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PitchForex Review – is it scam or safe?
RECOMMENDED FOREX BROKERS
PitchForex says to be “one of the most transformative technologies since the invention of the Internet”, offering investment opportunities with binary option, forex trade, and CFDs on various assets including major crypto coins like Ethereum, Ripple, Litecoin, EOS, Binance Coin, Bitcoin Cash, Stellar, TRON, Cardano, Monero, NEO, IOTA, Dash, Tezos, Ethereum Classic, NEM, Dogecoin, Zcash, QTUM, Ox, Bitcoin Gold, OmiseGo, Augur and Bitcoin.
|Account type||Min. deposit||Max. leverage||Spread s|
And they promise that with their help you will no longer be “marginalized by governments and financial institutions” and will be rewarded the financial freedom you deserve.
As nice as all of this nay sound, be aware that PitchForex is registered offshore and is not regulated by any financial institution as it should be, if they want to target customers on regulated markets like the EU, including the UK for example.
On top of that they seem to offer managed accounts, while basically acting as market makers, so if you are about to deposit any funds with them be sure to read the following review.
In this section of our reviews we always try to list any possible advantages a broker might offer its clients. With PitchForex however, we were not able to come up with anything.
From their presentation we understand that PitchForex is owned and operated by PitchForex Ltd. – an offshore company based on St. Vincent and the Grenadines. And as we already noted, they are not licensed and authorized to offer any kind of financial services on regulated markets like the EU.
Bear in mind that trading with unregulated brokers is extremely risky as quite too often such brokers are simply involved in scam.
Properly regulated brokers on the other hand can be trusted, because they have to abide by strict financial and ethical rules, as for example to keep all clients funds in a segregated from their own, trust account, to maintain at all times a certain minimum operational capital, to provide traders with a negative balance protection, to file regular reports, to allow external audits, and in some cases even to insure the trading capital.
Thus for example a broker regulated by the Financial Conduct Authority (FCA) in the UK will have to participate in a client compensation fund, basically covering the first 85 000 GBP in your account. Here you may check our list of brokers regulated in the UK:
Market maker offering managed accounts
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Honestly we are not exactly sure if PitchForex offers real trading accounts or just managed accounts. See for yourself:
The problem here is that like most other brokers, legit ones included, PitchForex operates as a market maker, meaning that they make money whenever traders lose. So obviously, if a market maker offers you to manage your account, it will be in a conflict of interest – PitchForex will have an incentive to lose your money in their own pockets.
Unusual withdraw conditions
We are not sure we understand the following withdraw condition that we came across in PitchForex Terms and Conditions. In any case we do not like it. See for yourself:
Excessive minimum deposit requirement
A minimum deposit of 2000 USD is about ten time the amount most brokers would require. Besides, some big and well known brokers like FBS and IG will let you start trading with just 5 USD or so.
Crypto payments – the only available option
PitchForex says to accept various payment methods, including credit cards and e-wallets. When we proceeded with our registration however, it turned out the only payment options are crypto coins like Bitcoin and Ethereum. Bear in mind that crypto payments are more or less anonymous and are 100% irreversible, unlike payments with VISA or MasterCard for example, where you can file for a charge back within 540 days in case you realize you have been scammed.
MetaTrader4 not supported
We are not even sure if PitchForex has a real trading platform. What we were offered, after we finished our registration, was some dashboard with charts taken directly form TradingView – an independent financial data provider – without an option to place a trade. See for yourself:
So here we do miss a real, professional trading platform like the Meta|Trader4, which comes with nearly a hundred customizable trading robots and market indicators, which are especially designed to help you run automated trading sessions. And because the platform is equipped with an excellent set of advanced charting tools as well, here you may also check our list of brokers supporting the MT4:
PitchForex is yet another obvious scam. They are not regulated, they offer managed accounts, while acting as market makers, and they do not have a real trading platform. So our best advise here is to stay away from unregulated websites like PitchForex in general, and to trade only with brokers licensed and authorized by well known institutions such as the Financial Conduct Authority in the UK, the Australian Securities and Investments Commission (ASIC), or the Cyprus Securities and Exchange Commission (CySEC) – the three best known regulatory hubs in the forex industry.
FXTM a regulated forex broker (regulated by CySEC, FCA and FSC), offering ECN trading on MT4 an MT5 platforms. Traders can start trading with as little as $10 and take advantage of tight fixed and variable spreads, flexible leverage and swap-free accounts.
XM is broker with great bonuses and promotions. Currently we are loving its $30 no deposit bonus and deposit bonus up to $5000. Add to this the fact that it’s EU-regulated and there’s nothing more you can ask for.
FXCM is one of the biggest forex brokers in the world, licensed and regulated on four continents. FXCM wins our admirations with its over 200,000 active live accounts and daily trading volumes of over $10 billion.
FxPro is a broker we are particularly keen on: it’s regulated in the UK, offers Metatrader 4 (MT4) and cTrader – where the spreads start at 0 pips, Level II Pricing and Full Market Depth. And the best part? With FxPro you get negative balance protection.
FBS is a broker with cool marketing and promotions. It runs an loyalty program, offers a $100 no-deposit bonus for all new clients outside EU willing to try out its services, and an FBS MasterCard is also available for faster deposits and withdrawals.
FxChoice is a IFSC regulated forex broker, serving clients from all over the world. It offers premium trading conditions, including high leverage, low spreads and no hedging, scalping and FIFO restrictions.
HotForex is a EU Regulated broker, offering wide variety of trading accounts, including Auto, Social and Zero spread accounts. The minimum intial deposit for a Micro account is only $50 and is combined with 1000:1 leverage – one of the highest in the industry.
PitchForex review – 5 things you should know about Pitchforex.com
Beware! PitchForex is an offshore broker! Your investment may be at risk.
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
PitchForex is an offshore Forex brokerage registered in St. Vincent and the Grenadines. It provides a web-based trading platform, not the MT4 trading platform and the required minimum deposit is the staggering amount of $2000. Further trading conditions, however, remain undisclosed.
PitchForex regulation and safety
On the brokers website we discover that it is owned and operated by a SVG-based company with the name PitchForex Limited
We remind readers that the government of SVG has multiple times publicly stated that it does not oversee Forex trading and thus we may safely conclude that not only is the brokerage not regulated. Furthermore, trading with an offshore, unregulated brokerage hides a lot of risk. There may be commingling which means that the brokerage may commingle together the finances of the firm and the finances of the clients.
Furthermore, while going through the website of the broker we discover that PitchForex acts as a market maker while simultaneously offering clients “managed accounts” which is a big problem since is constitutes a serious conflict of interest. Market makers only yield a profit when the client losses and if such a broker offers to manage the accounts of the clients, it feels like a definite scam. Overall, the lack of regulation inclines us to suspect that potential clients of the brokerage may be open to substantial risk.
Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.
PitchForex trading software
Putting all this aside – the brokerage does not provide the MetaTrader 4 trading platform, something which we always consider a big advantage for traders since it is the foremost trading terminal at the moment equipped with features such as almost a 100 market indicators, as well as customizable trading robots. Instead, we are presented with a web-based platform. We further were able to get a look at through a demo account. We must take notice of the availability of a test-drive since it is not so common among unregulated brokerages.
However, the platform appears quite fake and we able unable to discern the spread which along with the ridiculously high required minimum deposit makes PitchForex quite the unfavorable choice for interested traders. Furthermore, having in mind the regulatory uncertainty surrounding the brokerage we advise interested traders not to risk such a high sum with the brokerages
PitchForex deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via only crypto coins such as Bitcoin and Ethereum. The standard Visa, MasterCard and bank wire, as well as popular e-wallet such as Skrill or Neteller are missing.
Going through the terms and conditions of the brokerage we did discover a troublesome provision. In the case of PitchForex we discern that there is a trading turnover requirement for all accounts before they are eligible for withdrawal of funds, however, the amount is unspecified.
There weren’t any other noteworthy provisions, but we do remind readers that many scammers choose not to disclose such information to would-be clients. Without proper information on the website we cannot be certain whether clients won’t be charged with any unexpected withdrawal or deposit fees once they invest. This is why we advise traders to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
How does the scam work?
Even though the Forex trading world is extremely large and encompasses millions of people around the globe, the most common scamming is pretty simple and straightforward and as such – it’s not particularly daring to avoid. Here is a quick overview of how it is done:
Through clicking an ad with promises for fast money, you will be redirected to a website such as DaxRobot or CryptoContracts where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The angle here is pretty blunt – traders have a limited time period for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back.
It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And with the case Traderia – they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.
What to do when scammed?
As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.
You may contact your bank or credit card provider and file a chargeback.
If, however, you have provided the broker with your credit card details, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!
How to Spot a Forex Scam
The spot forex market trades over $5 trillion a day, including currency options and futures contracts. With this enormous amount of money floating around in an unregulated spot market that trades instantly, over the counter, with no accountability, forex scams offer unscrupulous operators the lure of earning fortunes in limited amounts of time. While many once-popular scams have ceased—thanks to serious enforcement actions by the Commodity Futures Trading Commission (CFTC) and the 1982 formation of the self-regulatory National Futures Association (NFA)—some old scams linger, and new ones keep popping up.
Back in the Day: The Point-Spread Scam
An old point-spread forex scam was based on computer manipulation of bid-ask spreads. The point spread between the bid and ask basically reflects the commission of a back-and-forth transaction processed through a broker. These spreads typically differ between currency pairs. The scam occurs when those point spreads differ widely among brokers.
For instance, some brokers do not offer the normal two-point to three-point spread in the EUR/USD but spreads of seven pips or more. (A pip is the smallest price move that a given exchange rate makes based on market convention. Since most major currency pairs are priced to four decimal places, the smallest change is that of the last decimal point.) Factor in four or more additional pips on every trade, and any potential gains resulting from a good trade can be eaten away by commissions, depending on how the forex broker structures their fees for trading.
This scam has quieted down over the last 10 years, but be careful of any offshore retail brokers that are not regulated by the CFTC, NFA, or their nation of origin. These tendencies still exist, and it’s quite easy for firms to pack up and disappear with the money when confronted with actions. Many saw a jail cell for these computer manipulations. But the majority of violators have historically been United States-based companies, not the offshore ones.
The Signal-Seller Scam
A popular modern-day scam is the signal seller. Signal sellers are retail firms, pooled asset managers, managed account companies, or individual traders that offer a system—for a daily, weekly, or monthly fee—that claims to identify favorable times to buy or sell a currency pair based on professional recommendations that will make anyone wealthy. They tout their long experience and trading abilities, plus testimonials from people who vouch for how great a trader and friend the person is, and the vast wealth that this person has earned for them. All the unsuspecting trader has to do is hand over X amount of dollars for the privilege of trade recommendations.
Many of signal-seller scammers simply collect money from a certain number of traders and disappear. Some will recommend a good trade now and then, to allow the signal money to perpetuate. This new scam is slowly becoming a wider problem. Although there are signal sellers who are honest and perform trade functions as intended, it pays to be skeptical.
“Robot” Scamming in Today’s Market
A persistent scam, old and new, presents itself in some types of forex-developed trading systems. These scammers tout their system’s ability to generate automatic trades that, even while you sleep, earn vast wealth. Today, the new terminology is “robot” because the process is fully automated with computers. Either way, many of these systems have never been submitted for formal review or tested by an independent source.
Examination of a forex robot must include the testing of a trading system’s parameters and optimization codes. If the parameters and optimization codes are invalid, the system will generate random buy and sell signals. This will cause unsuspecting traders to do nothing more than gamble. Although tested systems exist on the market, potential forex traders should do some research before putting money into one of these approaches.
Other Factors to Consider
Traditionally, many trading systems have been quite costly, up to $5,000 or more. This can be viewed as a scam in itself. No trader should pay more than a few hundred dollars for a proper system today. Be especially careful of system sellers who offer programs at exorbitant prices justified by a guarantee of phenomenal results. Instead, look for legitimate sellers whose systems have been properly tested to potentially earn income.
Another persistent problem is the commingling of funds. Without a record of segregated accounts, individuals cannot track the exact performance of their investments. This makes it easier for retail firms to use an investor’s money to pay exorbitant salaries; buy houses, cars, and planes or just disappear with the funds. Section 4D of the Commodity Futures Modernization Act of 2000 addressed the issue of fund segregation; what occurs in other nations is a separate issue.
An important factor to always consider when choosing a broker or a trading system is to be skeptical of promises or promotional material that guarantees a high level of performance.
Other scams and warning signs exist when brokers won’t allow the withdrawal of monies from investor accounts, or when problems exist within the trading platform. For example, can you enter or exit a trade during volatile market action after an economic announcement? If you can’t withdraw money, warning signs should flash. If the trading platform doesn’t operate to your liquidity expectations, warning signs should flash again.
The Bottom Line
Conduct due diligence on the forex broker you’re considering by going to the Background Affiliation Status Information Center (BASIC), created by the NFA. Many changes have driven out the crooks and the old scams and legitimized the system for the many good firms. However, always be wary of new forex scams; the temptation and allure of huge profits will always bring new and more sophisticated scammers to this market.
Forex Scam – what to consider to prevent forex scams and fraud
This is an extensive article and we’ll make it easier for you as a reader by first outlining what we will cover
People are investors. We purchase stocks and bonds, contribute to savings programs, own real estate, participate in futures, options markets and forex trading, acquire collectibles, provide start-up capital for new business ventures, buy franchises, and the list goes on.
The strength of our economy is in large measured by the product of our combined investments. It’s our money and we can invest it as we wish. Unfortunately, some unscrupulous promoters abuse our freedom to choose by concocting investment schemes that have zero possibility of making money for anyone other than themselves. Such persons promise investment rewards they cannot possibly deliver and have no intention of delivering. They are swindlers. And many of them are very successful. Their annual take through lying and deceit is estimated to run in the billions of dollars. How do they do it? Successful investment swindlers use every trick in the book, and some that aren’t even recorded, to convince you that none of the descriptions and precautions in the following pages applies to them. After all, they are offering you a once-in-a-lifetime opportunity to make a lot of money quickly and you do trust them, don’t you? As will be seen, some of their methods of gaining your trust are truly ingenious.
Specific Investment Scams and How They Worked
There’s a saying among scammers that it’s not the scam that counts, it’s the sell. Judging from the number of arcane and often outlandish schemes that have been employed to separate otherwise prudent people from their money, the saying would seem to reflect reality. The evidence is that if people can be made believers, they can be sold practically anything. Here are just two of the ways in which hustlers of phony investments have won the confidence of persons whom they planned to victimize.
The Old-Fashioned Ponzi Scheme. It’s become one of the oldest and most often employed investment schemes because it’s proven to be one of the most lucrative. While there are innumerable variations, here is how a person we will call Frank C. practiced it. At the outset, Frank approached a relatively small number of influential persons in the community and offered them the opportunity to invest—with a guaranteed high return—in a computer-generated program of arbitrage in foreign currency fluctuations. To be sure, it sounded high tech and sophisticated but Frank had his eye on sophisticated and well heeled victims.
Within a short period of time, he approached and sold the scheme to still other investors then promptly used a portion of the money invested by these persons to pay large profits to the original group of investors. As word spread of Frank’s genius for making money and paying profits, even more would-be investors anxiously put up even larger sums of money. Some of it was used to recycle the fictitious profit payments and, like a pebble in the water, the word of fast and fabulous rewards produced an ever-widening circle of eager investors. And more money poured in. And Frank C. left town a wealthy man.
The Ponzi scheme is just one type of a High yield investment program or HYIP. HYIPs are when the swindler and his affiliates defraud investors through promises of extremely high return on investment. Of course, these promises are just scams and many investors can consider themselves lucky if they don’t lose most of their money in these type of scams. The swindlers convince the prospective investor that the returns are generated through their unparalleled skills at investment, however the swindler’s business model is very simple and doesn’t depend on any kind of business acumen or investment insight. Read more about HYIP scams and specific cases here.
The Infallible Forecaster Jim L. had a full-time job in the daytime, but with assets that consisted only of a phone, patience and an easy way of talking he managed to parlay a nighttime sideline into an ill-gotten fortune. The routine went like this. Jim would phone someone we’ll call Mrs. Smith and quickly assure her that, “No”, he didn’t want her to invest a single cent. “Never invest with someone you don’t know,” he preached. But he said he would like to demonstrate his firm’s “research skill” by sharing with her the forecast that such and such a commodity was about to experience a significant price increase. Sure enough, the price soon went up. A second phone call didn’t solicit an investment either. Jim simply wanted to share with Mrs. Smith a prediction that the price of such-and-such a commodity was about to go down. “Our forecasts will help you decide whether ours is the kind of firm you might someday want to invest with,” he added. As predicted, the price of the commodity subsequently declined.
By the time Mrs. Smith received the third call, she was a believer. She not only wanted to invest but insisted on it with a big enough investment to make up for the opportunities she had already missed out on. What Mrs. Smith had no way of knowing was that Jim had begun with a calling list of 200 persons. In the first call, he told 100 that the price of such-and-such a commodity would go up and the other 100 were told it would go down. When it went up, he made a second call to the 100 who had been given the “correct forecast.” Of these, 50 were told the next price move would be up and 50 were told it would be down. The end result: Once the predicted price decline occurred, Jim had a list of 50 persons eager to invest. After all, how could they go wrong with someone so obviously infallible in forecasting prices? But go wrong they did, the moment they decided to send Jim a half million dollars from their collective savings accounts.
Then there are the automated forex trading robots or softwares and expert advisor softwares. There are plenty of these in the market. Some of them might help you, but many of them will cost you more money than you earn even if they are offered for free. Learn more about these here. And this is another great article on the subject.
Another popular scam is based on signal generators. See an example of that here.
To trade forex you need a forex broker and of course there are some forex broker scams out there as well. See an example of a forex broker scam here.
The last type of forex scam we have covered on this site is the Managed Accounts Fraud. We have many stories on this type of scam. Please see the following article to read more about managed accounts fraud.
Who are the Investment Scammers?
They are a faceless voice on a telephone. Or a flashy web site on the Internet. Or a friend of a friend. They may perform surgery on their victims’ savings from a dingy back office or boiler-room or from the vast reaches of cyberspace or from an opulent suite in the new bank building. They may wear three-piece suits or they may wear hard hats. They may have no apparent connection to the investment business or they may have an alphabet-soup of impressive letters following their names. They may be glib or fast-talking or so seemingly shy and soft-spoken that you feel almost compelled to force your money on them.
The first rule of protecting yourself from an investment scam is thus to rid yourself of any notions you might have as to what an investment scammer looks like or sounds like. Indeed, some scammers don’t start out to be scammers. There are case histories in which individuals who held positions of trust and esteem—accountants, attorneys, bona fide investment brokers and even doctors—have sacrificed their ethics for the fast buck of running an investment scam. In still other cases, investment programs that began with legitimate intentions went sour through happenstance or poor management, leading the promoter to mishandle or abscond with investors’ capital. Whether an investment is planned as a scam or simply becomes one, the result is the same.
This is why protecting your savings against fraud involves at least three steps. Carefully check out the person and firm you would be dealing with. Take a close and cautious look at the investment offer itself. And continue to monitor any investment that you decide to make. No one of these precautions alone maybe sufficient.
Who are the Victims of Investment Scam?
If you are absolutely certain it could never be you, the investment scammer starts with a big advantage. Investment fraud generally happens to people who think it couldn’t happen to them. Just as there is no typical profile for scammers, neither is there one for their victims. While some scams target persons who are known or thought to have deep pockets, most scammers take the attitude that everyone’s money spends the same. It simply takes more small investors to fund a large fraud. In fact, some swindlers deliberately seek out families that may have limited means or financial difficulties, figuring such persons may be particularly receptive to a proposal that offers fast and large profits. A favourite pitch is that small investors can become rich only if they learn and employ the investment strategies used by wealthy persons. Naturally, the swindler will teach them!
Although victims of investment fraud can differ from one another in many ways, they do, unfortunately, have one trait in common: Greed that exceeds their caution. They also possess a willingness to believe what they want to believe. Movie actors and athletes, professional persons and successful business executives, political leaders and internationally famous economists have all fallen victim to investment fraud. So have hundreds of thousands of others, including widows, retirees and working people—people who made their money the hard way and lost it the fast way.
How Forex Scammers Find (or Attract) Their Victims
Scammers attempt to mimic the sales approaches of legitimate investment firms and salespersons. Thus, the fact that someone may contact you in a particular way—by phone, mail, electronic mail or even a referral should not in itself be viewed as an indication that the investment is or isn’t shady. Many totally reputable firms also use the same methods to effectively and economically identify individuals who may have an interest in their investment products and services. Bearing in mind that “investigate before you invest” is good advice no matter how you are approached, these are some of the methods con men (and women) commonly employ to contact their victims-to-be.
Telephone So-called telephone boiler-rooms remain a favorite way for scammers and their sales squads to quickly contact large numbers of potential investors. Even if a scammer has to make 100 or 200 phone calls to find a mooch (one of the terms scammers use for their victims), he figures that the opportunity to pocket thousands of dollars of someone’s savings is still good pay for the time and cost involved.
Mail Some sellers of fraudulent investment deals buy bona fide mailing lists—names and addresses of persons who, for example, subscribe to a particular investment-related publication, who have responded to previous direct mail offers, or who have other characteristics that scammers look for. In the hope of avoiding notice by postal authorities, mail order swindlers may not make a direct or immediate pitch for your money. Rather, they often seek to entice you to write or phone for more information. Then comes a call from the salesperson or the person who closes the deal. Some may phone even if you didn’t respond to the mailing.
Forex Scams on The Internet
Access to the Internet has increased dramatically in the past few years and consumers are becoming more comfortable conducting business (shopping, banking, even investing) online. But crooks also recognize the potential of cyberspace. The same scams that have been conducted by mail or phone can now be found on the Internet, and new technologies are resulting in new ways to commit crimes against consumers.
Advertisements A newspaper or magazine ad may offer (or at least hint at) profit opportunities far more attractive than available through conventional investments. Once you’ve taken the bait, the scammer will then attempt to “set the hook. ”Even though investment crooks know that regulatory agencies regularly monitor ads in major publications, some nevertheless use such publications in the hope of being able to hit-and-run before an investigator shows up. Others advertise in narrowly circulated publications they think regulators may be less likely to see.
One of the oldest schemes going involves paying fast, large profits to initial investors (actually from their own or other peoples’ investments) knowing that they are likely to recommend the investment to their friends. And these friends will tell their friends. Soon, the scammer no longer needs to find new victims; they will find him.
The “Reputable” Business
Some scammers go first class. Using profits from previous scams, they rent plush offices, hire an interior decorator and a professional-sounding receptionist and open what has the appearance (but not the reality) of a reputable investment firm. You may even have to phone for an appointment, and once there don’t be surprised to be kept waiting (that’s intended to make you all the more eager). This kind of swindler’s success depends on how long he can keep his victims from knowing they are being cheated. Investors are assured that their large profits are being reinvested to earn even larger profits. Such a swindler may join local civic groups, contribute to charities, and generally play the role of a solid citizen.
Techniques Forex Trading Scammers Use
Their techniques are as varied as their methods of establishing contact. What they all have in common, however, is their ability to be convincing. The skills that make them successful are essentially the same skills that enable any good salesperson to be successful. But scammers have a decided advantage: They don’t have to make good on their promises. In the absence of this responsibility, they have no reluctance to promise whatever it takes to persuade you to part with your money. These are some of their techniques:
Expectation of Large Profits
The profits a scammer talks about are generally large enough to make you interested and eager to invest—but not so large as to make you overly skeptical. Or he may mention a profit figure he thinks you will consider believable and then, as a further enticement, suggest that the potential profit is actually far greater than that. The latter figure, of course, is the one he hopes you will focus on. Generally speaking, if an investment proposal sounds too good to be true, it probably is.
Low Risk Some are so blatant as to suggest there’s no risk—that the investment is a sure money maker. Obviously, the last thing a swindler wants you to think about is the possibility of losing your money. (If you ask how you can be certain your money is safe, you can count on a plausible-sounding answer. Besides, at this point, he figures you will believe what you want to believe.) To make his pitch more credible, a scammer may acknowledge that there could be some risk—then quickly assure you it’s minimal in relation to the profits you will almost certainly make. A con man may become impatient or even aggressive if the question of risk is raised—perhaps suggesting that he has better things to do than waste time with people who lack the courage and foresight needed to make money! With this kind of put down, he hopes you won’t bring up the subject again.
There’s usually some compelling reason why it’s essential for you to invest right now. Perhaps because the investment opportunity can “be offered to only a limited number of people.” Or because delaying the investment could mean missing out on a large profit (after all, once the information he has confided to you becomes generally known, the price is sure to go up, right? Urgency is important to a scammer. For one thing, he wants your money as quickly as possible with a minimum of effort on his part. And he doesn’t want you to have time to think it over, discuss it with someone who might suggest you become suspicious, or check him or his proposal out with a regulatory agency. Besides, he may not plan on remaining in town very long.
Scammers sound confident about the money you are going to make so that you will become confident enough to let go of your savings. Their message is that they are doing you a favour by offering the investment opportunity. A scammer may even threaten (pleasantly or otherwise) to end the discussion by suggesting that if you are not really interested there are many other people who will be. Once you protest that you are interested, he figures your savings are practically in his pocket. Although you can’t necessarily spot a con man by the way he talks, most are strong-willed, articulate individuals who will dominate the conversation. The more they talk, the less chance you have to ask questions.
Questions That Can Turn Off a Forex Scammer
The first line of defense against forex fraud is your inalienable right to ask questions and—until you get the right answers to say “no.” And mean no. Not surprisingly, this is usually an investment scammers first point of attack. To keep you from asking questions, he asks them! Invariably, the questions have “yes”answers, such as “You would at least be interested in hearing about such a fantastic investment opportunity, wouldn’t you?” or, “You would like to make a large amount of money in a short period of time with little or no risk, right?” One difference between a reputable investment firm and a scammer is that reputable firms encourage you to ask questions, to obtain as much information as possible, to clearly understand the risks involved, and to be entirely comfortable with any investment decision you make. The only thing a swindler wants is your money. These are some of the questions that scammers don’t like to hear:
1. Where did you get my name?
2. What risks are involved in the proposed investment?
3. Can you send me a written explanation of your investment so I can consider it at my leisure?
4. Would you mind explaining your investment proposal to some third party, such as my attorney, accountant, investment advisor or banker?
5. Can you give me the names of your firm’s principals and officers?
6. Can you provide references?
7. Do you have any documents such as a prospectus or risk disclosure statement that you can provide?
8. Are the investments you are offering traded on a regulated exchange, such as a securities or futures exchange?
9. What governmental or industry regulatory supervision is your firm subject to?
10. How long has your company been in business?
11. What has your track record been?
12. When and where can I meet with you or with another representative of your firm?
13. Where, exactly, will my money be?
14. How much of my money would go for commissions, management fees and the like?
15. How can I liquidate (i.e., sell the item I’d be investing in) if and when I decide I want my money?
16. If disputes should arise, how can they be resolved?
Before You Invest – Investigate
Asking some or even all of the questions just suggested isn’t likely to produce straight answers from a crooked investment promoter but, as indicated, the very fact that you are asking such questions can be a turn-off. Bear in mind, however, that no matter how persistently or skillfully you pose the questions, experienced con men are at least equally skilled in evading them, in providing downright dishonest answers, and in refocusing the conversation on your “tremendous profit opportunity.”
Bear in mind also that, while separating you from your money is the swindler’s primary goal, the very last thing he wants you to do is check him out. That could cause you not to invest or, worse still, alert regulators that someone they know well has set up shop in a new area or is running a new scam. For this reason, most con men deliberately make themselves difficult to investigate: By tailoring their schemes to operate in regulatory cracks where federal or national regulatory organizations may lack clear-cut jurisdiction; by operating in states or communities where authorities are known to be short-staffed or occupied with more pressing criminal activities; by changing their names or modus operandi; by stressing the urgency of the investment so you won’t have time to investigate; and by targeting victims who may not know how or where to check them out. While there is no way to know for certain whether a particular investment will make money or lose money, there is one thing you can be certain of: Any money you hand over to a forex scammer is lost the moment you part with it.
The question is, how do you check out someone who is offering what sounds like an irresistible investment offer? Here are some of the ways:
Find out whether the local police department or Better Business Bureau has complaints on file. If so, you can make your investment decision accordingly. But be aware that the absence of local complaints doesn’t necessarily mean a firm or individual is on the up-and-up. It may simply mean that investors haven’t yet become aware that they’ve been bilked. Or it may mean you will have the distinction of becoming the first victim in town. It could also mean that other victims have been too embarrassed to report their losses. Regrettably, that’s not uncommon. Make a phone call to the financial editor of your local newspaper.
Although newspapers don’t give endorsements or make investment recommendations, they may be aware of a swindler who is working a scam in the area—and may even have published a warning article that you happened to miss. Then too, if readers are being pitched with suspicious-sounding investment offers, that’s something an investigative reporter might want to look into. If the investment offer isn’t local, don’t be reluctant to make a long distance phone call or two. It could be that the police, Better Business Bureau or newspaper in the community where the offer is coming from will be able to provide information.
Again, however, even the absence of such complaints doesn’t necessarily mean the firm is legitimate. Some scammers—particularly telephone boiler-room operators—try to maintain a low profile in their local areas. That lessens the likelihood of their coming to the attention of local authorities; it prevents prospects from dropping by to see their operations; and it makes it more difficult for out-of-towners to discover what they are up to. Check to see if your city or state has a consumer protection agency. Many do. If so, there may be information there about the person or firm that’s offering the investment you are interested in. In any case, the agency should be able to provide names, addresses and phone numbers of other places you can check.
If you’re not sure what agency to call, a good place to start is the National Fraud Information Center (NFIC), a service provided by the National Consumers League. The NFIC accepts reports about attempts to defraud consumers on the telephone or the Internet. When you call the NFIC’s toll-free number (800-876-7060), a trained counselor will ask you some questions and direct you to the appropriate agency for more information.
The majority of individuals and companies offering investments to the public are subject to some sort of regulation—and may be subject to multiple regulation. Those which trade in futures contracts and options on futures contracts are regulated by the Commodity Futures Trading Commission, a federal agency, and by National Futures Association (NFA), an industry wide self-regulatory organization authorized by Congress. NFA maintains a database of futures-related disciplinary information which investors can access by calling the Disciplinary Information Access Line at 800-676- 4NFA. You also can conduct background checks by accessing NFA’s online Background Affiliation Information Center (BASIC) or NFA’s web site www.nfa.futures.org. In the securities and securities options business, the federal regulatory agency is the Securities and Exchange Commission.
By contacting the appropriate regulatory organization, you can generally find out whether the firm or person is properly registered to engage in that type of business and whether any public disciplinary actions have been taken against them. Write or phone law enforcement agencies. Whether or not a person or firm is subject to the scrutiny of a regulatory organization, the fact is that fraud is against the law in every state of the nation. And if it involves interstate commerce including the use of the mails or phone lines—federal criminal statutes apply. If an investment sounds suspicious, check with the appropriate agency. They may be able to furnish information or conduct an investigation of their own.
The following are some you could contact:
The office of the local public prosecutor, the state attorney general, and the state securities administrator. Someone in the location courthouse should be able to give you names, addresses and phone numbers. If the mails are used in promoting or operating a phony investment scheme, federal Postal Inspectors want to know about it. The postmaster in your community can put you in touch with them. Fraud involving any form of interstate commerce is also of interest to the Federal Bureau of Investigation. The nearest office should be listed in your phone directory. Sure it can take some time, effort and possibly expense to check out an investment proposal thoroughly, but if you have any doubt about whether it’s worth the trouble, talk with people who didn’t and wish they had!
Finally, Don’t Lose Touch with Your Money
The need to exercise good financial sense doesn’t stop once you’ve decided to invest. It’s important to continuously monitor your investments and to be alert for any telltale signs that things aren’t quite the way they should be. The person who sold you the investment, for example, may suddenly become inaccessible continuously tied up on the telephone or unwilling to return your calls, busy with clients, or out-of-town on important business matters. Or various documents or accounting statements you were promised don’t arrive. Or information you do receive is vague or different than what you had have been led to expect. Or money that was supposed to have been paid to you isn’t received, and instead of checks you get excuses.
If you become suspicious of an investment you’ve made—and if you are unable to totally resolve your concerns, the best thing you can do is try to get out of it as quickly as possible. That means demanding your money back, accompanied, if necessary, by threats to contact authorities. You might or might not get it. The best you can hope for, if indeed there’s fraud involved, is that the scammer may decide to refund your money rather than risk having you blow the whistle while he is still on the prowl for new investors. If that happens, consider yourself more fortunate than most. Be aware, if you decide to try and get a refund, that the person who was smooth-talking enough to get your money in the first place will unleash all his skills to persuade you to leave it with him. No doubt, he will have some answer for all of your concerns as well as some explanation for all apparent irregularities. And, no doubt you will be told that backing out now would be anything from contractually illegal to a terrible financial mistake.
Scammers figure that every once in a while some of their more fidgety investors simply have to be re-convinced. He may tell you that you are so close to making really big money, or the investment now looks even more profitable than originally expected. Believe him at your own peril. If you do insist on a refund of your investment, insist on it immediately. Ask to pick it up yourself, or offer to pay the cost of having it sent by overnight mail or wired directly to your bank. Don’t settle for “it will take a week or two” or “the check is in the mail.” As everyone knows, checks seem to be lost more often than any other type of mail!
If you don’t get your investment back (and chances are you won’t), or even if you do and still suspect a swindle, report it promptly to the appropriate authorities and regulatory officials. They may be able to conduct an investigation and, if called for, seek legal action to impound whatever funds the firm still has. Bottom line, the unfortunate reality is that very few victims of investment fraud ever again see a cent of their money. It’s also a reality that the business of scamming will continue to flourish as long as unwary investors provide prey for unscrupulous promoters. Hopefully this information if heeded will help to assure that a scammer’s next fortune won’t be made at the expense of your misfortune.
Don’t become a victim of forex scams, commodity fraud or other types of investment scams.
Scams and Blacklist
Scams are unfortunately all too common in the field of binary options. Dishonest brokers and reviews, or rigged robots and other auto trading services – the scams can come in many forms. So we feel it’s necessary to create this blacklist and list all known frauds and dishonest techniques in one place. We also go through the steps you can take to identify a potential scam and how to deal with the situation after the fact if you’re already a victim. If you know or suspect something is a scam, and we’re missing it on our blacklist, please let us know and we will look into it!
Why Are Stories of Scams So Common?
When any new financial instrument or form of trading first emerges, a whole range of businesses tend to get involved. It’s a fact of life that some of those product providers are going to be more trustworthy than others. This is certainly true of binary options. It is, after all, an accessible and popular method for individuals to trade the markets. What’s more, at least in their early days, binary options trading platforms tended to operate under the radar of the regulators and from any country over the internet – so it’s hardly surprising that unscrupulous operators seek to take advantage. Thanks to better regulation, a strong online trader community and honest reviews, it’s now a lot easier to tell a scam from a legitimate broker. But as with any international online marketplace, there are still some shady outfits who will leave you with less than you bargained for. So what are red flags to look out for? Here are the points to consider as you go about choosing your binary broker.
MyChargeBack.com are a company who specialise in helping binary fraud victims recover their money. They liaise with bank or credit card firms in order to get charge backs made to reclaim deposits. They will tell you if you have a valid claim via a free consultation.
Are Binary Options A Scam?
The term “scam” covers a wide range of behaviour, from providing misleading information to lure you in, through to vanishing account balances – and even dishonest trading advice. Likewise, a particular broker might not be technically fraudulent in its behaviour; it’s just that the service available on the platform (such as highly unreliable uptime or failure to reimburse funds in a timely manner) means that this is a broker that really ought to be avoided.
So it’s a matter of doing your homework before you commit to any particular platform. User reviews can be helpful (if they are genuine), but always treat such reviews with scepticism – and never make a decision on the basis of testimonials published on the broker’s website. Even trader forums can be problematic – look closely and you’ll often find that the forum is an offshoot of a particular broker’s website. Independent, thorough and comparative reviews are the safest way to ‘scam-check’ a broker. Ideally, focus on review sites that allow and encourage real-life users to get in contact and report and problems with particular brokers, so you can be sure that what you are reading is up to date.
Below is an always up-to-date list of our top 3 trusted brokers. You can find a list of all the brokers we recommend here.
The UK’s Financial Conduct Authority (FCA) does now regulate binary options. They have already created a list of unauthorised firms. While they are not calling them scams, they are making it clear that these firms are breaking the law by trading with UK visitors – so they are best avoided. The full list can be found here: FCA Unauthorised List
By contrast, the USA along with most other EU countries do regard binary options as financial products. Depending on where they are based, many platforms will, therefore, be subject to oversight from a regulatory body. Examples include the CFTC in the US and CySec in Cyprus. A platform’s regulatory status can be a highly valuable trust-indicator for traders seeking to avoid scams. It shows that the broker has to abide by certain minimum standards when it comes to service and transparency.
Marketing “Too Good To Be True”
Taken in isolation, the act of placing a trade should be a straightforward one; and indeed, the usability of a platform tends to be a big selling point for brokers. Although this aspect of binary options is “easy”, it’s something quite different to claim that profits are guaranteed. Realising a profit through regular trading requires knowledge of how markets behave, the ability to read market conditions and an understanding of strategy. If the risks are downplayed – or outright false assertions are made (along the lines of “95% trades are successful”), these are false assurances. It’s a sign that the broker may be less than scrupulous in other important areas and that the platform ought to be given a wide berth.
Terms and conditions
Transparency is essential. Read the smallprint, and be especially wary of needlessly convoluted procedures for withdrawal of funds. Terms regarding your initial deposit can be another source of contention; for instance, if you are denied access to the deposit until a certain number of trades are made – so your money is tied to the platform from the moment it is handed over. This deposit retention is often part of wider terms associated with a ‘bonus’. CySec have sought to ban these sorts of terms by stopping the use of ‘deposit match’ bonuses. Non-CySec brands are still free to use them however, so T&C’s must always checked.
These tend to fall into two categories. The first is where you are called out of the blue and invited to sign up to a particular platform. The second occurs where you are already tied to the platform and you receive a call (or email) from a “senior broker” pointing you in the direction of particular trades. Reputable brokers do not need to make cold calls. Bear in mind “cold calls” might include emails too – any form of unsolicited approach should be considered a “cold” contact and be treated with extreme suspicion.
You should always be clear about who you are dealing with. In some situations, you might visit what appears to be an actual broker’s site, click the link to sign up only to be redirected to another broker. Alternatively a trading “service” may dictate that you use only their recommended broker. These “funnel” sites are sometimes used as a front by brokers with a poor reputation, or are working alongside them to dupe visitors (often using the misleading marketing mentioned above). A good broker will be upfront about its identity from the outset.
It’s one thing for a broker to give you access to the data and analysis tools to work out your own strategies (in fact, this is one of the signs of a great platform). It’s quite another for that broker to also offer trading advice. After all, with ‘over the counter’ binary options brokers, you are betting against the house; if the ‘house’ is making the trading decisions for you, it’s hardly likely that those decisions will be in your best interests. This form of “upselling” is often the most lucrative for the broker, and is usually the where traders lose the most. Encouraged by an “account manager”, traders are advised to deposit beyond their means and to over trade. On occasion large accounts will be wiped out in hours. The “advice” goes against any sound money management, and increases risk hugely. Always take responsibility for your own trades. Never allow a broker to make trading decisions for you.
There has to be a fair and transparent benchmark against which the broker sets its prices. This benchmark should be what’s happening in the real world; i.e. real-time market prices. If the broker reserves the right to set its own prices, you can assume that those figures will be skewed against you; in other words, a loaded deck.
Scam Brokers and Not Recommended Operators
The brokers listed below have generated a lot of complaints both directly and on the forum. The disputes vary from upselling and encouraging traders to over trade, to non-payment of withdrawals and price manipulation. There is little recourse for traders to raise a dispute with unregulated brokers, so it is generally advised that you look for trusted binary options brokers – preferably regulated in your own country where possible. “Scam” has become widely used as a term to refer to any form of poor service, but it should be noted that many of these brokers may have done nothing dishonest or illegal, but have attracted higher than normal levels of complaints. If in doubt, trade elsewhere. There are plenty of honest brokers out there.
Robot And Signal Scams
These signal providers, or robot services, are either scams or not recommended for other important reasons.
Instagram And Facebook
Beware of scams operating on social media. Again, binaries are not a get rich quick scheme. There are a huge number of accounts promising to trade on your behalf and turn $2k into $8k in a week. If these claims were true, the people behind them would not need to be running ads or signing people up – they would simply trade themselves.
Screenshots of successful trades are exceptionally easy to get – even genuinely. But these operators are unlikely to even bother trading – once you send them money, it is gone and you will not hear from them again (unless they think they can get you to deposit more). Always select your own broker, and always take responsibility for your own trades – dont let someone else trade on your behalf. If you do not understand binary options, or do not have time to trade – then do not trade at all. These scams often prey on people who lack experience.
What To Do If You’ve Been Scammed
Do you think you’ve fallen prey to a binary options scam? Read on to find out what you can do if you’ve been scammed. There are many ways to help ensure that you don’t fall prey to a scam but the reality is that even if you follow all those tips there is still a possibility you will be scammed. If that happens, what do you do? Do you sit back and take it? Do you give up on trading? No, you need to stand tall and look out for yourself. Trading is good, it is rewarding and can lead to a life in which you don’t have to go to a job and punch a clock. You can’t let the actions of one broker, signal service, robot or guru dissuade you from that path. This article is a look at what you can do if you think you’ve been scammed. It’s likely that once an issue arises you won’t be able to get your profits, it is possible to get back your initial deposit but it might take some work.
MyChargeBack.com are a firm specialising in helping victims of binary options fraud. They help claimants to explain the incident to the bank or credit card company, so that they fully understand what has happened. Some banks are unaware of binary trading and are unwilling to listen to claims. MyChargeBack help in this situation. They have a solid record of recovery from genuine claims.
If you are not yet looking for third party help, here are some steps you can take yourself:
How to Spot a Trading Strategy Scam
The internet is loaded with ads, articles, companies and individuals trying to provide you with the next big trading strategy that will make you rich overnight. Take pause my friend, here are tips to help you spot the scam.
A System or Only a Strategy?
First and foremost, trading strategies aren’t really going to help you become a good trader. What you actually need is an entire system. When you make a trading plan it needs to cover how you will enter markets, exit markets and how you will manage your money. It also needs to tell you under what market conditions you do all these things. That is a system, it tells you everything you need to know about how you will trade. A strategy on the other hand only tells you when to enter and exit, and may not tell you under what conditions it works best or poorly. It also may not provide guidance on position size or whether you can trade multiple assets at the same time – issues which are very important to address. In other words, a strategy may have missing pieces of information you need to be successful. We need a complete trading system…but marketers are smart, so they can easily just call the product they are selling a “system” to make it sound more complete. But is it? Here are several things to watch for which could tip you off the product is probably a waste of money:
A boxed system is one where you don’t get to know how the strategy works – it’s an opaque “black box”. For example, the product may just be a series of indicators or a service that tells you when to trade, but not why. This isn’t going to make you a better trader, because you don’t know what is happening behind the scenes. If a product or signal service stops operating you are left with nothing. Even if you made money with the product/service you have to start from scratch all over again. Make sure if you buy something it explains how it works, so that eventually you don’t have to rely on the product/service.
Extremely High Win Rates
Is it possible to have a 90% win rate? Absolutely, yet it is also possible to lose money with a 90% win rate. Stats are easily manipulated to tell partial truths or fabricate lies. Other popular tactics are saying things like “Made $500 in one day!” So what? That doesn’t actually tell you anything. If that was on a $1,000,000 account then making $500 isn’t so grand. And if they lost $3000 they day before, then making only $500 today and bragging about it is rather paltry. Read between the lines. What isn’t being said? To understand performance you need several bits of information: Account size (capital), percentage return, amount at risk on each trade, amount of profit per trade, win/loss ratio, biggest winner, biggest loser, average winner, average loser, number of trades and period over which the strategy was tested/profitable.
There are also some other metrics that could help you out, but if you ask the company for these bits of information, and they can’t or won’t give them to you, be suspicious. You can usually get a sense of what vulnerabilities and tendencies a system has by looking at the above stats. One of the main things is that the strategy should be tested over a long period of time, and in all market conditions–up trends, down trends, ranges, volatile and sedate conditions. It doesn’t necessarily have to profitable in each of these environments, but it should have at least been traded through them all so you know that the system is profitable overall. Often marketers will only publish results for a period where strategy did very well. But this doesn’t give you a real idea of how the strategy or system works over the long-term.
Only One Direction
Avoid a system that only trades in one direction, for example only buys assets but won’t short sell them. Markets rise and fall, you want to participate in both trends.
No Trial Period
You should be able to test a product and be able to cancel without a fuss if the service isn’t for you. Usually a quick trading forum search on Google will reveal what others have shares about a product or service. No trial, no deal. Don’t trust anyone, test things out for yourself. If they won’t let you, then be wary.
Final Words on Identifying Scams
A product or service shouldn’t make you reliant on it. It should show you behind the scenes so that eventually you can trade on your own. Good products will always have customers since there are people who don’t want to do the work themselves, and there are always new traders. There is no reason to make every customer totally dependent. Be wary of stats that are thrown out. Ask yourself what the stats aren’t telling you. Also, if the stats they provide are legitimate, then you’ll need to trade all the signals to take advantage and get results typical of the service. Of course remember though, past performance is not indicative of futures results. That is way it pays to do some homework, and make sure the strategy/system/service/product is based on a long history, and has proven itself profitable over all types of market conditions. Test out a product/system/service before buying it. If they won’t let you try, be suspicious.
Case Study – JV Affiliate Marketers
In this section we will look at how you can avoid being scammed by Binary Options JV Affiliate Marketers. Its not so hard, but requires you to let go of your emotions and examine things in a logical manner, as many of the scammers use emotional greed/fear tactics to get your money. Once you understand this you can quickly and simply save your time and money with these unscrupulous dolts. Some scams are simply comical in how stupid they are, while others can be very well done con jobs that lure you in with seemingly genuine people/systems/reviews which later you find are the exact opposite, as you look at your $0 balance wondering “Where did my money go!?”.
As you will see in the numerous scam videos, all you have to do is “NOT DEPOSIT” then these scams no longer work. So next time you see videos that are of a similar nature, just know they are supporting scam systems/marketers. Understand if they require a deposit they are fly by night and even if they were not they are supporting the scammers by the nature of requiring you to deposit with a new broker. So just refuse to deposit and they go away. Not the same stories kind of stories and promises over and over all to get you to sign-up to their “free” system/bots… They are not free you have to deposit and they get paid on those deposits… So remember limited time/fast money/can’t lose!/just fund your account = don’t do it!
In this image above you can see many of the scam systems are connected to each other on the same servers most often. These JV marketers have tons of these turnkey scams as they are very low maintenance. The reason you see so many of them is after a few weeks of the new story line wares off and becomes boring they will start production on another one and keep it all fresh and new thus avoiding the wrath of their old scams being complained about and those complaints shared with others. If they keep it new they avoid this along with the fact most newbies jump from one scam to another hoping one of these will work, which none of them do because trading is a learned skill/job… So again, understand their stories and how they work, and don’t deposit .
Case Study – Scams on Social Media
Social media is a “perfect” platform for scammers and can be even more insidious and convincing, and unlike the JV marketers these people will talk to you directly, but only to a point. Once they figure they can’t get any more from you or you no longer have value to them, they will un-friend you in a heart beat. The one thing they are all after is your money, so be on the look out for them asking for deposits or sign-ups telling you about amazing profits and opportunities, which will have you end up with empty pockets. Videos such as those used with both “The Green Room” and “FB Wealth Group” will pretend to be traders/friends, while they are really just out to get your money through either signups or even trying to have you pay them directly.
Also – if you see them mention anything MLM (Multi Level Marketing) related, they are trained to lure you in, so run the other way. These people don’t play around and will say whatever is needed to get you to sign-up and invest. There is a 45 minute long interview of a person that was scammed by both “The Green Room” and “FB Wealth Group”. We named it Binary Options Horror Story because that is exactly what it is in all its gory details. If you are new to binary options read, and absorb the above warning signs fully to see how they scammed people out of their money so it does not happen to you. Notice also how the worked with the brokers directly, which implies that they can be directly involved as well.
Scammers will repeat the common element of wanting you to deposit or even asking for money directly and from there you can tell them “no thanks” and make sure to unfriend them.
Best Binary Options Brokers 2020: