There are many complaints about Forex, Crypto and Binary Option Brokers and the complaints are for a variety of reasons. Some are legitimate complaints and others are not. Investors who use a licensed and regulated broker, will rarely have problems or complaints.
If you invest with an unlicensed broker, your complaints may be explained below.
There is no government office to help you, when you have a problem with a broker that isn’t regulated.If your broker is regulated by the CFTC in America, go here to file a complaint.
The smart way to trade binary options is at a CFTC regulated exchange. You should read the latest warning to investors from the SEC, see here: https://investor.gov/additional-resources/.If your broker is authorised by the FCA in United Kingdom, go here to see the FCA complaint procedure. (They cannot help you if you used an unlicensed broker) If your broker is licensed by CySEC in Cyprus, go here to see the CySEC complaint procedure.
You should look here to see a current list of the brokers that most people use.
Trading Software Scams
Many investors open a brokerage account, because they saw an advertisement for a “secret system” that generates money.
These systems go by the names; Bitcoin Code, Tesler App and Crypto Trader to name a few. The software creates an account for you at a scam broker, and then tells you to make a deposit and you will start making money.
The problem is, that the software doesn’t actually work, and the brokers are usually unregulated scam companies. Many brokers have a clause in their terms and conditions page, which bans the use of automated trading software.
You can read about real auto-trading robots, which work with licensed Forex brokers, see here.
If you are a victim of fraud, you can hire a company like MyChargeBack to try and recoup your money.
When your broker is not processing your withdrawal request, here are a few things to keep in mind. The requirements to withdraw your money is much more difficult that depositing money.
To withdraw money from a broker, they require many different forms of identification verification. The standard items requested are: Proof of Identification: Passport / Drivers License / National ID. Proof of Residence: Utility bill, local authority tax bill, bank or credit card statement. Deposits made by Credit / Debit Card will require a scan of the front and back of the card.
When you request a withdrawal, it is important to email the compliance department, and the customer support email addresses. Never just rely on a phone conversation, or Skype message to your personal broker.
If a broker is not processing your withdrawal in a timely manner, you can call your bank and request a charge back. Most people who have problems getting their money out of broker, are dealing with unlicensed fraud companies.
Bonus Policy Complaints
One of the reasons why investors cannot withdraw their money from the broker is because they received bonus money.
Before accepting a bonus from a broker, investors should read their brokers bonus policy. Unregulated brokers will require traders to trade 30 – 60 times the value of the bonus.
If the trader deposited $500 and received a bonus of $200. The trader will have to generate a minimum trading volume of $500 x 20 = $10,000. Now that is a lot. By accepting the bonus money, the initial $500 that was deposited can only be withdrawn after meeting the trading volume.
In other words, a trader deposits $500, received a bonus of $200, which makes the account balance $700. The trader places a trade and profits $85. The account balance is now $785. The amount eligible for withdrawal is Zero!
This is a reason many unregulated brokers have so many complaints against them. Many scam brokers will automatically give traders a bonus without the trader asking for it.
On November 30th 2016, CySEC banned to use of bonuses at Brokers. Go here to find a licensed broker.
Unauthorized Credit Card Charges
There are two reasons for unauthorized credit card charges. The first one is, it was an honest mistake and the broker processed your payment twice.
The second reason for an unauthorized charge is that the broker you thought was going to double your money, lost it all. And then the brokers calls to convince you to add more money for him to play with.
If you received an unauthorized charge on your credit card from a broker, immediately contact your credit card fraud department to dispute the charges.
You received a phone call from a Forex broker, offering to invest your money. The problem is that trading Forex or Crypto Currencies is extremely risky. So risky that you can lose all the money in your account, and more. Experience does not make a difference. By authorizing a broker at the firm to trade your account, you are giving away your money.
Do you know, many brokers only make money, when you lose your money?
Any time a broker offers to place a trade on your behalf, tell them no! If you want to invest in Forex, then do your research and learn how to become a real trader. But do not think that someone else is going to make money for you.
Ask yourself this question; If the broker is such a good investor, why are they interested in trading your money, they should be using their own money.
Read more at: Managed Accounts Scams