A Look Inside Brokers Dirty Secrets

Winchargeback - Recover Your Losses From Online Trading Scams

Winchargeback was founded to help and advice our clients on how to get their investment back from illegitimate online trading companies, that as you know, are becoming a real concern to regulatory authorities around the world. We have paved the way for the past three years for companies like us, helping clientele from all over the world and from any financial statements, and we have earned in return a strong reputation in the filed. You could find more information about us in the following link, www.winchargeback.com.

We have decided to create a new thread where we will share inside information about brokers procedures and the goal of it.
Please do not hesitate to ask questions as we believe at Winchargeback that the only way to create a cleaner and scam safe environment is by investor collaboration.


Enjoy and share your feedback we are here for you all.

Winchargeback team.

Trading Account Verification Secrets - Verify your trading account!

To fully activate a trading account with a broker each client is expected to verify the account.
When verifying a trading account, the investor would be asked to send these documents:

1. Deposit confirmation form
2. Copy of I.D/ Driver license/ Student I.D/ Senior citizen I.D.
3. Copy of the credit card used to deposit funds to the account, front (with just the last 4 numbers showing) and back (with a valid signature)
4. Proof of Address- a utility bill from the last period (some companies require a POA from the last 4 month and others from the last 6 months)
5. Bank statement- from recent times

It is not uncommon for regulated authorities, such as banks around the world, to ask for these documents and details.
It is understandable that when you open an account that it would be linked to you and you alone.
While many Binary Option companies claim they are requesting these details for the same reason
(AML Law- Anti money laundering law) many Binary Option companies use this for several reasons:

1. Client consent- when a client sends all the necessary docs to verify the account, this can be used as a proof that the client approved this account, agreed to the terms and conditions and knew about the high risk in trading.
2. Real information- unlike what the client tells his broker, getting these doc's could show the broker a more intimate look to the clients life, for example- through the POA the broker can look up the client address and see what type of neighborhood and house he owns, this would give a strong and accurate indication of the client’s investment “potential".
3. Bank statement- although the broker can’t see the client status in the bank, if the client is sending an informed statement, the broker can see the clients most common expenses, using the information to leverage sales.
4. Copy of credit card- it’s very straight forward, a platinum credit card will have more benefits then a basic credit card. The brokers know each card for its benefits, limitations and line of credit- the most important information for them.

How and what to watch out:
If you found yourself activating a trading account but you are not sure if you like to continue or not do not verify the account!
Not verifying the account gives you an advantage especially if you’re unsure about trading,

1. You would not be allowed to trade - This is an advantage since brokers tend to rely on the client eagerness to make money, to push him to trade excessively. When a trader is active, he is most likely to lose, therefore would have to deposit more funds to the platform.
   A non-verified account will restrict the trader's actions, resulting in an extended time to decide if to continue or not.
2. You will become a risky client - Clients who don’t verify their account after activation are considered within the brokerage as risky clients, simply because they can argue the consent for the services provided with their credit card provider/ bank.
   In fact, if the client would to open a chargeback dispute for the activation funds, he would be favored as there is no clear consent.
3. You would be unable to add more funds to the account - Just like the last section (2) once a client deposits funds but does not verify the account he is automatically classified as a “risky client”, meaning that if the client activated the account with the minimum amount the risk is quite low.
   If the client deposited a large amount the risk is higher, and if the client would to charge it back through the credit card provider/ bank this could result in processor fines and even processor termination.
4. If you would ask for withdrawal you are most likely to get it - The broker/ customer support representative will still try to convince you to send all the verification docs, but if you stick to your gun, and claim that you want to cancel the account due to the request to supply sensitive information, the brokerage will eventually approve your withdrawal.
   More than that, if you have activated an account, and didn’t send the docs and didn’t talk or communicate to the brokerage (like customer support, broker, account manager etc.) you will be classified as a risky client within a week, and most likely would be refunded automatically once the set time frame is completed (with every company it's different, some will refund after a week and some after 10 days..)

More industry secrets are yet to come stay tuned!

Winchargeback team.

Converted, Retained and Profiled – How a Broker Builds a Client Profile

Client profiling is done in almost every business, and if Binary Options have taught us anything is that profiling your clients could guarantee long term income while maximizing the “client potential”.

Converted client

Most privet sector investors know by now that by leaving their information on a promotion advert would result in a massive amount of incoming calls.

That first call is extremely important for the broker platform.

Experienced traders know by now that within activating an account with funds you would be asked 5 main questions,

How old are you?

What do you do for a living?

Are you married or single?

Are you an experienced trader or a first timer?

What you would like to achieve from this investment account / what is your goal?

These questions are usually masked under the excuse that the information is to build the account profile, in fact, these questions are for the company to build the client profile.

Those 5 questions helps the company evaluate the clients’ potential, where the goal is to keep the investors trading and maximize money deposits into the broker platform.

Retained investor

Every client that registered to the company has a negative ROI until the point he returns his acquisition value.

When it comes to online brokers, a “good” retention agent will assure his clients keep trading and depositing.

They tend to prioritize personal relations, rather than professionalism and good results.

The broker would rely on building a close and almost friend like relationship; pushing it to high trust level, depending on the intention that the client will be in a position which he will not feel comfortable saying no, or want to disappoint their broker by making a withdraw or requesting to stop a position.

Using the information gathered from the conversion agent, the broker (retention agent) continues to build the client profile. The longer and deeper their relationship gets, the better and more detailed the client’s profile becomes.

What should I notice?

First conversation:

If you prefer to activate your account through the representative (and not through the platform itself) you should keep an eye for the following:

Conversation pace:

Conversion representatives work on statistics, meaning the more clients you call the bigger chance you will “convert” clients.

To keep this ball rolling, conversion representatives won’t spend more than 15 minutes to get all the information they need, including the payment information.

If you feel that you are being rushed or pushed to make a deposit, stop and remember that you are not obligated to follow through with their instructions. Window shopping for the right brokers is more than fine, and in fact an intellectual business must.

Insufficient information:

Clients would get a brief and “on point” explanation about the trading method and certain terms and conditions. In fact their sale tactic is to get the client in to a “Yes” mode.

Asking mainly questions they know the client will answer ‘yes’ too, is a psychological method they use that known as “conditioning the mind”.

Client that keeps answering yes is most likely to agree when asked about a desire as money.

Small talks:

If your broker is talking more about his wife and kids, or if there is clear flirting and excess flattering rather than talking about actual market events – this should be a red flag!

There shouldn’t be any reason for a broker and a client talking like friends over the phone. At the end of the day, a real qualified and legally licensed broker does not look for friends in his portfolio. He looks for investors that could meet his portfolio standards and conditions.

Liquid titles:

Long term investors might have noticed this one.

When they first started, they had a “broker” working on their account. Then, they were assigned to a different representative, an “account manager” or a “financial adviser”.

If you are a relatively small investor (under 50K account) and you are assigned to a high-level broker (such as the floor manager, VIP analyst, anything that sounds exclusive) you should be very skeptical.

Usually this is a well-used manipulation tactic to make a hard client feel exclusive and to sweet talk's him into adding more funds.

Winchargeback team.

Is Your Broker Legitimate? - First broker question for legitimate trading

Trading platforms and brokers have become an amazing tool for the small and independent investor.

The supply has overcome the demand and when a new investor comes in this filed he must make sure he is joining a legitimate investment broker
Throughout the years of excellent service given by Winchargeback, out team advises to check the following before activating a trading account with funds:

1) Does the trading broker have regulation?
Global financial authorities have come to learn that there is a true need for regulation to keep the investors funds safe.
When looking for a broker to trade with the investor should look for a platform that is regulated by the investor country, for example: if the investor is from the UK he should look for a broker regulated by the FCA.
The list of financial authorities by country are easily found in Google.

2) Does your account manager/ broker have a trading license?
Do not feel ashamed or embarrassed to ask you r account manager what his education and if he have a trading license.
More than that, don’t take the information for granted, if something sound or feel fishy- take the time to thoroughly understand.

3) What is the withdrawal policy?
Withdrawing should NEVER be an issue.
Before activating a trading account with funds, you should always make sure you understand the withdrawal policy of the broker, at the end of the day it’s YOUR money and the broker should act as an agent that allows you to access the market.

4) How is the company making their cut?
A very legitimate question that not so many tend to ask.
A legitimate brokerage would deliver the service fees in the “terms and conditions” or at the time of activating the account with funds.
This is very important information that should help you decide what broker services you prefer.
If the company disclose that they are making their cute through the investment bank by winning trades- this should be a red flag.
No bank will pay for the broker movement or success in the financial market.

There are many ways to make money online using the financial market, and it is the costumer responsibility to make sure his money is safe, just like with any investment; risk should be a calculated factor.
No matter the state of the trading account and the history of the trading- never ever try to cover loses with funds you can’t afford.
Make sure your broker and you are working with a plan and that plan is following through.

If you think you have been scammed by online trading platform, contact us today!


Winchargeback team.

The withdrawal game - The basic action to spot a scam

Making a profit online is worth nothing if you can’t cash out.
One of the things that set off Binary Option trading as a financial scam was the issues to withdrawal profit or even the initial investment. Although most platform claims that withdrawing is as easy as 123, most clients find that to be bogus when they try to cash out on their investment.

We can easily spot 4 main tactics to keep a client from withdrawing.

 

1. Prepare your client:

As we have explained in previous threads; there are two main divisions that handle the traders and the accounts, Conversion and Retention.
While the Conversion department is all about getting clients to activate their account with funds, Retention department is all about keeping the clients in the system and maximizing their potential to the company.
A ‘good’ retention agent will allocate more than 30 minutes to his first “introduction call”, as mentioned in previous threads, that’s where the broker profile and calculate his client potential.
During that call, most brokers talk to their clients about the withdrawal prospects, getting the client to promise not to withdrawal until a specific point (either a certain amount of profit or a certain month.)
And in many cases once they reach that point either there is no money to withdrawal or by that time, there was a certain manipulation to keep the client from withdrawing.

1. Keep active:

Opportunities for good events never seem to stop in the financial market, every hour of every day- something is happening that is worth your money.
Brokers will try to make the client that is wishing to withdrawal interested in some sort of wonderful event.
Pointing out only the good prospects of the position and filling the client head with fantasies of a bigger amount to withdrawal, they get the client so excited that instead of withdrawing the client is most likely to deposit more money just to cash out more than they intended.
Even if the client didn’t add any funds to get that event, once the client opens the position his account will automatically be blocked for withdrawing but allows deposits.

 

1. Bonuses:

As mentioned before, bonuses are a dirty trick to keep clients away from their money.
By accepting a bonus/ insured trades/ safe trades etc. the client is locking himself in the system, in many cases bonus funds would be presented as company money to the client, explaining that this “loan” should be paid for in the form of Turnover AKA the trader activity in the market.
Usually the turnover amount is from 30 times and can go up to 90 times higher than the deposit.
For example, if you would to accept a bonus for 5,000 USD with term of 90% turn over you will have to open positions in the sum of 450,000 USD.
In most cases when a client attempts to reach this percent he would lose his entire account funds in the process.

 

1. Lack of communication:

If the broker tactics failed and the client insists on taking back his money, it is normal for the platform to break communication with the client.
If the client would try to reach his broker, he would be hanged to dry, probably the broker won’t return the client messages or calls.
One day the client would get a new broker and that broker would (most likely) explain to the client that he is from a “recovery division” and his old broker was fired over the lack of success, getting the client to a position of trust again.
If the client would to call costumer support he would be answered every time that his request is forwarded to his broker, when in fact, the client's status is updated in the system to “no potential”, the broker won’t get that memo, it will be simply, brushed under the carpet for no one to return or deal with.


Keep in mind, all brokers relies heavily on personal relationship, many clients would not feel comfortable withdrawing due to what they believe to be good relations with their broker.

Is there another way to get my withdrawal?
Only by knowing how these brokers operate and knowing what to request and ask.
If you know you would like to cash out on your investment, make sure you follow these guide lines:

1. Read the terms and conditions carefully! Keep an eye for any loop holes - they will use them to keep your money locked!
2. Never take bonus/ insured trades/ promotions etc.
3. Even if you wish to close your account, do not say that to your broker! Instead ask to withdrawal small amounts.
4. Test the withdrawal process - If you are asked why you would want to withdrawal, simply say “to test your withdrawal system” in most cases when the amount is low (under 2K) and the client states he want to test the withdrawal the broker would approve without a question- to keep the impression they are safe.
5. Threat - once you find yourself in this never-ending loop of asking for your money back and getting nowhere, threat and threat some more.Go online to
6. review sites and tell other independent investors your story. Other than alerting others that could walk in to this sticky financial trap, you will get the broker attention. They have a whole division to deal with bad reviews, trying to keep their name clean on the web to get more future victims, most brokers would pay to get a bad review down.
7. Keep communications documented - if you would like to take this issue to your bank, they will need proof of the manipulations and the illegal conduct of the broker.
8. Don’t be dazzled by empty promises.

To understand how hard it is to withdrawal from an illegal brokerage you must understand how Retention agents get payed:
In 99.9% of illegal brokerages the Retention rep gets a percent of the deposit his client made.
So, if he is working under a 5% per deposit basis, a simple 5K deposit will translate to 250 in the representative’s paycheck.
So, when you ask to withdrawal from your account you are actually asking the representative to deduct the amount you want, out of his paycheck.
This tactic where if you make a deposit you cash in 5% and when the client withdrawal you get deducted the whole amount the client requested puts the broker, an employee, in a problematic position, where he would prefer to keep your money and his salary intact and just leave his client financially dry.

If it feels wrong do not hesitate to contact us for consulting.

Winchargeback team.

The withdrawal game.

Making a profit online is worth nothing if you can’t cash out.
One of the things that set off Binary Option trading as a financial scam was the issues to withdrawal profit or even the initial investment. Although most platform claims that withdrawing is as easy as 123, most clients find that to be bogus when they try to cash out on their investment.

We can easily spot 4 main tactics to keep a client from withdrawing.

1. Prepare your client:
As we have explained in previous threads; there are two main divisions that handle the traders and the accounts, Conversion and Retention.
While the Conversion department is all about getting clients to activate their account with funds, Retention department is all about keeping the clients in the system and maximizing their potential to the company.
A ‘good’ retention agent will allocate more than 30 minutes to his first “introduction call”, as mentioned in previous threads, that’s where the broker profile and calculate his client potential.
During that call, most brokers talk to their clients about the withdrawal prospects, getting the client to promise not to withdrawal until a specific point (either a certain amount of profit or a certain month.)
And in many cases once they reach that point either there is no money to withdrawal or by that time, there was a certain manipulation to keep the client from withdrawing.

2. Keep active:
Opportunities for good events never seem to stop in the financial market, every hour of every day- something is happening that is worth your money.
Brokers will try to make the client that is wishing to withdrawal interested in some sort of wonderful event.
Pointing out only the good prospects of the position and filling the client head with fantasies of a bigger amount to withdrawal, they get the client so excited that instead of withdrawing the client is most likely to deposit more money just to cash out more than they intended.
Even if the client didn’t add any funds to get that event, once the client opens the position his account will automatically be blocked for withdrawing but allows deposits.

3. Bonuses:
As mentioned before, bonuses are a dirty trick to keep clients away from their money.
By accepting a bonus/ insured trades/ safe trades etc. the client is locking himself in the system, in many cases bonus funds would be presented as company money to the client, explaining that this “loan” should be paid for in the form of Turnover AKA the trader activity in the market.
Usually the turnover amount is from 30 times and can go up to 90 times higher than the deposit.
For example, if you would to accept a bonus for 5,000 USD with term of 90% turn over you will have to open positions in the sum of 450,000 USD.
In most cases when a client attempts to reach this percent he would lose his entire account funds in the process.


4. Lack of communication:
If the broker tactics failed and the client insists on taking back his money, it is normal for the platform to break communication with the client.
If the client would try to reach his broker, he would be hanged to dry, probably the broker won’t return the client messages or calls.
One day the client would get a new broker and that broker would (most likely) explain to the client that he is from a “recovery division” and his old broker was fired over the lack of success, getting the client to a position of trust again.
If the client would to call costumer support he would be answered every time that his request is forwarded to his broker, when in fact, the client's status is updated in the system to “no potential”, the broker won’t get that memo, it will be simply, brushed under the carpet for no one to return or deal with.


Keep in mind, all brokers relies heavily on personal relationship, many clients would not feel comfortable withdrawing due to what they believe to be good relations with their broker.

If you encounter problems do not hesitate to contact Wincahrgeback.

Different methods to get my withdrawal:

Only by knowing how these brokers operate and knowing what to request and ask.
If you know you would like to cash out on your investment, make sure you follow these guide lines:

 

1. Read the terms and conditions carefully! Keep an eye for any loop holes - they will use them to keep your money locked!
2. Never take bonus/ insured trades/ promotions etc.
3. Even if you wish to close your account, do not say that to your broker! Instead ask to withdrawal small amounts.
4. Test the withdrawal process - If you are asked why you would want to withdrawal, simply say “to test your withdrawal system” in most cases when the amount is low (under 2K) and the client states he want to test the withdrawal the broker would approve without a question- to keep the impression they are safe.
5. Threat - once you find yourself in this never-ending loop of asking for your money back and getting nowhere, threat and threat some more.
6. Go online to review sites and tell other independent investors your story. Other than alerting others that could walk in to this sticky financial trap, you will get the broker attention. They have a whole division to deal with bad reviews, trying to keep their name clean on the web to get more future victims, most brokers would pay to get a bad review down.
7. Keep communications documented - if you would like to take this issue to your bank, they will need proof of the manipulations and the illegal conduct of the broker.
8. Don’t be dazzled by empty promises.

To understand how hard it is to withdrawal from an illegal brokerage you must understand how Retention agents get payed:
In 99.9% of illegal brokerages the Retention rep gets a percent of the deposit his client made.
If an agent is working under a 5% per deposit basis, a simple 5K deposit will translate to 250 in the representative’s paycheck.
When you ask to withdrawal from your account you are actually asking the representative to deduct the amount you want, out of his paycheck.
This tactic where if you make a deposit you cash in 5% and when the client withdrawal you get deducted the whole amount the client requested puts the broker, an employee, in a problematic position, where he would prefer to keep your money and his salary intact and just leave his client financially dry.


If you still encounter withdrawal issues please contact Winchargeback for help!

What is your take on True ECN brokers?

Hi Degolep,

It is a great question,

Scam could be done both on market maker and ECN brokers. Each model has different ways to scam users, needless to say, that many scams are made by actions with account management and misleading signals.
Winchargeback goal is to fight scammers and not the entire industry, we do acknowledge that there are legit players in the industry and there are investors who make money with those brokers. Winchargeback's goal is to help the industry become cleaner and safer for all type of investors.

ECN brokers feels more legit as their business model is built from commission out of every transaction a user is doing on the platform. If you take the biggest companies as an example they have millions of users which makes them a profitable company just by taking those commissions. In order to become profitable you are depended on the amount of users to make sustainable income. Having said that, smaller ECN brokers might still be scam since the amount of users is much lower.

We saw employees of regulated companies scamming clients pushing them to make investments they are not sure about, pushing the clients by all type of approaches and even giving ilegal advice's they are not allowed to give just to increase their salary bonus.


We would love to hear your thoughts about the subject.

Winchargeback

Good Thread, but you got a couple of Typo Errors.
Run it through a proof reader.

Fighting back - Don't give up!

Most independent traders realize they have been scammed when it’s too late.
Although traders around the world are aware to the high potential to fall to a financial scam is fairly high with online trading brokerages, still, not many traders know how to monitor or what to notice when they are starting work with a now brokerage.
As we tend to stress, a healthy dose of skepticism is a good thing when you decide to try out a new brokerage.

Don’t be lazy!

1. Terms and conditions

Most services (especially online) would require the client approval for the terms and conditions, and most clients do not read what they claim to agree for.
It’s never an issue until it is.
Since this type of business is trusted with traders’ funds, never the less- you can’t be too thorough, read the terms and conditions cheerfully, make sure you understand everything you are planning to agree to.
With most Online trading brokerages, the Terms and Conditions would be available to read even if you didn’t activate an account, mostly found in “About Us”/ “Company policies”.
Keep an eye out to unclear hooks and ask a representative to explain them in a clear manner.

1. Contracts

As we have explained in previous threads, many of the contracts given by the brokers to their traders are built to protect the brokerage and keep a client locked in.
Many of the given contracts state (in fine print) that by signing the contract the trader approves the terms and conditions of the brokerage.
So needless to say; everything that requires your signature must be inspected to the letter if anything is unclear- stand your ground and insist clearance, this is their tool to deny withdrawal or other conditions.

Gather Evidence!

 

1. Communications

In the case of working with a brokerage you can be positive that they keep a department or even two to monitor and track their clients, so once there is a request to withdrawal/ cancel the account or just a simple complaint- the brokerage would pull out evidence to prove that the client got the requested service and to keep the client from canceling or complaining to higher 3rd party authorities.
Either by recording all outgoing calls or by the signed documents the client sent in.
To be able to fight back, traders must keep evidence from their side as well, keep track of the following:
1. Promises:
If your broker tends to promise profit/profit plan, success in a position, withdrawal date etc.
Demand that promise in writing! It will help you keep track of the targets and the set timeline and it will keep you grounded and not so likely to fall for a “too good to be true” offer.
2. Contracts:
Keep all documents saved, so if and when there is a misunderstanding between you and your broker you can check again on what terms you signed.
In many cases brokerages tend to change their terms (especially for withdrawal) according to the client, if you keep all signed documents you can easily argue that this “new term” was not mentioned at the time you signed the contract, meaning you did not agree to the stated term.

Documenting broker communication is the key to win.

If you believe you got scammed and would like one of our rep to take a look please contact us today!

Winchargeback.

Charge Back

Every credit card holder has security on his transactions.
If you found yourself trapped in an online scam, and you have made your last deposit in the last 4 month you might have a chance to Charge Back the transaction through your credit card provider or your local bank.
Make sure to provide them with evidence that will support your claim that the services provided were not according to the service they claim to provide.
Use the chargeback code of “service not as described”

Due to the working protocol of online trading scams, it is becoming harder to claim for a chargeback, therefore if you feel that this is the issue and want to make sure it has been done correctly contact us today!

Winchargeback.