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Complaints

 

Forex and Binary Options Broker Complaints  

Nowadays, complaints regarding Forex, Crypto and Binary Option brokers are increasingly common and can be for many reasons. South African investors that choose to trade with licensed or regulated brokers rarely face such issues.

However, if you have invested in a non-regulated or unlicensed broker, there is no government agency that can help you get your money back.

MyChargeBack is a service created especially for cases such as these – their job is to hunt down the broker and help you get your money back if possible.

Complaints to Regulated Brokers

If your broker is authorized by the Financial Sector Conduct Authority (FSCA), referred to as the new Financial Services Board (FSB) in South Africa, follow the instructions below:

The Financial Sector Conduct Authority (FSCA)

If you have any complaint regarding the entities regulated by the FSCA, you can fill in the form on their website that asks for your details, the type of complaint you want to file, the name of the regulated entity and a description of the issue.

Finally, the FSCA asks you to attach any supporting documentation that is relevant to your complaint like your policy document, any correspondence with the entity etc. These documents all get submitted along with your complaint form.

The smartest way to invest would be with the licensed broker IQ Option.

 

Withdrawal Complaints – If You Cannot Get Your Money Back

If you are having problems withdrawing your money from your broker, we suggest using MyChargeBack.com, a service which helps you get your money back.

MyChargeBack is a company whose mission is to assist investors who have lost over $1.000. They urge victims to not give up if they are scammed by a broker and “fight back” to get their funds back. In order to use their services, you will be charged an upfront fee as well as a percentage of the funds that they manage to recover for you.

These are a few points to keep in mind when a broker is not processing your request to withdraw:

  • Withdrawing money is, in many ways, a more complicated process than depositing money.

To withdraw your funds from your broker, you will be asked to verify your identity with several different documents. The most common of these are: National ID/ Passport/ Driver’s License, Proof of Residence, Utility bill, credit card/bank statement and local authority tax bill. Finally, deposits made by Credit or Debit card always require a front and back scan of your card.

  • When you request a withdrawal from your broker, never rely on a simple phone conversation or Skype message. Alwaysmake sure to contact the compliance department via email or the customer support.
  • If your withdrawal request is not processed in a timely manner, you can contact your bank and ask for a charge back.When people are facing issues withdrawing their funds from a broker, in most cases it is because they are dealing with non-regulated companies often associated with fraud.

 

Managed Accounts Issues

The situation is increasingly common: a Forex broker calls you offering to invest your money and trade on your behalf. The only problem is that trading Forex and Cryptocurrencies, no matter your level or experience, can be incredibly risky. You essentially risk losing all the funds in your account, and when you authorize a broker to trade for you, in reality you are giving away all that money.

Instead, if you have decided to invest in Forex, do the research and discover what it takes to be a real trader. Never trust that someone else is going to help you get money. As a matter of fact, most brokers make money through your own losses – so helping you make a buck is not even slightly in their interest.

Think about it: If a broker is such a professional in investing money, why are they not out there trading their own money? Why are they so keen on trading yours?

 

Trading Software Scams

Investors often see advertisements for “secret systems” that magically generate money and open brokerage accounts. Some examples of these are Bitcoin Code, Crypto Trader and Tesler app, among many others.

These systems, often referred to as “automated trading”, create you an account at a scam broker, convince you to make a deposit, and reassure you that now, with absolutely zero effort on your side, the money will start flowing into your bank account. Now, even though many like to believe this to be the perfect “money generating system”, it is in fact a scam and uses unregulated and unlicensed brokers to take advantage of users.If you take a look at a broker’s terms and conditions, you will see a specific clause that prohibits the use of automated trading software.

This does not mean that all auto-trading robots you see are scams. You should just always make sure to use a robot that works with regulated and licensed brokers.

 

Bonus Policy Complaints

Another main reason that traders have problems withdrawing their funds from a broker is because, more often than not, they received a bonus.

Always think carefully before and if you decide to accept a bonus. Before anything else, you should closely read the broker’s bonus policy. Unregulated companies often require investors to trade 30 – 60 times more than the bonus value. There is a reason why you will never see regulated brokers offering investors bonuses.

Allow us to paint you a picture to help you understand how this works. Say you deposit R5.000 and receive a bonus of R2.000. This may appear generous at first, but what it actually means is that you will now have to generate the trading volume R5.000 x 200 = R100.000. Take a minute and think about this – it is a lot of money. The catch is that when you decided to accept the bonus, the R5.000 that you deposited can only be withdrawn if the trading volume above is met. In the scenario we just suggested, you will now have R7.000 in your account (R5.000 + R2.000 bonus). Now let’s say you decide to place a trade and profit R850, which automatically makes your account balance R7.850. This amount will not be eligible for withdrawal.

In the worst case scenario, which, unfortunately, can be more common than you think, brokers automatically give bonuses with each account and without asking for any permission from the trader. Cases like this are exactly why many unlicensed brokers receive such a high number of complaints and bad reviews on a daily basis. People all around the world want to spread the word and warn potential victims to look out for these scams – it could happen to you. 

 

Unauthorized Credit Card Charges

If you have received an unauthorized credit card charge from your broker, there could be two explanations:

  1. Your payment was processed twice and it was an honest mistake.
  2. The broker that claimed to double your invested money, lost it all. They often call you after this to convince you to make a second investment and give them more of your money to trade with.

Whatever the case may be, the moment you see an unauthorized charge to your credit card, you should contact the credit card fraud department immediately and try to dispute the charges.

In conclusion, it is important to always remember that trading is a huge risk and before you decide to invest your money with a broker, do the research and always be aware of the types of scams out there and exactly how to avoid becoming a victim yourself. On the other hand, if it is “too late” and you have already been scammed by a broker, make sure to carefully read and follow the steps outlined above according to each case.