Forex Broker

RatingFX: independent rating of Forex brokers

Phone scams by St Binary or Boiler Room 2.0

St Binary

Fraudulent schemes in binary options trading have been in the media spotlight recently. The latest high-profile cases were in Israel in 2016, when the prosecutor's office received numerous complaints about such companies.

The Times of Israel decided to begin its investigative reporting on the fraud. While for customers, who want to return their money, it is not an easy thing to contact a scam broker, getting a job in such a firm is a breeze. They promote themselves here, there, and everywhere.

There are many job ads with a vague description in social networks. The Israeli journalist sent his resumé to one of these agencies. A few days later, he was contacted by an anonymous number and was invited to an interview.

When the reporter came to the meeting, it turned out that Metamorpha Management was not a recruitment office, but a binary options company called Binary St or St Binary.

Binary St office

It was found that the best candidates must have an excellent command of English and persuasion skills. 

A journalist was successfully given probation. Below are the inside facts about the phone scam from the sales agents of binary brokers.

How do binary brokers’ agents work?

The company’s office is located in Ramat Gan, Israel. There is a small room full of computers and phones. Three big television screens are booming Bloomberg TV. The background TV noise helps persuade customers on the other end of the line that they are talking to international experts who work in a financial hot spot. For similar reasons, staff is banned from speaking in a language other than English. They all call each other by fake names they use in their calls.

The work of a sales agent is aimed at persuading clients to deposit money in binary options trading by phone. Some agents with extensive experience are personal managers, giving recommendations on trades and in all ways encouraging customers to continue replenishing their deposits.

The working day often lasts from 11:00 am to 1:00 am to contact as many clients as possible. The sales agents drink a lot of coffee and energy drinks, which undoubtedly affects their emotional state. This is a real marathon. A whiteboard lists the names of all the employees. Columns detail their clients’ deposits.

Sales results board in Binary St office (photo by Iacopo Luzi)

Salespeople at Binary St (aka Smith and Taylor Options) are paid a wage of about $1,440 per month plus a bonus of every deposit they get from customers: $20 for an initial deposit of $250, $80 for a deposit of $500, and $120 for a deposit of $1,000.

“Once a client opened an account for $250,000 and the sales agent got a bonus of $25,000,” one of the employees said.

The sales agents make about 30 calls an hour on average, using a system that hides the phone number’s country of origin. Most often they pretend that they are calling from Zurich, Paris, or London.

Clients whom sales agents called were people who had provided their details after seeing some ad on the internet or had responded to email newsletters.  Sales agents had all personal information of customers, which they could see on their individual computer screens — first name, last name, country of origin, phone number, address, and even social security number.

The computer systems also enable them to see whether customers are logged in to their accounts.

It is easier to convince clients to trade when they are online, because they are ready to follow the manager’s instructions at the moment. After customers are convinced to make a first deposit, they are guided through a trading process and are told to invest more money.

The agents admit that they have no interest in the success of the client's trade; the goal is to make them deposit.

They talk in a friendly, but insistent manner. Sometimes it is even threatening.  Often customers just give up and agree to put in money. This is a kind of psychological violence, which works especially well with desperate and poor people.

Out of 70 calls, there are only a few when the client does not actually deposit funds or at least promises to do so.

If clients have an account that is blocked for international transactions, agents tell them to call their bank and unlock the payment. “It’s going to take five minutes,” the sales agent says.

“I will rob you blind.”

Before and after a phone call, the sales agents insulted customers. “I will rob you blind,” one agent said, muted.

Phrases the journalist heard made him believe that the binary broker’s employees would do almost anything to get their customers’ deposits. “This thing will change your life,” they assured clients. “You need to be a winner,” “You have a 70 to 80% chance to win here,” “Do you want to remain poor and miserable for the rest of your life?” “You will make a lot of money.” And this was only a small part of phrases, using which they tried to entice new customers.

The sales agents always reassured their clients and potential clients that Binary St is a regulated company, not a fraudulent firm like others. “We are professionals,” they said. “We make millions for our clients every day.”

The Times of Israel documented some of the numerous tricks that fraudulent binary options brokers use, having analyzed one day of work at Binary St.

1. Misrepresent themselves as investment experts, lying about their identities and location.

2. Take more money from a credit card than a client has agreed to deposit.

3. Make trades without clients’ permission.

4. Reject withdrawal requests.

5. Manipulate trades through rigged trading platforms.

The opinion of the review`s author is private and not obligated to reflect the position of the resource. If you have any remarks and suggestions on new articles please contact us via this form.
Author of St Binary: Reaza | Date 2019-07-16
Binary St. rejected my withdrawals multiple times. And never processed it all in all. They made a lot of excuses, verification, error in the details, problem with the payment method, all kinds of excuses. Then when I became insistent, they terminated my account immediately. I never saw my account again after that.
Author of St Binary: Arten | Date 2019-07-08
I may have forgiven what St. Binary did to me, but I will never forget. I guess I'm too kind for forgiving them even when they didn't even apologize nor admit their crime. I just don't want to keep hating. But as I said, this incident will never be forgotten. I will remember their voices and I will make sure to keep this incident as a reminder not to trust other people so easily regardless of how believable they seem to be. Great criminals truly hide in the image of a decent man.
Author of St Binary: Vivienn | Date 2019-07-01
I can't imagine ever being in the same room with these monsters, breathing the same air. Kudos to the journalist for doing this and exposing the fraudulence that this broker did. My closest friend was a former trader at this broker and it breaks my heart to see her devastated by her loss. What they did is both betrayal and theft. Their clients trusted them so much because of their assertiveness. Trusting anyone is really hard nowadays.
Author of St Binary: Lukie | Date 2019-06-19
A month after opening an account at Binary St, I noticed that the platform started to malfunction. Delays in the charts and the execution became frequent. Then I always received requotes. Eventually, I just found myself looking at a ruined account with more than half of my capital lost. Now I understand that this is what they were doing. Shame on all of them!
Author of St Binary: Uwell | Date 2019-06-11
These people are on the bottom hierarchy of living creatures. I only see them now as monsters after reading what they have been doing behind our backs. They pretend to do everything for our sake but those were actually just to deceive us. I didn't know that something was wrong until they refused to grant my withdrawal request. Until now, I still haven't get any from my fund.
Author of St Binary: Okimun | Date 2019-06-03
Reading this article makes me so furious! I see how they enjoyed making a fool out of their clients. Is this some kind of a sick pleasure? One thing is for certain, these people are thieves who took advantage of the vulnerability of the clients. Next time, what I want to read is an article reporting their arrest and an assurance that they would pay for what they did. I am no longer seeking for the return of my money. I just want them jailed.
Author of St Binary: Itzuno | Date 2019-05-29
I had the worst experience at St. Binary. My previous broker had an extremely terrible platform so I left. I never thought I would end up doing business with a fraud. They seemed very professional when I talked to them. I started trading but after three months, the platform started to act up. Charts were all over the place. I reported it to the support but they simply said it would be fixed soon. Days which turned to weeks had passed and the platform was still faulty. In that span of time, I have been losing my fund because I couldn't close my trades. Now I know why that is. This broker is simply a fraud.
Author of St Binary: Pello | Date 2019-05-17
All of my withdrawal requests were rejected by St. Binary. I deposited more than a thousand dollars at this broker but I was never able to take anything back. They made all kinds of excuses such as problem with the bank and error in the account number. At first I was still believing them but lately I've realized that what they were doing was wrong. Right now, I cannot access my account and they don't answer to my emails.
Author of St Binary: Ehiza | Date 2019-06-26
I was very frustrated during the times when my withdrawal request was being delayed. I tried to be patient and understanding of the excuses that they told me. But I was alarmed when I noticed an active trade in my account which I never opened. It was on the losing end when I saw it and it also closed on its own. As it turned out, this horrible broker has been manipulating my account and making losing trades to burn my funds.
Author of St Binary: Jade | Date 2019-05-02
You know what? My only question really is why? Why did they have to fool their clients? Why does it have to be me? My lack of experience and knowledge is probably the reason I fell on their trap and let myself be deceived. But reading this article angers me a lot because they don't seem to be repenting on what they did wrong and seemed to enjoy scamming innocent people so much. All I want now is to make all the people behind this fraudulence be responsible and be imprisoned.
Author of St Binary: Jordi | Date 2019-05-09
People like them have no conscience at all! I don't expect them to apologize or anything. I'm not even expecting my money to be returned (though it would be so great if that happens). But for now, all I want is for them to be arrested and jailed to make sure that they won't be able to do such fraudulent scheme again. Because closing down a dubious company doesn't stop the wrongdoings. These people could still make ways to deceive other people. That is why they should be punished properly and legally.
Author of St Binary: Maxel | Date 2019-04-26
Prior to the termination of my account, they rejected my withdrawal requests multiple times. At first they were still trying to convince me not to withdraw anything. They told me that funds should just be going in instead of going out. But then after a few rejections, I realized that it is my right to withdraw my fund because that is my own money. I had an argument with the representative and soon after that, I found out that my account was terminated.
1 2 3 4 

Add comment
Brokers Reviews

30% bonus for EACH deposit
Leverage 1:1000

Forex charts and quotes

Special offers
Start trading with
no risks and investments
With new Start-Up Bonus of $1000
Get bonus
from InstaForex
on every deposit
Earn up to
for inviting friends to get StartUp Bonus from InstaForex
No investments required!