Binary Options Scams: Facts, Trends, and Figures
Binary Options Scams: Facts, Trends, and FiguresSeptember 13, 2016
“When one man dies it’s a tragedy. When thousands die it’s statistics.” This was Joseph Stalin’s response to Winston Churchill during the 1943 Tehran conference when the latter objected to an early opening of a second front in France (taken from Wikiquote.org). It is a chilling paraphrase on how one of the world’s most brutal authoritarian rulers viewed life. In a similar context we can look at what’s going on in our world in terms of SCAMS in general and binary options specifically. We have seen it all, Forex, Bizopp, Binary, Work From Home, Surveys, Lottery Scams, Fake Call Centers, Nigerian SCAMS, Credit Card Fraud, Identity Theft, clear violations of the official wire act, conspiracy to commit fraud, Ponzi Schemes, Pyramid Schemes, MLM (multi level marketing), Pump and Dump, False Advertising, investment scams, embezzlement, impersonation, SPAM, social media fraud, senior citizens fraud (my personal favorite), phone and telemarketing fraud, tax evasion, and conspiracy to commit money laundering.
When one person gets scammed it is a tragedy for him and his family. The saga continues to haunt this person until he settles everything with the authorities and gets his life and money back (if he is able to). When it happens to thousands of people across the globe it becomes and epidemic, and these days it is running rampant on the internet which has become the new Wild West for online scammers, con-men and ripoff artists.
A Brief History of Binary Options
Binary AKA Exotic or Digital Options have been around for quite a while and were always considered a high risk/high reward form of investing. Initially the big exchanges such as NADEX and CBOE started out with binary, Bull Spreads, VIX, Mini Options, and the Stock Index. Some time right after that an offshoot of the gambling industry currently named Spotoption developed a code which was based on a closed system similar to an online casino.
The “net-gaming” formula in an online casino is as follows:
Wins Minus Bets Minus Adjustments or Fees.
The trading algorithms for binary operate on a very similar logic, hence when licenses are issued by regulatory authorities you will see it is for a market maker model and not an Electronic Communications Network. Market Makers decide what the bid and ask prices are, and in a sense they are providing liquidity based on world’s financial markets but also according to in-house “constraints”. This is not a problem with regulated brokers since they are required by the regulator to operate with a rolling reserve which is a budgetary plan in which withdrawal funds are previously allocated and not even being factored into the company’s PNL (profit and loss) or revenue structure.
If this is starting to sound a bit heavy, its with good reason because our staff usually writes about various software scams like Quantum Code, Millionaire Blueprint, or Drexel Code which have been notoriously branded as fraudulent trading software. In reality, the business side of binary options trading and how it really works was never really discussed here so we decided to contribute from our knowledge in order to give our members a broader scope of understanding and additional points of reference.
As time passed the number of people expressing interest in automated trading has grown exponentially as the graph below illustrates. This has presented smart marketers with opportunities to peddle all kinds of fake products designed to entice you to enroll with a broker and fund a trading account.
This kind of growth is considered abnormal and not healthy by economists, however it is a strong indication as to what people are looking for and has severe social, economic, and philosophical implications about us as human beings and how we perceive ourselves.
There is also increased interest in the general niche of making money trading online. Savvy marketers are seeing these trends and starting to connect the dots. As viewers you must understand that you have a lot more power than you believe. You can choose to express interest in something, which in turn leads to financial transactions and purchasing OR NOT. Again, it is a question of what comes first, the chicken or the egg but know this; The more critical and thought out your searches will be, the more the market will adapt its offering to your demand. This is a basic rule of supply and demand economics, and how consumers can influence the markets.
I urge you to view the video above since it speaks in layman’s terms about the law of supply, demand, and market equilibrium.
Why Are So Many People Getting SCAMMED?
In general the facts indicate a few trends. The first is that there is a SIGNIFICANT growth in people who are interested in automated trading and making money online. In these search categories the segments of the population vary and in most cases people wanting to dive into this area are clueless and don’t even know where to begin. It’s human nature to find a quick solution to a financial problem, but as we all know things in life are not that simple and in most case when this writer tried to cut corners he ended up paying dearly. In all honesty, the vast amount of fake apps flooding the market are a direct consequence of the graphs you see pasted in this unique and exclusive review. The marketers tapping into this niche understand the potential profit the basic idea that people in distress will rather gamble on a losing trade then lose hope at all. And that is the problematic nature of this business and why it is considered by many to be a form of financial betting.
Is There a Light at the End of This Dark Tunnel?
Yes, our staff really conducts proper investigations and in-depth reviews and analysis of various binary options robots, automated trading tools, and signals. As you can see the vast majority of them have proven to be scams. If we don’t list or review something it is usually because we are simply flooded and overworked with complaints and scam reviews requested by our members and subscribers. The few systems we do showcase have actually been proven to consistently perform, and we have even resorted to taking a third party technical auditing company at times just to make sure we don’t make a mistake and mislead potential day-traders.