Binary trading is a type of online currency trading where only two options are available.
The trader has to decide if the value of a certain currency will increase or decrease, and if he chooses correctly, a profit is added to his account.
This type of trading has been growing in popularity because it’s relatively simple.
This makes it an attractive offer for people who are down on their luck and are looking for ways to make some fast cash.
Binary trading in itself is not a scam, but there are a lot of people who create fake or harmful tools and scam thousands of people out of there hard-earned cash.
But it is very similar to gambling and gambling is not exactly a legitimate, safe, business.
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There are A Lot of Scams in The Binary Trading World:
A lot of scam artists take advantage of people’s desire for fast cash and create bots that are supposed to open and close trades for you.
Unfortunately, these programs rarely work as promises, and can be rather expensive.
Most of these trading bots are advertised as free services but there is really a hidden fee, a deposit fee, that is required to activate bot.
These fees vary depending on the binary trading broker that you sign-up for, but the average deposit fee is 500 U.S. Dollars.
So, the scam artist will create a simple bot based on the framework of open-source bots that can be found online for free, advertise it as a free “Ground-breaking” software, and refer people to a trading broker company for a handsome affiliate fee.
To be clear, most of the tools are useless, and there are very few that will actually earn a profit.
It might be auto-pilot, but if the bot is losing more trades then it wins, is it really worth it?
You’ll see these bots advertised all over the internet as god’s gift to traders; the key to wealth, the ultimate product that will instantly deposit thousands of dollars into your bank account on a daily basis, and other false promises.
You’ll see sales videos that advertise a life of leisure, fancy mansions, models, sports cars, and other demonstrations of wealth.
It’s a sham.
I came across quite a few of these binary trading scams and I have written reviews for a few on this website.
Most of them are identical, and they all have the same red-flags that you should to learn to spot, otherwise you might fall for similar scams.
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Ralph Davis’ 2015 Millionaire Club System:
Recently I came across a product called Ralph Davis’ 2015 Millionaire Club System.
This product is a perfect example of the type of binary trading bot scam that I mentioned in the previous paragraphs.
It has all the red-flags. Let’s take a look.
First, the sales video is 80% hype and there’s very little meat, it’s one of those classic sales videos that promises wealth beyond your imagination and a life of leisure and luxury, a pipe dream.
During the end of the sales video, the speaker, called Ralph Davis, finally explains that this is a binary trading bot that will automatically make profitable trades for you.
It sounds cool on paper, sign-up for a bot, deposit some cash, let the bot run, and come home to a bunch of cash in your account.
Except, sadly, it doesn’t work like that.
The outcome is rarely positive.
How it Works:
So the first step is to enter your email address to gain access to this amazing software.
Once that’s done you’re referred to a trading broker to set up an account and deposit funds.
Then you are allowed to access the product, once activated, it will open and close trades automatically depending on your configurations.
But there is a learning curve, and a lot of luck is needed to earn a profit on your trades.
It’s really similar to gambling and even if you know all the insider details to binary trading you will still lose some trades, it’s simply impossible to predict the future.
As a trader, it will be difficult to earn money, even if the bot is activated.
More often then not, the bot will fail, and the trades will operate at a loss, and that means money out of your bank account.
In other words, it will simply drain all your funds and you’ll be left wondering what happened.
Therefore, I really don’t recommend automatic binary trading bots, they’re faulty, and can drain all your funds in a very short period of time.
Another Point of View:
Now, let’s look at this from the marketer’s point of view.
Unfortunately, there are two parties in this scheme that benefit more than the consumer; the broker and the marketer.
These two parties will profit much more than the trader, if the trader ever does profit at all.
The marketer creates an affiliate account with the broker.
Broker companies tend to pay high affiliate fees, and sometimes even up-front or monthly bonuses.
The marketer creates a free giveaway of sorts to encourage people to sign-up to the broker that he is working as an affiliate for, this brings in a steady stream of commissions.
The marketer walks away with the commissions and the broker takes a cut on the total amount the trader manages to earn.
What I Didn’t Like:
I wouldn’t mind of these marketers offered a giveaway that is actually valuable, but that rarely happens, therefore I consider most of these automated traders scams.
Most bots don’t work.
I’m sorry if you fell for this kind of scam, but hopefully, after reading this article, it will be easier for you to spot similar scams in the future and you won’t waste any more time on useless products.
So, in a nutshell, stay away from auto-traders and bots, and be weary of sales videos that promise the world in exchange for an email address, there is always a catch.
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Have you tried binary trading? What do you think about binary trading bots? Leave a comment below and share your opinion.