Are All Brokers a Scam?
It really depends on your specific broker. Here at scam broker we review Forex, CFD, Bitcoin and Binary Option brokers, so that you will know which government agency is regulating them. Although, many online trading brokers are not licensed, and are actually casino operators, some brokers are legitimate financial organizations.
Forex, Crypto and Binary Option brokers are monitored, licensed and regulated by the likes of the CFTC in the United States, ASIC Australia, FCA United Kingdom, FSB South Africa, AFM Netherlands, CONSOB Italy, BaFin Germany, Finanstilsynet Denmark, CNMV Spain, CNB in the European Union, CySEC Cyprus, and the list goes on and on.
View our comprehensive list of Government Financial Regulators.
78% of traders open an account, and lose money trading. Hey, this is the real world and this is reality. Trading Stocks, Options, CFD’s and Forex is a risky business, and many investors lose money. So just because a trader did not have good luck, or proper risk management, does not mean his broker is at fault. People reading forums and review websites will see the occasional disgruntled traders complaints and read his rant about the broker who stole his money.
Visit the licensed brokers page to learn more about regulated brokers.
Many investors learn about an online broker via a trading software, which are usually just promises of a quick way to make money in the stock market.
How The Broker Scam Works?
There are three aspects of a binary options scam. One being a broker whose trading platform is rigged to make all traders lose money. This is done with bad quotes, and other algorithm modifications. That kind of scam is not very prevalent due to the nature of the financial markets.
The Binary Options Scam that is more prevalent among rogue brokers is unauthorized credit card charges. A scam broker will charge a traders credit card, to add more money to their trading account, because the scam binary option broker gets paid based on new deposits.
The best precaution a trader can take is to use a credit card, not a debit card, that has the ability to dispute charges in the event of fraud. Traders who authorize direct debit withdrawals from their bank account are playing a very risky game.
The Forex Broker Scam is usually centered around managed accounts. Unregulated scam Forex companies will pitch investors to join a managed account handled by one of their senior analysts, and promise high monthly returns.
Fact is; there are no licensed or legitimate brokers that will manage your account, or promise fixed returns.
A common scam is with brokers that don’t allow you to withdraw your money. There a few reasons why a broker can hold up an investors cash, with the main reason coming from the trader having accepted bonus money, or not reading the terms and conditions. You can read more about this on the complaints page.
Make sure you read about the scam with trading robots.
We Investigate For You!
If you have a question about a Forex, Crypto Currency or Binary Options broker, we encourage you to first read the broker reviews. Also search in the Investors Forum to see if your question was already asked.
You can easily trade with a trusted licensed broker, so there is no reason to use a scam broker.