Beware! Binarium is an offshore broker! Your investment may be at risk.
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Binarium is an offshore binary brokerage registered in St. Vincent and the Grenadines. It provides a web-based trading platform, not the MT4 trading platform but requires an extremely low minimum deposit of just $5. Furthermore, the pay out is quite generous at 90 percent and above the industry average.
Binarium regulation and safety
On the brokers website we read that the broker brand is owned and operated by a SVG-based company with the name Binarium Ltd. Although we have repeated it many times, we will highlight again that Saint Vincent and the Grenadines is a well-known offshore zone and a preferred location for shady brokerage. We also remind readers that the government of SVG has multiple times publicly stated that it does not oversee Forex trading and thus we may safely conclude that not only is the brokerage not regulated. Even though the brokerage claims on its website to have offices in Europe, this is most likely a bogus statement since binary options trading is sctrictly prohibited throughout the European Union. Furthermore, trading with an offshore, unregulated brokerage hides a lot of risk. There may be commingling which means that the brokerage may commingle together the finances of the firm and the finances of the clients.
Overall, the lack of regulation inclines us to suspect that potential clients of the brokerage may be open to substantial risk. Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.
Binarium trading software
The brokerage does provide a web based trading platform and offers a test-drive as well, which isn’t something common with scammers. Through the demo account we were able to get a glimpse of the platform. On it we could see that the maximum payout is at 90 percent on EUR/USD which is quite high and definitely not disappointing. We remind readers here that throughout Europe binary options trading has been banned and offshore brokerages are those that mostly provide this service to traders. Of course there are unregulated EU brokerages that are operating illegally which also offer it, however, we urge readers to steer clear of such firms.
Binarium deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via the standard Visa, MasterCard and bank wire, as well as Neteller, Yandex, QIWI, WebMoney.
We could not find anything troubling in the client agreement of the broker which lends it legitimacy. However, often unregulated brokers such as Binarium offer attractive bonus promotions we remind readers that such promotions are always tied with trading turnover requirements which make it almost impossible to withdraw the funds. This is why we advise traders to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
How does the scam work?
Even though the Forex trading world is extremely large and encompasses millions of people around the globe, the most common scamming is pretty simple and straightforward and as such – it’s not particularly daring to avoid. Here is a quick overview of how it is done: Through clicking an ad with promises for fast money, you will be redirected to a website such as DaxRobot or CryptoContracts where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit. After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left. Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The angle here is pretty blunt – traders have a limited time period for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back. It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And with the case Traderia – they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.
What to do when scammed?
As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you. You may contact your bank or credit card provider and file a chargeback. If, however, you have provided the broker with your credit card details, immediately cancel your credit card. If you have given information regarding your online banking pass – you should switch it asap! Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!
Edward
Horrendeous! Customer Service is NON-existent, NEVER replied to my emails and close the account without warning, and refuse to open/keep the demo open. I am a live account holder who needs continuous access to demo account but it keeps getting closed down. Instead of looking into my complaint, the rude chat bot-like customer ‘service’ agents keep closing down the chat. My request is not unreasonable, but I am met with pure hostility by any customer service agent. I was only able to recover some of the money lost through (Recoveryexperts0 @ Gmail) Also, their knowledge is abhorrent. It’s impossible to get a quick answer to any simple question. Really painful experience, especially when I have open positions in my trading account and need a real answer. STAY AWAY!
mohamed ismail
here is my review about binarium broker after you make a good profit with them and at the time you try to request to withdraw some of your profit they will block your account with no good reason even if you follow all their rules for trading.
Warning!
Binarium is a scam