Binary Options scams: Broker blacklist for beginners

With the growth of online trading, binary options scams have been rising steadily. Fraud may emerge in various forms, such as dishonest brokers, rigged robots, fake promises, etc. Newbies and eager-to-learn and earn traders are scammers’ targets. They show only a win-win situation to attract prospective victims and then loot them of their hard-earned money. 

Binary options trading is straightforward. You have only two stances: either you gain or lose. Therefore, scammers take advantage of this simplicity and quickly target naive traders to be filthy rich. In this article, we will tell you everything important that you need to know about binary scams!

Binary Options scams and blacklist by the CFTC

Why you should know about these Binary Options scams?

These conditions are decreasing the credibility of this trading kind. Users’ faith is declining, binary options are losing reputation, and credulous clients are losing their cash. On the other hand, scammers are becoming rich due to these unscrupulous practices. 

Such information prompts every binary options trader to stay vigilant. Undertaking a thorough study of the market features and recognizing the pattern of scam schemes will help avoid and report such practices. Also, review the binary options broker blacklist for more insights. 

What are typical binary options scams?

Binary options scams are those where the scammer takes binary options as a cover to get money from naive and uncautious traders illegitimately. Binary options are semi-regulated, leaving a lot of room for bad influences.

These fraudsters guarantee a profitable situation and post photos of fake earners to gain traders’ trust. Unfortunately, when a user doesn’t pay keen attention, they lose their amount. 

The scammers promise moons and stars favorable trading conditions to deceive the trader. We can understand their scamming procedure as follows:

Example binary scammer

1. Grab the potential victim’s attention

The binary options broker blacklist names show that these scammers create several websites and profiles. Then, they target credible or novice users with super-profitable schemes and offers. 

Finally, they create professional-looking websites and do actions like legit websites. Their offers and schemes can prompt uncautious users to approach them, which is all they want. 

2. Gather information and money

Their next step is to keep you interested in their offer. So, those brokers show fake screenshots of users making massive profits in a short time. In other words, these brokers will do everything to seem credible in your view. 

Further, when you seem interested in the offer, they will ask you for your personal information and to deposit a specific amount in the XYZ account. When you do so, they may or may not respond further. 

3. Disappearance stage

After depositing your money, it will be tough for you to see them again. Of course, you can complain to the broker’s customer support number to ask for a refund. But, you will return empty-handed because no one forced you to strike the deal. Hence, you will lose your money and faith in binary options trading. 

Best binary broker:
(Risk warning: Trading is risky)

Quotex - Trade with high profits

123455.0/5

Quotex - Trade with high profits

  • Accepts international clients
  • Min. deposit $10
  • $10,000 demo
  • Professional platform
  • High profit up to 95% (in case of a correct prediction)
  • Fast withdrawals
(Risk warning: Trading is risky)

Traits of binary options scammers

Most of the binary options scammers represent similar traits:

Binary Options scam warning

1. Fictitious names

The binary options scams have things like fictitious characters as a common feature. So, for instance, you may get approached by Johny Doe (fictitious name) with a win-win strategy to make money instantly with him.

2. Free-of-cost services

This person will offer free-of-cost services because they have made a significant fortune. Moreover, they are so kind naturally that they cannot keep their knowledge and trading tips a secret. Their philanthropic nature wants everyone else to get rich without demanding anything. 

3. Payment to open an account.

It turns out the site author doesn’t need the money. However, the binary options broker requires an initial deposit so they can open your account. Unfortunately, not paying upfront means you will lose the precious gems of availing of the win-win strategy in binary options trading. 

4. Inoperative signals

The author asks the trader to open an account with a particular broker. Even their already opened accounts or demo accounts can work. Then, the con artist pulls off the scam by receiving money from the broker for each client referred to by them. 

The trader uses its money deposit to trade on the signals, which are usually inoperative. If they work and the trader wins, the broker will lose money. However, it will prevent their binary options scams from fulfilling properly. 

Best binary broker:
(Risk warning: Trading is risky)

Quotex - Trade with high profits

123455.0/5

Quotex - Trade with high profits

  • Accepts international clients
  • Min. deposit $10
  • $10,000 demo
  • Professional platform
  • High profit up to 95% (in case of a correct prediction)
  • Fast withdrawals
(Risk warning: Trading is risky)

Blacklist of binary options brokers

Search for Binary Options scams on the CFTC Red List
Check this list for popular binary options scammers! – https://www.cftc.gov/LearnAndProtect/Resources/Check/redlist.htm

Now that we’re clear on the traits and methods utilized by binary options scammers, let’s look into some popular names that have implemented them:

Scam binary options broker:Info:
GrandOptionOffline
AnyoptionLost financial license
Banc De BinaryUnregulated trading
MFX BrokerScam
Binary Reserve SystemScam
The Pearson MethodScam
Secret Algo BotScam
Bull OptionScam
TraderXPScam
Profit BinaryScam
AyrexThe broker website disappeared randomly
BinarymateThe broker website disappeared randomly
FinmaxThe broker website disappeared randomly
Swissglobaltrade.orgWarning by CFTC
CloseOptionWarning by CFTC

There are much more scam brokers: Please check the list of the CFTC!

These are a few names in the binary options broker blacklist. Several other scams have surfaced regarding various scammers. You must know how to avoid such fraudsters. 

➨ Sign up with the best binary broker Quotex for free now!

(Risk warning: Your capital can be at risk)

Avoid binary options scammers:

Avoid Binary Options scammers

Look at the following points when you get approached by a binary options trader letting you know how to make money instantly:

  1. Pushing services aggressively

If a trader aggressively pushes their trading services on you and keeps insisting on depositing money for the trading account, steer clear of such traders. Good risk-free and guaranteed profits in binary options trading aren’t viable due to their nature. 

  1. Unsolicited win-win strategies all the time

If they keep offering you win-win strategies and signals in binary options trading without a trial period for testing strategies, ensure to look into their background. Such strategies usually focus on draining your deposit. 

  1. Disobeying financial regulators

If these traders do not obey the financial regulators, you must not pay attention to them. Check their licenses because binary options scams usually have certifications and licenses from organizations with a dubious reputation. Moreover, these organizations may be in an offshore area. 

  1. No essential information

Such con artists will not openly publish details about their company’s official name, legal address, jurisdiction information, or contact data on their website. 

  1. Negative reviews

When it comes to money, you should never trust online sources with heavy negative reviews. If you notice several reviews with people describing their experience with a fraudulent broker undertaking binary options scams, stay miles away from them. 

Unless these binary options scammers are wary of the strict regulations, they will not stop surfacing. Therefore, knowing the warnings and aftermath of scamming is essential for traders and fraudsters.

Warnings by regulators for binary scams:

The US regulatory authorities for binary options include Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). Both authorities have issued precautions, alerts, and instructions regarding the rising online binary options scams. 

  • SEC gives investor alerts letting the investors know how to stay safe
  • Similarly, CFTC offers binary options advisory against fraud

These warnings include meaning and explanation of binary contracts. Moreover, it contains differences between different options contracts. In addition, the alerts caution investors about the following regarding binary options scams:

  1. While some binary options operate under US regulations, many happen on online trading platforms. These internet-based trading platforms may not necessarily adhere to the applicable regulatory laws by the US authorities. Further, they may be doing illegal activities. 
  2. Suppose an investor purchases binary options from a person or entity not registered with the US regulator or has been under the oversight of the US regulator. In that case, they may not receive the full benefits of federal securities and commodities laws safeguards. These laws protect investors, and some remedies and safeguards are only for registered offerings. 

Investors need to check the following precautions:

  1. The binary options trading platform is a contract market designated per the CFTC website.
  2. SEC provides an EDGAR system for investors to verify if the binary options trading platform has registered the offer and product sale with SEC
  3. Investors can see the SEC’s website regarding exchanges to determine if your binary options platform is a registered exchange. You can also search their list to find the listed binary options products.

The newest announcements by the CFTC can be found here: https://www.cftc.gov/PressRoom/PressReleases/8555-22

Best binary broker:
(Risk warning: Trading is risky)

Quotex - Trade with high profits

123455.0/5

Quotex - Trade with high profits

  • Accepts international clients
  • Min. deposit $10
  • $10,000 demo
  • Professional platform
  • High profit up to 95% (in case of a correct prediction)
  • Fast withdrawals
(Risk warning: Trading is risky)

Different methods of binary options scam

The various types of binary options scams undertaken are as follows:

1. Managed trading

Some scammers will offer to do everything for you, including the actual trading. Their only requests would be to refuel your account so they can continue earning profits or cover for losses. However, when you withdraw your money, it becomes challenging and impossible. 

2. Cold approach

The cold approach includes calling or emailing, which is unsolicited. The scammer broker will contact you out of the blue to sign up on their platform. Conversely, if you already have an account on a particular platform, a so-called Senior broker might call you to inform you about the trade’s direction. 

Bear in mind no reputable and legit broker will approach you this way. 

3. False advertising

Many company representatives of the scammer may show a fancy and lavish lifestyle through social media. With the help of popular bloggers and targeted media advertising, they will spark the traders’ interest.

On Youtube, these scammers will show success stories, usually fake, and videos that show super-profits far from reality. It is a way to gain potential investors’ credibility. Further, they may publish false success stories and profitable reports on trade forums and advertise their trust management services. 

4. Price manipulation

The binary options scams may notice price manipulation by the con broker. What they do is ask you to trade in binary options. You might assume depositing your money in the real stock market. However, the broker reserves the right to set their prices, which gives them the power to manipulate the numbers in their favor. Thus, the user gets nothing from the transaction. 

5. Ponzi and pyramid schemes

Another popular way to carry out binary options scams is pyramid and Ponzi schemes. The former method involves finding recruits on which they will earn a commission. Every person signing has to pay a subscription fee. 

It becomes the profits for the people on top of the pyramid. On the other hand, the people at the lower end of the structure fail to earn anything because instead of real investing, finding recruits becomes their trading. 

Ponzi schemes differ from pyramid because these scammers will advertise binary trades aggressively in a short time. Then, they will ask the investors for a minor down payment and may even pay them the promised returns to show their success. 

It helps gain clients’ confidence, which further helps in recruiting more people. Once enough people have invested, the scammers will run away with the money, leaving no sign. 

It is a general pattern that the usual binary options broker blacklist will use. However, you can avoid it by conducting thorough research and knowing the names of blacklisted brokers.

How to protect yourself against binary options scam brokers?

If you’re wondering about ways to stay away from binary options broker’s blacklist, consider the following points:

1. Utilize a regulated broker

The first thing to avoid falling prey to binary options scams is to verify being associated with a registered broker and check their regulatory license. Their website should clearly and transparently state this information.

With an unregulated broker, your money will have no protection if things go sour. Without breaking the law, they may do evil things. It’s not certain that an unregulated broker will conduct a scam. However, you must stay on the safe side by staying on the regulated platform.

Good to know!
The financial regulatory body differs for each country, and they try to maintain good trading practices among brokers. The leading regulatory agencies governing binary options transactions and scams include Malta MFSA, Commodity Futures Trading Commission (US), Cyprus Securities Exchange Commission (Cyprus), etc. 

Many binary options brokers may be offshore, and verifying them can be challenging. For instance, they can give fake names and addresses. They may even show a license from a fake regulatory body. Therefore, conducting adequate research before investing is highly critical. 

Also, even if the binary options trader is legit, the laws of the offshore country may not be stringent. Therefore, it may lead to issues in the future, which you must apprehend from the law’s point of view beforehand. 

2. Stay aware of dubious marketing

Binary options scammers will offer dubious advertising to attract investors to their scheme. Therefore, they will show significant investment returns, guaranteed profits, etc., and not show any risks. However, as a diligent trader, you must know that no person can offer guaranteed profits in the unpredictable binary options scene, especially within a few days of trading. 

Dodgy brokers’ targeted social media ads might show fancy lifestyles and fake earning screenshots. However, these shouldn’t be considered alluring but deceiving. Likewise, fake celebrity reviews, economists’ testimonials, etc., should never be paid heed. 

Good to know!
Further, several binary options scams begin with giving too-good-to-be-true deposit bonuses for new clients. This excessive generosity should be a precaution. Moreover, you will never get approached through cold calls and emails by a reputable and legitimate broker. Asking for immediate payments can also be a red flag. If you’re also receiving unsolicited emails from scammers claiming you have an account with them, erase them immediately. 

3. Verify the authenticity of the website

A poorly functioning website or a bad design is a primary red flag. However, even professional-looking websites can be deceptive, so it is an inaccurate measure. Further, a legit binary options broker will provide in-depth details about fees, pricing, and payouts online. Reading the fine print will let you know of any hidden fees.

When you look into the investment returns and payout structure, you may realize that the former is overstated while the latter leads to a net loss to the user. Such mismatching details show that the broker is not trustworthy. Some brokers may also stop investors from withdrawing deposit bonuses from their accounts.

Good to know!
A binary options broker can also conduct a scam by saying their prices don’t reflect the actual market prices. It usually means the broker conducts a scam at the clients’ expense by manipulating prices. Lastly, you may be at risk of a binary options scam if the broker doesn’t disclose complete risks involved in the transaction and promises a low failure rate. 

4. Research thoroughly

You can thoroughly research the broker and transaction in question by looking at the client reviews. Although a few negative reviews from disgruntled clients are common, you should not put money where you can see nothing but negative testimonials. 

Do pay heed to reviews stating that users couldn’t withdraw money from their accounts or that the goalposts got moved arbitrarily. Moreover, check the source of the reviews, whether it’s official or fake.

It’s worth your time to check the binary options broker blacklist. In addition, you can get lists from official regulatory bodies and other websites with details about the outstanding legal actions against the brokers.

5. Support to customers

A caring and reputable binary options broker will provide customer support teams that are easy to contact. With an excellent customer support team, you can be sure of having your needs met seamlessly. On the other hand, binary options scammers will make it challenging for you to reach them and will only communicate through messaging apps if so. 

6. Some additional warning signs

Look out for these additional red flags that alert you against brokers’ ill motives:

  • Offer managed to trade and claim guaranteed profits
  • No response to your insights, queries, and messages
  • The website doesn’t have the SSL certificate
  • Fake prizes, ratings, and testimonials advertised on various platforms
  • Either no physical address to their headquarters, a hard-to-find one or a complete fake
  • Payments accepted only in bitcoin or crypto

Conclusion: Be aware of Binary scams!

Binary options scams are widespread and continue to rise in the digital age. Unfortunately, even with stringent laws, finding the source and origin of these widespread scammers is challenging. Therefore, investors should always remain on high alert while undertaking binary options trading

Binary options are a wonderful security tool with considerable potential. Unfortunately, these scams are harming its reputation, but with due diligence and not responding to “get rich quickly” messages, users can safeguard themselves and their money. 

➨ Sign up with the best binary broker Quotex for free now!

(Risk warning: Your capital can be at risk)

FAQs – Most asked questions about Binary Options broker scams:

The following questions are some common queries of various users:

Help! I have been scammed in binary options trading. What should I do?

If you’re someone who fell into a binary options scams trap, you should do the following things:
1. You should submit an official claim to the broker based on the applicable regulations. It should follow the format and timing guidelines per the regulatory body’s rules for filing claims. 
2. You should have the documents and the material proving evidence for brokers’ illegal actions. Each material should prove how they violated the regulatory guidelines and the client’s agreement and show his guilt. 
3. Per the timeframe set by the regulatory agencies, wait for the brokers’ response to your accusations and claims.
4. If there’s no response or it is unsatisfactory, you should contact the regulatory body that guides the brokers’ activities.
5. You should try to withdraw the entire funds in your trading account before receiving a response from the broker or regulator. The pending claim can take weeks and months to process and offer a result. So, traders should stay prepared. 

What risks await while trading in binary options?

Binary options are a dual trade. You can receive more than what you invested or no money. There’s no other option, and prediction is your best bet. However, some binary options scams benefit from their trading and regulation loopholes. 
Usually, the risk is losing all your money. However, careful market analysis and money management rules can help you prevent this situation. 

Are all offshore brokers con artists and scammers? How do I tell between the good guys and the bad ones?

With the numerous options in the market, it can be extremely challenging to find a reliable broker who can tend to your needs carefully. However, it doesn’t mean that you put all of them in a black basket, never to touch them again. 
If binary options trading is your choice, do it with confidence, in-depth market research, and verifying the authenticity. A cautious and sensible approach will prevent any mishap from occurring. 
If you get contacted by a broker, try investing a minimum or asking for a trial period until you verify the source. Offshore brokers aren’t all scammers, and a vigilant eye can differentiate between the two. 

About the author

Percival Knight
I am an experienced Binary Options trader for more than 10 years. Mainly, I trade 60 second-trades at a very high hit rate.

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