How to Cash Out from a Scam Broker
How to Cash Out from a Scam BrokerJanuary 6, 2014
If you have researched the topic of binary options you should be aware of the fact that due to lack of regulation, there are many scam brokers out there that will be more than happy to take your money but will never let you withdraw your winnings even if you meet their terms and conditions.
Here’s How to Avoid the Situation
If you can, partner up with a regulated broker. These guys have invested a lot in a license and will not risk losing it due to customer complaints. For all intents and purposes CySec brokers are good enough, however make sure to check their license with the Cyprus Securities and Exchange Commission.
Make sure you are aware of the bonus policy and the trading requirements. Try to understand that in this life (not the next) nothing is for free and that if you receive incentives you will have to trade that currency a certain number of times. Some brokers will even confiscate your winnings and deposits if you try to cash out before meeting the terms quoting bonus abuse tactics and referring you to the terms.
If you are a USA based trader looking for a legit broker you will have less variety to choose from. Basically I recommend GTOptions, Traderush, or Redwood Options. If you choose any other broker you risk getting scammed and having your money stolen by internet thieves posing as legit brokers.
The Broker Won’t Pay Me My Winnings, What Can I Do?
If you are a US trader chances are you deposited using a credit card. Make sure you have met the terms for cashing out first. If you have, try telling them you will slam them on the forums. If that doesn’t work you can advise the broker that they have neglected to meet their own terms and they risk a dispute (AKA Charge back) with the credit card company. Make sure to document every transaction and email communication, because you will need it for the case you are building against them.
In such a scenario you won’t get paid, but at least you will get your money back from the credit card company and the brokers will have to absorb a substantial fee for this – so in essence you will be hurting him much more than you think. Additionally, this will also damage his reputation with the credit card processing company and he will have to pay higher fees in order to keep processing funds and deposits from traders.
To sum up, always give the broker a chance and speak with a calm and respectful tone. If you are 100% sure you have met the criteria for withdrawals and have tried everything possible to cash out with no luck, only then resort to the last option you have.