Binary Options Scams
Binary options scams catch out a long list of aspiring traders every year. It is all too easy to be drawn to attractive advertisements and trading systems promising large profits for a small capital outlay. In this article, we review common binary options trading scams in 2025. We also explain what you can do if you get scammed and share tips for avoiding fraudulent brokers.
See our list of trustworthy binary options brokers below to start trading today.
Binary Options Brokers UK
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Pocket Option provides ultra-short-term contracts, starting from just 5 seconds, on an intuitive platform ideal for novice traders. Payout rates exceed 90%, comparable with competitors, and the 'Double Up' and 'Rollover' functions enable additional earning possibilities. On the downside, its range of over 130 assets is less extensive than that of brokers such as Quotex, which offer more than 400 options.
Min Deposit Payout % Expiry Times $50 92% 5 seconds - 4 hours Bonus MetaTrader 4 Markets 50% Deposit Bonus Yes Forex, Stocks, Crypto, Commodities -
IQCent provides binary options featuring exceptional payouts up to 98%. The platform, albeit with basic analysis tools, accommodates various timeframes ranging from 1 minute to 1 month, supporting both short and long-term trading strategies. However, it is worth noting that stock binaries are unavailable.
Min Deposit Payout % Expiry Times $250 98% 5 seconds - 1 month Bonus MetaTrader 4 Markets 20% to 200% Deposit Bonus No CFD, Forex, Crypto, Commodities -
Capitalcore has broadened its range of trading products by adding binary options for forex, metals, and cryptocurrencies, offering returns of up to 95%. Designed for short-term traders, contract durations vary from 1 minute to 1 hour. The user-friendly web platform makes trading simple; just click 'Call' if you predict a price increase or 'Put' for a decrease.
Min Deposit Payout % Expiry Times $10 95% 1 minute - 1 hour Bonus MetaTrader 4 Markets - No CFD, Forex, Stocks, Crypto, Commodities -
CloseOption provides binary options trading on over 30 fiat and digital currencies via a user-friendly online platform. With 15 contract durations ranging from 30 seconds to 1 month, it caters to both short-term and long-term traders. New users receive a welcome bonus.
Min Deposit Payout % Expiry Times $5 95% 30 seconds - 1 month Bonus MetaTrader 4 Markets - No Forex, Crypto -
Videforex provides binary options with competitive returns, offering 20% payouts on cryptocurrencies and up to 98% on more stable assets. This outperforms many rivals. Traders can choose contracts ranging from 5 seconds to 1 month. Additionally, new users benefit from a welcome deposit bonus.
Min Deposit Payout % Expiry Times $250 98% 5 seconds - 1 month Bonus MetaTrader 4 Markets 20% to 200% Deposit Bonus No CFD, Forex, Stocks, Crypto, Commodities -
Engage in trading high-low binary options on currencies, metals, and cryptocurrencies, offering significant returns. Binary options provide a clear wager on the short-term movement of an asset.
Min Deposit Payout % Expiry Times $10 86% 1 minute - 48 hours Bonus MetaTrader 4 Markets - Yes CFD, Forex, Stocks, Crypto, Commodities -
RaceOption provides over 100 trading options with payouts reaching 95% and expiries starting from just 5 seconds. A minimum deposit of $250 allows clients to benefit from zero deposit fees, swift withdrawals, and an array of trading bonuses.
Min Deposit Payout % Expiry Times $250 95% 5 seconds - 30 days Bonus MetaTrader 4 Markets 20% - 200% Deposit Bonus No CFD, Forex, Stocks, Crypto, Commodities -
AZAforex provides trading in binary options, featuring time-sensitive payouts that range from 30 seconds to 24 hours. More than 50 options are available, requiring a minimum investment of just $1, with potential returns of up to 90%.
Min Deposit Payout % Expiry Times $1 90 30 seconds - 1 day Bonus MetaTrader 4 Markets - No CFD, Forex, Stocks, Crypto, Commodities -
BinaryCent offers binary options trading across various markets via an intuitive in-house platform. With a minimum investment of just $0.10 per trade and potential returns of up to 95%, it caters to casual and low-capital traders, providing substantial profit opportunities.
Min Deposit Payout % Expiry Times $250 95% 5 seconds - 30 days Bonus MetaTrader 4 Markets 20% to 200% deposit bonus No CFD, Forex, Stocks, Crypto, Commodities -
World Forex provides binary options requiring just a choice of stake, price movement, and contract duration. Returns can reach up to 100% on American agreements and 85% on European ones, with the latter also offering a partial refund for traders exiting early.
Min Deposit Payout % Expiry Times $1 100% 1 minute - 7 days Bonus MetaTrader 4 Markets - Yes CFD, Forex, Stocks, Crypto, Commodities
How Binary Options Scams Work
£87,000 is lost to victims of binary options scams every day in the UK, according to Action Fraud. Misleading trading systems often advertise themselves as a simple and low-risk method of getting rich quickly. With promises of regular profits, fraudulent platforms typically draw in customers via social media messaging, advertisements and cold calling.
It is, unfortunately, not difficult to find scammers abusing platforms such as Instagram, by showing off expensive cars and clothes and offering to teach people their trading secrets for a fee. In reality, they often just take the money and run.
Types Of Binary Options Scams
Portfolio Management
One of the more common types of binary options scams involves a supposed portfolio manager. Someone presenting themselves as a professional trader controls investments on your behalf. You may be asked to make a deposit to a broker who will then execute binary options trades, promising returns at a guaranteed rate.
You may even be shown doctored images to show how well your portfolio is doing and encouraging you to invest more. When clients request their funds to be withdrawn, however, the broker either avoids the request or does not respond at all.
TB Options Limited is an example of a binary options scam that fraudulently promised a portfolio management service. The brokerage offered to make investments on its clients’ behalf after an initial investment of £5,000, yet never permitted withdrawals. Over the course of its operations, TB Options Limited scammed customers out of a staggering £475,000.
Hidden Fee Structures
Dubious online brokers, who offer binary options trading, present themselves as being safe and reliable, with a slick, professional website, but often the information on how fees are charged is hidden or not available at all. Additionally, there may be exceedingly high minimum withdrawal limits.
Hidden in the terms and conditions can also be clauses stating that clients can only transfer funds back to their bank account after generating a profit equal to 20 or 30 times the initial deposit.
Unrealistic Advertisements
Tantalising advertisements promote binary options trading scams on social media and online forums. You may be contacted on Instagram, Twitter, Facebook or other messaging sites with claims of guaranteed returns if you trade with a certain broker.
Be aware of any advertisement that includes the term ‘no risk’ or ‘free money’ because no strategy or trade is ever without risk or totally free of charge. An example of this is Magnum Options, a fraudulent broker which contacted potential clients through social media with an advertised, impressive 81% return rate. But after depositing funds, clients were not allowed to process a withdrawal. In total, customer losses exceeded three-quarters of a million pounds.
What To Do If You Fall Victim To A Scam
Be Prepared For Follow Ups
If you have been scammed, it is likely you will be targeted again. The first thing you should do is change your contact details, be it an email address or a phone number.
The fraudster will likely sell your contact information to other scammers so be cautious when receiving messages from unrecognised sources in the future. You could even be called by a binary options scammer offering to get your money back for a fee.
Claim A Chargeback
It is possible to genuinely recover funds lost to binary options scams. Websites such as MyChargeBack.com work alongside banks to see if lost capital can be reclaimed. Consultations are free and are a good way to see if you have a valid claim to a chargeback. Keep in mind, however, that not all banks permit chargebacks.
Alert The Authorities
If you are scammed, you should inform the relevant financial regulators. The Financial Conduct Authority (FCA) has several options for reporting scams, either via a contact form on its website or via a customer helpline. The number is 0800 111 6768.
You will be asked to provide information such as how you found out about the binary options scam, what the system involved, how much you have lost and any contact details. This can help the regulator shut down the scam site quickly and prevent other traders from falling victim.
You could also put messages on trading groups on social media to help investors avoid certain platforms and brokers.
Protecting Yourself From Binary Options Scams
Customer Reviews
Following an FCA ban on firms offering binary options to retail traders in 2019, UK investors must either use unregulated or offshore brokers. This means you cannot rely on licensing to verify if a brokerage can be trusted or not. With this in mind, read customer reviews and ratings on websites like TrustPilot or consult trading forums on Reddit.
You can also read reviews of brokers that offer binary options trading on our website. Each review includes details on available payment methods, a rating on trustworthiness and a general summary.
FCA Warning List
The FCA publishes a warning list on its website detailing firms that the regulator has investigated and found to have conducted scams. If you encounter a binary options broker that is included on this list, you should not use its services or make a deposit. If you are unsure about a certain platform or broker, you can contact the FCA to verify its legitimacy.
Avoid Contact From Questionable Sources
Binary options scams contact many of their victims through robot accounts on social media or by making cold calls. If you receive a message from unrecognised accounts or calls from unknown numbers discussing binary options trading, take extra care. It is rare that genuine brokers and platforms will reach out to traders if they have not already registered an account.
Read The Broker’s Website
Certain aspects of a broker’s website can be a clear giveaway of a scam. There may be indications that the page was hurriedly put together and, if it seems less than professional, then it is possible that the broker cannot be trusted to offer a genuine service.
Look out for:
- Spelling mistakes or text that does not make sense.
- Claims to hold a license with the FCA. No brokers regulated by the FCA can offer binaries to retail traders in the UK.
- Registered addresses which are unrelated to a broker and which may be a domestic rather than a business setting.
Adopt Risk Management Strategies
If you plan to use a platform of which you are unsure, reduce your exposure by investing a small amount to start with. A common risk management approach is known as the 1% strategy and can help to mitigate the impact that binary options scams can have on your portfolio.
The premise is simple – risk no more than 1% of your total portfolio on a single trade.
Bottom Line On Binary Options Scams
Binary options scams may be all too common but following the tips provided here can go some way to helping you to avoid them. Choosing a broker is a task that should not be taken lightly so you need to do plenty of research into your available options before you start trading. Use our list of trusted and reliable brands to get started today.
New types of binary options trading scams are constantly popping up so be on your guard at all times. If you are unfortunately caught out by a binary options trade scam, let other investors and the authorities know so that the fraudulent broker can be stopped as soon as possible.
FAQ
Can I Recover My Funds Lost To Binary Options Scams?
It depends on your case and the bank you used to make a deposit. You can check with your bank either by reading its website or contacting its support team. Alternatively, you can have a free consultation with MyChargeBack.com. You may also want to avoid any binary options broker that demands deposits are made using cryptocurrency – this is a common red flag.
Are All Binary Options Scams?
Not all binary options platforms are scams – there are genuine and high-quality brokers offering binaries to clients. You do need to be careful, however, because UK laws mean that retail traders must use unregulated or brokers based in foreign countries.
Is There A Binary Options Scams List?
There is no exhaustive list as new binary options scams are created on a regular basis and it would be nigh impossible to keep across them all. When searching for brokers, read the FCA’s warning list as well as lists provided by foreign regulators, such as the CySEC.
How Can I Avoid Binary Options Scams?
Trusting your instinct and ignoring hyperbolic adverts will help you stay safe from binary options scams. If you sense that a broker is unscrupulous or you feel uneasy about their services, it is better to be safe than sorry and avoid them.
Can I Trust Customer Reviews On Binary Options Scams?
Customer reviews are, by their very nature, people’s opinions – to which they are entitled – but they should always be regarded carefully, and – where appropriate – with a healthy dose of cynicism. Binary options scammers have been known to write fake, positive reviews of websites to attract potential customers.
By the same token, disappointed traders may post negative reviews if they have had an unsuccessful trading session, rather than having a genuine complaint with a broker. Always try to read plenty of reviews to get a general feel about a broker and their service before committing your money.