Hey guys John Kane here and today I reveal my second podcast. This episode is dedicated to binary options scams (software and brokers).
I’m going to help you realize what a scam is and what you need to avoid in the binary options market if you want to be successful. This week I released my latest income report so you can go here to check out this income report and see what worked for me and what didn’t work for me and what my trading approach was in the month of March.
Now that I got that out of the way let me focus on scams and what you need to look out for. Binary options scams come in different forms. I’ll be focusing on broker scams and software scams today.
Binary Options Broker Scams
Brokers are the platforms you use to trade binary options. So when you first create your binary options account you would deposit money and then you would start trading. Brokers have a bad reputation in this market because there have been a few real bad seeds.
There are a few different ways brokers can be seen as scams.
They don’t return your money which is the worst-case scenario because the whole point of investing is to grow your accounts, not be stolen from.
Then there are brokers that have disappeared and kept everyone’s money. They have a bunch of clients, then they take all the money and then they just disappear, probably to some island.
The last scam in the most common scam which can be tied together with brokers that don’t return your money and these are brokers that give you bonuses. These bonuses put a leash on you because people don’t realize that when they’re getting a binary options bonus from a broker it’s actually quite dangerous. If you look at the fine print you will notice that you actually have to trade that $500 bonus sometimes 15 to 20 times over if you want to withdraw money from your account. Some people will get a bonus of $500 on a $500 account which puts them at $1000 but these people don’t understand that they may have to trade $5-$10,000 worth of trades before they are eligible to withdraw any money. I’m at a point now where I trade so much I would consider taking a bonus but I’m always scared that in the back of my mind that they wouldn’t return my money because I’ve heard it happen too many times before.
See my trusted list of brokers here
Binary Options Software Scams
Those are some of the things you really want to look out for when dealing with binary options broker scams, now let me get to binary options software.
This is my main element of binary trading that I focus on throughout the week as I do hundreds and hundreds of reviews. These are get rich quick schemes and I’ll tell you exactly what you have to look for.
These websites always make huge claims and tell you that you’re going to make $5000 a day guaranteed which is absurd. Then you have websites that just have a video and an email subscription form and I’m sure if you’ve been in the binary options market you have seen a lot of these. Basically you go on the website, there is a video that explains the system and then this an email subscription form which takes you to a members area. This is a very common strategy, I call them free binary options systems that aren’t really free because they make you deposit with a broker in order to gain access to the software. These are systems that I always stay away from because in my experience every single one of them have failed.
You will also notice that these binary options scams always have testimonials from bad actors and these actors are terrible. If you don’t know what good acting and bad acting is I’m sure if you watch one of these testimonials you would know in a hurry.
Then there are scripts which are button that tell you thhere are only 10 copies left(counting down) and that there are 500 people waiting to watch this video and all of these are marketing tools to make it seem like there is urgency and their software is really popular. They want you to think that if you don’t get it right now that it’s going to disappear. This is a get rich quick software trick, they want you to sign up when you aren’t thinking straight.
Then there are verified results, these scam websites always say there are verified results but in the binary options market there are no verified results like my FX book or FX blue in Forex.
There are also software award badges which drive me insane. You go onto one of these binary options software websites and they say that it’s a beta test but on the bottom of the page they say they won an award in 2014. Which one is it? You can’t be winning awards during a beta-test because beta-test means the product hasn’t been released yet, so what award could they actually be getting?
Another thing you have to look for is no strategy discussion. For some reason binary options systems never talk about the strategy or any sort of analysis they always talk about money and just tell you that it works. I find most good systems on the market will talk about their strategy a little bit. They won’t throw it all out there and put it all on the table so people can copy but they will at least tell you if they have a news filter and what specific indicators they are using, what expiry times are being used and what timeframe the software is meant to work with.
It’s also smart to take note of discussion about lifestyle. These binary options software scams always focus on cars, houses, girls and money.
The last thing I noticed about these binary options scams is that they are affiliate marketed to death. What I mean by this is if you are receiving emails from 5 separate people all promoting the exact same system I have noticed that in these cases that system never works. There are specific affiliates in every market that promote every single product and you have to understand which affiliates can be trusted and which cannot. I find that when there is a large push for a new product there is often 15 to 30 positive reviews from people I’ve never heard of that usually tips me off to the fact that it’s a binary options scam.
See my trusted list of binary options software here
How do I combat Binary Options Scams?
Now you’re probably saying to yourself this guys been talking about these bad binary options systems for 5 minutes but what do I do? There are multiple things that you can do here.
- The first thing you want to do here is email the company. Go to the contact page and email them with a bunch of questions and feel them out. It’s like a job interview, your interviewing them to see if there system suits you so why not email them and see what kind of response they give you. If they don’t email you back at all then it’s probably not worth your time.
- You can also wait a couple of weeks. I find a lot of people like to jump into these binary options scam systems overnight but if you wait a couple of weeks and see the comments on binary today you will know whether or not people are having success with it. If there are no comments it likely never had the strength to take off.
Now I want to have little discussion about an article I was reading on Forbes the other day. This article creates a common misconception in binary options that it’s a gamble. Binary options is definitely not gambling. Trading knowledge works and skill works in binary. The only thing I believe is gambling in binary options is 60 second trades and I mentioned in my first podcast I just don’t trust these trades at all.
I hope that this podcast helped you understand what binary options scams are and how you can avoid them. Obviously if you come the binary today I have lists of brokers and software that I trust and that the binary today community trusts. So if you need a broker or software come to binary today and you can click ask John to send me an email or you can leave a comment anywhere on the website. I am always around to help. This is been the 2nd podcast for binary options today and I hope that you enjoyed it and that you come back to the 3rd episode soon.
Hey John, Just listened to your last podcast and really enjoyed it. Your what the binary industry need’s which is a trusted source for us newbies and not so new to rely on. It’s easy to see how binary options can get a bad rap.. so thank you. Looking forward to using ‘ALL’ the signal services and indicators to increase my and your overall winning percentage in Binarytoday.com. Btw, I left you a few messages and for brevity sake the last one I sent was the one I hope you have time to respond to. Thanks!
Will do Rob, thanks for the kind words.
After reading all of your podcast, I think I was taken by a scam artist. I did deposit money in a broker account. Should I try to get it back now? I ask for it back when I couldn’t login to their site, but they said I had to mail them all kinds of stuff to get it back. Should I send them all of it so I can get my money back? I feel like such a fool, but I trust too many people. That is what I am told, that I trust everyone. I am always honest and I guess I think all people are. I am learning that they aren’t. Please answer my questions, This is the site I came to when I put in Extreme Profit Systems and that is what I thought this was until I read you podcast. It sounds like it is anything but that. Please help.
Hi Diana, really sorry to hear you have had the misfortune of dealing with the dark side of binary options. I hope that you will resolve your issues and then start here when you get back on track https://binarytoday.com/binary-options-101/
Thanks for your website. Great job!
Question: is it normal for a broker to request identification papers etc when you want to make withdrawals? Is it safe to provide them your identification papers?
Hi Alex, this is normal practice from my experience.
Wish you did something like this months ago before I got caught up in all the free binary junk. At least now I know what to avoid.
I appreciate all the tips you provided here. I shared your podcast with my website and I hope that’s okay. I think that the points you made about software and brokers was extremely relevant and hold a lot of weight.