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Saturday, 25 March 2017
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Avoid the Trading Scams

Stay Away from the Scam Sites

10 Comments

The question many people ask is: Are Binary Options a Scam? We like to answer this with a NO.

We aren’t speaking for everyone in the industry. Unfortunately there are some bad people out there. It’s avoiding them and sticking with the ones you know is your best bet.

Most of the times people will jump on the “scamwagon” if they lose all of their money at a particular broker. They will blame the broker as being rigged. Meaning, they will believe that price jumps against them at the last second causing a loss. Price fixing is another name for it. There are many reasons why we don’t believe these types of scams exist. We’ll talk about those below as well as go over some of the information sites to avoid.

What is running the Market

If you’ve been around awhile, you’ve seen dozens of sites available to traders. It seems like everyday a new broker is coming online. Do you wonder why this is? It’s very simple actually. There are only a few software providers available.

Right now, there are more in development, but where it stands today, there are only two major players. One is Spot Option who is the backend for over 100 binary options brokers. The other is called Tech Financials. This software maker has brokers such as 24option and OptionFair. You can read more about the brokers on our broker guide page.

Who is Spot Option

Who are these guys? They were established in 2008 and offer a package to companies called white labels. These Turnkey solutions offered by Spotoption allow these brokers to come to market. They literally design their own site around the SpotOption back-end. This means, no matter which Spot Option broker you are trading with, you are more or less getting the same thing. For one broker to go bad means Spot Option has gone bad. This would mean all the brokers are scams. Good News – This isn’t the case. They are very reputable in the industry and continue to improve their software package. It’s up to the individual broker to stay legit with their marketing efforts and client recruiting. If something were to happen to SpotOption, a lot of brokers would be out of business. Be on the look out for new platforms in the next year or two.

Who is Tech Financials

The other bread winner in the industry is Tech Financials. They are a pretty big player and have some really nice software. They are also offering white labels to companies. If something goes wrong at a broker, it most likely will go wrong at all the others. This will help avoid any scam issues. One of the major players of this software is 24option. You can find out more about them on this site.

The main thing you should watch out for, are the regular people selling signal services and information on making money online with Binary trading. Although some are legit, there are plenty of sites and YouTube channels filled with garbage. These are the places we consider scams and should be avoided at all costs. If you find a site that seems fishy just move on to a better informative site like ours.

Based on software alone, scams won’t exist without the industry imploding. If a broker acts out of line then we may have a problem. Until this happens try to stick with the best in the industry such as the ones on this site.

10 Comments

    Rick says:

    I am very new to Binary Options and am wondering if you may be able to explain the discrepancy in prices among various brokers on the same instrument at the same time. I am set up with several brokers….a suggestion from a signal supplier which I have not yet used. I recently displayed 4 brokers on my monitor simultaneously. I was surprised at the price differences. Oddly, the prices seem to come more in line with each other as the expiry time neared. Following are 3 examples. I took pictures of my monitor.
    A B C D
    Sept 9, 2014 3:48:10 pm ET Apple 98.4754 98.5500 98.3971 98.400
    Sept 9, 2014 3:50:21 pm ET Apple 98.5355 98.6352 98.4821 98.454
    Sept 9, 2014 3:48:10 pm ET Apple 98.4254 98.5300 98.3770 98.352

    I am so new to trading that I’m not sure what a pip is. I think it’s the last digit. If that’s true, then a difference of over 1800 pips at a given point in time is extreme. When 1 pip can dictate a win or loss, how does one deal with such differences among brokers? Thank you.

    Wlodek says:

    Interactive Broker is a scam broker ! They stolen my money ! My withdrawal requests are refused without any rights ! Be aware !

    admin says:

    Which broker is this. Interactive Brokers is one of the leading place to trade in the world. Are you sure you are having issues?

    duan says:

    Mayfair Options have left me feel like i have been scammed to give away my money. I was approached with promises of making profit and easy accessibility to my account balance being able to withdraw all of my account balance at any point. I was asked to make a initial deposit of USD200.00 which I made to see how it all works. A few phone calls later another broker convinced me to invest a further USD1800.00 so that i can get personalised account manager suggesting good trades. I have managed to make 2635.30 profit from both winning and loosing trades. However i started getting more and more phone calls from competing brokers asking me to increase my investment to USD5000.00 so that i can have a whole specialist team providing me with trades. This is all within the 1st 3 days of trading. These brokers then called me at all kinds of hours including 3am in the working week which meant i got very little sleep. The constant hard sale and phone calls got too overwhelming which is why i asked them that i prefer to close the account and return all of the account balance. In the company faq’s they mention that this should take 24 hours with the money being wired into my account within a few business days. After many many conversations and over a period spanning over a month, I have received my initial USD2000 investment paid back to my credit card with an outstanding balance of 2635.30 which is my profits. Mayfair options have asked me to provide all of my banking details which I have on 3 occasions to find out my withdrawals were not approved for several weeks. Today have have discovered that they have put my account balance to zero, my withdrawal approved on the 1st of October 2014, i have not received any funds in my bank account and they are asking me to send them my bank statement to prove i have no received the funds. I have asked them for proof of wired monies which i can provide to my bank which was not provided. it is now the 12th of November 2014, more than 2 months have passed that i have asked to close my account and for my account balance to be wired to me without any success. I feel like i have been scammed and want to know what the next step is to receive my full account balance. I have also not taken any bonus and have no reason for them not to wire the money as they have agreed to do so. I have documented the conversations with the support chat and screen shots of the account history. I would appreciate any advice.

    admin says:

    You should follow what they say. If they want documentation, you have to provide it. It may take some time, but you will get the withdrawal eventually. Why it’s taking this long is still not clear. Just keep contacting them.

    duan says:

    are you saying that me providing my bank statement is acceptable for the data protection act? this information isn’t relevant to them making a wire transfer to my account. to date they are unable to provide evidence that they have attempted to make a wire transfer. my incoming and outgoing and account balance has nothing to do with mayfair options.

    Donald says:

    From what I read so far from your website is to figure out which way the trend on whatever I am trading is going. To find that out I would have to use some type of indicator to see which way that is. If it look like it is going up then I would Call. If it looks like it is going down then I would put. I have done binary trading before but lost a few hundred bucks. I think this is because I did not have any education in it and did not study for it.The website I also used did not have very good indicators either. How would I know which indicators to use?

    admin says:

    There are a ton of indicators out there that will give you the trend. If you watch price action on a chart this will help you break down whether you should enter the trade or not. Use whole numbers and areas where price has reversed to seek new trades.

    Laura says:

    Can you explain to me why a trader can lose their money when they are being guided by an account manager. I had an experience with one of the platform, you consider to have the best brokers.

    admin says:

    This is a good question. We’ve never used an account managers advice when trading, so to answer this question would be difficult. You are better off just asking questions to the account manager and don’t seek trading advice. Let us know how things go.

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