- 1 Binary Option Trading – A Vehicle For The HOTTEST SCAM in 2014
- 2 Intro To Binary Option Trading
- 3 What Is It?
- 4 Is Binary Option Trading A Scam?
- 5 A Look At Binary Option Brokers
- 6 My Daily Binary Profits Review
Binary Option Trading – A Vehicle For The HOTTEST SCAM in 2014
Every week “some guy with an ugly website” pops up and promises you $300, $500 or more in profits every single day. And so does “Mr. No-Name” by using “his unique and unbeatable miracle software” for Binary Option Trading.
Some give a name, some don’t. Some give their real names, some use an alias. Some narrate their sales video themselves, others us actors.
And they all have some things in common:
- They all lie to you.
- They all will give you their software for FREE
- They all have a single broker of choice
- They all collect a hefty commission from the broker
- They all are fraudsters
Intro To Binary Option Trading
I am writing a lot reviews about programs that promote binary option trading lately. This by itself does not make me an expert in this field. Therefor, I will keep my intro short and refer you to relevant and detailed information with links to appropriate websites.
What Is It?
“In finance, a binary option is a type of option in which the payoff can take only two possible outcomes, either some fixed monetary amount of some asset or nothing at all (in contrast to ordinary financial options that typically have a continuous spectrum of payoff)”. (source: Wikipedia)
When you win playing roulette you will get 100% of your bet as win, when trading binary option you will get only about 70% of your wager as profit (minus commission for the broker).
It is a very risky form of trading that requires a lot of experience. You are trying to predict if a commodity or asset will be UP or Down at a particular time during the trading session.
And therein lies the high risk. It is impossible for humans and/or computer software to make a 100% correct prediction. About the risks, read this article, published by Forbes.
Is Binary Option Trading A Scam?
No, it is not a Scam. Trading of this kind is a legitimate, although loosely regulated, form of playing the market and actually a way to make money.
There are many things you need to take under consideration before you try your luck. First off, you must decide if you really can afford to lose the money, in case you are guessing wrong too many times.
But most importantly is the choice of brokers.
A Look At Binary Option Brokers
Most of the brokerages are, conveniently, located outside the USA and Western Europe. They prefer unregulated locations like Cyprus, The Seychelles or other places in the Far East. Their business practices are totally unethical and spiteful. For example:
- You will not get a refund of your initial deposit in case you changed your mind about trading
- You can not withdraw any money before you executed a certain number of trades
- If you took their “Bonus Offer or Match Deposit Offer” you will be forced to a trading turnover that is 50 times that of the bonus.
I have read hundreds of complaints from unhappy customer. Below are some screenshots from some of them (click on the images to enlarge).
If you are still in the mood of trying your luck with binary trading, I suggest you research brokerages first. I have done hours of research and I found some trustful websites. You can start with Binary Option Blacklist which seems to be honest and straight forward.
Then I found Binary Option Watchdog. Of course, I cannot vow for them, but I got the impression that they are also trustworthy.
Then there is Mike on the website Binary Options Channel. This link takes you to the “Black-List & Scams” page, where he lists “Brokers to Avoid” as well as some of the online Scams like Daily Binary Profits (which is on Mike’s list). Watch the video that’s on this page…….Mike seems to know what he is talking about as he is trading for about 2 years.
At this time, I have located ONLY ONE broker that looks legitimate. Check out the Nadex website and you will see that they actually talk about the risks involved in binary trading. Watch the video in which they clearly, and in plain English, explain HOW to trade and minimize the risks.
Let me close out this chapter with this message from the SEC:
The SEC’s Office of Investor Education and Advocacy and the Commodity Futures Trading Commission’s Office of Consumer Outreach (CFTC) are issuing this Investor Alert to warn investors about fraudulent promotion schemes involving binary options and binary options trading platforms.
These schemes allegedly involve, among other things, the refusal to credit customer accounts or reimburse funds to customers, identity theft, and manipulation of software to generate losing trades. [go to full report]
My Daily Binary Profits Review
The sales page and video are full of hype, lies and manipulative information. The core of the transmitted information is the same you will find with all the other similar Scams. However, there is ONE topic included that is different.
The offer of FREE TRIAL Trades!
I had to see this with my own eyes and decided to sign up FOR FREE. Guess what? In order to make those simulated trades, you have to make a deposit with the broker first. Thanks, but no thanks. Then I found this interesting DISCLAIMER at the bottom of the page:
Well, at least we know how they create the “live” demonstrations of winning trades. Too bad, they don’t show the losing ones 🙂
Other than that, there is really nothing extra ordinary or different on the sales page or in the video that would stand out from all the others. You watch one, you’ve seen ’em all.
Sure, you will hear different sob stories, different reasons why “their software” is so much better than others, the ridiculous profits you can make, but after all is said and done, it’s all the same. An outright Scam. Here are some compelling reasons that support my verdict:
- Software that can predict the the fluctuations of the market does NOT exist
- Software that can predict the fluctuations of the market and is 89%, 91% or 94% correct all times does NOT exist
- Daily Binary Profits is NOT free – it cost you at least $250.00 to use some kind of program
- You will not get a refund of your deposit (or what’s left), NO MATTER WHAT
- You cannot withdraw any money before you execute a certain number of trades
- The “Bonus Program” forces you to reach a trade turnover of 50 times the bonus amount
- The promoters receive a hefty commission from the broker, usually $250.00 (which coincides with the minimum deposit)
Let me say a few words about the bonus program. Assume you made an initial deposit of $500.00 and signed up for the $125.00 bonus. In order to withdraw “ANY AMOUNT“, you need to keep trading until you reach a total of $17,000 in trading value. Beware of the bonus!
If you are interest in previous reviews of similar Scams reviewed, here is a list.
Conclusion: Daily Binary Profits is a Scam. You will not make profit rather than lose your money. Avoid this program.
There are easier and legitimate ways to make money online. You need to know how to build a website, how to write quality content and how to get ranked in Google. Then find best selling products and merchants with affiliate programs and make money.
I learned all of that at Wealthy Affiliate, my #1 recommendation for everyone willing to learn, work hard and build a sustainable online business. You can do the same. Take a look how Wealthy Affiliate compares with Daily Binary Profits.
You can understand why Wealthy Affiliate is my #1 recommendation. No Scam, no upsells and NO BS. And the best thing is that you can try it for free.
I am John and I help people start their own online business. If you have any questions or comments about this review, just leave a not in the box below or send me an email. firstname.lastname@example.org