader accepted a bonus.
Before accepting a bonus from a broker, the trader should read the brokers bonus policy. Most brokers, regulated and unregulated, will require traders to trade 20 – 60 times the value of the bonus.
If the trader deposited $500 and received a bonus of $200. The trader will have to generate a minimum trading volume of $500 x 20 = $10,000. Now that is a lot. By accepting the bonus money, the initial $500 that was deposited can only be withdrawn after meeting the trading volume. In other words, a trader deposits $500, received a bonus of $200, which makes the account balance $700. The trader places a trade and profits $85. The account balance is now $785. The amount eligible for withdrawal is Zero!
For this reason, CySEC wants to ban to use of bonuses at Binary Option Brokers. This is a reason many unregulated brokers have so many complaints against them. Many scam brokers will automatically give traders a bonus without the trader asking.
Unauthorized Credit Card Charges
There are two reasons for unauthorized credit card charges. The first one is, it was an honest mistake and the broker processed your payment twice.
The second reason for an unauthorized charge is that the broker you thought was going to double your money, lost it all. And then the brokers calls to convince you to add more money for him to play with.
This can be avoided by using Wire, Skrill or PayPal to fund your trading account.
Withdrawal Complaints
When dealing with a broker that is not processing your withdrawal request there are a few things to keep in mind. The requirements to withdraw your money is much more difficult that depositing money. To withdraw money from a broker they require many different forms of identification verification.
The standard items requested are: Proof of Identification – Passport / Drivers License / National ID. Proof of Residence – Recent utility bill dated within the last six months, current local authority tax bill, bank or credit card statement. Deposits made by Credit / Debit Card will require a scan of the front and back of the card.
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