• Report: #1048266
Complaint Review:


  • Submitted: Fri, May 03, 2013
  • Updated: Mon, July 14, 2014

  • Reported By: baa912 — Savannah Georgia
Internet USA

bocapital.com Scam Internet

*Author of original report: bocapital.com & traderxp.com changed name to sycamoreoptions.com

*Author of original report: Read what US CFTC has to say about bocapital.com and traderxp.com

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News Release

For Immediate Release - bocapital.com and traderfx.com Scam Revealed!

April 26, 2013 - This all started when I opened an account at traderfx.com, a binary options company, in November 2012. I immediately had problems with their platform as I wanted to trade currency pairs and their system did not allow currency pair trading in the US even though their web page stated it did. It was not until I had already made a deposit and tried to execute a trade that I got an error message stating the trade was not allowed in the US. This is extremely deceiving!

I immediately called John Reily with Traderfx.com and explained I wanted to trade currency pairs only and I wanted a refund. Of course, this is when the run around started.

He told me they were coming out with a new platform at bocapital.com that would allow forex trading in the US. He said he would transfer my balance over to bocapital.com. I agreed and when I started using bocapital.com I found it to be extremely slow and it would lock up completely after each trade. I would have to reload the webpage after each trade. Even with all these problems, it was still barely usable, so I continued to trade. I decided on April 13, 2013 to do a trial withdrawal and I haven’t received the withdrawal or any kind of response to by support requests since. It seems that bocapital and traderfx.com are one way systems - you can deposit, but you can’t withdraw.

Beware of bonuses... it seems there is a scam within a scam when it comes to bonuses. Say you deposited $1000 and received a $1000 bonus. It would seem that you could withdraw your $1000 deposit money at any time as stated in their terms. But if you take the bonus, they require that you trade 20x the deposit plus bonus before you can withdraw anything. i.e. the example above, you would have to execute trades of $40,000 with just a $2000 balance in order to make any withdrawals. In other words, you’re no going to be making any withdrawals.

These are definite scam operations and you should avoid them at all costs!

If you have been scammed by these companies, please contact the FBI internet crimes division and file a report today at http://www.ic3.gov/default.aspx.

This report was posted on Ripoff Report on 05/03/2013 01:52 PM and is a permanent record located here: http://www.ripoffreport.com/reports/bocapitalcom/internet/bocapitalcom-scam-internet-1048266. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 Author of original report

bocapital.com & traderxp.com changed name to sycamoreoptions.com

AUTHOR: baa912 - ()

 Source... http://www.binaryoptionswatchdog.com/find-sick-sycamore-options/

Sycamore Options is the latest binary options scam, this one is one of the worst kind of scams. After careful research, WatchDog’s conclusion is that SycamoreOptions.com is the same scam site as TraderXP.com both operating illegally without a regulations or licensing to provide users with binary options services. TraderXP has been around for a couple of years, but after receiving extremely horrible reviews , it’s obvious why they decided to incorporate under a new name.

One would expect TraderXP to learn from past mistakes and possibly try to keep the new brand clear from negative reviews, of course that is only if their intention was or is to change their ways. Unfortunately the reviews are only getting worst with Sycamore Options. Traders are now reporting the inability to withdraw funds, but also misuse of their credit cards and sensitive information.

Posted on a review from ForexPeaceArmy, a trader complained that after depositing $200 with Sycamore Options, he later found out that they charged his card 4 additional times for $200 each time, leaving him with a credit card debt of $1000. Trying to contact these scam artists was his next, sad to say, pointless move. It’s clear that if they charged the card 1+4 additional times with no consent, there’ really nothing to talk about with these guys, unless you find a good lawyer to send them a threatening letter. Just remember that these scams are always ahead of the game, before you know it they disappear and change their innocent sounding name to something even more innocent.

The most troubling thing about Sycamore Options is that they just came out a few weeks ago, and already the internet is filled with negative reviews of the worst type! This is definitely a “fly-by-night” company with no intention to conduct legitimate business. They probably are not planning to stay long in business which explains why they charge credit cards without any consent.

If you deposited money with TraderXP or Sycamore Options, it won’t be enough to file a dispute, you have to contact your cc company and request to cancel the card ASAP. This is a serious scam. They are not in anyway a legitimate binary options site. They are not regulated and they are merely just a TraderXP brand used to scam people from other angles.

If you have any experience with TraderXP or Sycamore Options, make sure to share it below and help WatchDog deter other traders from falling victims to this scam! Hopefully most readers have not yet deposited their money with this scam, otherwise if you did, make sure to testify your experience below for others to see. If you have doubts and want to give Sycamore Options or TraderXP a chance, do yourself a favor and Google search these companies first, not after it’s too late!

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#2 Author of original report

Read what US CFTC has to say about bocapital.com and traderxp.com

AUTHOR: baa912 - ()



The Commodity Futures Trading Commission’s (CFTC) Office of Consumer Outreach and the Securities & Exchange Commission’s Office of Investor Education and Advocacy are issuing this Investor Alert to warn about fraudulent schemes involving binary options and their trading platforms. These schemes allegedly include refusing to credit customer accounts, denying fund reimbursement, identity theft, and manipulation of software to generate losing trades.

Binary Options

Binary options differ from more conventional options in significant ways. A binary option is a type of options contract in which the payout will depend entirely on the outcome of a yes/no proposition.

The yes/no proposition typically relates to whether the price of a particular asset that underlies the binary option will rise above or fall below a specified amount. For example, the yes/no proposition connected to the binary option might be something as straightforward as whether the stock price of XYZ company will be above $9.36 per share at 2:30 pm on a particular day, or whether the price of silver will be above $33.40 per ounce at 11:17 am on a particular day. Once the option holder acquires a binary option, there is no further decision for the holder to make as to whether or not to exercise the binary option because binary options exercise automatically. Unlike other types of options, a binary option does not give the holder the right to purchase or sell the underlying asset. When the binary option expires, the option holder will receive either a pre-determined amount of cash or nothing at all. Given the all-or-nothing payout structure, binary options are sometimes referred to as “all-or-nothing options” or “fixed-return options.”

Binary Options Trading Platforms

Some binary options are listed on registered exchanges or traded on a designated contract market that are subject to oversight by United States regulators such as the CFTC or SEC, respectively, but this is only a portion of the binary options market. Much of the binary options market operates through Internet- based trading platforms that are not necessarily complying with applicable U.S. regulatory requirements. The number of Internet-based trading platforms that offer the opportunity to purchase and trade binary options has surged in recent years. The increase in the number of these platforms has resulted in an increase in the number of complaints about fraudulent promotion schemes involving binary options trading platforms.

Typically, a binary options Internet-based trading platform will ask a customer to deposit a sum of money to buy a binary option call or put contract. For example, a customer may be asked to pay $50 for a binary option contract that promises a 50% return if the stock price of XYZ Company is above $5 per share when the option expires.

If the outcome of the yes/no proposition (in this case, that the share price of XYZ Company will be above $5 per share at the specified time) is satisfied and the customer is entitled to receive the promised return, the binary option is said to expire “in the money.” If, however, the outcome of the yes/no proposition is not satisfied, the binary option is said to expire “out of the money,” and the customer may lose the entire deposited sum.

There are variations of binary option contracts in which a binary option that expires out of the money may entitle the customer to receive a refund of some small portion of the deposit—for example, 5%—but that is not typically the case.

In fact, some binary options Internet-based trading platforms may overstate the average return on investment by advertising a higher average return on investment than a customer should expect given the payout structure. For instance, in the example above, assuming a 50/50 chance of winning, the payout structure has been designed in such a way that the expected return on investment is actually negative, resulting in a net loss to the customer. This is because the consequence if the option expires out of the money (approximately a 100% loss) significantly outweighs the payout if the option expires in the money (approximately a 50% gain). In other words, in the example above, an investor could expect, on average, to lose money.

Investor Complaints Relating to Fraudulent Binary Options Trading Platforms

The CFTC and SEC have received numerous complaints of fraud associated with websites that offer an opportunity to buy or trade binary options through Internet-based trading platforms. The complaints fall into at least three categories: refusal to credit customer accounts or reimburse funds to customers; identity theft; and manipulation of software to generate losing trades.

The first category of alleged fraud involves the refusal of certain Internet-based binary options trading platforms to credit customer accounts or reimburse funds after accepting customer money. These complaints typically involve customers who have deposited money into their binary options trading account and who are then encouraged by “brokers” over the telephone to deposit additional funds into the customer account. When customers later attempt to withdraw their original deposit or the return they have been promised, the trading platforms allegedly cancel customers’ withdrawal requests, refuse to credit their accounts, or ignore their telephone calls and emails.

The second category of alleged fraud involves identity theft. For example, some complaints allege that certain Internet-based binary options trading platforms may be collecting customer information such as credit card and driver’s license data for unspecified uses. If a binary options Internet-based trading platform requests photocopies of your credit card, driver’s license, or other personal data, do not provide the information.

The third category of alleged fraud involves the manipulation of the binary options trading software to generate losing trades. These complaints allege that the Internet-based binary options trading platforms manipulate the trading software to distort binary options prices and payouts. For example, when a customer’s trade is “winning,” the countdown to expiration is extended arbitrarily until the trade becomes a loss.

Unregistered Transactions, Operations, Broker-Dealers, or Trading Exchanges; Illegal Options Transactions

In addition to ongoing fraudulent activity, many binary options trading platforms may be operating in violation of other applicable laws and regulations, including certain registration and regulatory requirements of the CFTC and SEC, as described below.

Certain Registration and Regulatory Requirements of the SEC

For example, some binary options may be securities. Under the federal securities laws, a company may not lawfully offer or sell securities unless the offer and sale have been registered with the SEC or an exemption from such registration applies. For example, if the terms of a binary option contract provide for a specified return based on the price of a company’s securities, the binary option contract is a security and may not be offered or sold without registration, unless an exemption from registration is available. If there is no registration or exemption, then the offer or sale of the binary option to you would be illegal.

If any of the products offered by binary options trading platforms are security-based swaps, additional requirements will apply.

In addition, some binary options trading platforms may be operating as unregistered broker-dealers. A person who engages in the business of effecting securities transactions for the accounts of others in the U.S. generally must register with the SEC as a broker-dealer. If a binary options trading platform is offering to buy or sell securities, effecting transactions in securities, and/or receiving transaction-based compensation (such as commissions), it likely should be registered with the SEC. to determine whether a particular trading platform is registered with the SEC as a broker-dealer, visit FINRA’s BrokerCheck.

Some binary options trading platforms may also be operating as unregistered securities exchanges. This would be the case if they matched orders in securities of multiple buyers and sellers using established non- discretionary methods. However, there are cases where a registered broker-dealer with a trading system or platform may legitimately have no obligation to register as an exchange.

Certain Registration and Regulatory Requirements of the CFTC

It is illegal for entities to solicit, accept offers, offer to or enter into commodity options transactions (for example, foreign currencies, metals such as gold and silver, and agricultural products such as wheat or corn) with U.S. citizens, unless those options transactions are conducted on a designated contract market, an exempt board of trade, or a bona fide foreign board of trade, or are conducted with U.S. customers who have a net worth that exceeds $5 million.

To see the most recent list of exchanges that are designated as contract markets, check the CFTC website.  There currently are only three designated contract markets offering binary options in the U.S.: Cantor Exchange LP; Chicago Mercantile Exchange, Inc.; and the North American Derivatives Exchange, Inc.  All other entities offering binary options that are commodity options transactions are doing so illegally.

Further entities that solicit or accept orders for commodity options transactions and accept, among other things, money to margin, guarantee, or secure the commodity options transactions must register as a Futures Commission Merchant. Entities that act as the counterparty (that is, they take the other side of the transaction from the customer as opposed to matching orders) for foreign currency options transactions for customers with a net worth of less than $5 million must register as a Retail Foreign Exchange Dealer.

Because of their lack of compliance with applicable laws, if you purchase binary options offered by persons or entities that are not registered with or subject to the oversight of a U.S. regulator, you may not have the full benefit of the safeguards of the federal securities and commodities laws that have been put in place to protect investors, as some safeguards and remedies are available only in the context of registered offerings. In addition, individual investors may not be able to pursue, on their own, some remedies that are available for unregistered offerings.

Final Words

• Remember—much of the binary options market operates through Internet-based trading platforms that are not necessarily complying with applicable U.S. regulatory requirements and may be engaging in illegal activity.

• Do not invest in something that you do not understand. If you cannot explain the investment opportunity in a few words and in an understandable way, you may need to reconsider the potential investment.

• Before investing in binary options, you should take the following precautions:

1. Check to see if the binary options trading platform has registered the offer and sale of the product with the SEC. Registration provides investors access to key information about the terms of the product being offered. You can use EDGAR to determine whether an issuer has registered the offer and sale of a particular product with the SEC.

2. Check to see if the binary options trading platform itself is registered as an exchange. To determine whether the platform is registered as an exchange, you can check the SEC’s website regarding Exchanges.

3. Check to see if the binary options trading platform is a designated contract market. To determine whether an entity is a designated contract market, you can check the CFTC’s website.

• Finally, before investing, use FINRA’s BrokerCheck and the National Futures Association’s Background Affiliation Status Information Center (BASIC) to check the registration status and background of any firm or financial professional that you are considering. If you cannot verify that they are registered, don’t trade with them, don’t give them any money, and don’t share your personal information with them.

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