Don’t Be Misled – It’s All Smoke and Mirrors
Challenging binary options brokers can be very complex and mistakes can cost you. MyChargeBack analyzes your case and assists you throughout the entire recovery process.
In the first two decades of the 21st century the internet became Ground Zero for binary options scams and binary options fraud.
Perhaps you were first attracted to their website by a pop-up ad, or a social media post. You clicked and found an attractive, professional -looking presentation promising you:
- A quick, profitable return with an immediate bonus
- An easy-to-manage online binary options platform
You signed up and were soon contacted by one of their representatives, who introduced himself as your “broker.” And then you transferred funds, most likely using your Visa® or Mastercard.® Soon, you found yourself trading on stocks or foreign currencies, indices and commodities. To help you out, your “broker” courteously provides personal coaching and timely recommendations (which would be illegal if he were a real broker).
While legitimate, government-regulated online brokerages do exist, there many more unregulated firms – especially those offering binary options – whose business models are built on swindling unsuspecting and inexperienced investors over the internet.
It’s a Video Game
In your case, the unregulated firm’s state-of-the-art internet site, which you presumed would allow you to trade, is, in fact, nothing more than a video game. The binary options platform it operates does not follow obligatory trading rules and procedures. In fact, it’s not even plugged into a true market exchange. The gains you supposedly made and the losses you supposedly suffered are imaginary, nothing more than smoke and mirrors intended to convince you it’s for real.
What Happens with Your Money?
Even though these unregulated brokers promise you that your deposits are kept in a segregated bank account to guarantee their integrity and accessibility, no such account exists. Your money went straight into their own bank account instead.
And while you were promised that you would be able to withdraw your money whenever you want, you will soon find out that’s easier said than done. Some firms will ignore your requests to access your funds outright. Others will bounce you back and forth between different departments in the hope you’ll eventually get exasperated and give up. And then there are those that will point to the small print on the Terms & Conditions page and tell you that you first have to make an unattainable amount of trades or repay a huge bonus they gave you before even applying.
A Binary Options Scam by Any Other Name Is Still a Scam
Due to the ubiquitousness of the scam and the damage it has inflicted on consumers, a growing number of countries have banned binary options trading by retail investors. In 2018 the European Union (EU) enacted a temporary ban as well, which has since been renewed on an ongoing basis. In addition, Google and Facebook have ceased accepting ads linked to binary options sites. These actions, as welcome as they are, merely encouraged many operators of phony binary options sites to re-brand them as online forex brokerages and even as private banking firms.
Beware. The terminology has changed but the scam remains the same.