11 Worst SCAM Brokers: Stay Away & Keep your Money!

The growing interest of investors in binary options trading has resulted in more and more brokers luring new blood traders into this type of investment. The nature of binary options trading is simple, making it easy for a lot of people to make money without a sweat.

When I started with binary options trading, it only took me a few minutes to find out how it works, and half an hour to open my demo account and start practicing with binary options. While it is a “no-brainer” compared to forex, there are a few things that you do need to remember – like avoiding scam brokers.
Today we will list 11 brokers who you must stay away from to avoid any losses!

RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

1. UFX Market

UFX Market and UFX Bank have won the award in the most unethical practices category! The broker has several negative reviews and complains left by users who have been cheated by them. The company also engaged in posting false client reviews in different websites back in May 2009 from their office located in Israel.

Forex Peace Army has already blacklisted the broker because of the bad reputation it earned and gave it 3 guilty verdicts based on its investigations.

  •  The company adopts some common tactics to cheat its traders-
  •  The trading manager persuades users to deposit more and more money in their accounts
  •  Requests for fund withdrawals are not processed
  •  You have no way to reach out to their customer support when you need it!

The company suggests risky trades which result in potential lossesWhen someone tries to close his account he is persuaded into a last deal which results in a huge loss and wipes out the entire funds
It’s better to stay away from this broker.

2. Tradorax

Here is one binary trading platform that has gone out of business following the series of frauds it has conducted. Tradorax has some serious complaints against it- the broker received 4 guilty votes in the FPA Traders Court which has led FPA to declare it a scam.

The broker is known to freeze accounts and block users from withdrawing their funds. A pensioner lost £60,000 on the platform and wasn’t allowed to withdraw his money. You can also find many similar cases where the company refused payouts stealing account balances.

The company also makes deals without permission of the users and has been known to fraudulently charge credit cards. The brokers also encourage users to deposit more money which are ultimately frozen and stolen by the platform.
You should never deposit anything with Tradorax and refrain from dealing with it.

3. Trade-24

Trade-24 has taken scamming to a new level!
You have the regular funds freezing, almost impossible to withdraw funds scenario and stealing account balances- but on top of that there is allegation of forgery!

Trade-24 put up on their website that it was operating under a license from IFSC. But it was a complete lie and IFSC of Belize has put up a notice which confirms that they had not issued any license to them. Both IFSC and FPA suggest adopting caution while dealing with this company. It also has a FPA guilty vote and been declared a scam by them.
Forex Fraud has been able to get in touch with Trade-24 who promised to resolve the matters. They are also applying for CySEC regulation and had taken down the IFSC statement and issued termination to the responsible party.

4. Panamoney

HYIP or High-Yield Investment Programs promise high returns which are too good to be true. And they really are!
The Financial Industry Regulatory Authority (FINRA) has already issued a warning back in 2010 against the schemes. It called the operators ‘con artists’ who try to make their internet based ponzi schemes look legitimate.
Like all HYIPs, Panamoney started by paying the returns but later closed down and vanished from the scene. Many people had huge amounts of funds in their accounts which could not be accessed anymore and the website was also down.

The company also deducted amounts from accounts and forfeited all profits for false ‘early fund withdrawal’ requests which were never made by users. People have even lost as much as $160,000 on the platform.

Worse, they can block your tccount just about any time, and take all your money with it too. PanaMoney is blacklisted by Forex Peace Army and cautions against investing in HYIPs.

5. NoaFX

NoaFX suffers from the same problems like the others in our list. You start off fine by trading and accumulate balance in your account but the problem starts the moment you want to withdraw funds.

You have to send hundreds of emails to get a response from the company if you are lucky. Even the responses are generic stating the company needs more time or something similar.

Users have waited for weeks and months and made several communications but in vain! They never got back their money!

The company even claims to be registered in New Zealand as a FSP and member of disputes resolution scheme- but as you may have guesses it is an utter lie confirmed by New Zealand’s Financial Markets Authority.

Forex Peace Army acknowledges it as a scam and currently there are 3 FPA Traders Court guilty vote against the company.

6. NetoTrade

NetoTrade is tops the lists in receiving warnings from various regulatory bodies around the world. The National Securities Market Commission in Spain issued a warning against the company because it was not licensed. It had also attracted the ire of the Swiss financial regulator FINMA who included it in its public Warning List.
If that doesn’t stop you from trading with them, know that Forex Peace Army has also confirmed it as a scam broker. There are 3 Traders Court Guilty Verdicts on FPA and you are suggested to withdraw any funds from the platform.
But you may not be able to do that as many users have failed to withdraw funds and get any response from the company. Stay away from NetoTrade at all costs!

7. MaxCFD

MaxCFD is part of Chemmi Holdings Ltd which also operates services like binarytilt.com The Australian Securities and Investments Commission suggests that the company is a scam and cautions anyone from dealing with it or associated services.

The Forex Peace Army has also given it a scam status following the warning by the Australian regulatory body. You should withdraw any money that you have in their website.

The company involves in many fraudulent practices like depositing bonuses in user accounts without permission. The bonuses come with terms and conditions which ultimately freeze or counterfeit the whole account balance, as a user complained.

It is also very difficult to get your funds out of the platform as your requests are not honored. Many people have lost money by trading on MaxCFD so you better be careful.

8. HFX

You don’t want to involve yourself with anything that has to do with HFX! It is a case of confirmed scam and been acknowledged by Forex Peace Army as a risk.

HFX is also listed by Financial Services Authority as an unauthorized firm which could be involved in fraudulent practices. You are suggested to be extra cautious or prevent any trading with it.

The platform is known to use the funds from accounts to make trades without taking prior permission of the owner. The trades cause huge losses which erode the funds accumulated in the account.

You can also expect difficulties in withdrawing funds and there have been cases where the platform wrongly accused users of unethical trading and locked their accounts. The company also tries to persuade users to deposit money and doesn’t respond to communications.

9. Option.fm

Option.fm has a long history of stealing people’s money and blocking withdrawals. You can check numerous cases of scams which have been detailed by victims on Forex Peace Army.

The company has also been related to another scam trading platform Banc de Binary. A user of Option.fm received an email from the company where there was a signature of an officer from Banc De Binary.

Forex Peace Army contacted both companies for their comments on the issue but received no responses. It led them to conclude Option.fm as a big time scam.

The company also involves in illegitimate trading where big losses wipe out entire account balances. They also don’t attend to user communication or answer back to mails. Requests of withdrawals are also not entertained by the company.

You are better off not trading on this platform.

10. PorterFinance

PorterFinance is a part of the Greymountain Management group which has attracted multiple Court Verdicts from Forex Peace Army. All associated companies of Greymountain group has been labeled as scams by FPA, and for a very good reason.

The Australian Securities and Exchange Commission has already warned the public from dealing with the company. Like many other unlicensed companies, PorterFinance also operates out of Israel.

The company conducts illegitimate activities like trading Forex over weekends. You will also not be able to withdraw your funds even after meeting all requirements. Many users have complained about it but the company keeps managing to avoid the authorities and run its business. It also uses negative SEO minimizing tactics to ensure that you cannot read up on its scams a lot.

You can check out the comments of people who have lost money on the platform.
PorterFinance is also known to ignore emails from its users and provide excuses when you request to draw out your funds.

11. InstaForex

InstaForex is a big name in the world of Forex trading so it is difficult to call it a scam outright. But you have to weigh the evidences and then decide for yourself. Let’s check the evidences-

The Financial Conduct Authority is an UK financial regulator which included InstaForex in a list of firms illegally offering binary services.

The French Autorité des Marchés Financiers (AMF) also called it an unauthorized Forex brokerInstaForex is not licensed under Belize IFSC anymore and it is said that they were kicked out.

Apart from the above confirmed cases, Forex Peace Army also carried out its own investigation involving two of its members. After analyzing all evidences it concluded that InstaForex has failed to return funds of the members. Unfortunately, the members have no recourse as their terms state that the company is perfectly in it’s entitlement to close accounts as it seems fit.

The website also accused the members wrongly and confiscated their sign up bonus. All trades were also subsequently cancelled and profits were also wiped out. You can also read the long list of comments which prove that it is indeed a scam!

Be Aware and Be CautiousAlways do your research and see if a broker is licensed to operate. Don’t just go ahead and deposit money with any online platform. You don’t want to lose your hard earned money and get locked out of your account unable to access your funds!

Internet has made it possible for investors to find appropriate opportunities and brokers easily. But it has also given rise to hundred of illegal and fraud companies who only want to rob your money. Be aware of these scam companies and invest your money elsewhere!

References:

http://www.forexpeacearmy.com/forex-reviews/5004/ufx-forex-brokers
http://www.forexpeacearmy.com/community/threads/ufxmarkets-com-ufxbank-com.22101/
http://www.forexpeacearmy.com/
http://www.forexpeacearmy.com/forex-reviews/12514/www.tradorax.com
http://www.independent.co.uk/news/business/news/tradorax-binary-trading-website-cease-operations-bets-fraud-shares-currrencies-schemes-pensioners-a7957446.html
http://www.independent.co.uk/news/business/news/tradorax-binary-trading-website-cease-operations-bets-fraud-shares-currrencies-schemes-pensioners-a7957446.html
http://www.ifsc.gov.bz/trade24-investments-ltd/
https://www.forexbrokerz.com/news/instamarkets-belize-ifsc-forex-license-end
http://www.ifsc.gov.bz/trade24-investments-ltd/
https://www.forexfraud.com/forex-broker-reviews/trade24-review.html
http://www.finra.org/newsroom/2010/finra-warns-investors-social-media-linked-ponzi-schemes-high-yield-investment-programs
https://www.forexfraud.com/forex-articles/panamoney-shows-signs-of-hyip.html
http://www.forexpeacearmy.com/forex-reviews/12222/www.noafx.com
https://fma.govt.nz/news-and-resources/warnings-and-alerts/a-z-list-of-all-fma-warnings/
https://www.leaprate.com/forex/brokers/offshore-retail-fx-broker-netotrade-gets-warning-swiss-regulator-finma/
https://www.leaprate.com/forex/regulations/spain-regulator-cnmv-warns-unlicensed-offshore-retail-fx-brokers-netotrade-gbo-capital/
https://www.moneysmart.gov.au/scams/companies-you-should-not-deal-with/unlicensed-companies-list/c/chemmi-holdings-ltd
http://www.forexpeacearmy.com/forex-reviews/11866/www.option.fm
http://www.amf-france.org/en_US/Actualites/Communiques-de-presse/AMF/annee-2015.html?docId=workspace%3A%2F%2FSpacesStore%2F2e025029-4865-4b39-a0de-666461328b8c
http://www.forexpeacearmy.com/forex-reviews/4257/instaforex-forex-brokers

PLEASE NOTE:

This article is based is my personal opinion based on the information found on the pages above.

Forexsouthafrica.org.za has provided this information in good faith, to help its readers make informed decisions.

This article should not be seen as absolute fact. Do your own research and make up your own mind.

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