Scam Brokers

Forex trading and fixed time trade scams have become quite rare, but do exist. The reason for the significant decrease in scams is attributed to the internet. With traders quickly being able to share information with others around the globe, any scam broker will quickly be outed and soon after, out of business. The actions of a few have had a significant impact on the digital options trading industry as a whole.

Since there does remain the possibility of falling prey to a digital options scam, it is very important to closely examine a broker prior to making a financial deposit with them. Broker reviews are one of the easiest tools to use in determining whether or not a broker is reliable. Since most digital options brokers opened for business several years ago, there should be plenty of information available in regard to any scams or possible scams.

Many digital options scam reports are the direct result of the trader not fully understanding the terms and conditions put in place by the broker. Traders are always advised to read these prior to completing the registration process. However, few actually take time to read these completely. Not only should they be read, the trader should contact customer service should they have any questions in regard to the terms and conditions.

 

The following are examples of processes that are often included in digital options scam reports, but are actually not scams:

Slow Withdrawal Processing

This is one of the most common complaints. Many traders expect their profits to be paid to them immediately after issuing a request. The truth is that the total payment processing time can range anywhere from a few business days to over a week. Digital options brokers will often include their payment processing time in the FAQ section of their website. So long as the payment is issued, slow processing times are not a scam.

Payment of Bonus Funds

Brokers will have very specific rules in place in regard to the payment of bonus funds. Most will require the trader to be active for a period of time. It may also be necessary to invest the bonus funds and transform them into actual profits before they can be withdrawn. Reading the rules associated with the payment of bonus funds will prevent any misunderstandings in this area.

Minimum Withdrawal Amounts

Some digital options brokers have a minimum withdrawal amount in place. This rule is often used to cut down on the amount of funds spent by the broker in issuing payments. There are some brokers that do not have minimum amount restrictions. However, those that do will clearly list these on their website.

Withdrawal Fees

Most brokers will offer one fee-free withdrawal each month. After that, fees may be charged on the withdrawal of profits. Though withdrawal fees can be frustrating, they are not a form of digital options scam. Withdrawal fees, if any, should be listed either within the FAQ section of the broker website, or within the banking area of the platform.

Identity Verification

The need for the trader to prove his or her identity prior to the first withdrawal being processed is a rule that all brokers have in place. Not only is this not a scam, it is actually done for the protection of both the broker and the trader. This process works to prevent money laundering and the use of stolen financial instruments such as credit cards and bank account numbers.

So, What is an Actual Digital Option Scam?

Scams actually come in several forms. Some are easier to detect than others. One of the most common, and highly considered the worst form, is the non-payment of monies owed to the trader. This could occur as a result of the mismanagement of broker funds, or simply because the broker established a platform with the direct intention of robbing traders of their deposits and profits.

Another scam could be in the form of incorrect financial data within the platform. For example, in a scam platform the trade could end out of the money based on the financial data being provided by the broker. A check of a reliable financial data source such as Reuters could show that the trade was actually supposed to end in the money. Be sure to check which data feed vendor the broker uses prior to comparing financial data.

Altering of payout percentages (which should be fixed) or the profits that come from successful trades would represent another form of digital options scam. A close monitoring of the account will be needed should the trader suspect that the numbers are not right. Contact the broker right away should you notice that the payout percentage has changed after the trade has ended, or that an incorrect profit amount is listed.

Now that you know what is or is not a scam, let’s examine specific brokers and determine the possibility that they are associated with any digital options scam.

IQ Option Scam

IQ Option Scam

The only complaints to be found in regard to this broker are of the non-scam variety. These complaints could likely have been avoided by reading the terms and conditions. IQ Option has been in business since 2013, and is known for its transparency, reliable platform, and reliable payments. There is nothing to signal any IQ Option scam.

IQoption-review

Free Demo $10.000

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Olymp Trade Scam

OlympTrade ScamAny talk of an Olymp Trade scam is usually related to their rule of requiring traders to trade a specific volume prior to requesting a withdrawal. This immediately causes traders who have not read the terms and conditions to start talking about how Olymp Trade has scammed them. In reality, Olymp Trade is one of the finest brokers in operation today and certainly is not part of any scam activity.

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Fixed Time is a mode of trading on the Olymp Trade platform. Monitor the market and open trades using relevant trading ass...

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ExpertOption Scam

Expertoption scam

ExpertOption has been the focus of some scam talk. This is quite common with younger brokers who have yet to completely prove they are reliable. Further investigation shows that no ExpertOption scam exists, with the problem instead being of the common variety and combined with the impatience and anxiety that often comes from partnering with a broker that is one of the newer digital options brokers.

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O software premiado da ExpertOption é reconhecido pelos mais respeitados especialistas da indústria. A empresa tem mais de...

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Deriv Scam

Deriv scam discussions can be found online. Nearly all of the complaints stem from the lengthier withdrawal time frame offered by this broker. As previously mentioned, all traders want their payments issued quickly. Though Binary is certain not a scam broker in any form, those who partner with them will need to accept the rules in regard to withdrawals.

deriv

Free Demo $10.000

Take advantage of high leverage and low spreads on Deriv MT5 (DMT5). Trade on all popular markets plus our proprietary sy...

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XM Broker

XM

XM is not a scam, it is one of the most regulated forex brokers on the market, and stands out for top trading conditions, account choice, execution speed, and a wide range of CFD assets available on both MT4 and MT5 platforms. Scalping, hedging and trading with Expert Advisor (EA) are allowed.

With a minimum deposit of 50 USD, traders can open the XM Ultra Low account, where spreads start at 0.6 pips, with no commission charge. All accounts also benefit from having access to the broker’s quote-free execution policy, and 99.35% of XM orders are executed in less than a second, making the broker one of the fastest trade executors in retail Forex trading.

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XM Group is a serious market broker and provides a level of professional service beyond its peers. The forex broker has be...

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eToro Scam?

This broker is not a scam, eToro were the creators of the first social trading system and remains the leading social trading broker in the world. eToro offers an unlimited free demo account on their proprietary platform, and for traders who want to start trading with a real account, the minimum deposit is 200 USD.

The eToro web-based platform, also available as a mobile app, is intuitive and easy to use. The complex trading features found in other forex platforms are not found in eToro, to the most intuitive trading experience, eToro allows users to copy individual or algorithmically managed investment portfolios following a selected strategy called Copy Portfolios.

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$100,000
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eToro is undoubtedly an impressive platform that offers users a great trading experience. The site blends a good level of ...

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Fear of any digital options scam can quickly be alleviated by selecting a broker that is considered to be upstanding and reliable. Feel free to partner with any of these brokers with confidence. Binary options and forex scams will always be possible. Fortunately, we now have all the tools needed to spot these quickly and steer clear of any brokers that are not operating in an ethical manner.