Forex / Binary Options Complaints
Do you feel like you have been scammed by a Binary Options, or Forex, broker? Perhaps you lost money to a rouge scam robot. Unfortunately, there are always unscrupulous people around who are just wanting to take your money and run. All is not lost however as there are procedures in place for regulated brokers and there are methods of charging back transactions for those which are just scams.
Complaints are, of course, not limited to the “I have been scammed” variety as there will always be a few traders who have issues with other areas of the service provided. It is important to consider the different types of complaints and where you stand if you find yourself in a situation where you feel you need to raise one.
Firstly, let’s look at brokers. If you have chosen a reputable and licensed broker, you will have the backing of the regulator if you feel the broker has broken the rules. The volume of complaints about licensed brokers tends to be very low as they have to work within the regulations set out by their regulator. Most regulators have a complaint procedure which you can follow and they will act as a mediator in the complaint process. If you opted for an unregulated broker, then your options are limited as there is no third party overseeing operations.
If you need assistance to get your money back from a broker, either regulated or unregulated, we suggest working with the experts at MyChargeBack. Their team has extensive knowledge of the legal aspects of financial chargebacks and will be able to assist in recovering your funds.
Withdrawal Complaints and Issues
Most people worry if they cannot withdraw their balance to their bank accounts immediately, but traders do need to keep in mind that most brokers have a compliance process which needs to be followed. The broker will often ask you for various forms of personal identification, usually in the form of “Proof of ID” (passport/drivers license) and “Proof of Residence” (such as a utility bill). Most good brokers will allow you to submit this information at any time, so to prevent delays at withdrawal time, try to submit this as early as you can after signing up. Another factor to take into account is processing time – depending on your withdrawal method this could be several days.
If you have provided the identity verification documents and the broker is still dragging out the withdrawal process and you are not happy, then it is time to get the regulator involved. Again, if you opted for an unregulated broker this process is going to be much harder and it would be best handled by an expert team such as MyChargeBack.
Binary Option / Forex Robot Scams
A common setup with the scam robots is that they will automatically open an account for you at an unlicensed brokerage. This means that when you deposit money, that money actually ends up in the hands of a sneaky broker who most likely actually set up the robot themselves. The robot will never work and you will loose your money.
That is not to say all trading robots are scams, quite the opposite is true, but there will always be those bad brokers that are just out to scam every penny they can from you. As before, these are unregulated and the best chance you have of getting your money back is to get some experts on your side.
Unauthorised Credit / Debit Card Charges
These can happen purely by mistake, such as an issue with the payment processor that charges your card twice. In most cases, a good, regulated, broker will sort this out for you and return the money. Some unregulated brokers, however, are known to take money from accounts without prior permission, resulting in an unauthorised charge – if this is the case, you should contact your bank/credit card company immediately to raise a chargeback and report the broker.
Many payment issues can be mitigated by using an e-wallet such as PayPal or Skrill. In cases where there is doubt about charges, they will act as a middle-man and assist in the recovery of your funds.
One recurring theme that prevents traders withdrawing funds is bonus conditions. Many unregulated brokers that have a bonus offer will automatically enrol you in the bonus without giving you a chance to opt out. They also tend to have unreasonable conditions so as requiring a trader to trade over 50 times the total value of the bonus.
Let’s look at an example. A trader deposits $500 into an unregulated broker and receives a bonus of $250. If the minimum turnover is 25 times the initial deposit, then that means the trader will have to trade $12,500 to complete the bonus conditions. Only after meeting the bonus conditions can money be withdrawn.
Continuing with the above example, after depositing the trader’s account is now valued at $750. They can place a trade to the value of $200 and win at a return rate of 85%, so now their account value is $1,120 – but not one dollar of this can be withdrawn as the bonus condition has not been met!
This is one of the primary reasons why unregulated brokers get so many complaints about traders being scammed. It is also another reason to avoid such unregulated brokers. In recent years, many regulators actually ban the use of bonuses as sign up incentives for Forex and Binary Options brokers.
If you have been hit by this type of scam, take up some expert advice as there may be some loopholes in the terms and conditions which can be used against the broker. All is not lost if you have become the victim of a scam, but it can be a stressful time, so having somebody on your side is definitely a bonus you would not want to pass up.