How to get money back if the broker cheated?

29/01/202429/01/2024 admin chargeback, money back

Today we will talk about how to get your money back if the broker cheated you . You will learn how to prevent trouble, avoid common mistakes and protect your interests.

Preventive measures

Below we will look at several rules, following which you will significantly reduce the risk of falling for a scammer. They do not guarantee 100% protection, since even market leaders sometimes go bankrupt and do not pay money to clients.

Before making a deposit, open Google and study reviews about the selected broker. Traders hate divorce and immediately share their stories with colleagues.
If the reviews are good, top up your account with the minimum possible amount. So you will evaluate the brokerage service from personal experience and draw a conclusion: continue cooperation and increase the deposit or move to another company.
The working amount of the trading account should not be more than your six-month salary. If you earn $500 a month at your main job, then don’t keep more than $3,000 on deposit. If necessary, you can increase the size of your account to the required amount in just 10 minutes. If the company goes bankrupt and refuses to pay, your losses will be moderate and fixed in advance.
Withdraw your profits monthly and leave only the working amount in your account. If your deposit in a month increases from $3,000 to $5,000, then you must withdraw $2,000. Use this money to form a reserve fund that will help you easily survive the deception of any broker.
Top up your deposit using MasterCard or Visa payment systems. They allow you to use the chargeback option and return money in case of brokerage fraud.

Special cases falsely accepted as deception

The first problem is related to incorrectly entered personal data. Usually it goes like this:

the user quickly fills out the questionnaire;
accepts the terms of the agreement, confirms registration and replenishes the deposit;
when processing an application for withdrawal of funds, the broker requests scanned pages of the passport and other documents confirming the identity of the trader;
The transaction is blocked because there is a data inconsistency.

To correct the error, contact the broker manager, explain the situation and wait for further instructions.

The second common situation is double registration.

You register under a pseudonym, get acquainted with the platform and learn binary options using a demo account.
After a while, you decide to open a real deposit and re-register, but already indicate your real name.
If both actions are performed from the same PC, then the broker may block your account for security reasons. This rule is stated in the “User Agreement”.

To unlock your account, you need to contact technical support. To prevent the situation, just write to the manager after re-registration and ask to delete the unnecessary account.

There is no point in binary brokers deceiving clients, since 90% of them drain their deposits on their own. Fraud hurts business. This is usually done by shell companies that were originally created for a similar purpose. Next we will talk about how brokers deceive traders.

Common deception schemes

Transaction delay	The broker reports that due to technical glitches, withdrawals have been blocked for several weeks.
Accrual of bonus funds	The broker randomly attaches a bonus for binary options to the account, for which you need to complete a large trading turnover. Until the trader does this, all requests for withdrawal of funds are blocked.
Write-off of bonuses	The binary options broker offers favorable bonus conditions that come into force after replenishing the deposit. When a user opens an account, the company changes the rules and does not fulfill its obligations.
Withdrawing a deposit without earned profit	The company spontaneously changed the “User Agreement” and, due to financial difficulties, is not going to pay the trader.

The first signs of deception should be considered one of the moments when a company ignores requests, delays a response, or openly declares that it will not fulfill its obligations. To get started, you need to find out if your broker is regulated. More on this later.

Unregulated brokers

All unregulated companies can be divided into two categories: fly-by-night companies and future market leaders. The difference between them is that the former are not going to develop, while the latter intend to obtain a license and reach a new level. If you encounter a future leader, your problem will be resolved in a general manner through the manager.

Most shell companies are registered in an offshore zone, so users cannot defend their interests at the local legislative level. In this case, it is almost impossible to get the money back. All you have to do is tell your colleagues about the fraud and protect their funds from scammers.

How to chargeback

Chargeback is when the payment system cancels the transaction and returns the money to your account. More information can be found in our article on chargebacks. It works according to the following scheme:

you contact the managers of the payment system through which you topped up the deposit;
in the letter, describe your situation in detail and attach a complete set of evidence (broker’s letters, screenshots of a blocked transaction, etc.);
After checking the information, you receive your funds back.

Chargeback is a last resort and should not be taken as a means of protection against unregulated brokers. Here is a partial list of difficulties you will encounter:

chargeback does not apply to bonuses and earned profits;
to prove the broker’s fraud you will have 540 days;
To carry out the procedure, the account must be replenished through the MasterCard or Visa systems;
if the broker managed to withdraw money from the account, then even if the chargeback application is quickly approved, you will not receive anything back.

Prospect of litigation

Since January 2016, the police have been accepting complaints against the binary broker. The problem is that even if the application is approved and the case goes to court, you will have the following difficulties:

Before registering on the broker’s website, you agree to the terms of service (check the box under the “Open account” button). These conditions are stated in the public offer, which states that the company does not bear any responsibility for trading losses;
if the broker is not registered in Russia, then you will have to turn to international arbitration for legal protection. It is advisable to do this only if you have been deceived for several thousand. Otherwise, the amount of legal costs will exceed the amount that you did not receive from the broker;
to get real compensation, you need to find those responsible and get them to confess in court;
even when the broker’s guilt is fully proven and the responsible persons agree to compensate for the losses, you end up in a queue of thousands of creditors who are hoping to someday receive their payments.

Remember

Before opening an account, find out what clients think about the broker you choose. If there are no complaints, open an account with a minimum amount and evaluate the brokerage service from personal experience.
There are two special cases that are falsely accepted as deception. The first problem is related to incorrectly entered personal data. The second common situation is double registration.
Check which regulator controls the broker. Regulated brokers comply with the law, so to resolve any problem, simply describe the problem to the manager.
Most shell companies are registered offshore. Their activities are not regulated in any way, so it is almost impossible to get your own funds back.
Chargeback and court are extreme measures of protection that are difficult to implement in practice.