Potential Binary Options Scams: 5 Binary Options Brokers On Our Blacklist

One of the biggest challenges with trading binary options has little to do with the options themselves. Most of the problems you’ll encounter stem from the brokers you use, not the assets you trade. There are a lot of binary options trading scams out there. Put your trust in the wrong brokers, and you may as well write them blank checks.

Think it’s not a huge problem? Consider this: what good does it do to make money on your trades if you have trouble getting your money from the broker? Phone calls and emails to customer support rarely produce a solution. Either the brokers have no support or the support representatives are trained to make excuses and stall for time.

For the record, there are several legitimate binary options brokers online (check out our recommended brokers list). They offer great features and bonuses, reasonable terms, and responsive support. They’re not perfect, but when problems surface, they go to great lengths to resolve them in a timely manner.

That’s more than we can say for the brokers on our binary options blacklist. We’ll list them below. Keep in mind, this page is updated on a regular basis. As brokers fall from grace, they’ll be added to the list. If a scammy binary options broker manages to reinvent itself and develop a loyal following, we’ll remove it.

Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
90% $10 $1
 
200% $50 $10
 
85% $200 $20
 
85% $100 $5
 
85% $10 $1
 
95% $250 $1
 
80% $5 $1
 
80% - 90% $250 $5
 
85% $250 $5  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
95% $250 $1
 
80% $10 $0.10
 
160% - 180% $50 $2
 
95% $250 $1
 
90% $250 $1
 
80% - 90% $250 $5
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
200% $50 $10
 
95% $250 $1
 
90% $50 $1
 
80% $5 $1
 
80% - 90% $250 $5
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  200% $50 $10
 
  85% $200 $20
 
  85% $100 $5
 
  95% $250 $1
 
  85% $10 $1
 
  80% - 90% $250 $5
 
  85% $250 $5  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
90% $10 $1
 
200% $50 $10
 
85% $50 $1
 
85% $200 $20
 
85% $100 $5
 
95% $250 $1
 
85% $10 $1
 
80% $5 $1
 
80% - 90% $250 $5
 
80% $250 $25
 
85% $250 $5  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
90% $10 $1
 
90% $50 $1
 
85% $100 $5
 
85% $10 $1
 
85% $50 $1
 
85% $200 $20
 
95% $250 $1
 
80% $250 $25
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  85% $50 $1
 
  200% $50 $10
 
  95% $250 $1
 
  85% $200 $20
 
  85% $10 $1
 
  85% $100 $5
 
  80% $250 $25
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $50 $1
 
  95% $250 $1
 
  85% $10 $1
 
  80% - 90% $250 $5
 
  80% $250 $25
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $50 $1
 
  85% $100 $5
 
  95% $250 $1
 
  85% $10 $1
 
  80% - 90% $250 $5
 
  80% $250 $25
 
  85% $250 $5  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $250 $10
 
  85% $50 $1
 
  85% $100 $5
 
  85% $10 $1
 
  95% $250 $1
 
  80% - 90% $250 $5
 
  80% $250 $25
 
  85% $250 $5  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $50 $1
 
  85% $100 $5
 
  85% $10 $1
 
  95% $250 $1
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $50 $1
 
  85% $100 $5
 
  85% $10 $1
 
  95% $250 $1
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $50 $1
 
  85% $10 $1
 
  95% $250 $1
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $50 $1
 
  90% $50 $1
 
  85% $10 $1
 
  95% $250 $1
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $10 $1
 
  85% $50 $1
 
  95% $250 $1
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
90% $10 $1
 
85% $200 $20
 
85% $100 $5
 
95% $250 $1
 
80% - 90% $250 $5
 
85% $250 $5  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  85% $100 $5
 
  85% $50 $1
 
  85% $10 $1
 
  95% $250 $1
 
  80% $250 $25
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  90% $10 $1
 
  200% $50 $10
 
  85% $250 $10
 
  85% $50 $1
 
  85% $100 $5
 
  95% $250 $1
 
  85% $10 $1
 
  80% - 90% $250 $5
 
  80% $250 $25
 
  85% $250 $5  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
200% $50 $10
 
95% $250 $1
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  200% $50 $10
 
  85% $250 $10
 
  85% $200 $20
 
  95% $250 $1
 
  85% $10 $1
 
  80% - 90% $250 $5
 
  85% $250 $5  
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
  85% $50 $1
 
  200% $50 $10
 
  85% $200 $20
 
  95% $250 $1
 
  85% $100 $5
 
  85% $10 $1
 
  80% - 90% $250 $5
 
  80% $250 $25
 
Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
95% $250 $1
 
85% $10 $1
 
80% - 90% $250 $5
 
85% $50 $1
 

 

5 Potential Scam Binary Options Brokers

Before we get to the list, we need to clarify a few things.

  • First, avoid most of the binary options brokers that you come across online. A majority either lack a significant track record or are outright frauds. You’re better off sticking to the reputable brokers, such as Redwood Options and TradeRush, than entrusting your cash to an unproven site.
  • Second, notice that we said “potential” scam binary options brokers. That’s because we haven’t reviewed all of them (yet), so the jury is still out on them. Remember, working with an unfamiliar, and possibly fraudulent, binary options broker isn’t like trying a new restaurant. One bad experience could leave you hundreds – or even thousands – of dollars poorer.
  • Third, not everyone has a bad experience trading binary options at the 5 brokers on our “watch list.” Some folks have a reasonably good experience. Having said that, brokers that have attracted an alarmingly high percentage of scathing reviews from traders are likely to pose problems. Our advice: stay away from them for now.
  • Fourth, every broker gets less-than-glowing reviews. That doesn’t mean it’s a scam. It just means a few people have had a negative experience. Consider that folks occasionally rail against Nordstrom, Amazon, and the Ritz-Carlton, all of which arguably deliver outstanding support. So, don’t dismiss a broker simply because you stumble across a couple of rants online.

With those 4 items out of the way, let’s take a look at our first blacklisted binary options broker…

#1 – VIP Binary

VIP Binary is a great example of a site that may be legitimate, but should be avoided for the time being. There have been far too many reports of problems. Folks are complaining that they can’t seem to get their money – their ACTUAL money, not bonuses – from VIP Binary. What’s more, calls and emails to support are routinely ignored. Neither issue bodes well for the unwary trader thinking about registering an account.

On the positive side, VIP Binary accepts U.S. traders, requires a low minimum deposit ($250), and uses the SpotOption trading platform. But frankly, those features hardly make a compelling enough argument to risk your cash given the number of complaints that are circulating.

Verdict: stay away.

#2 – OptionBit

OptionBit has been around since 2010, which makes it a veteran in the binary options industry. In the last few years, it has attracted its fair share of harsh reviews from critics. Critics claim the site is slow to process withdrawals and customer support is less than supportive.

But that’s not what concerns us.

The biggest (alleged) problem with OptionBit is that the broker modifies its rates to increase the likelihood that trades will expire out of the money. That’s not to say the broker is cheating. In fact, Option Bit is reasonably upfront about their practice. But in our opinion, rate discrepancies are still a major problem that borders on dishonest.

It’s worth noting that complaints about rate differences were logged prior to last year. Maybe the broker has cleaned up its act since then. But until we’re certain it has – and we’re nowhere near certain – we’re keeping Option Bit on our blacklist.

Verdict: buyer beware.

#3 – TraderXP

TraderXP has never done anything scammy to us personally. Then again, we’re in the U.S. and the broker doesn’t accept U.S. traders for commodities and currencies. Those are huge restrictions, and they’ve motivated us to stay away. So we’ve been spared some of the experiences other traders have complained about.

What type of experiences?

  • First, the customer support at Trader XP is unreliable – and that’s putting it mildly. There are reports that several days can pass before the broker responds to questions. Even if the site is being run by a 16-year-old out of his parents’ garage, that’s unacceptable. For a supposedly professional broker? It’s unfathomable.
  • Second, there are reports of slow withdrawals and some traders having trouble getting their funds out altogether. That’s hardly earth-shattering news with binary options brokers. But combined with the ultra-slow (or nonexistent) response times from customer support, we’re forced to give them a big thumbs down.

Verdict: stay away.

#4 – Cedar Finance

Cedar Finance might be a fantastic broker. Or it may just be another fly-by-night venture, making bold promises with no intention of keeping them. We can’t tell you one way or the other.

Why? Because we’re not going to risk our money with a broker that seems to encourage its affiliates to make outlandish promises. Claiming that you can easily double your money in 60 seconds over and over is dishonest (it’s actually laughable). If you haven’t seen some of the YouTube Cedar Finance promotions, check out our Cedar Finance scam page.

In any case, we can’t say whether Cedar is technically a scam. But we do get an uneasy feeling from their marketing schtick. If you’ve ever seen a site extolling the benefits of acai supplements – “you’ll lose tons of weight, feel amazing, and become a sexual dynamo!” – then you get the picture.

Verdict: buyer beware.

#5 – ZoomTrader

ZoomTrader has definitely made a name for itself in the binary options industry. But it’s not a positive name by any measure. Unfortunately, a lot of folks have been taken in by the broker’s promises.

What has ZoomTrader done to earn its rotten reputation?

First, a lot of traders are experiencing issues with getting their money out. Second, there’s something strange going on with the trades; basically ZT seems to be extending the expirations. Third, customers have reported that a guy named Jack handles all of the support. The problem is, folks are saying that Jack isn’t very supportive. Nor does he actually resolve problems. He just gives excuses.

Again, it wouldn’t be fair for us to say ZoomTrader is a scam since we have never used the site or dealt personally with “Jack.” But when everyone is claiming “foul!” and the only positive reviews seem to come from affiliates or folks associated with ZT, we get a very bad feeling. Our advice is to steer clear.

Verdict: avoid at all costs.

Summary: Watch Out For Binary Options Scams

We’ve put together our blacklist to make it easier for you to choose legitimate binary options brokers and stay away from those that are questionable. You might have a wonderful experience at the brokers listed on this page. But judging from the complaints we’ve seen, you’re more likely to be disappointed.

We strongly suggest taking a look at our recommended list of top binary options brokers. Each one has a track record of catering to their customers. If you decide to forge ahead on your own, good luck. But don’t say we didn’t warn you.