Fraudulent Trading Websites, Ripoffs and Binary Options Scams
As the demand for financial trading over the Internet is growing every day, more binary options brokers are getting into the business. Competition is always good for any business, but it makes it difficult for clients to know which companies are legitimate or not. This is where Binary Fraud Sniffer comes in. Our company reviews these online brokers by reading reviews from online communities and trading with these providers to gauge the legitimacy of the clients’ opinions. At the end of the day, our firm rates brokers and gives the traders an easy and fast way to select the broker that’s right for them.
How do we rate online brokers?
Trusted Broker – Investors who see a green badge marked on an online broker can fully trust in them. This badge means that this broker has a good reputation within the binary options community. It also means that we feel that people will have no problems with trading with these brokers because of their record of offering competent returns, fairness and integrity.
Use Caution – Traders who see a yellow badge marked on online brokers must be careful when doing business with them. Our review and research procedures may have started on these brokers, but our data on them is still incomplete, so we will not be confident in our decision to legitimize them or not. Investors are advised to check back with us from time to time as we will eventually conclude our reviews on them.
BlackListed – Clients who see a red badge beside an online broker’s name are best advised to stay away from them. This means that the broker has received a significant amount of negative reviews from the community, and that we are convinced that these reports are valid after trading with them for a while. The bottom line is: if we don’t want to do business with a particular broker, investors who still want to take the risk and proceed have been warned.
What kind of Scams are we searching for?
- Push Button Scams – Considered one of the worst scams so far, these companies inform honest clients that they simply have to invest money in them and click a button for instant profit. If they get tricked by this, the cash is already deposited and there is no ROI because all trades will result in losses.
- Withdrawals – There are brokers that make investing in them a streamlined process, and then make it very difficult or almost impossible to withdraw their winnings. We have encountered this type of scam more often nowadays, and no trader will want to experience this.
- Bonus Scams – Most of the time, online brokers will attract new clients in by presenting bonuses that seem too good to be true. The problem is that these bonuses are locked in strict regulations which make it not possible to withdraw their winnings.
- Strike Price Manipulators – This type of scam makes it close to impossible to make money during a trading session.
- Integrity – While there are brokers that are officially regulated and licensed, they end up ruining their good reputation because they manage to cheat the system and therefore cheat on their clients as well.
- Unregulated Brokers – These kinds of online brokers do business with their own set of rules, so they can potentially take the client’s cash by hook or by crook. This is the reason why we have the CySEC to license and regulate online brokers.