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  1. #1
    Moderator Kolyo's Avatar

    Hot The Binary Options Brokers Stings – Are you Folks Really Regulated?? !!!

    Hi guys,

    We have a very important article discussing a subject that every one of us should be aware of!

    What is more important and valuable – regulation or reputation, or maybe both of them? There are many companies claiming that they are regulated, when this is not true or they are just in the process of regulation. Also many companies that are very new and unknown, but claim they are fully regulated because their parent company is a licensed broker. Check the full article about Binary Options Regulation and find out why good reputation is much more important factor when selecting your binary options broker!

    Regulation or Reputation – Which One Should I Choose?

    I don’t know if you have more questions and doubts now than you had before reading this article but don’t worry, that’s how I feel too sometimes. The fact is that we will probably never find the perfect, flawless broker which is 100% safe and 100% professional, but I would rather choose a broker owned by a regulated company (even if that company owns an FX broker as well) than go for a broker who just claims to be regulated and when you check CySEC’s website you realize that’s not true. Yea, nowadays a lot of brokers say they are regulated and in fact they are not (best case scenario – they are in the process of regulation)… but bottom line is that a good reputation is better than regulation sometimes so whatever you do, go for a reputable broker and stay away from the fake “leaders” of the industry.

  2. #2
    Administrator Martin Kay's Avatar
    Guys, read read read over and over again. Very important piece on how so-called regulated brokers are taking advantage of CySec. Regulation is not everything!!! Regulation or reputation - I'd go with Reputation!

  3. #3
    Veteran Member Dan21's Avatar
    Thanks Kolyo! Really great subject and good conclusion! Trading with “regulated” broker is not enough to be sure that everything will be alright with it. I will be much more confident and comfortable with high reputation broker. That’s why the opinion of other traders is so important and all the reviews on BOTS site are so valuable to us!

  4. #4
    Veteran Member hchandra's Avatar
    This one is a must read,
    when a broker regulated by CySec I deal with them cautiously,
    because regulation not a guarantee that is good company,

    Other parameter I use is how big their dealings, if they handle big funds and have ample supplies of cash then it is good,
    but its not a guarantee too.

  5. #5
    Rookie Member
    Thank you, Kolyo! It's a highly important info for everyone. Appreciate it! earlier i went for Regulation, cause i thought this way it'd keep my money on a safe side. now i'll be more curious about broker's reputation

  6. #6
    Active Member
    You have to watch out for reputation as well. Fake reputation can be bought: Just look here for example:

    In this day and age, you have to take what others say with a grain of salt. Here's my reasons:

    1. This is the wild west.
    2. people get paid big bucks to put in positive reviews
    3. competing brokers put in fake attacks
    4. Newbie traders dont understand the bonus conditions, or dont want to give their documents to brokers, so they end up calling scam when really they shouldn't.
    5. Just saying right now, it's nearly impossible to go by what websites say, etc about a broker. EVEN forum posts can be iffy, but not all the time, just use discernment.

    Here's what I think is the best bet (not a 100% sure thing, but nothing in life is a 100% sure thing):

    1. Personal friend or family vouching for a broker (not all of us have that luxury)
    2. Established business location, hell send them a certified letter by mail and see what happens.
    3. Been in business for at least 3 years. but try to go for longer. the longer they are in business the better. As a general rule, most businesses fail in 3 years.
    3. Alexa rank is very good, which means they get a ton of traffic. Getting a ton of traffic is no easy feat, costs a ton of money, and requires a ton of repeat traffic.
    4. The more money they have, the safer you are in knowing they can afford to pay you a big payout.

    Nothing is a sure thing, this is just my own newbie opinion and I hope this helps.

    Here are some RED FLAGS:

    1. You deposit, they call and they're pushing you do deposit money for bonus, they do not tell you what the bonus conditions are.
    2. They promise you big profits, they say a you have to deposit now hurry hurry hurry.
    3. They are slow to respond to customer inquires, or do not acknowledge they received one.
    4. They don't answer the phone when you call.
    Last edited by tonechild; 04-04-2014 at 02:56 PM.

  7. #7
    Moderator Kolyo's Avatar
    Thank you for sharing with us this watch list, tonechild!

    It is very helpful when deciding which binary broker to select. There are many ways for the scam brokers to use fake regulation and even fake reputation, besides it is much more difficult, but you can not hide a bad reputation if you are several years in the business. So the rule number one for selecting binary brokers to trade must be to chose the longest present broker with as little as possible complains. There are really complains that are irrelevant but if you spot for real complains and you can’t find such for long period of time that is very high probability indication that the broker you are examining is really fair and honest. At BOTS we have many different ways to check and distinguish good from bad brokers and all this data is combined and used when the rating of each broker is calculating, thus ensuring we are most accurate and precise. There always will stay a probability that a high reputation broker could fail in the future but this probability is insignificantly small. That’s why we are so proud to have such a great data base with reviews and rating of every broker out there, a great tool for each trader to check before deciding where to go.

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