Have you been scammed by your broker?

Scammed and angry?Unfortunately there are still many binary option brokers who overcharge their clients with hidden fees or unauthorised credit card transactions.

Have you been overcharged by your broker? Do you feel that your broker has committed a fraud and scammed you out of your money?

If so, this page will inform you about your options and how to get your money back. In some circumstances, if transactions were unauthorized, it is entirely possible to recover your funds.

STEP 1. Try to resolve the issue with your broker first

(If you have already tried reasoning with your broker skip to STEP 2 or STEP 4 below.) If you believe you have been scammed by your binary broker always try to resolve this issue with them first. You can call them to discuss your case but it is much better to communicate with them via email or a chat window so that you will have the whole history of the conversation and the outcome.

Talk to your broker

Be warned that most customer relations employees hired by a broker will try to convince you of trading more to recover your losses. They might entice you with new offers reserved just for this type of occasion. Ultimately, if your goal is to get your money back do not accept any offers and save all your conversations with broker’s representatives.

When your binary broker refuses to issue a refund and you proceed to STEP 2 and approach your credit card company and open a chargeback case, you will be able to add all that conversation history to your case and prove that you had already tried to resolve this issue with your broker unsuccessfully. This will be a big step forward.

In your written communication with the broker pay attention to the following:

  • any false promises made,
  • real broker location vs one that is advertised,
  • how and where payments are processed (see your bank statements for details)
  • legal and rightful owners of the company.

When you add this information to your credit company in support of your case, make sure to organize everything really well, preferably in chronological order and in a single PDF file. If your submitted information is well organized your claim will be processed quicker.

STEP 2. Contact your credit company. Use chargebacks.

Contact your credit card company(If you have already tried your credit card company and were unsuccessful skip to Step 3.) Claiming the funds from your credit card company should be the second step in trying to get your money back. Some ex-employees have revealed that even the threat of a chargeback might be enough to scare the broker into returning unauthorised credit card transaction.

The main reason binary brokers are so afraid of chargebacks is that like any other business they have certain limitations set by their payment processing company and can’t go above a certain percentage of bad transactions or chargebacks.

As you can imagine any imposed blocks, delays, or additional charges by the payment processing companies can be very time-consuming and costly for the broker. Sometimes it’s just easier to return the funds back to the user.

How to open a chargeback case

To begin the process of claiming your money back with the help of your credit company you will need to contact a representative and fill out a form for chargebacks.  You will be asked to state the reason for a chargeback. Depending on your situation the best options to consider would be:

  • fraud, misrepresentation, or breach of contract.

During this whole process you may be asked for additional information. Simply be patient and try to provide everything they ask or need to resolve the matter.

STEP 3. Contact the financial authority overseeing your binary broker

Contact financial authority(If you have already tried these three steps and still could not recover your funds consider Step 4.) Binary brokers are quite wary of regulators and financial authorities which oversee their operational and financial conduct. Therefore any serious and well founded claims made to such authorities can result in a formal investigation.

There have been cases in the past where users got all of their money back from their broker as soon as the regulators launched their investigation. Of course this often takes much longer than expected as regulators only rush in with a formal investigation when there are multiple claims of committed fraud.

The issue with financial authorities that you may encounter is their limited jurisdiction to a specific region or country. They are more willing to help if the claimant is a citizen or at least a resident of the country or region (i.e. EU) in which they have authority and the broker is also registered to operate in their specified region. See a list of financial regulators here.

Use a specialist company to recover your funds

Simply put if you don’t have the time or the experience to file a claim and pursue the entire case against your binary broker yourself, try outsourcing it to a lawyer or a specialist company who will use their knowledge of the law and its processes to recover your money.

chargeback specialistsA company with a good level of success in recovering funds from binary brokers is Mychargeback. They have specialists who deal exclusively with fraudulent transactions made by binary brokers. Based on experience they know how to proceed with a claim and what is most effective approach.

By hiring a specialised firm who will act on your behalf and in your interests will be the first warning sign to your broker that you are serious about getting your funds back.

Hiring a lawyer will be a lot more expensive and expect to be charged be hour and without any refunds.

Not much to lose thanks to a Money Back Guarantee

You only need to pay a fee of $72 to open your case with Mychargeback. However, if your claim is rejected by the bank, your payment will be refunded in full, making this one of the most affordable representations you can use.

Please note that if you decide to open a chargeback case with your credit bank by yourself as described in Step 2 and you lose your case, the decision will be final and you will not be able to reopen the same case again. Using Chargeback in the first instance will increase your chances of recovering your funds.


The truth is that it’s not that easy to recover unauthorized charges by your binary broker. Many have tried and failed for various reasons. The claiming process can be a very daunting task and many users get discouraged too quickly. Those that persevere and keep pressure on their broker, credit card company, their bank, and financial authority will have a greater chance of success in getting their money back.


References and further reading:

1. Lost your money in binary options? Here is how some victims got it back. – Times of Isreal, February 1, 2017, Simona Wineglass

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