Binary options scams are unfortunately quite common, as you can see from our list of scam brokers and services. If you’re worried about falling prey, this guide explains how to avoid scams in the UK.
Is binary options a scam?
In short, no. Binary is a good product in our opinion. However, there are unscrupulous brokers and other service providers who prey on uninformed traders. This is due to the fact that binaries were largely unregulated and unmonitored when they first came to the market – which thankfully has changed a lot in the last few years. But with scam artists still out there, what can consumers do to avoid a binary options scam and simply focus on their trading? Read this guide on scams and only trade with trusted brokers!
A list of scams may not be very useful – operators close and reopen them so often that maintaining the list becomes a full-time job. A better choice for consumers is to look for the warning signs, and if there is any doubt, simply go to another provider. A list of scams can only protect you from threats that exist today – learning how the artists work and deceive consumers can keep you safe for years to come.
There are a number of methods by which the scams associated with binary options will try to make money. However, there are also some clear red flags that can alert consumers that things aren’t going well for them. As always, the old saying “If something seems too good to be true, it probably is” applies. If you have encountered one of the below, I would recommend that you treat very carefully – and if in doubt, let the broker in question stay – there are many legitimate, reliable brokers. There is no need to take risks with any venture you have doubts about.
Top 3 trusted brokers
For those who simply want to avoid scams and start trading without reading the entire guide, go to any of these brokers:
Restore
A service called MyChargeBack.com offers a consultation service to help victims recover their money. They offer a free service to let you know if you have a case. Matters such as unpaid withdrawals or unauthorized payments can be claimed via banks or credit card companies, and this firm specializes in dealing with those organizations. The range of services varies depending on the case, but it can help to:
How to avoid scams
Watch out for the warning signs below!
Cold calls
A reputable broker is unlikely to help new business by making cold calls and calling you in a flash. It is likely that any call made in this way involves unrealistic claims about binary options, and potential profits to be gained from trading them. This may include the promise of immediate, high returns and the reduction of any risk.
In addition to phone calls, some operators may also email directly, in some cases, indicating that an account has already been opened. Any of these methods of contact is an immediate warning sign. Hang up and delete any emails.
Bonus Terms
One source of frequent problems is via deposit bonuses. Dishonest brokers often have some unethical conditions. This may include tying the initial deposit until a certain amount of trades have been met (turnover requirements). This will include the initial deposit (not just bonus funds). Effectively, the depositor makes their money as soon as it is handed over. Read the terms before taking a bonus or making a deposit.
Automatic trading
This alert contains automated robots and signals, but also managed accounts, where an account manager has promised huge profits. There is a clear conflict of interest for these account managers. If you earn a long-term profit, the broker makes a long-term loss on your account. An account manager employed by the broker is unlikely to have your trading interests at heart. Although they may argue otherwise, it is very likely that you are letting someone else trade for you. These managers can also encourage traders to invest more than they can, which is particularly dangerous. Binary options are a high risk/reward investment. The broker or account manager should never hide the risks from you.
‘Make Money Online’ marketing
Many of these warning signs are related – again this form of marketing hides the risks – just like the cold callers and account managers. The ‘make money online’ and ‘get rich quick’ marketing around binary options is unqualified. There are numerous websites with high production videos that look very attractive. They will suggest that it is easy to make money, and they may even suggest that they are copying famous investors. It’s all scams. It is not fair that any promotion that hides, or displays, the high risk nature of binary trading. Binary options are not a way to make easy money and should not be sold this way. This form of binary options advertising is generally the most dangerous for the consumer. If you encounter this type of marketing, do not proceed.
Sales funnels
A funnel is a website that will send traffic to a broker. As a visitor to the website, you may not even be aware that you have been redirected to a broker. These funnels usually use the “get rich” marketing described above, but not always. The problem here is that the consumer will be transferred to a broker, which they know nothing about. After visiting the funnel, the new customer gets a call from a random broker asking for a deposit. Although it may sound strange to those who have not become accustomed to it, the effective selling of the binary options scam through the funnel web page will mean that many people dupe.
Price Manipulation
Some brokers will include a line under their conditions like this: “Our prices may not reflect the prices of the actual market”. Unfortunately, it is not so clearly stated because the implications are obvious – they set their own prices. If the broker is the counterparty to any trade, and they also set the prices, it will be very difficult to ever make a profit with the broker. Clients trade against the broker and decide the closing prices. One of the two parties will make a loss – and it won’t be the broker. Check the trading terms and be wary of any references to settlement figures based on anything other than real world prices.
These are some important warning signs that should make any potential new trader stop and question what they are being told. If you have encountered any of the above, identify the broker in question – and trade elsewhere.
In addition, new traders can try to carry out their own ‘due diligence’ on a brand. However, even this can carry a risk. The reason is, as well as the scam operators, there are review sites that are also dishonest. There are a few ways consumers can protect themselves and find the trusted reviews. The first method is to check the offer elsewhere on the review site – if other scams are promoted, the reviews are not credible. Ask this question from the website:
- Is there a proliferation of robot ads?
- Are there promises of high returns?
- Is there sufficient disclosure of risks?
- Can you contact the website, or website owners?
The second method is regulation. In the United Kingdom, the Financial Conduct Authority regulates some binary options brokers. This only happens if the broker offers a form of trading that is already covered by the FCA regulation – for example Contracts for Difference (CFDs).
The reason this is important is because FCA-regulated firms need to be careful about who they promote too.
If a binary options site contains FCA regulated brands (like us!), this indicates a level of credibility and protection. This site must be completely honest about the high risk nature of binary options, and it must have responsible individuals based in the UK operating it. If it is not, the FCA companies will not allow their brands to be marketed by them.
However, there is another level of complexity here. Some binary options brokers have attempted to register with the FCA. This is not the same as being regulated by them. For a firm to be regulated by the FCA, they must offer additional forms of trading, not just binaries. A brand that only offers binary options will not be fully regulated by the FCA. This is because binary options are currently regulated and licensed by the UK Gambling Commission. So the list of binary options brokers regulated by the FCA is actually very small.
FCA list of unauthorized brokers
In addition to the services below, the FCA has published a list of firms that are not authorized to trade binary options in the UK. The list paints a picture of businesses that are willing to break the law (by offering unregulated trade), while not calling it a scam.
Blacklisted services
The Brit Method
The marketing used here is a clear red flag. Videos suggesting more than £500m was made in less than a month are about as obvious as it gets. Unfortunately, the claims are not true. This is a clear scam, avoid the “Brit Method” or any other related schemes. This includes “Jason Taylor” and any “millionaire producer” scheme attached to the name, or the Brit Method.
The Brit Method is a scam that has been used before. Here’s what you need to know to protect your money;
What is the Brit method?
The Brit Method promises to be a binary options trading strategy that can make you hundreds of thousands of dollars in a matter of weeks. Unfortunately, this is the latest iteration of an old scam.
The Brit method is nothing new. It was previously called the Aussie method and the Canuck method, and each time the site had to be shut down due to its bad reputation. Even the man who allegedly invented the genius trading style is the same.
Jason Taylor
It’s always the same stock photo, just the name changed from Jake Mason to Jake Pertu and now Jason Taylor.
There are a lot of fake testimonials on the site, but make no mistake, they all consist of statements with pictures from people who have never heard of the method.
Similarly, all the promises made by the Brit Method are lies. The site essentially promises instant, unlimited profits, but offers little information on how it intends to achieve this goal.
The site also promises to get you started for free, which is also a lie. After completing your free registration, you will be denied access to the system unless you deposit $350. But even if you make the deposit, you will still have access because there is no system. The money is gone, and you will never see it again.
Avoid the Brit method at all costs. Also note the future version of the scam. There will probably be a German method and an American method, and they will probably use the exact same methods to approach people.
Copy Buffet
Again, the selling point is a clear red flag. This is a scam, stay away.
The scam suggests that clients can enjoy wealth by following a method created by Warren Buffet. An investor known for long-term positions has absolutely no relation to Buffet.
Visitors had to be forced to join a specific broker (another scam tactic detailed above) and make a deposit to gain access to a ‘system’. No system exists, and traders get no money back. Prevention.
Ultimate4Trading
The good news here is that the Ultimate4Trading website is blocked for UK visitors. The operation is dishonest and should be avoided.
Millionaire blueprint
Another scam being blocked in the UK once again. Again, the promise of ‘getting rich’ is at the forefront of the marketing, but the whole operation is a scam. To the point that even the website is now a haven for malware. stay away
Instagram and Facebook
Many scams promote themselves on Instagram and Facebook. Most will fall into the above categories. The mainstream media has also been fired up in the past itself, including the Daily Mail. These promotions or accounts make many claims about the profits that can be made, backed up with images of flash cars and other successful catches. It is all a lie and these operations should be avoided at all costs. If these people can really turn your £2,000 into £8,000 in a week – why should they advertise on social media? They could simply earn as much money as they needed from the markets and spend their time on the beach. It’s easy to fake screenshots – and it never has to show the losing trades.
Anything that promotes a ‘get rich quick’ route using binary options is untrustworthy and stop. Also remember that Martin Lewis (of MoneySuperMarket fame) is considering legal action because Facebook is not doing enough to remove ads claiming to be backed by him. To repeat his quote “Martin Lewis doesn’t do advertising”. If an ad has mentioned him, avoid it at all costs – it’s almost certainly a scam.
Broker blacklist
Below are some brokers for which we have received credible reports of poor customer care or worse. Many of the tactics used are again covered in our article on avoiding scams – this list is unfortunately not exhaustive; If any of the actions below sound similar to other brokers you’ve come across, stay away from them – and let us know.Many of the worst brokers are thankfully closed, but always be aware of using unregulated brands unless you can verify their quality. Not all unregulated brands are untrustworthy, but this means more due diligence is required.
72Option
Bonus conditions include the initial deposit until the turnover requirements of x30 are met. Your deposits are yours until you choose to trade them. A broker should not block withdrawals from your deposits before they have even been traded. Prevention.
Opteck
Opteck is now closed for business. The stricter regulations imposed by CySec (which monitored Opteck) left the firm with no choice but to cease trading. Increasing regulation helps the industry by cracking down on businesses that have used misleading marketing or deception to make money off customers.
Boss capital
Boss Capital was a popular broker that accepted US traders. A lack of strong regulation allowed them to operate with dubious methods. They are another firm that has closed due to enhanced regulation.
StratX
StratX was a firm brought to our attention by a disgruntled client (see the testimonial page). The firm uses cold calling, account managers and makes withdrawals very difficult. Not recommended.
CFDStocks
Another firm we have received a lot of correspondence about is CFDStocks. They use most of the tactics discussed above, including cold calling. Most of the contacts we received say that an account manager encouraged larger and larger deposits before they disappeared.
- NRGBinary
- WMoption
- 24Winner
- OptionNow
- Safe24Option
- 777Binary
- LBinary
- BuzzTrade
- CTOption
- OneTwoTrade
- PWRtrade
- Great option
- GToptions
- RBinary
- OptionFM
- AG Capitals
If a broker is not listed here, it does not mean that it is safe. While we try to name as many dishonest brokers as possible, new operators appear regularly. Stick with our rated brokers and use the comparison table to find the broker that suits you best.