Binomo Review - Not Recommended Broker

Summary

 

Binomo is a non-regulated online broker, which is owned by Dolphin Corp LLC, a company registered under the laws of Saint Vincent and the Grenadines. It is a member of the “The Financial Commission”, a self-regulatory organization. Binomo offers online trading in various assets but, according to our research, is not regulated by any of the trusted government agencies.

We do not recommend trading with this broker.

We at BrokerChooser care about our users: we want to make sure you have a good understanding of how investing works, and we have reviewed over 100 brokers to help you decide which fits your needs best. We also want to help you to avoid bad experiences.

In this article, we highlight a broker that we do not recommend based on the objective research of BrokerChooser’s analysts. Read below to find out which brokers we do recommend!

 

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Binomo overview
Regulation No regulation
Foundation date 2014
Annual financial statements published No
S&P credit rating No
Big 4 auditor No
Listed on stock exchange No
Banking background No
Investor protection No

Binomo Review - Not Recommended
Regulation

The Binomo brand is owned by Dolphin Corp LLC, a company registered under the laws of Saint Vincent and the Grenadines, which is a small Caribbean country considered as being a tax haven and which tends to be used by offshore companies.

Binomo offers CFD trading via a different company, Titawin Limited, which Binomo states is its “affiliated company”. According to Binomo’s website, Titawin Limited is licensed by the Vanuatu Financial Services Commission (VFSC), which we do not consider to be a top-tier regulator. Vanuatu is considered as being another offshore haven that provides little regulatory scrutiny.

Binomo also is a member of the “The Financial Commission”, which is not a regulatory body. FINACOM PLC LTD. and its affiliates (“Financial Commission”) is an independent self-regulatory organization and external dispute resolution body based in Hong Kong. Membership provides protection of up to €20,000 from the compensation fund, but only if a member, such as Binomo, refuses to adhere to a judgment from the Financial Commission, according to its website.

It's good to know that the company - according to its client agreement - does not provide services in EU countries, plus North Korea, Canada, USA, Australia, Malaysia, Norway, Iceland, Liechtenstein, the United Kingdom, Andorra, Vatican, Monaco, San Marino, Switzerland, Israel, Syria, Singapore, Hong Kong, New Zealand, Iran, Saint Vincent, and the Grenadines, Moldova, Japan and the Russian Federation.

The bottom line is that there seems to be no regulation and little investor protection. While we have found no record that the company has been sanctioned or put on a warning list, there are plenty of options for you out there in terms of regulated online brokers that could be a much more reliable choice.

It’s important to note that not all unregulated brokers are scams, but in our opinion, the lack of regulation is a red flag. Therefore, BrokerChooser does not recommend trading with a non-regulated provider.

Binomo Review - Not Recommended
Main issues

Binomo has numerous issues why we don't recommend you use it for trading:

  • The lack of regulation is the biggest red flag.
  • Information about the company or companies behind Binomo is also scarce. It is not clear when the company was founded, and we couldn't find any key data such as financial statements.
  • Investor protection only seems to be provided by the Financial Commission, which is a private entity, not a regulatory body, and also only for very specific conditions.
  • Binomo is also not available in any of the major markets, such as the countries of the European Economic Area, the UK, Australia or the US.
  • Bank card withdrawals are only available for cards issued in Ukraine or Kazakhstan, according to Binomo's website. Bank account withdrawals are only available for banks of India, Indonesia, Turkey, Brazil, Vietnam, South Africa, Mexico and Pakistan.

 

Binomo Review - Not Recommended
How to get your money back

In its client agreement, Binomo states that if the dispute between the client and the company has not been resolved within one month of filing a complaint with the company, the client can turn to the Financial Commission or the court under Saint Vincent and the Grenadines law to resolve the dispute. However, that provides little guarantee for your money back.

We recommend you thoroughly check the broker you start trading with before you deposit any money. In any case, document everything, make screenshots, save emails and chats, so you have as much proof as possible in case you need to go to the authorities.

You can also try chargeback, which is a feature offered by banks and payments systems for client protection. ​​In case of a chargeback, the issuer bank or acquirer writes off the funds from the account of the seller of the service if the service was not provided. This mechanism helps protect clients against broker scams.

 

If you get scammed by a broker you have a few options you can try to get your money back:

  • You can turn to your bank and file a chargeback request.
  • You can take legal action and issue a Mareva (or freezing) injunction against the company.
  • If the broker has a financial regulatory body, you can also report the scam to them.

Binomo Review - Not Recommended
How to spot if a broker is a scam?

There is a higher likelihood that a broker might be a scam if:

  • it is not regulated at all
  • it is regulated under a jurisdiction widely seen as an offshore haven (e.g. Vanuatu or St. Lucia)
  • it is featured on a warning list of a top-tier regulator (e.g. the UK’s FCA, or the SEC in the US)

 

If you would like to know more about scams, how to avoid them, and how to get your money back, read our Forex trading scams page.

Author of this article

Eszter Zalan

Author of this article

Eszter is a Brussels-based content editor and writer with over fifteen years of experience in journalism. She thrives in researching complicated issues and explain their essence in a plain and clear language to guide you through the world of finance.

Eszter Zalan

Content Editor

Eszter is a Brussels-based content editor and writer with over fifteen years of experience in journalism. She thrives in researching complicated issues and explain their essence in a plain and clear language to guide you through the world of finance.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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