Binary Option Robot offers several binary options trading platforms, including NADEX and unregistered brokers. However, there is more to the story. Follow me to see the Devil in the details.
Product Website: binaryoptionrobot.com
Product Cost: Minimum $250 Deposit.
Product Owner: Cannot Be Determined.
Ranking: Not Recommended.
What Is Binary Option Robot?
Binary Option Robot is a hub that refers visitors to various binary options platforms. NADEX is prominently displayed. NADEX is the only licensed binary options broker in the United States. However, that does not mean you will make money trading binary options with NADEX. Trading binary options is very risky, but at least NADEX adheres to a code of ethics and the rule of law.
The other platforms promoted by Binary Option Robot are unregistered brokers. The SEC warns that unregistered brokers are suspected of manipulating trading software to force losing trades, locking clients out of their accounts, stealing client’s identities and their money. (Source)
In 2016, The Internet Crime Complaint Center (IC3) received hundreds of complaints regarding online binary options brokers and reported losses in the millions. (Source)
Binary Option Robot is an Affiliate.
Another way to look at Binary Option Robot is as an affiliate for various binary options brokers. The owner of Binary Option Robot earns a commission each time they refer someone to a broker, and that person opens and funds a trading account.
The commissions Binary Option Robot earns are substantial. For example, according to OfferVault.com, FinTech, one of the brokers promoted by Binary Option Robot, will pay $350 commission for each person Binary Option Robot refers.
How can FinTech pay a commission of $350 when a client only deposits $250 to begin trading. In a moment, I’ll explain how, but it isn’t pretty.
Is Binary Option Robot a Scam?
The word scam gets tossed around a lot online and for a good reason. Scammers use the promise of making money to hook people into their scheme. A scam uses deception to steal someone’s money.
Binary Option Robot does not promise you will make money. In fact, if you look closely, you’ll see small print throughout the website that warns “investors can lose all of their capital.”
There are a few things on the Binary Option Robot website that I find it questionable such as the listing of people around the world who recently made money with Binary Options Robot. Binary Options Robot, with an ‘s,’ is NOT the same as Binary Option Robot.
If you click on the Binary Options Robot list of people making money, you are not taken to Binary Options Robot. You are taken to FXMasterBot.com, another affiliate site promoting unlicensed binary options brokers. This is misleading.
Read the Disclaimer!
Scroll to the bottom of the Binary Option Robot website, and you will find in tiny print an extensive warning. The disclaimer clearly states you could lose all of your money and that you should not trade binary options unless you fully understand the risks you are taking.
Buried in the disclaimer, you will see that Binary Option Robot does not recommend any brokers other than NADEX to US citizens. However, they clearly are trying to get people to sign up with unlicensed brokers.
If you click on the word “Disclaimer” at the bottom of the website, you are taken to the full disclaimer. In the third paragraph of the Binary Option Robot Disclaimer, you will find a rather interesting sentence. It says, “Information on BinaryOptionRobot.com should not be seen as a recommendation to trade binary options.”
Binary Options are NOT investments.
Trading Binary options is NOT investing. Trading binary options is more like gambling than investing. A licensed investment adviser will never recommend trading binary options because they are too risky. To learn more about investing, read How to Invest.
Trading Bots Will NOT Make You Rich.
There is nothing special about auto-trading robots. The free auto-trading bot software is how they hook you into their scam. The trading bot is designed to do only one thing, that is, create the illusion that you can make fast, easy money.
The bot gives the broker the opportunity to manipulate the software, making it appear that you made money when you didn’t.
The Trading Bot Scam.
Binary Option Robot promotes NADEX and unregistered brokers. NADEX is registered with the Securities Exchange Commission (SEC) and is licensed in the United States. NADEX is NOT a scam. It is a legitimate binary options exchange. However, none of the other brokers promoted by Binary Option Robot are registered with the SEC and are NOT licensed in the US. The SEC refers to these brokers as unregistered. That’s like claiming a carjacker is an unauthorized driver.
Remember, the SEC has explicitly warned that unregistered brokers are suspected of manipulating trading software to force losing trades, locking clients out of their accounts, stealing client’s identities and their money. If you open an account with an unregistered broker, like the brokers recommended by Binary Option Robot, they will insist that you give them your phone number. (Source)
Once an unregistered broker has your phone number, a trading advisor will call you. The trading advisor or whatever they claim to be is nothing more than a professional telemarketer eager to get money out of you. If you believe this person wants to help you, they will lead you, step-by-step into their trap.
Their trap involves at least two scams. The initial scam, the small scam will cost you $250. The small scam is followed by the big scam that will cost you about $10,000 or as much as they can talk out of you. And, they will continue to scam you as long as you let them.
The Small Scam.
To begin trading with an unregistered broker, you will have to open an account with them and deposit some real money. Usually, the minimum deposit is $250. Within 24 hours your trading bot software will show that you made money.
What appears to be money in your trading account is not real money. Your real money went into the pockets of the broker and the telemarketer, and you will never get it back.
Those numbers that look like money in your account are just numbers the software generated to give the illusion that you made money. You cannot withdraw this money from of your account, and you cannot spend it because it’s not real. This is the small scam and the setup for the big scam.
The Big Scam.
The bot trading software created the illusion that you made a lot of money fast. The scammers are trying to convince you that you can make a lot of money and maybe be a millionaire in a few months. If you fall for the small scam and believe the software made you a lot of money quickly, they will talk you into depositing $10,000 of your real money into the trading account.
If you let your “advisor” talk you into depositing more money, they will take your money and lock you out of your account. Your money will be gone forever. That’s the big scam.
Because the brokers promoted by Binary Option Robot stand to make $10,000 plus from each client, they can afford to pay affiliates high commissions. This is why FinTech pays their affiliates a $350 commission for each referral. Everyone makes money except you. You lose money.
No Robot Will Make You Rich.
Contrary to the online hype, there is no magic Robot or auto-trading software that will make you rich.
Making money online is the same as making money offline. There are no shortcuts. Making money requires an exchange of value. If you want to make money online, you must offer something of value in exchange for it. The value you offer can be your labor, skill, product or service. This simple business principle is the foundation of entrepreneurship.
There are no shortcuts. Did I say that already? It’s important.
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