Complaints about Forex, CFD and Binary Options Sites

We’ve been receiving multiple complaints from traders about fraudulent online Forex, CFD, and Binary Options sites.

Many times, brokerages will ignore regulatory laws and suffer from extreme conflicts of interest in order to profit.  There are unfortunately plenty of licensed and unlicensed, regulated and unregulated brokerages abusing their client base.  No one is 100% safe.

As for the scam brokerages, they use the same or very similar trading platforms so it is very difficult for the unseasoned individual to distinguish between a “true” brokerage and a “fake” brokerage.  Only when they cannot retrieve their funds or have had their money traded away by their once friendly broker…do they realize they were scammed.

Common Complaints

Here’s a summary of what people who have contacted us have experienced:

1. Refusal to Withdrawal Funds – of supposed gains were impossible. Withdrawals of initial investments weren’t much easier either.
2. Money Hungry Brokers – Their “brokers,” who used to call and write incessantly to solicit larger deposits, would suddenly evade phone calls, ignore emails or simply disappear if they suspected that their clients wanted their money back.
3. Credit Card Abuse – Unauthorized charges were being made to customer credit cards.
4. Fake Locations – Inevitably, despite their impressive London and/or New York phone numbers, the supposed brokerage was registered in a far-off country that few people have ever heard of and can’t find on a map if they wanted to − usually an underpopulated island statelet like Vanuatu or St. Kitts and Nevis, where government regulation of the financial industry is substandard. Go find someone to complain to. Or sue.
5. Abusive Bonus Terms and Conditions – Many brokerages will entice their clients to accept a bonus or force it upon them even without their request.  Once doing so, the trader must somehow trade an excessive amount of times in order for their original money to become “free” to withdrawal.
6. Abusive Money Management – Many brokers will simply trade the client funds without permission for purposes of their company’s own profit.  Even worse, they may pretend to trade only to pocket the money in the background.  After this, many brokers then bully or cry to the client to secure more deposits and further prey on their client.

Fund Recovery – Our recommendation

After investigating, we found a solution we can recommend. MyChargeBack is an American fund recovery company with a global focus and an international client base that focuses on fraudulent binary options and forex sites.

So here’s a summary of what they explained to us:

Credit card consumer protection laws are only helpful if you know how to apply them.  Though Visa and Mastercard may theoretically protect consumers from scams and fraud, but the local banks have a very hard time understanding the scams and applying these protective policies.  Much like a court room where one certainly would necessitate a lawyer,  so to in the “courtroom” of Visa and Mastercard – the general consumer is at a severe disadvantage when facing 1) an authorized transaction 2) a bank representative who is unhelpful and indifferent 3) a predatory and vindictive brokerage ready to challenge any chargeback claim that lands on their desk.

What makes MyChargeBack stand out from other fund recovery firms we checked out is their proven success record and hand-holding client services throughout this complicated process.  MyChargeBack has an expertise is being able to explain your rights as credit card holders to bankers in the language that bankers understand and, when necessary, resurrecting a dispute beyond the standard deadline that your bank may incorrectly presume has already passed.

Having spoken with them and some of their former clients, it’s clear that MyChargeBack’s knows how to present your request to your bank effectively and professionally to maximize your chances to get your money back.