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How binary options brokers lure clients

mlawson71
Nov 28 2016 at 11:56
1487 posts
I have often seen people asking questions about starting to trade binary options, and I figured providing some additional information about how binary option brokers lure their clients would be benefitial.

It is hard to tell how much the binary options industry makes. According to estimates of sources of The Times of Israel, only the 100+ binary options brokers that are either based in Israel or are somehow connected to those, make somewhere between $1 billion and $10 billion per annum.

According to the same sources, around 96% of the clients of the binary options brokers lose all their money and barely 2% win, but only for a while. It is no secret that for the large part the binary options are more or less a scam, akin to gambling and no investment whatsoever is involved, no matter what they tell you. If all was fair and the “trading platforms” were not rigged, as many claim, probably the percentage of winners would have been much higher. After all, Fortuna may be fickle, but no one is chronically unlucky.

Action Fraud, the cyber crime unit of the UK police, revealed that between June 2015 and May 2016 it has received 305 reports about binary options, with an average of 27 reports made per month. Those who have filed most reports were men who have being paying via debit or credit card.

So how do the binary options brokers reel in and fleece their victims?

The methods are several and in essence, rather simple.

https://smnweekly.com/2016/11/23/how-binary-options-brokers-lure-clients/

tormess (tormess)
Dec 06 2016 at 15:50
52 posts
Thank you for providing this great overview! I also believe that the binary options are the next big scam the investors should deal with. But maybe just people who are hazardous by nature get attracted. I would like to bring this point from the article - 'Do not accept any investment offers made by telephone, hang up and never share personal financial information with someone you don’t know.' It's very true!

CarlosMZ (CarlosMZ)
Dec 07 2016 at 07:16
55 posts
I wonder when this market will be also regulated same as forex and cfds for example.

togr (togr)
Dec 07 2016 at 07:51
4862 posts
mlawson71 posted:
I have often seen people asking questions about starting to trade binary options, and I figured providing some additional information about how binary option brokers lure their clients would be benefitial.

It is hard to tell how much the binary options industry makes. According to estimates of sources of The Times of Israel, only the 100+ binary options brokers that are either based in Israel or are somehow connected to those, make somewhere between $1 billion and $10 billion per annum.

According to the same sources, around 96% of the clients of the binary options brokers lose all their money and barely 2% win, but only for a while. It is no secret that for the large part the binary options are more or less a scam, akin to gambling and no investment whatsoever is involved, no matter what they tell you. If all was fair and the “trading platforms” were not rigged, as many claim, probably the percentage of winners would have been much higher. After all, Fortuna may be fickle, but no one is chronically unlucky.

Action Fraud, the cyber crime unit of the UK police, revealed that between June 2015 and May 2016 it has received 305 reports about binary options, with an average of 27 reports made per month. Those who have filed most reports were men who have being paying via debit or credit card.

So how do the binary options brokers reel in and fleece their victims?

The methods are several and in essence, rather simple.

https://smnweekly.com/2016/11/23/how-binary-options-brokers-lure-clients/


binary options are simply bad. it is much easier to trade classic forex as there are much more possibilities to make your trading profitable

BaldoN (BaldoN)
Dec 07 2016 at 08:04
522 posts
Great overview mlawson71 I have tried many times to warn people about the binary scam, but some people just refuse to believe. They are buzzled by the fast way to money and their minds get blurred. More peope should read your post. Cheers

ricki72
Dec 07 2016 at 09:17
238 posts
It´s the same as if you try to warn people here from EA´s that offer 20%, 100% or 1000% per day, proved b ymanipulated reports from fake accounts on scam brokers.
They will pay 10k, 20k or even more for them and then open a thread to cry together.

It´s like trying to cut the water with a knife 😄

By the way, 2 years ago i also lost a lot with a binary broker.
When the guy (my dedicated account manager) told me on the phone to invest 1/4 of my balance in this trading tipps, the alarm bells ringed inside my greedy brain... but i still did it 😕

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The differenece between who your are and who you would like to be be is what you do
jackell78 (jackell78)
Dec 07 2016 at 15:56
45 posts
ricki72 posted:
By the way, 2 years ago i also lost a lot with a binary broker.
When the guy (my dedicated account manager) told me on the phone to invest 1/4 of my balance in this trading tipps, the alarm bells ringed inside my greedy brain... but i still did it 😕


So the greed prevailed at that time but how about these days? Greed affects forex trading as well 😄 What attracted you at first to these binary options scam? I guess these dedicated account managers are more psychologists than finance professionals if able to lure that many people.

lee42747 (lee42747)
Dec 08 2016 at 11:16
49 posts
I think we should all stay away from the binary options, after reading many complaints all over the place.

ricki72
Dec 08 2016 at 13:13
238 posts
@ Jay
Some people here are still fan of binary options:
https://www.myfxbook.com/community/experienced-traders/binary-option-trader/1323360,1

@ Jack
of course, greed is the mother of all sins in forex trading (this spoke comes from Rob). And in binary options they count on your greed to steal your money.
These days i have it better under controle, but sometimes it breaks threw and I open positions with 5 times the size than i should.
I think these account managers get a special training to manipulate people.
They do like if they were your friend and their primary goal is to help you making money and reach a better life. Then they tell you some stories about the economic market (things a regular consumer who doesn´t read special newspapers every day doesn´t know) and why this or that stock will raise or fall in the next weeks or months. I was like blinded.
Than they say that if you really wanna achieve a goal in the financial market, you cannot start with only $300 (what I deposited). It should be 5k to start or at least 2k (if you don´t have 5k). They speak and speak and speak, so that you cannot start to think and ask critical questions. At the end they come to the point that you should take your credit card 'right now' and fund your account. If you say 'no i want to think about it', they ask back 'why think? I am here to help you, you can trust me'. They give you the feeling you are wasting their time if you need some time to think 😀!
They even offer you the service to fund your account for you if you give them your credit card number!!! (😲This was the point where i started to doubt... but not enough, unfortunately)

And.. of course... when the 2 k are 'gone with the wind', they don´t call you anymore. They know that you are pissed off and would never give them a cent anymore.
This is part of the method. They don´t give you time for anything, it has to be fast. Because they know that if you start to think (and if you didn´t fall an the ground head-first the day of your birth 😀).. then you will smell the scam.

Many other binary option brokers and similar scammers called me after to give me the best and fastest 'make-me-rich' opportunities, but they had no chance. This means they sell your name and tel. numbers to others... which doesn´t surprise me 😉 Thanks God I didnt give them my private phone number. Only handy... I blocked all of their numbers. No call anymore since a long time 😄

The differenece between who your are and who you would like to be be is what you do
jackell78 (jackell78)
Dec 08 2016 at 15:20
45 posts
@ricki72 Thanks for this detailed personal example! It's really a quick course on what to beware of and what type of solicitations to avoid. And I guess these guys get also quite a hefty commission for all clients brought in which keeps them even more motivated to lure others. Good that you are out of this loop now! 😄

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