New Scam Warning: ZoomTrader


One of the dangers of binary trading for newbies is the lure of scams that promise riches but don’t deliver. You’re going to run into them everywhere, unfortunately. Binary options is a swiftly growing industry with very little regulation, and that is an environment which is ripe for crime. When I first started putting together this site, I found a lot of those scams. Now and again new ones continue to crop up. You will run into glowing reviews for binary options scam sites, but if you dig a little deeper, you will find the dirt.

The latest scam I have discovered is actually a binary options broker, not another signal service or trading system for sale. The broker is called ZoomTrader, and appears to have gotten its start in 2012. The offices are based in British Anguilla, and they may be the most dubious broker I have encountered since Cedar Finance—and that is saying something.

When you first visit ZoomTrader’s website, you will probably notice that a lot of their features are very appealing. For one thing, they accept traders from the USA. For another, there are high bonuses. You can also trade in up to six currencies, and there are more payment methods available on this site than any other broker I can think of. They have gone out of their way to make their site accessible. Then again, why wouldn’t you want to scam as many people in as many countries as possible?

I will be honest. I have not traded with this broker, and I cannot say for absolute certain that the terrible reviews I have found online were not posted by their competitors. They are so consistent, thorough, and distinctive, though, that I have a difficult time imagining that they were made up.

ZoomTrader Features

ZoomTrader offers five tiers of accounts, the lowest being the Mini Account for $200-$499. The largest account is the Platinum account, which is for traders with deposits of $5,000 and higher. That account qualifies for a 100% bonus on up to $5,000. Along the attractive bonus, there are other features which could easily cause a prospective customer to want to sign up. There are many different types of trades available, including High/Low, One Touch, No Touch, Touch Up/Down, Range, and 5 Minute Trades. Daily market updates, an up-to-date trading blog functioning as an economic calendar, a free eBook, and a full set of video tutorials covering a number of different trading topics are available to all traders. Customers who have larger accounts may also qualify for a dedicated account manager, faster withdrawals, charts, signals, and trading strategies.

Some features that are important are plainly missing. There is no demo account—a common fault among binary options brokers, but an irritation nonetheless. Learn why a demo account is a powerful tool.  There also appear to be no tools for controlling trades, and that is a red flag. I could find no references on the site to rolling over, doubling up, or closing out of a trade early to take profit or cut losses. Without these tools for control, you are far less likely to become a profitable trader.

Yet another red flag was my attempt to contact customer service on live chat. Even though I tried on a weekday during standard market hours, I was unable to reach anybody. Once again, this is a common fault, but it is never one that sets my mind at ease. Hard-to-reach customer service means hard-to-solve account problems if something goes wrong.

Best Customer Service of 2017 for Binary Brokers

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Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
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Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
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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
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Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
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Broker reviews Blacklist rating Trade now Early expiry Avg returns Min deposits Min trade Ratings Trade now
95% $250 $1
 
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85% $50 $1
 

 

Major Red Flag: Awful Customer Reviews

Try typing “ZoomTrader” into Google and nothing else, and checking out the results on the front page. You will find several positive review pages which are clearly whitewashed by the company or its affiliates. You will also find links to RipoffReport and ComplaintsList. On those sites, you will find dozens of horror stories of lost money and terrible customer service by customers. These stories seemed to have several key patterns that kept repeating in one form or another:

  • All interactions with the company seem to be with a person named Jack Moore. It seems odd that a binary options broker would only have a single staff member. It is not impossible, but unlikely. A scam on the other hand could very easily be operated by a solitary individual.
  • Trades expire later than they should. Several customers posted that they were in trades which should have closed in the money, but did not, because the clock continued to run for 30 to 60 seconds after the trade should have ended. When the trade expired, it expired out of the money.
  • Multiple customers complained that they were forcibly issued a bonus even though they did not want one. After opening their accounts and depositing their funds, they discovered they had been given a bonus even though they specified that they would not accept the leverage on their accounts.
  • Other customers stated they were unable to withdraw their winnings promptly or at all.
  • Customers also say that “Jack” refused to speak to them via live chat or email where a log could be recorded, and instead demanded to talk to them on the phone, where recording a conversation would have posed more difficulty.

Most customers who lost money unfairly say that when they would contact customer service to complain, they would be answered by “Jack,” who would write back responding that ZoomTrader was experiencing “issues,” and that those issues would be “fixed soon.” When the customers would write back again demanding their money be returned since clearly the “issues” had caused the loss, Jack would point toward the Terms and Conditions, explaining that ZoomTrader is not responsible for any losses incurred.

Conclusion: Stay Away from ZoomTrader

Reading these stories of customer woes, all I can conclude is that ZoomTrader is not just a bad broker—it is really just a scam and not even a real binary options broker at all. Bad service and missing trading tools are just the start of it, and all those educational materials, a sign of good faith in most cases, here mean nothing. ZoomTrader seems reliable in only one regard, and that is in their ability to piss off customers and drain their bankrolls. I welcome the “broker” to respond to these reports—and if anybody reading this page has a ZoomTrader horror story of their own to tell, please get in touch with us, and I will update this post accordingly.

You can even send me a youtube.com vid like this one:

*Video has been removed

Meanwhile, head over to our list of recommended brokers to learn about some reputable companies where you can legitimately trade binary options.