Richard Hefner, the founder, and CEO of GPS Trader App claims he has made 27 random people millionaires in the past three months and that he can make you a millionaire too. Unfortunately, there is more to the story. Follow me as I reveal the Devil in the details.
Product Name: GPS Trader App Product Website: gpstrader.co Product Cost: $250 plus as much as they can steal Product Owner: Cannot be determined Opinion: Not Recommended
When you visit the GPS Trader App website, you will meet, via video, Richard Hefner, the founder and CEO of GPS Trader App. Hefner announces early in the video that he has made 27 random people millionaires in the past three months and that he can make you a millionaire too.
Hefner claims his software is the fastest and most powerful auto-trading software on the planet. He guarantees his software will make you $20,000 a day, every day for the rest of your life.
According to Hefner, the GPS Trader is 100% risk-free and that anyone using his software can make $20,000, guaranteed! If you act fast, you can have his magical software for free.
Mr. Hefner explains that for years he worked as a systems analyst with Garman, the multinational technology company known for its GPS navigational systems. During this time, his brother Josh became a successful binary options trader on Wall Street.
Josh used an auto-trading software to beat the market 74% of the time. He wanted to win more often and asked Richard to create a program that could win more consistently. Richard created the program that would later become GPS Trader App.
According to Hefner, GPS Trader App never loses. The worse it can do is break even on 3% of the trades. He guarantees you will make at least $850 an hour, $20,000 a day, every day, for the rest of your life.
If you believe that, call me. I have some ocean front property in Oklahoma I’d like to sell you.
What is GPS Trader, Really?
GPS Trader is not designed to make you money. GPS Trader is designed to rob you blind.
If you search online for Richard Hefner, you won’t find the guy in the GPS Trader video. Spell the name correctly if you search for him. His last name is Hefner, with only one “f.”
The only Richard Hefner I found was a gentleman who looked like an old hippy and played the ukulele. Not our man.
I suspect the man in the GPS Trader video is a professional actor. The video is designed to trick you into opening a binary options trading account with an unregistered broker and depositing at least $250.
Contrary to everything Richard Hefner promises, trading binary options is very, very, very risky.
Trading binary options with an unregistered broker is like handing your cash to someone who has just told you he will steal your money if you give it to him.
Let me explain the difference between a registered broker and unregistered broker.
Concerning binary options, there are registered brokers and unregistered brokers.
The Registered Broker.
In the United States, a registered broker is licensed by the Securities Exchange Commission. A registered broker must abide by certain laws and ethical guidelines to stay in business.
Keep in mind that trading binary options with a registered broker is still very risky and not advisable. Registered brokers will tell you that trading binary options is speculative. In other words, it’s gambling.
If a registered broker cheats you, you can ask the SEC to help get your money back.
The Unregistered Broker.
On the other hand, an unregistered broker operates outside of the law. If an unregistered broker cheats you, there is nothing you can do about it, and nobody can help you.
If you give your money to an unregistered broker, it is gone forever.
Calling an unregistered broker a broker is misleading. They are nothing more than a stranger taking your money.
The United States SEC has warned that unregistered binary options brokers are suspected of illegal activities including taking people’s money, stealing identities and manipulating software.
To learn more about registered and unregistered brokers, go to Binary Options Fraud.
GPS Trader Review
The devil is in the disclaimer. Reviewing GPS Trader without exposing the dirty truth hidden in the disclaimer would be meaningless. As you can see, what GPS Trader pretends to be and what it actually is, are two very different things.
If you scroll to the bottom of the GPS Trader website, you’ll see a link to their disclaimer. Before you give GPS Trader any of your information, or, Heaven Forbid, open an account with them, you MUST read the disclaimer.
Below is a screen capture of the top portion of the disclaimer.
The first thing you will notice in the GPS Trader disclaimer is the name CashCamp. Who the heck is CashCamp and why is it mentioned in the disclaimer for GPS Trader?
CashCamp is a former binary options trading scam. It looks like they have changed their name to GPS Trader. It’s interesting that Richard Hefner didn’t mention that in the video.
Keep reading, and you will see that CashCamp/GPS Trader does not guarantee you anything. All those promises Richard Hefner made in the video about making $850 an hour and earning $20,000 a day are meaningless.
CashCamp/GPS Trader clearly states that trading is very risky and that you could lose your entire investment.
Why would you give your cash to someone who does not abide by the law and who has openly warned that you could lose all your money?
Is GPS Trader a Scam?
If you sign up with GPS Trader, you will automatically go to the second page of the website. On the second page, you will be told to activate your account with a minimum deposit of $250. You will also have to give GPS Trader your phone number.
Once you give GPS Trader your phone number, a friendly personal adviser or broker will call you. This person is NOT your friend.
It is the job of the personal adviser/broker to talk you into depositing all the money you can beg, steal or borrow. Under the pretense of making more money faster, they will try to get you to deposit $10,000 or more. That is the scam!
The Last Word on GPS Trader
Trading binary options is very risky. Professional traders working through licensed and registered brokers lose money all the time.
An amateur trading with an unregistered broker cannot win. It is foolish to give your money to an unregistered broker like GPS Trader.
You will not make money with GPS Trader; you will lose money and possibly go deeply into debt.
There is no magic software that will make you rich with a push of a button.
I’m confident the internet is the best chance most people will have to be financially independent. And, I’m convinced that anyone who can write an email and surf the internet has the ability to build a profitable online business. The essential key to succeeding online is proper training and support at a fair price. This is why I recommend the FREE Starter Level of the Online Entrepreneur Certification Course.
The FREE TRAINING will show you the fundamentals of internet marketing and introduce you to a wonderful community of online marketers who are eager to help you.
Also, when you signup for the FREE TRAINING through this website, I’ll coach you, one-on-one, for FREE.
Funny you mention GPS Trader, Gary, as I came across their introductory video as well a while ago. I was still at the stage of looking for a reputable learning platform as I wanted to set up an online business but didn’t even know where to start from. Well, I had exactly the same reaction as you: STAY AWAY!
By then I had smartened up and found it a total fib to promise such an enormous amount of money in such short space of time. For anyone wanting to build an online business, I can only add to your savvy words of advice that having a successful online business is a very profitable way of making money, but it is never any easier nor quicker than if you set up any other form of business.
Success is guaranteed with time and provided you work your socks off. So, never ever ever trust those scheme like GPS Trader, who promise you the moon at your door step overnight!
Thank you for your thoughtful comment. I wish more people understood that the internet is an amazing opportunity, but it still takes patience, commitment and sustained effort to make money with it.
Sometimes I wonder how people can sleep at night pulling this junk! These poor people are being guaranteed a ridiculous amount of $, and instead they lose it almost immediately. There is no quick way, there are only more efficient ways of making money. Out sourcing is the only thing I have come across as a general rule that speeds up the process.
I’ve often thought the same thing. How can these scammers live with themselves? I think they might be psychopaths. Unfortunately, there are hundreds of online scams like GPS Trader.
Gary, How much are you asking for that ocean front property in Oklahoma? I would be very interested….LOL, Thank you for the upfront and honest review of GPS Trader. Many websites will only give positive reviews as they are trying to sell every product they can. It is very refreshing to find this article and hear you say that GPS Trader is a scam!
I appreciate your sense of humor. Thanks for the chuckle. You summed up GPS Trader perfectly. And, thanks for your kind words. I speak the truth as I see it.
Gary, thanks for writing this review on GPS Trader, it’s sad that there are fraudulent companies like this that are constantly trying to scam people. It’s sad that so many people get scammed by companies like this. However, I watched the video you have posted on WealthyAffiliate, that looks promising. How long have you been a member of WealthyAffiliate?
Unfortunately, GPS Trader is just one of a legion of scams that have destroyed the finances of tens of thousands of people, if not more.
You asked about Wealthy Affiliate. I’ve been an online marketer for nearly nine years and have spent the last two and a half years with Wealthy Affiliate. It’s the only place I recommend for learning how to make money online. It’s the real deal. This means no gimmicks or gotchas. It also means that like any business success requires sustained effort.
In other words, Wealthy Affiliate is not get-rich-quick or guru worship. Wealthy Affiliate is solid training and unmatched support. Beyond the training, we’re a community of friends helping friends to succeed online. If you are interested in building an online business, please remember it doesn’t happen by itself. You must make it happen. You’ll get everything you need in Wealthy Affiliate, but you have to do the work. The starter membership is free. There’s an affordable paid membership level too, but that’s for later. You’ll know if the paid membership is right for you after you complete the free training. Go here to learn more.
It’s crazy that people buy into this stuff. Even before you got into what a scam it is, I was thinking to myself what value does this guy provide?
Its a total bait and switch. That being said, though binary options are risky, they are a legitimate investment. That begs the question, why doesn’t he just post about what he’s actually doing instead of masking it. Something’s definitely fishy. If I understood binary options enough, I’d give them a try. I know a guy that was able to retire in his 40s with binary options. If I ever do invest in them, I definitely won’t be doing it through Mr Hefner.
Thanks for doing this review, as it is so hard to tell which program is genuine or a scam. Your explanation is clear and easy to understand. Most people including myself never read the small print so would not of seen this information. A lesson learned! Do you actually join these programs to test them?
I’m glad you did this review GPS Trader App . What a joke ! richards sure made 27 people millionaires . $850 an hour ? that’s too good to be true and we all know that. anything that says earn so and so on auto pilot can’t be taken legit. $20,000 each day ? Come on not true by the slightest.
Thank you for this review. There are a lot of scams online and reviews like this help us stay away from them. A rule of thumb to avoid being scammed is, if the offer is too good to be true, then it often is. There is no such thing as easy money, and if there was, why would anyone just share it? $20,000 a day is beyond ridiculous. I learned to avoid offers like this after paying for a similar service once.
This was a interesting read. Essentially what they have done is devised a very unique way to get people to a landing page and give them money. There is no guarantee that it will work. So the “GPS” is just a unregistered advisor investing the money and then telling people that they have a system for making more money. I am sure that once you lose everything they wil ask for more money because they think they could make it back. Pretty sad. Thank you for informing people about this problem.
Actually, it’s worse than you think. GPS Trader is nothing more than a stranger in a foreign country trying to trick you into giving them your money. They promise you will make thousands of dollars, quickly and easily, but you won’t make a dime. You will lose every penny you give them.
GPS Trader is not a trader or broker or anything it pretends to be. To get started, you will have to give them at least $250. They will let you win your first trade, but you really didn’t win anything. They just typed some numbers into the software to make you think you made fast, easy money. You didn’t. It’s all fake. You can’t take this money out. It’s just numbers on the screen.
If you believe that you did make money with their software, they will trick you into giving them thousands of dollars. That is the real scam. The first scam of $250 was just the set-up. The real scam is when they trick you into handing over thousands. When you do, they lock you out of your account. They get your money and you get nothing.
WOW! Thank goodness you exposed such an easy-to-fall-into money trap! I’m sure many have been too unfortunate to stumble across this GPS Trader scam and have been sucked in! I think I might have too if I hadn’t read your article about them! You’re right when you say that you should work for your money and thank you for offering a better alternative instead of false promise scam “opportunities”. Good job Scamavenger!
I think this is very useful information. One thing that would really help me is if there were internal links to a glossary for those of us who don’t do a lot of investing.
For example, the term binary options- I know what options are, but am not sure what binary options are.
Overall, I found the article useful. You would think people would stop falling for “too good to believe” trading systems, but they obviously don’t.
I appreciate your insight and recommendation. I did link to a post about binary options, but only once, so perhaps you missed it.
The term binary options is misleading, because a binary options trade is not a true options. Let’s start with what an option is.
In real estate, an option is something you pay for and own. For example, you might want to buy an old house, but before you buy it, you want to determine how much it will cost to refurbish it. It will take time for the contractors to inspect the property and work up an estimate. If you don’t lock in the property, you could lose it, so you pay the owner for the option of buying the house at a later date for a specific amount of money. This option is valuable and gives you specific legal rights to the property.
In stock investing you can buy an option on a specific corporate stock to either buy this stock at a specific price at a later date, or to sell at specific price at a later date. You own this option and it gives you specific rights to the stock.
A binary option does not give you any rights to a specific stock or asset. Binary options are derivatives of the market. In the world of securities a derivative is a side bet.
Trading binary options is more like placing a bet with a bookie than investing. Let’s say you place a bet with your neighborhood bookie on a college football game between Clemson and Georgia Tech. You don’t own either of the teams and your bookie does not own either of the teams. The only connection you have with the game is watching it on TV. If you’re right, you make money. If you’re wrong, you lose money.
Trading binary options with a registered broker is the same thing. Please note registered broker. When you place a binary options trade, you are simply betting that the price of an asset will go up or down at a specific time. You don’t own that asset. The broker who is brokering the trade does not own the asset. You two are just watching the trade on the computer screen. If you’re right, you make money. If you’re wrong, you lose money.
And that is as good as it gets.
Unfortunately, binary options can get a lot worse. Meet GPS Trader, an unregistered broker. Trading binary options with an unregistered broker, like GPS Trader, is not investing. It’s donating money to an unknown entity that is pretending to be a broker so they can get your money. The money you give to GPS Trader, or any other unregistered broker, is money you will not get back. The money only flows one way with an unregistered broker.
All binary options are scams. Nobody can predict with any accuracy whatsoever what any stock, currency or commodity will do in the short term. It’s impossible. The reason they phone you for more money is because each trade costs $100 on the buy and sell side. It doesn’t matter. $250 is an off number. They want to get you to $500 as quick as possible.
They are nothing more than a bucket shop. Thanks for the heads up on GPS Trader. Just another fancy name for scam. All the best.
Yes, I agree completely. It’s about the so-called broker making money, but it’s also about big investors hedging their bets.
However, it is essential to understand there are registered brokers and unregistered brokers. The registered brokers are licensed and play a game of pips and indicators, but as you mentioned, it is statistically impossible to correctly predict a specific asset, the direction of the asset’s value and the time.
Historically, an investor was considered a genius trader if he could predict the direction of an asset over time. That is just one factor. Veteran investors will tell you no one can predict the top or the bottom of a market. However, with binary options, you are expected to know the top and bottom for assets you know nothing about and precisely the moment these assets will up or down. That is not possible.
Then there are the unregistered brokers. They aren’t even brokers. They aren’t legal. And they don’t broker a darn thing. They just take people’s money.
The association between unregistered brokers and binary options is a lie. They don’t broker binary options. That’s just part of the story. Their goal is to take as much of your money as quickly as possible. GPS Trader is in this dark and dingy corner of scams.
Now, let’s turn our attention back to the registered brokers and the so-call legitimate binary options market. Binary options are side bets on how an asset will perform at a specific time. It’s an artificial market and no different than placing a bet with your neighborhood bookie.
The real purpose of the binary options market is NOT for the little guy to make money. The purpose of the binary options market is for the big traders to hedge their bets. For example, I’ve established that it is impossible to accurately predict how an asset will perform and when. That is true, with one exception. There are a few traders who can predict with a high degree of certainty how an asset will perform and when it will do it.
These traders manage hundreds of millions of dollars or perhaps even billions of dollars worth of investments. These are the managers of hedge funds and pension funds. If one of these guys dumps $100,000 worth of Caterpiller stock at 2pm on Tuesday, he knows with a high degree of certainty that the price of that stock will decrease. They can bet on that happening in the binary options market and make money both ways. That is why the binary options market was created.
The role of the little guy is to keep the binary options market liquid until which time the big guys need to hedge their bets. This is why you will constantly see ads for trading binary options. They need a continual supply of small investors to fuel the market with losing trades. Pips, charts and magical software cannot save you.
I’ve considered binary trading many times in the past, but so many seem very, dubious. I will not profess to be skilled in these types of abstract trading practices, but they do seem intriguing. Unfortunately, I’ve heard many a horror story of people getting scammed.
Thank you for illuminating this GPS trader scam so I can avoid it.
There are two kinds of binary options trading. One is far worse than the other, but neither are recommended.
The GPS Trader is associated with an unregistered broker who operates outside of the law. If you get involved with an unregistered binary options broker you will lose 100% of the time. You may appear to win in the software, but you will never be able to take your winnings out.
If you win with an unregistered broker, it is because they let you win. And, they only let you win so you will believe the software is truly magical and will put all of your money into their scam. Of course, the instant you give them all of your money, you lose it. That’s the purpose of the scam.
Then, there are registered binary options brokers. Your chance of winning with these guys is only slightly better than with the obvious scammers.
A registered broker operates within the law, however, the purpose of binary options is not to make you rich. The purpose of binary options is to create a liquid market the largest traders on Wall Street can use to hedge their trades.
If you make a binary options trade the best you can do is guess if the price of an asset will go up or down at a specific time. You have no idea regardless of pips or signals or magical software. You can only speculate. This makes trading binary options no different than placing a bet with your neighborhood bookie.
However, the big traders on Wall Street, the hedge fund managers and pension fund managers, guys who manage stock portfolios in the hundreds of millions and many billions CAN predict with a high degree of accuracy when a specific stock with rise or fall.
For example, lets say Bob Gooberhead manages a huge hedge fund and needs to unload $10 million worth of Stinker Stocks Inc. He’s losing money just holding it. However, if he dumps it on the market at 10am on Friday, he knows darn well it will drive the price of Stinker Stocks Inc down. So he places a binary options trade for the stock to go down at 10am on Friday and dumps the stock.
Because 5,000 small traders are convinced Stinker Stock will go up, they make the trade on the opposite side of Bob Gooberhead. Gooberhead turns his stinker stocks from a loser to a winner. Everyone’s happy, except the 5,000 small investors who have to explain to their wives why they can’t go on vacation.
You really can’t win with binary options. It’s not investing. It gambling.
Investing is recognizing that an asset has greater value than is reflected in the price and then taking an equity position in that asset. In other words, you own it or the rights to it. Warren Buffet build his empire on buying shares of companies that were worth more than their stock price indicated. He owned a portion of the value in those companies.
I agree, there are a lot of skeptical, shady deals out there. I haven’t heard of this specific one.
Then I noticed you were promoting WA (Wealthy Affiliates.) That’s an awesome system. I eventually upgraded, but I was amazed at how effective just the free membership is.
Scams like GPS Trader are popping up like weeds across the internet.
Unfortunately, the more sophisticated the internet becomes, the more easily the bad guys can get in our wallet. As a rule of thumb, I think it is safe to assume that 99% of the make money online offers are worthless, dangerous, a waste of time or a scam. In other words, if you simply assume a make money online offer is not worth your time or money, you’ll be right 99% of the time.
The good guys know they must prove themselves to you. They won’t ask for you to trust them, they will prove to you that you can trust them by offering a risk free trial.
A lot of big name companies have free offers so you can try what they are offering without risk. In the make money online arena, the only people I know who offer a totally free trial is Wealthy Affiliate. I’ve been a member for two years. It’s not get rich quick, and there is no hype or guru worship in Wealthy Affiliate.
Wealthy Affiliate is a community, plus high-tech website hosting, plus an open university that teaches the most reliable strategy anyone can use to make money online. For the person who is ready to put in the time to build a legitimate business, Wealthy Affiliate is the only way to go. Thanks for mentioning it, Kyle.
Thank you very much for this post, I joined an affiliate program for another binary trading company and was really considering how to promote it. I just read the disclaimer and it is very similar to what you are describing.
Do you think it could be the same company or scammers in play? Since the disclaimer is similar?
Your page is very informative and very well written and again I thank you for the information.
Robert
I’ve investigated dozens of these types of scams and many of the disclaimers are similar. It’s impossible to tell for sure if they are the same scammers. They may just be copying each other. However, I do know if their affiliate program pays more than $50 they are probably a scam and very similar to GPS Trader.
There are very few legitimate binary options brokers. So far, I’m only certain that one broker is registered with the SEC. That broker is NADEX. NADEX has an affiliate program too and pays $50 for a referral. This is much less than scams like GPS trader that pay $350 per referral. However, many, if not most, of these scams scam their affiliates too.
I encourage you to read this report from SEC: Binary Options Fraud In this report you will also find a link for checking on the registration of a broker.
If you chose to promote NADEX, you will find they are a huge resource for sane, rational content you can rewrite as posts to your site.
I can relate to your situation as an affiliate. When I started as an affiliate, I built my first website to promote a specific training program that I was enamored with at the time. However, I soon realized that the program was a scam and that the people behind it also cheated their affiliates. I was depressed for two months until I finally figured how to use the same site to promote a legitimate product. It’s been profitable for two years.
I keep running across these binary scams lately. And the funny thing is, they all pretty much look the same. For example, they worked in this prestigious job, their brother gets into binary trading but only wins most of the time, wants better software, etc. etc. It makes me wonder if they are all run by the same person/company. Either that, or binary trading scammers don’t have any creative talents and therefore copy everyone else in their niche lol.
It’s sad to think how many people fall for these scams. If only people would learn to read the Terms of Service! That’s where you’ll uncover all the slimy secrets which will make you think twice about handing over your hard-earned cash….
Anyway, sorry about the mini-rant but when I see these scams it makes me angry!
Yes, apparently there is a formula for these scams. I have seen a little variation, but essentially they mostly follow the story line of GPS Trader. Two binary options scams that got creative is Ice 9 Technology and Charity Profits App.
Ice 9 spins a convincing tale about a Silicon Valley software designer who invented a super fast program to help Google, but then adapted it for binary trading. Charity Profits is about a financial analyst from Wall Street who made her clients hundreds of millions and herself tens of millions until a fateful trip to Africa where she witnessed a little boy suffering from malnutrition. She vowed then to use her knowledge of finance to help everyone live a better life, blah, blah, blah . . .
These far-fetched stories would be funny except they are destroying people’s lives.
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Funny you mention GPS Trader, Gary, as I came across their introductory video as well a while ago. I was still at the stage of looking for a reputable learning platform as I wanted to set up an online business but didn’t even know where to start from. Well, I had exactly the same reaction as you: STAY AWAY!
By then I had smartened up and found it a total fib to promise such an enormous amount of money in such short space of time. For anyone wanting to build an online business, I can only add to your savvy words of advice that having a successful online business is a very profitable way of making money, but it is never any easier nor quicker than if you set up any other form of business.
Success is guaranteed with time and provided you work your socks off. So, never ever ever trust those scheme like GPS Trader, who promise you the moon at your door step overnight!
Hi, GiuliaB!
Thank you for your thoughtful comment. I wish more people understood that the internet is an amazing opportunity, but it still takes patience, commitment and sustained effort to make money with it.
Thanks for stopping by,
Gary
Sometimes I wonder how people can sleep at night pulling this junk! These poor people are being guaranteed a ridiculous amount of $, and instead they lose it almost immediately. There is no quick way, there are only more efficient ways of making money. Out sourcing is the only thing I have come across as a general rule that speeds up the process.
Hi, Joe Petruzzi!
I’ve often thought the same thing. How can these scammers live with themselves? I think they might be psychopaths. Unfortunately, there are hundreds of online scams like GPS Trader.
Thanks for stopping by,
Gary
Gary, How much are you asking for that ocean front property in Oklahoma? I would be very interested….LOL, Thank you for the upfront and honest review of GPS Trader. Many websites will only give positive reviews as they are trying to sell every product they can. It is very refreshing to find this article and hear you say that GPS Trader is a scam!
Hi, Scooter!
I appreciate your sense of humor. Thanks for the chuckle. You summed up GPS Trader perfectly. And, thanks for your kind words. I speak the truth as I see it.
Thanks for stopping by,
Gary
Gary, thanks for writing this review on GPS Trader, it’s sad that there are fraudulent companies like this that are constantly trying to scam people. It’s sad that so many people get scammed by companies like this. However, I watched the video you have posted on WealthyAffiliate, that looks promising. How long have you been a member of WealthyAffiliate?
Hi, WMP!
Unfortunately, GPS Trader is just one of a legion of scams that have destroyed the finances of tens of thousands of people, if not more.
You asked about Wealthy Affiliate. I’ve been an online marketer for nearly nine years and have spent the last two and a half years with Wealthy Affiliate. It’s the only place I recommend for learning how to make money online. It’s the real deal. This means no gimmicks or gotchas. It also means that like any business success requires sustained effort.
In other words, Wealthy Affiliate is not get-rich-quick or guru worship. Wealthy Affiliate is solid training and unmatched support. Beyond the training, we’re a community of friends helping friends to succeed online. If you are interested in building an online business, please remember it doesn’t happen by itself. You must make it happen. You’ll get everything you need in Wealthy Affiliate, but you have to do the work. The starter membership is free. There’s an affordable paid membership level too, but that’s for later. You’ll know if the paid membership is right for you after you complete the free training. Go here to learn more.
I’m here for you,
Gary
It’s crazy that people buy into this stuff. Even before you got into what a scam it is, I was thinking to myself what value does this guy provide?
Its a total bait and switch. That being said, though binary options are risky, they are a legitimate investment. That begs the question, why doesn’t he just post about what he’s actually doing instead of masking it. Something’s definitely fishy. If I understood binary options enough, I’d give them a try. I know a guy that was able to retire in his 40s with binary options. If I ever do invest in them, I definitely won’t be doing it through Mr Hefner.
Thanks for doing this review, as it is so hard to tell which program is genuine or a scam. Your explanation is clear and easy to understand. Most people including myself never read the small print so would not of seen this information. A lesson learned! Do you actually join these programs to test them?
Hi, Vicky!
I appreciate your comment. Sometimes I do join these programs but I use disposable phone numbers and email addresses.
Thanks for stopping by,
Gary
I’m glad you did this review GPS Trader App . What a joke ! richards sure made 27 people millionaires . $850 an hour ? that’s too good to be true and we all know that. anything that says earn so and so on auto pilot can’t be taken legit. $20,000 each day ? Come on not true by the slightest.
Thank you for this review. There are a lot of scams online and reviews like this help us stay away from them. A rule of thumb to avoid being scammed is, if the offer is too good to be true, then it often is. There is no such thing as easy money, and if there was, why would anyone just share it? $20,000 a day is beyond ridiculous. I learned to avoid offers like this after paying for a similar service once.
This was a interesting read. Essentially what they have done is devised a very unique way to get people to a landing page and give them money. There is no guarantee that it will work. So the “GPS” is just a unregistered advisor investing the money and then telling people that they have a system for making more money. I am sure that once you lose everything they wil ask for more money because they think they could make it back. Pretty sad. Thank you for informing people about this problem.
Hi!
Actually, it’s worse than you think. GPS Trader is nothing more than a stranger in a foreign country trying to trick you into giving them your money. They promise you will make thousands of dollars, quickly and easily, but you won’t make a dime. You will lose every penny you give them.
GPS Trader is not a trader or broker or anything it pretends to be. To get started, you will have to give them at least $250. They will let you win your first trade, but you really didn’t win anything. They just typed some numbers into the software to make you think you made fast, easy money. You didn’t. It’s all fake. You can’t take this money out. It’s just numbers on the screen.
If you believe that you did make money with their software, they will trick you into giving them thousands of dollars. That is the real scam. The first scam of $250 was just the set-up. The real scam is when they trick you into handing over thousands. When you do, they lock you out of your account. They get your money and you get nothing.
Thanks for stopping by,
Gary
WOW! Thank goodness you exposed such an easy-to-fall-into money trap! I’m sure many have been too unfortunate to stumble across this GPS Trader scam and have been sucked in! I think I might have too if I hadn’t read your article about them! You’re right when you say that you should work for your money and thank you for offering a better alternative instead of false promise scam “opportunities”. Good job Scamavenger!
I think this is very useful information. One thing that would really help me is if there were internal links to a glossary for those of us who don’t do a lot of investing.
For example, the term binary options- I know what options are, but am not sure what binary options are.
Overall, I found the article useful. You would think people would stop falling for “too good to believe” trading systems, but they obviously don’t.
You are doing good work here.
Hi, Eddie!
I appreciate your insight and recommendation. I did link to a post about binary options, but only once, so perhaps you missed it.
The term binary options is misleading, because a binary options trade is not a true options. Let’s start with what an option is.
In real estate, an option is something you pay for and own. For example, you might want to buy an old house, but before you buy it, you want to determine how much it will cost to refurbish it. It will take time for the contractors to inspect the property and work up an estimate. If you don’t lock in the property, you could lose it, so you pay the owner for the option of buying the house at a later date for a specific amount of money. This option is valuable and gives you specific legal rights to the property.
In stock investing you can buy an option on a specific corporate stock to either buy this stock at a specific price at a later date, or to sell at specific price at a later date. You own this option and it gives you specific rights to the stock.
A binary option does not give you any rights to a specific stock or asset. Binary options are derivatives of the market. In the world of securities a derivative is a side bet.
Trading binary options is more like placing a bet with a bookie than investing. Let’s say you place a bet with your neighborhood bookie on a college football game between Clemson and Georgia Tech. You don’t own either of the teams and your bookie does not own either of the teams. The only connection you have with the game is watching it on TV. If you’re right, you make money. If you’re wrong, you lose money.
Trading binary options with a registered broker is the same thing. Please note registered broker. When you place a binary options trade, you are simply betting that the price of an asset will go up or down at a specific time. You don’t own that asset. The broker who is brokering the trade does not own the asset. You two are just watching the trade on the computer screen. If you’re right, you make money. If you’re wrong, you lose money.
And that is as good as it gets.
Unfortunately, binary options can get a lot worse. Meet GPS Trader, an unregistered broker. Trading binary options with an unregistered broker, like GPS Trader, is not investing. It’s donating money to an unknown entity that is pretending to be a broker so they can get your money. The money you give to GPS Trader, or any other unregistered broker, is money you will not get back. The money only flows one way with an unregistered broker.
Thanks for stopping by,
Gary
All binary options are scams. Nobody can predict with any accuracy whatsoever what any stock, currency or commodity will do in the short term. It’s impossible. The reason they phone you for more money is because each trade costs $100 on the buy and sell side. It doesn’t matter. $250 is an off number. They want to get you to $500 as quick as possible.
They are nothing more than a bucket shop. Thanks for the heads up on GPS Trader. Just another fancy name for scam. All the best.
Hi, Peter!
Yes, I agree completely. It’s about the so-called broker making money, but it’s also about big investors hedging their bets.
However, it is essential to understand there are registered brokers and unregistered brokers. The registered brokers are licensed and play a game of pips and indicators, but as you mentioned, it is statistically impossible to correctly predict a specific asset, the direction of the asset’s value and the time.
Historically, an investor was considered a genius trader if he could predict the direction of an asset over time. That is just one factor. Veteran investors will tell you no one can predict the top or the bottom of a market. However, with binary options, you are expected to know the top and bottom for assets you know nothing about and precisely the moment these assets will up or down. That is not possible.
Then there are the unregistered brokers. They aren’t even brokers. They aren’t legal. And they don’t broker a darn thing. They just take people’s money.
The association between unregistered brokers and binary options is a lie. They don’t broker binary options. That’s just part of the story. Their goal is to take as much of your money as quickly as possible. GPS Trader is in this dark and dingy corner of scams.
Now, let’s turn our attention back to the registered brokers and the so-call legitimate binary options market. Binary options are side bets on how an asset will perform at a specific time. It’s an artificial market and no different than placing a bet with your neighborhood bookie.
The real purpose of the binary options market is NOT for the little guy to make money. The purpose of the binary options market is for the big traders to hedge their bets. For example, I’ve established that it is impossible to accurately predict how an asset will perform and when. That is true, with one exception. There are a few traders who can predict with a high degree of certainty how an asset will perform and when it will do it.
These traders manage hundreds of millions of dollars or perhaps even billions of dollars worth of investments. These are the managers of hedge funds and pension funds. If one of these guys dumps $100,000 worth of Caterpiller stock at 2pm on Tuesday, he knows with a high degree of certainty that the price of that stock will decrease. They can bet on that happening in the binary options market and make money both ways. That is why the binary options market was created.
The role of the little guy is to keep the binary options market liquid until which time the big guys need to hedge their bets. This is why you will constantly see ads for trading binary options. They need a continual supply of small investors to fuel the market with losing trades. Pips, charts and magical software cannot save you.
Thanks for stopping by,
Gary
I’ve considered binary trading many times in the past, but so many seem very, dubious. I will not profess to be skilled in these types of abstract trading practices, but they do seem intriguing. Unfortunately, I’ve heard many a horror story of people getting scammed.
Thank you for illuminating this GPS trader scam so I can avoid it.
All the best,
MK
Hi, MK!
There are two kinds of binary options trading. One is far worse than the other, but neither are recommended.
The GPS Trader is associated with an unregistered broker who operates outside of the law. If you get involved with an unregistered binary options broker you will lose 100% of the time. You may appear to win in the software, but you will never be able to take your winnings out.
If you win with an unregistered broker, it is because they let you win. And, they only let you win so you will believe the software is truly magical and will put all of your money into their scam. Of course, the instant you give them all of your money, you lose it. That’s the purpose of the scam.
Then, there are registered binary options brokers. Your chance of winning with these guys is only slightly better than with the obvious scammers.
A registered broker operates within the law, however, the purpose of binary options is not to make you rich. The purpose of binary options is to create a liquid market the largest traders on Wall Street can use to hedge their trades.
If you make a binary options trade the best you can do is guess if the price of an asset will go up or down at a specific time. You have no idea regardless of pips or signals or magical software. You can only speculate. This makes trading binary options no different than placing a bet with your neighborhood bookie.
However, the big traders on Wall Street, the hedge fund managers and pension fund managers, guys who manage stock portfolios in the hundreds of millions and many billions CAN predict with a high degree of accuracy when a specific stock with rise or fall.
For example, lets say Bob Gooberhead manages a huge hedge fund and needs to unload $10 million worth of Stinker Stocks Inc. He’s losing money just holding it. However, if he dumps it on the market at 10am on Friday, he knows darn well it will drive the price of Stinker Stocks Inc down. So he places a binary options trade for the stock to go down at 10am on Friday and dumps the stock.
Because 5,000 small traders are convinced Stinker Stock will go up, they make the trade on the opposite side of Bob Gooberhead. Gooberhead turns his stinker stocks from a loser to a winner. Everyone’s happy, except the 5,000 small investors who have to explain to their wives why they can’t go on vacation.
You really can’t win with binary options. It’s not investing. It gambling.
Investing is recognizing that an asset has greater value than is reflected in the price and then taking an equity position in that asset. In other words, you own it or the rights to it. Warren Buffet build his empire on buying shares of companies that were worth more than their stock price indicated. He owned a portion of the value in those companies.
Thanks for stopping by,
Gary
I agree, there are a lot of skeptical, shady deals out there. I haven’t heard of this specific one.
Then I noticed you were promoting WA (Wealthy Affiliates.) That’s an awesome system. I eventually upgraded, but I was amazed at how effective just the free membership is.
You can’t beat it.
Hi, Kyle!
Scams like GPS Trader are popping up like weeds across the internet.
Unfortunately, the more sophisticated the internet becomes, the more easily the bad guys can get in our wallet. As a rule of thumb, I think it is safe to assume that 99% of the make money online offers are worthless, dangerous, a waste of time or a scam. In other words, if you simply assume a make money online offer is not worth your time or money, you’ll be right 99% of the time.
The good guys know they must prove themselves to you. They won’t ask for you to trust them, they will prove to you that you can trust them by offering a risk free trial.
A lot of big name companies have free offers so you can try what they are offering without risk. In the make money online arena, the only people I know who offer a totally free trial is Wealthy Affiliate. I’ve been a member for two years. It’s not get rich quick, and there is no hype or guru worship in Wealthy Affiliate.
Wealthy Affiliate is a community, plus high-tech website hosting, plus an open university that teaches the most reliable strategy anyone can use to make money online. For the person who is ready to put in the time to build a legitimate business, Wealthy Affiliate is the only way to go. Thanks for mentioning it, Kyle.
And, thanks for stopping by,
Gary
Thank you very much for this post, I joined an affiliate program for another binary trading company and was really considering how to promote it. I just read the disclaimer and it is very similar to what you are describing.
Do you think it could be the same company or scammers in play? Since the disclaimer is similar?
Your page is very informative and very well written and again I thank you for the information.
Robert
Hi, Robert!
I’ve investigated dozens of these types of scams and many of the disclaimers are similar. It’s impossible to tell for sure if they are the same scammers. They may just be copying each other. However, I do know if their affiliate program pays more than $50 they are probably a scam and very similar to GPS Trader.
There are very few legitimate binary options brokers. So far, I’m only certain that one broker is registered with the SEC. That broker is NADEX. NADEX has an affiliate program too and pays $50 for a referral. This is much less than scams like GPS trader that pay $350 per referral. However, many, if not most, of these scams scam their affiliates too.
I encourage you to read this report from SEC: Binary Options Fraud In this report you will also find a link for checking on the registration of a broker.
If you chose to promote NADEX, you will find they are a huge resource for sane, rational content you can rewrite as posts to your site.
I can relate to your situation as an affiliate. When I started as an affiliate, I built my first website to promote a specific training program that I was enamored with at the time. However, I soon realized that the program was a scam and that the people behind it also cheated their affiliates. I was depressed for two months until I finally figured how to use the same site to promote a legitimate product. It’s been profitable for two years.
Thanks for stopping by,
Gary
I keep running across these binary scams lately. And the funny thing is, they all pretty much look the same. For example, they worked in this prestigious job, their brother gets into binary trading but only wins most of the time, wants better software, etc. etc. It makes me wonder if they are all run by the same person/company. Either that, or binary trading scammers don’t have any creative talents and therefore copy everyone else in their niche lol.
It’s sad to think how many people fall for these scams. If only people would learn to read the Terms of Service! That’s where you’ll uncover all the slimy secrets which will make you think twice about handing over your hard-earned cash….
Anyway, sorry about the mini-rant but when I see these scams it makes me angry!
Keep up the great work exposing all these scams!
Ian
Hi, Ian!
Yes, apparently there is a formula for these scams. I have seen a little variation, but essentially they mostly follow the story line of GPS Trader. Two binary options scams that got creative is Ice 9 Technology and Charity Profits App.
Ice 9 spins a convincing tale about a Silicon Valley software designer who invented a super fast program to help Google, but then adapted it for binary trading. Charity Profits is about a financial analyst from Wall Street who made her clients hundreds of millions and herself tens of millions until a fateful trip to Africa where she witnessed a little boy suffering from malnutrition. She vowed then to use her knowledge of finance to help everyone live a better life, blah, blah, blah . . .
These far-fetched stories would be funny except they are destroying people’s lives.
Thanks for stopping by,
Gary