Many people have much to complain about when it comes to bad, unregulated brokers online. On our website, we only promote the best brokes that we have personally tried and verified, but not all brokers in the world are like this, unfortunately.
Investment scams who use slick, state-of-the-art websites are specifically out to make as much money as possible at the expense of their traders. Everything is designed to deceive the public. While they may claim to be plugged into any one of a number of exchanges, many times they are completely independent from any regulated financial institution. They simply pretend trading is going on – but in actuality it’s all fake trading
Scam Brokerages Are Not Registered…Is Yours?
Not only aren’t these sites and companies real, but in most instances, they’re not registered by national financial oversight agencies. If that’s the case, it could be illegal for them to call themselves brokerages and solicit people to “trade”.
We checked with MyChargeBack, an international fund recovery firm that specializes in reversing transactions investors and other innocent consumers have made to online scams. Here’s what we learned to watch out for:
Where Are The Brokers Really Located?
To give the impression that they’re legitimate, however (and to make it easier for you to call), scam brokerages will appear to be international trading firms. The people you speak with on the other end of the line aren’t in London or New York, where salaries are high and rented office space is at a premium. In reality, traders only learn after the fact that they signed up with some offshore company, where the address is simply a mail forward office. These underpopulated countries obviously lack proper licensing and enforcement mechanisms. Try to go and sue them? Hard to sue someone who doesn’t exist.
Regardless of Where They Are, They May Be Breaking Your Local Law
Finally, given the proliferation of these binary option scams, forex scams, CFD scams and Crypto scams, a growing list of countries have tried to protect their citizens. If you are a citizen of such a country, the scammer may be guilty of violating these restrictions, in addition to stealing your money.
Common Complaints Against Scam Brokers
- High Pressure Sales Tactics
After a very nice start and introduction to trading, you start to encounter high pressure tactics to talk you into depositing larger and larger amounts of money. This is a telltale sign that the site you have been dealing with is a scam since its business model is based on stealing as much money as possible from you.
- Impossible to Withdraw Funds
You will find it difficult, if not outright impossible, to withdraw your funds. In order to do so, you might need to deposit money in order to withdraw it!? Sometimes you will be told that the small print in their terms of agreement prohibits withdrawals until the trader has invested a significantly larger amount.
- Abusive Bonus Terms and Conditions
Other times they will impress you by giving you a bonus upon signing their contract and then prohibit you from withdrawing your original funds until the bonus (which is as phony as the site itself) is repaid with interest. Perhaps you will have to trade a certain amount of volume before your money is released from its enslavement to the bonus!!
- Complete Abandonment
Ultimately, your Account manager or contact at the site will refuse to take your calls and ignore your emails. Should you inquire, you’ll be told that he left the firm and no one else is familiar with your account, or some similar ruse.
- Unauthorized Payments on Your Card
Check your credit card statements. It’s not uncommon for binary options sites to charge you sums that you never agreed to, especially after you begin to express your displeasure with their service.
So if you are a victim of an online fraud, consider turning to MyChargeBack for assistance in fighting back. The chargeback process can be complex, bureaucratic and frustrating. If you are inexperienced with it and try doing it yourself you stand a good chance of failing. Once you fail, you cannot challenge the same transaction again. Let the professionals at MyChargeBack handle it. You’ll be glad you did.