It’s amazing how quickly the popularity of binary options trading has grown over the last 5 years among retail financial traders. In response to this incredible market expansion more and more binary options brokers are setting up shop on the internet. Because the fast expanding market provide a fertile ground for easy pickings, we also see an increase to the number of scam brokers popping up and trying to pass themselves off as  legitimate brokers. Some of these scam brokers are so good at what they do, that you have no idea that you are being scammed until you try to withdraw you money.

However before you go running off and start screaming “Scam!”, first take a deep breath and check and see if you have complied with all the terms and conditions imposed by the broker. And if after checking that you have met their stipulations, then it is time to start the formal process of trying to get your money back from the broker. Take note the process is slightly different for a regulated broker and unregulated broker.

For Regulated Brokers

Step 1: Contacting Customer Support

First contact customer support to ask why your withdrawal request has been blocked by the broker. Explain to the customer support representative that you have complied with all the terms and conditions imposed by the broker and give the support staff all the relevant details. Be polite and explain that you are trying to cooperate with them in order to resolve the situation amicably. Give yourself 2 to 3 business days to see what the outcome will be. If after 3 days the customer support representative is still unwilling or unable to assist you, then it is time to proceed to the next step.

Step 2: Filing an official Complaint

The next step here consists of informing the customer support that you intend on filing a complaint with the regulator of the broker. Usually the threat of filing an official complaint with the regulator is enough to get the broker to approve your withdrawal request and release the funds to you.

If the threat of filing an official complaint doesn’t spur the broker into action, then you will have no choice but to proceed down this path. Before you can file an official complaint with the regulator, you need to know which jurisdiction or regulatory authority has oversight over the operations of the broker. In addition, you also need to find out information such as the company name, registration number as well as their financial service provider license number. This information is usually prominently displayed on the broker’s website, as most brokers tend to use their regulated status to boost their credibility as well as encourage people to sign up with them.

Step 3: Information on Regulatory Authorities

Armed with all the relevant information about the broker as well as details of your complaint, you can proceed to lodge your complaint with the regulatory authority which has jurisdiction over the broker in question. Below is a list of financial regulatory bodies that might be able to help you sort out the problems with your complaints against your broker.

• Australian Securities & Investment Commission (ASIC)
  

Tel Number: 1300 300630 / 0061 3517 73988 (Intl)

• Belize International Financial Services Commission
  

Telephone Number: 0501 822 2974

• British Virgin Islands Financial Services Commission
  

Telephone Number: 0284 494 1324 / 0284 494 4190

• Bulgaria Investment Intermediary with the Financial Securities Commission
  

Telephone Number: 0035 9294 04999

E-mail: bg_fsc@fsc.bg

• Cyprus Securities & Exchange Commission (CySEC)
  

Telephone Number: +357 22506600

Email: info@cysec.gov.cy

• Financial Conduct Authority UK (FCA)
  

Telephone Number: 0800 111 6768 (Toll Free) / 0300 500 8082 / +44 207 066 1000 (Intl)

• Malta Financial Services Authority
  

Telephone Number: 800 74924 (Toll Free) / 0035 6254 85700 (Intl)

E-mail: consumerinfo@mfsa.com.mt

• New Zealand’s Financial Service Providers Register (FSPR)
  

Telephone Number: 0508 377 746 / +64 3 962 6162 (Intl)

• Seychelles International Business Authority (SIBA)
  

Telephone Number: 0024 8438 0800 / 0024 8438 0888 (Intl)

Dealing with Unregulated Brokers

When it comes to dealing with unregulated brokers, your options are rather limited. Essentially, you are limited to:

• Speaking about the broker on trading forums and warning others about dealing with the broker in question
• Inform your bank your situation and get them to institute a chargeback on your credit card. Take note that you normally have a 60 days lead time from the day you made your deposit using your credit card. So if you want to take this route, then time is of the essence.

There is no doubt that if you are dealing with an unregulated broker, you will have to struggle to get back your money from them. There is less recourse for you. This is why we highly recommend that you only deal with brokers that are properly regulated. With regulated brokers, apart from having a regulatory agency to look after your legal interest, you are entitled to receive compensation under investors protection schemes with which regulated brokers have to be a member of before they can receive their operating license from the regulatory agency.