Digital options trading scams have become quite rare, but do exist. The reason for the significant decrease in scams is attributed to the internet. With traders quickly being able to share information with others around the globe, any scam broker will quickly be outed and soon after, out of business. The actions of a few have had a significant impact on the digital options trading industry as a whole.
Since there does remain the possibility of falling prey to a digital options scam, it is very important to closely examine a broker prior to making a financial deposit with them. Broker reviews are one of the easiest tools to use in determining whether or not a broker is reliable. Since most digital options brokers opened for business several years ago, there should be plenty of information available in regard to any scams or possible scams.
Many digital options scam reports are the direct result of the trader not fully understanding the terms and conditions put in place by the broker. Traders are always advised to read these prior to completing the registration process. However, few actually take time to read these completely. Not only should they be read, the trader should contact customer service should they have any questions in regard to the terms and conditions.
- 1 The following are examples of processes that are often included in digital options scam reports, but are actually not scams:
- 2 So, what is an actual digital options scam?
- 3 IQ Option Scam
- 4 Olymp Trade Scam
- 5 Binomo Scam
- 6 ExpertOption Scam
- 7 24 option Scam
- 8 Binary Scam
- 9 XM
- 10 eToro
The following are examples of processes that are often included in digital options scam reports, but are actually not scams:
Slow Withdrawal Processing
This is one of the most common complaints. Many traders expect their profits to be paid to them immediately after issuing a request. The truth is that the total payment processing time can range anywhere from a few business days to over a week. Binary options brokers will often include their payment processing time in the FAQ section of their website. So long as the payment is issued, slow processing times are not a scam.
Payment of Bonus Funds
Brokers will have very specific rules in place in regard to the payment of bonus funds. Most will require the trader to be active for a period of time. It may also be necessary to invest the bonus funds and transform them into actual profits before they can be withdrawn. Reading the rules associated with the payment of bonus funds will prevent any misunderstandings in this area.
Minimum Withdrawal Amounts
Some digital options brokers have a minimum withdrawal amount in place. This rule is often used to cut down on the amount of funds spent by the broker in issuing payments. There are some brokers that do not have minimum amount restrictions. However, those that do will clearly list these on their website.
Most brokers will offer one fee-free withdrawal each month. After that, fees may be charged on the withdrawal of profits. Though withdrawal fees can be frustrating, they are not a form of digital options scam. Withdrawal fees, if any, should be listed either within the FAQ section of the broker website, or within the banking area of the platform.
The need for the trader to prove his or her identity prior to the first withdrawal being processed is a rule that all brokers have in place. Not only is this not a scam, it is actually done for the protection of both the broker and the trader. This process works to prevent money laundering and the use of stolen financial instruments such as credit cards and bank account numbers.
So, what is an actual digital options scam?
Scams actually come in several forms. Some are easier to detect than others. One of the most common, and highly considered the worst form, is the non-payment of monies owed to the trader. This could occur as a result of the mismanagement of broker funds, or simply because the broker established a platform with the direct intention of robbing traders of their deposits and profits.
Another scam could be in the form of incorrect financial data within the platform. For example, in a scam platform the trade could end out of the money based on the financial data being provided by the broker. A check of a reliable financial data source such as Reuters could show that the trade was actually supposed to end in the money. Be sure to check which data feed vendor the broker uses prior to comparing financial data.
Altering of payout percentages (which should be fixed) or the profits that come from successful trades would represent another form of digital options scam. A close monitoring of the account will be needed should the trader suspect that the numbers are not right. Contact the broker right away should you notice that the payout percentage has changed after the trade has ended, or that an incorrect profit amount is listed.
Now that you know what is or is not a scam, let’s examine specific brokers and determine the possibility that they are associated with any digital options scam.
IQ Option Scam
The only complaints to be found in regard to this broker are of the non-scam variety. These complaints could likely have been avoided by reading the terms and conditions. IQ Option has been in business since 2013, and is known for its transparency, reliable platform, and reliable payments. There is nothing to signal any IQ Option scam.
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Olymp Trade Scam
Any talk of a Olymp Trade scam is usually related to their rule of requiring traders to trade a specific volume prior to requesting a withdrawal. This immediately causes traders who have not read the terms and conditions to start talking about how Olymp Trade has scammed them. In reality, Olymp Trade is one of the finest brokers in operation today and certainly is not part of any scam activity.
This broker has been in operation since 2014, allowing plenty of time for any Binomo scam to be exposed. There really are no major complaints to be found in relation to this broker, and therefore no reason to assume that any Binomo scam is in place or will be occurring in the future.
ExpertOption has been the focus of some scam talk. This is quite common with younger brokers who have yet to completely prove they are reliable. Further investigation shows that no ExpertOption scam exists, with the problem instead being of the common variety and combined with the impatience and anxiety that often comes from partnering with a broker that is one of the newer digital options brokers.
24 option Scam
This broker is one of the most popular, and as such, any complaints seem to be magnified. Since 24Option is highly discussed online, it did not take long to get to the bottom of scam reports. The problems seem to be quite common and do stem once again from a failure to understand how payments are processed.
Binary scam discussions can be found online. Nearly all of the complaints stem from the lengthier withdrawal time frame offered by this broker. As previously mentioned, all traders want their payments issued quickly. Though Binary is certain not a scam broker in any form, those who partner with them will need to accept the rules in regard to withdrawals.
XM is considered to be one of the veteran binary options brokers. In business since 2008, this broker has proven itself to be extremely reliable. Like all brokers, this one experiences the occasional disgruntled trader. However, any XM scam seems to be completely out of the question. This broker has simply been providing a great platform and customer service for too long for anyone to assume otherwise.
eToro Forex trading platform is friendly and ground-breaking for reliable forex trading. It is visually engaging forex trading software that makes trading easy and effortless. With its simple style and exciting trade visualizations, eToro is the perfect platform for a novice trader to get his first forex trading experience.
It is also the perfect platform for experts in the field who want to trade at ease and reliably. While there is nothing to indicate any eToro scam at this point, traders are advised to check for scam reports online periodically to see if anything has changed.
Fear of any digital options scam can quickly be alleviated by selecting a broker that is considered to be upstanding and reliable. Feel free to partner with any of these brokers with confidence. Digital options scams will always be possible. Fortunately, we now have all the tools needed to spot these quickly and steer clear of any brokers that are not operating in an ethical manner.