Binary options, forex and cryptocurrency brokers generate a significant number of complaints from our readers. Some are legitimate and others are not. But what we’ve consistently noticed is that investors who use a licensed, regulated broker rarely alert us to any problems and rarely file complaints.
If you traded with an unlicensed broker, the major complaints that we hear are outlined below.
If your broker is licensed by the United Kingdom’s Financial Conduct Authority (FCA), you may want to view its complaint procedure here. Please note, however, that neither the FCA nor any parallel national regulatory agency in any other country can assist you if you contracted with an unlicensed broker.
If by now you haven’t been convinced that you’ve been scammed, try withdrawing money from your account. You will find that the requirements are very narrow in order to make it difficult, if not prohibitive, for you to make a withdrawal.
When you sign up with a scam brokerage, for example, it’s quite common to be given a large “bonus,” even if you haven’t requested it. The bonus is bogus, of course. It’s as phony as the website itself. But read the fine print in your contract. The “bonus” is often cited as a reason why you cannot withdraw your own funds. Unregulated brokers will require you to trade 30-to-60 times the value of the phony bonus before being able to withdraw even a single cent of your own money.
Auto Trading Systems
Some investors fall victim to scam brokerages having been swept in through the back door after responding to an advertisement for a money-making scheme attributed to Bitcoin Code, Bitcoin Trader or Bitcoin Loophole, among others. Unbeknownst to the investor, however, the software automatically creates an account at a scam broker. You are then instructed to make a substantial deposit to enable the dividends to flow.
Legitimate brokers often have a clause on their terms and conditions page that bans the use of automated trading software.
Unauthorized Credit Card Charges
There are three possible explanations for an unauthorized credit card charge made by a broker. The first is that it was an honest mistake.
The second possibility is that a legitimate broker who you relied on to double your money lost it all instead. He needs you to replenish your account in order to continue to play the market.
The third possibility is that your broker isn’t really a broker and he’s scamming you.
If you received an unauthorized charge on your credit card from a broker, you should dispute the charges immediately.
Trading forex or cryptocurrencies is extremely risky even under the best of circumstances using a registered brokerage. In fact, you risk losing all the money in your account. You can conceivably lose even more if you engage in what is called “buying on margin.” That’s a euphemism for borrowing money from the broker that allows you to buy more than you’d otherwise be able to do on your own. If you bet incorrectly and lose it all, however, you’ll still be obliged to repay it.
Because these sorts of trades are volatile and impossible to predict with total accuracy, your broker’s experience may have no effect on your chances to succeed. In the event you authorize your broker to trade for you, therefore, you are effectively forfeiting control over your money.
So if your broker offers to place a trade on your behalf, tell him NO! If you want to invest in forex, then invest the time to do your research and learn how to become a seasoned trader. But do not assume for a moment that someone else is going to make money for you.
Ask yourself this simple question; If the broker is such a good investor, why is he interested in trading your money rather than his own!
If you have been scammed, don’t for a moment sit still and assume there’s nothing you can do to get your money back. There’s plenty you can do to get your money back, but the process can be complex and take up to six months or more, depending on your form of payment, the number of payments you made and your bank.
That’s why we recommend contacting an international fund recovery firm, which has broad and deep experience in doing so across the globe. If, after consulting with them, they think that your chances of winning your case is marginal, they’ll tell you. They can obtain a reversal of payments made by credit and debit cards as well as bank and wire transfers.