Top 10 Signs of a Binary Options Scam

If you sense a red light – do not use the binary options broker until you feel comfortable!

It is not unusual to read advice saying you should never trade binary options because there are so many scams out there. Scams in binary options can take on a couple of different forms. There are scammy brokers, who will cheat you out of your money, and there are scammy trading systems and trade alert companies that will cost you but not provide you with the tools you really need to make it. How do you learn how to avoid these scams and stay safe so you can continue to participate in the binary options market?

Here are 10 signs to steer clear of a company or individual who is promising more than they are likely to deliver.

1. You can’t find the name of the company.

If you research a company such as a binary options website and cannot find the name of the company that owns the operation, you probably should not trust that company. After all, you do not know who you are dealing with. Why would you send your money to a complete stranger?

2. Customer service is hard to reach.

Before you join any binary options website or any signal service, you should test out the customer service. Try sending an email and see how long it takes to get one back. Attempt to talk to someone on the live chat line, and see if anyone is there during normal business hours. See if you can reach someone on the phone. If you consistently cannot get a hold of anyone, you should steer clear. Imagine if you had a problem and no one was there to help you. Find out who has awesome customer service here

3. Customer service is unhelpful.

If you can get a hold of customer service, that is a start, but that does not mean the company passes your test. Do you get real information on the phone or nothing but hard sells? When you get on live chat and talk to someone, does that person speak your language, respond promptly, and know what he or she is talking about?

4. The company dodges regulatory questions.

Most binary options companies at this point are unregulated, and those that are usually are regulated as something other than a binary options company (like a private bank). Even good companies may be unregulated. But what you should not accept is a company that dodges your questions about regulation or tries to make up inconsistent answers. If you are told you need to wait for some other customer service person to email you back, or you are told contradicting information, do not trust the company. Another one to look out for is companies that give you a Cyprus business license number and try to sell you on the idea that it is a CySEC binary options regulatory number. You are far less likely to be robbed by a company that is honest and forthright about their lack of regulation.

This article gives more information on the regulation status direct from a binary options broker customer service.

5. You cannot view a trading history.

This applies to companies and individuals selling trading and trade alert systems, not binary options brokers. If you cannot see a trading history, you have literally no evidence that a system works. Even if you can, you do not have proof, but it is still something. A trading history is not just, “I won 98% of my trades last year!” It is a list of actual trades with details on entries, exits and outcomes, as well as specific profit and loss figures.

6. A company tells you that you can win 100% of the time.

This is insanity, yet newbie traders fall for it every day. We live in desperate times, economically speaking, and there are a lot of people out there who are ready to try and take advantage of your hopes and fears in order to make a profit for themselves. There is nothing, absolutely nothing, that can win 100% of the time. Trading is a business of risk, and while a good trading system can reduce your risk, it can never eliminate it. Also beware of other exceedingly high win percentages, like 97%. Many professional traders will be happy if they can achieve 70-90%.

7. “You can make X dollars in Y time!”

Anytime you get some kind of an offer which has a basis in hours, weeks, months or years, you should be wary. “You can make $500 in an hour!” is one example. Another would be, “You can turn $1,000 into $100,000 in one year.” And so on. It is not that you cannot feasibly do these things, but this is just not an intelligent, levelheaded way to approach trading. These pitches are aimed at gamblers who are going to make poor choices before they think twice, not at responsible traders.

8. The company has no reputation.

If you encounter a company which has no reviews online and nobody knows anything about them, you trade with them or buy their trading product at your own risk. Sometimes this just means a company is new, but wouldn’t you rather someone else tested them out instead of you? You might make an exception if a new company appears to offer exceptional service and transparency. Check out our list of reviews

9. The company has a bad reputation.

Do not ignore the warnings of your fellow traders. Yes, every company has its enemies, but if you see consistent reports of problems with a company, especially if those reports involve the same issues again and again, it probably is a good warning to stay away. Companies that consistently make it onto binary options blacklists generally are there for a reason.

10. There is a lack of good signs and features.

While you should be looking for negatives, you should also be searching for positives. Look for a company that provides educational resource for its traders and encourages traders to take time to learn and plan before placing trades. Search for brokers that offer a lot of features. If you are shopping for a system or signal service, look for programs which provide lots of transparent, clear information and allow you to get in touch with the developer if you have questions or concerns.

Here is a list of positive features to look for in a broker to determine whether you have found a trustworthy company that deserves your business. You can also check out our guide to binary options brokers, which can get you off to a good start in your search. We have done a ton of research to put together reviews of the best binary options brokers out there. Take advantage of our hard work; it will pay off.

Photo credits: Red Alert

  • Marcin Patrik

    marcinmpatrik@gmail.com Hello fellow traders, i have a new
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  • Blake

    losses built my tenacity to succeed. I never thought i would never recuperate from my loss. I lost a substantial amount which i would not like to talk about because it hurts but i soon found my leeway out with my sweeping strategy.This earns me at least $20000 weekly.I can be reached via this email calvinblake3330@gmail.com for more info

  • Eve

    Option888.com has many signs of reliability, and yet – beware. Put in your money and you may never see it again. Speaking from (someone else’s) experience. Do your research, people!!! The UK number and the guy with the (apparently) UK accent is registered under a Samoan company whose number didn’t even show on the ministry of commerce website of Samoa….. :(((

  • Anthony

    10 option and wynn finance scammed my fiancé $500 to each of them does anyone know if there is a legal way to get our money back the credit card dispute was no help????

  • jim bjork

    i’ll save everyone a lot of typing. there are NO reputable or honorable binary option brokers. none. stay away. learn forex on your own and do it on your own.

  • Stefan

    Hello.
    Does anybody heard about BWS capital.
    Good or bad.
    Pleade respond
    Regards
    Stefan

    • jim bjork

      my sigma options broker just said they had been bought by BWS-Capital he said they were a forex broker. the phone number is playing exactly the music i have heard on several binary option phone numbers, and the call just got dropped. so i am not too hopeful.

  • jonel

    Has anyone had any experiences with Xtrade?

  • Mark Tollitt

    Has anyone had any experiences with Utrader?

    • tara bankz

      good day everyone, am here to help anyone who is really serious about making more money from binary/Forex trading or recovering his or her losses, should contact me via Tarabankz234@gmail.com,i have mind blowing strategies and i am willing to share all that with you and with prove of winnings.I earn $8,000 dollars per week trading binary options. If you want to learn my strategy and opportunities send me an email here and join the gainer’s.

  • Dave Parker

    My advice on Binary Option trading:
    1) Read the terms and conditions, especially the withdrawal policies;
    2) Only deal with a licensed brokerage firm;
    3) Refuse all bonuses;
    4) Do not deposit more money until you have confidence in your account manager, and have made a successful withdrawal.

  • Andre Vachon

    I’m having trouble getting money from my account with Big Options

    • Dave Parker

      The best way to get your initial investment back (has to be within 120 days of opening your account) is to call your credit card company and "dispute" the transaction giving specific information such as date, amount, and broker name. The stated reason for your dispute is broker misrepresentation. This actually works, even with the most difficult and unlicensed brokers.

    • steven

      thats pity, how come?

  • Andre Vachon

    Anyone know anything about Big options

    • tara bankz

      good day everyone, am here to help anyone who is really serious about making more money from binary/Forex trading or recovering his or her losses, should contact me via Tarabankz234@gmail.com,i have mind blowing strategies and i am willing to share all that with you and with prove of winnings.I earn $8,000 dollars per week trading binary options. If you want to learn my strategy and opportunities send me an email here and join the gainer’s..

  • alfred

    Bluebitbanc.
    Unable to withdrawn any money I have $+74000.00 in my account but unable to get response from Bluebitbanc it has to be a scam.?

    • Dave Parker

      Did you read the terms and conditions? If bonuses were part of your investment, certain trading volume minimums are required. For example, every time a bonus is deposited, it usually requires trading volume of 20-50 times the bonus before you can withdraw. It also resets with each additional bonus. DO NOT ACCEPT BONUSES!

  • Maggie

    Hi Folks
    Has anyone dealt with Option Rally — if you are thinking about it I would not. As many others have expressed as long as you are giving money to them they are angels but ask for money back and the whole angel becomes a devil.
    The one thing that I have discovered is about bonuses, don’t take them as they will lock you in forever. By taking a bonus of 1000 you have to do an amount of about 20,000 of investing before you are even considered for taking anything out. When you reach that level there is something else that comes up. One investing group that deals in stocks explained binary as like going to the casino very risky and you will lose. I’ve learnt the hard way, they sound so good and honest but the people that are advertising this are just actors, they have nothing to lose. Most of them are bullies, very aggressive and ignorant.

  • LUNGA

    edgedalefinanceoption and it Broker Max Daniels are scam. i started trading with them on the 19/08/2016 we made a profit of $4,226 and on the 05/12/2016 i made a withdrawal request thats where everything started i sent pillar to pillar,i was even asked to deposit $500 to receive money with the profit. this morning i wrote an email to my broker who told me that he lost all the money after Trump speech last week but the withdrawal request was made last year december not this year. all this people are scammers pease avoid losing more money.EDGEDALEFINANCE AND MAX DANIELS ARE SCAM AND HE IS WORKING WITH HIS WIFE AS FINANCIAL ASSISTANCE.

  • raphael lassance

    365BinaryOption Reviews
    Reg Brookhouse ( Australia) reviewed 365BinaryOption:
    2015-11-19 05:19:32
    I deposited $200US with this broker whose name is David Morgan on 6 October 2015 … he wanted me to invest a further $3,000 to $5,000 and urged me to try and borrow the money … but as I am bankrupt and couldn’t deposit the money he said he couldn’t have me as a client and that he would transfer me to his trainer by the name of Mark … Mark rang me on 19 October 2015 and had me go on their website and click on 2 trades … one for $100US and another for $150US (they had added $50 to my a/c) … Mark said he would be in touch and hung up … I didn’t hear from him again … i received notification later saying that I had lost both trades and my account balance was now zero … my emails to their support on their website for return of my money were fobbed off and they didn’t want to know me … I can supply my emails and their replies … I found out later that 365BinaryOption is an unregulated company … they came across as caring and sincere when I explained my financial situation in the beginning but in the end they took advantage of a bankrupt person demonstrating no integrity whatsoever … I was left unable to pay my bills … stay away from them …

  • raphael lassance

    DO NOT BUY 365 Binary Options | Before Watch 365 Binary Options Review
    Before Buy 365 Binary Options here’s few thing you need to know.
    This kind of product have a sales funnel where you are getting the front end product for small price usually 37 dollars, 47 dollars or 67 dollars whatever that is? But after immediate purchase of the product you are going to go through these high price Upgrades, UP SELLS, DOWN SELLS and CROSS SELLS.
    You can see that, 365 Binary Options are trying to lure you in with the small price tags and then when you buy from them they will try to sell you an upgrade for 197 dollars, 297 dollars and even 497 dollars.
    And at the end, you end up spending 500 dollars to 1000 dollars on your credit card.
    Not only that you also end up wasting you valuable time by thinking that 365 Binary Options have a money back guaranty but after spending two three months on the product you will find out the system is outdated and it doesn’t work anymore.
    And worst thing is, some time even after spending this much money and time you still don’t know what to do with all this product or push button software and they always left out some crucial information or upgrades that you have to buy in a later dates.

  • RANGI KETE

    plusoptions ,,,,has anyone traded with these people..?

  • RANGI KETE

    PLUSOPTIONS.HAS ANY ONE TRADED WITH THESE PEOPLE??

  • Bdb scumbags

    Are you serious? Banc de Binary on trusted brokers list. The BIGGEST scam there is.

    There will soon be a class suit against BdB and looks like I have to join it.

  • Cheryl coffey

    Is tenoption a good. Omosny

    • David

      Did anyone answer your question about tenoption?

  • Nelisiwe

    I have been invited to join a company called Binary Corporate, is it legit or a scam?

  • Dan

    365 Binaryoption.com are crooks you will lose every thing the first day. I did. Steve Roland is a very dubious SCUM Bag.All there contracts are dubious scam.Asked for a refund Need to sign a dubious contract that gives them your money bask to them. Total SCAM.

  • Peter Cross

    PETER CROSS visa wont allow me to transfer money to g t options due to many complaints they receive about them

  • barry D

    Does anybody know to get round this company is a barstard
    Vx markets talk about run around trying to refund my balance
    £605 back to my visa card several emails have gone to them
    and they keep saying log in , and find the right page then it
    goes all tits up and nothing

  • Ozzy

    Imperial Options big scam !!!!!! Look out

  • Mik Hughes

    Has anyone had any dealings with Toroptions ?

    • Derek

      They are really professional.

  • Kay

    Has anyone experienced magnum options? Is it common for a broker to ask for such documents as a drivers licence, number blanked out, credit card used to fund the account, again numbers blanked out except for last 4?? Hopefully someone can help??

    • John Jugalaks

      Yes, that is standard procedure.

    • Derek

      It’s perfectly normal.

    • J D

      They are doing that to ensure that the money is going to who it is supposed to. If it were me, what I would do is take a copy, color if they require it, black out the information with a marker or something, and then copy that blacked out one and send them that. That way there is little to no way for them to be able to recover the blacked out information.

  • Constantine

    constatine10 seconds ago
    I have a good story to tell worthy of David Meister’s ear at the CFTC and laurie Schock at the SEC regarding PUSHMONEY Glenridge Capital and Empire Option. I want to pursue a a ” Class Action ” suit for all those unfortunate individuals caught up in the mire of unscrupulous individuals all for an initial investment of a
    measly 250.00 to 300.00 dollar investment.

  • constatine

    I have a good story to tell worthy of David Meister’s ear at the CFTC and laurie Schock at the SEC regarding PUSHMONEY Glenridge Capital and Empire Option. I want to pursue a a ” Class Action ” suit for all those unfortunate individuals caught up in the mire of unscrupulous individuals all for an initial investment of a
    measly 250.00 to 300.00 dollar investment.

  • Vaughan

    Anybody heard of option FM or binary Swiss trusted or not

    • Barry Jordan

      Avoid Option FM – you will have trouble withdrawing funds – highly unreliable

      • barry D

        yes I thought I had lost my deposit with Option F Mbut got it back took a bit of time
        but it came back on my visa card surprise surprise still scammers though

  • Teresa

    Hi has anyone heard of oliver miller millionaire trading? I cant find too much on him. Would like to know if its a scam

    • Stelios

      I have the same question…can someone plz help?

  • Michael

    Has anyone made any experience with 24option? I am currently running a demo account and I might switch to a real account…

    • Angie

      I lost $500 with 24 options and this is because they keep me on trading after I asked for refund. Suggestion: don’t try binary option again.

      • Ghenus

        What broker do trade?

  • jack

    STAY AWAY FROM BANK DE BINARY you will loose your money

    • David Bump

      Jack, could you give some details? Or did you just make a bunch of stupid trades and want to blame someone else?

      • Ghenus

        I think he did. lol

    • Angie

      correct, many unpleasant stories about this already.

    • Ozzy

      Yes look out they have same trading platform as Imperial options it’s good platform but you will properly loose your money. At least Imperial Option is biggest fake they don’t have adress
      Only adress you can find about them is Mentors Marketing 207 regent street 3rd floor London
      It’s a fake adress and they use tactics like modern piratcy. You will never see your money again.

  • Casey J

    Virtnext software doesn’t not work…

    It led me to signing up for GToptions which got me investing a large sum of my money and he would ask me to invest heavily and lost a big sum of money. He said it was my fault for losing it and he said to get my account and running again with him helping me to invest in the right options, i’d need inject 2K usd dollars. I said no. He said ok it’s out of his hands and ‘they’ would suspend my account!. I had 3751 USD with 9850 US worth of stock still holding until 30 June and of december.

    GT options is FAKE and runnign a scam to push people to keep injecting money after the initial 250.00 deposit.

    A caller would tell someone to put more money in and they don’t even introduce themselves and how they work with clients!.

  • Ryan

    Morton finance? Does anybody know anything about them? Good or bad?

    • Derek

      stupid

    • jim bjork

      they are crooks; lost $500 and got told it was my fault

  • Teevaar

    Hi there, I plan on joining a trading platform called MarketsWorld. If anyone reading this has current or previous reviews or suggestions about it, please let me know. I plan on joining in a few hours as the min. fee I need to deposit and start trading with is $10.

    • Casey J

      It sounds fake to be honest if you’ve never read about any good reviews about them online. Most scammers will restart a new company until they get caught out.

  • Shogun

    Stay away from vipoptions – a very big scam

  • Shogun

    STAY AWAY FROM VIPOptions – very incompetant

  • Howard Kaschyk

    BlueBitBanc is a scam. They did not honor their own contract when I asked for my money back. They still have it all. They changed the agreement which is amateurish. It says many times it may change without notice. Just because I pointed out a second way he had no knowledge out that a customer can withdraw funds. Quite strange the manager, told me to send more money. He knows I have $5,000.00 all over the place and send it to him. Madman went bonkers when I said I really need it back, which I do. Now I cannot get anyone to respond from them. “My” Agent quickly showed whose lapdog he is.

    • Sam

      Howard, did you ever get your money back from BlueBitBanc?

  • Gabriel

    Hi guys,
    Don’t trade with 365 binary option , I wasn’t ready to update to gold, I dint have the fund to do it yet! And I had 10000$ in silver account(with 2000$ deposit. And 2800$bonus)so to make profit I had to add 3000$ and coulnt really afford tht yet! So they gave me fews signals and lost everything! Thts crasy because I dint update to gold( my broker david Morgan) don’t join 365 scamm!

    • Lucy

      Have joined 365 and desperately needed advice for this ! So you basically have to keep adding to get anything at all back ? Literally am new to this

  • Majid

    May I know is Imperialoption a legitimate company.

    Thank you

  • RICHARD

    Reading peoples comment is clear warning to intending traders like me. i think need better to invest my hard earn money on. Anybody with better option should please help.

  • James Norman Moxon-Steele

    Another one to watch out for is Big Options. Took my money and were extremely rude on the phone and now I have been told that if I want my money back there are a number of charges which will be deducted. They told me it is there terms and conditions which I should have read but I was never given them to read. be aware f these people.

    • Deanna

      I’ve just made a post about big options where they were not going to give me my money back until I sent them the info, I explained to them I wasn’t without action. I can file a complaint against them with the Consumer Protection, and also cancel the cc. That seemed to work. Hopefully this will help someone else get out of the bind I puit myself in.

  • Syed Altaf

    Im new here in into binary options. im thinking about trading with nordfx is it good. they allow binary option trading for just $5. thank you

  • Sam

    Be careful about IQ Options. I traded with them for several weeks and lost about 14 EUR. This is after about 100 trades. I like their platform; but when i began making profit, it seems the ability to do so became suddenly much harder. First of all, the prices given on their server are 1 to 1.4 pips variant from MT4 prices (when you select BUY the price for EURUSD is .001 or .0014 or maybe more than the MT4 price at that moment; this is true for all currency pairs). This applies to the Turbo and Standard options. Secondly, their clock ‘skips’ two seconds when counting down; this means you can easily lose, because those two seconds are critical! In that time, your win can turn instantly into a loss. Another thing which i hate about this platform/broker, is that i was closed out many times with a very small price differential (you guessed it! the 1 to 1.4 pips mentioned above); in one case, it was one millionth of one cent (.000001). Finally, to really add shit to the Chocolate Shake, your trades are ALWAYS chased and it feels like someone literally is trading against you; and, worse, the platform sometimes freezes and the price stays stuck; while the MT4 price continues to change. Do your due diligence and trade with a platform and a broker (if they actually exist) that you can make profit from; or give your trades to a professional (use a Signal or an EA). Seems like these guys finger clients who make money (i was up to EUR 29 three times; but the stable and profitable strategy i was using –not my owm, by the way–quickly began to turn ‘sour’ for no reason, after it had worked very well for two weeks. Do your due dilgence, and only trade with a broker that you can make money with. Otherwise, do not trade with them!

  • RYAN

    how come Goptions is a trusted broker, I think you ppl need to update. I made 7k on Goptions, now my money is gone!!!! operantly there was a system error, then thy put me on ignore, It took me long time this to get my deposit back of 500$, I had to get legal support to get them to pay me back.

  • Maria Melaré

    THE AGREEMENT BETWEEN NORBERT GERMAN BANK AND OPTION NOW IS A BIG TRAP TO TAKE MONEY FROM PEOPLE.STAY AWAY. MOST OF THEM ARE THE SAME, NO AUTOPILOT WORKS AND SOON WE ARE CALLED BY A TRADER WHO PROMISSES HEAVEN TO STEAL OUR MONEY BUT SEND US TO THE HELL. OPTIONOW IS THE MOST DANGEROUS, VERY FRIENDLY IN A FIRST CONTACT BUT WHEN THE MONEY DISAPPEARS, OUR PASSWORD IS CHANGED AND WE CAN EVEN CHECK THE TRANSACTION MADE BY THE VIP BROKER. THE WORSE OF ALL DUE TO THEIR DIRTY STRATEGIES USED.
    BE FAR FROM BINARY OPTIONS MAINLY FROM OPTION NOW WHOSE VICTIMS ARE CAUGHT BY NORBERT GERMAN BANKER.

    • Leo

      Exactly WHAT Maria Melane explains.
      is the reality, stay away, German Binary Robot..Norbert.
      The autopilot does not work … and call the broker wanting to do business with $ 10,000 deposit … All Scam..Scan …

      • kim

        Here it is again the SUPER SALESMAN ( ) with the SUPER MOUTH O and the tiny brain o.
        His name is Brian Phillips from FULL OPTIONS.
        Wow this man says he has soooo many years of experience.

        I opened an account with Full Options,deposited $500.On this day he asked me to make 3 long term trades, before i knew it, the FULL $500 was traded. After that i thought where is the MONEY MANAGEMENT here.

        I waited for the $500 strategy to mature.All 3 positions LOST.

        Brian was not there for our 5pm meeting. He just came later.No apologise. No apologise for losing. He just blamed TRUMP for the loss.He said $500 is small money,you need to invest more.

        To a pensioner who earns $50 per day.this is 2 weeks work,Brian lost with the blink of an eye and No caring at all.

        Kim