Binary options have fooled many. It’s not surprising. The main feature is clear and simple – the ability to earn 70-90% of the amount invested in… one minute. What is that if not the promise of easy money? Yes, the roulette wheel keeps spinning.
In binary, we get almost double any amount invested. What does that lead to? That’s right – binary options have taken over the niche of slot machines, sports betting and other gambling entertainment.
The main audience for binary options, from a broker’s point of view, are inexperienced boys and girls who have heard the word “quote” for the first time. Usually these citizens are from the provinces, on low wages, mired in loans and hopelessness. The whole industry is geared towards persuading all they can with promises and illusions. Very cynical – and more than natural. Ignorant people have always made a lot of money, and that’s all there is to it. What brokers, what traders.
Let’s remember what we already know. Almost all binary companies are price bookmakers. They physically can’t pay out more than other clients have lost in them.
Therefore, many companies are tempted to speed up this process and gently seduce their clients by promising mountains of gold. As a result, the industry has become:
- a showcase for easy money;
- fantastic fictional stories;
- unfair advertising;
- totally fraudulent activity.
Easy money for everyone
This is the main reason why inexperienced and greedy citizens are deceived. With us you’ll earn a lot, we’ll help you do it. For unscrupulous firms, the first thing you hear after registering is a call from a manager who supposedly wants to help you “make money”.
However, just remember the core business of binary options companies? They only take the money lost by traders. They earn from our losses. Therefore, you don’t need any “help” from any binary company a priori, and it’s absurd. The manager offering “help” is blatantly lying to you.
Some people find that hard to believe. Well, of course, the guy/girl hears a pleasant voice on the phone, thinks he wants to help… he’s crazy. The company that profits from your losses wants to help you? How can you believe that? The sooner you wake up, the sooner you’ll start making a profit.
As we’ve already mentioned, the graphs show the quotes for interbank currencies. What are the chances of an ordinary person, with no trading experience, no knowledge whatsoever, predicting the rise or fall of the price of some asset on the interbank market for a long time?
Yes, there is no chance. Zero. That’s why over 90% of those who have tried binary options have lost everything. At the same time, they were filled with negativity about everything binary. Not surprisingly, they were promised a lot, but instead they were left with no money.
For a professional trader, binary options are not easy money. It’s a tool with which, in the right offices, you can get the money left there by the newbies. To that last point, this is a common trap.
5 promises from brokers
In normal companies, neither managers nor annoying advertising can get to you – the company simply has a platform where everyone can try to win at the expense of everyone else.
This is how the white binary works. Companies know that more than 90% of customers will lose money on their own – so why interfere in this process? They don’t interfere, taking on the silent role of intermediaries.
In fraudulent companies, they are not satisfied even with this percentage of losers. They want to drain 99% to get more money.
Why is that? Greed. What’s more, many binary companies rightly suspect that they won’t exist in several years’ time. They have too much competition and the binary theme has already passed its peak of popularity. Their task is to squeeze out what’s left.
To do this, they use a few simple tricks.
1. The manager will tell you how to make money
No, the manager will only tell you the places he allows you to take your money. They are taught to pretend to be “traders” or even “analysts”, they offer to “analyze” the market for you, they want to give you various pieces of advice and help you “win”.
There are no traders and analysts in binary and Forex companies, get real, wake up.
Is there a paid “analyst” in a call center who tries to squeeze a deposit out of you over the phone? Who supposedly “knows” where the financial market will be tomorrow? This is the company that profits from your losses! Be logical, activate that gray matter in your skull.
It’s simply unbelievable how low financial education is in Brazil. People believe that a 20-year-old on the phone, receiving bonuses for his lost deposits, will guess the euro/dollar rate on the interbank market!
Madness. Is there any remedy for such ignorance? Just a hole in your wallet. You’ll get it if you listen to industry representatives.
Some of the manager’s advice, of course, will be an advantage – after all, with a simple toss of a coin, you can guess if it comes up heads or tails, the result is 50/50. Toss a coin and give some advice. Sometimes you’ll get it right. However, the overall result, of course, is money flying.
The managers of the darkest binary companies will call you every day (several times even) and tell you magical stories. They lie continuously. They lie desperately, boldly, stereotypically. They come up with “success stories”. They’ll tell you anything to get you to invest in the platform.
They tell fairy tales to not very bright people. That they are “analysts with 10-20-30 years of experience”, show you Photoshopped screenshots, even offer their mother’s ass just to get a deposit out of you.
1.1 The fate of managers
Many former black office managers later told me how things are. In reality, the company is a small room in which 20 people sit, usually students, touching each other with their elbows and talking on the phone – they need to cheat a certain amount of clients during the working day.
The guys burn out on this job quickly. Staff turnover is very high (2-3 months). Everyone leaves there with their psyche destroyed, because they knew what they were doing from a moral point of view. You put off this reality, you know deep down in your soul that you’re a fraud and you’re already lying to yourself, but sooner or later… karma hits you. The hangover will be terrible. Many fall afterwards. That’s why young people are taken there – the flexibility of the psyche allows them to prolong this agony.
In fact, it makes you feel sorry for the managers – it’s a pitiful prospect. But the fantastic naivety of our people means that a 20-year-old brat can fool a wise 60-year-old man who is helpless in front of a sweet voice on the phone.
Rule number 1: don’t listen to managers. Never. There is no one on the other side who wants your good. You need to talk to them once, listen, tell them you don’t need their help and say goodbye.
Or immediately register with normal offices, where they will call you once for an acquaintance (or not at all) and leave you alone.
2. Get a VIP account and professional support
There is no “professional” support for binary companies – this is not a transaction, not a real market. It’s just a platform for betting on prices. The task of any manager is to ensure a positive balance so that more money comes in and less money goes out.
So before you put an impressive amount into a VIP account, seduced by fabulous promises, remember the essence of the binary options broker business. A large deposit is only necessary for experienced traders who know what they’re doing. Otherwise, don’t hesitate.
VIP accounts with binary companies are only for VIP suckers. The binaries’ task is to extract as much money as possible from the VIP guy until he comes to his senses.
Many do. I often read stories that, after years in this market, still amaze me. Most recently, a man wrote that he invested 50,000 dollars in an office I first heard about (from him). Where everything was a lie – “10 years” of work (actually one year), regulations (all made up), commercial conditions, VIPs, promises, everything was a lie. Everything.
What’s more, the person who received the money kept making things up. That “the regulator blocked the transfer” and therefore you need more… 10,000 dollars to “bribe” him and “unblock” the money. Before that, there were several other reasons and imagine – the person was seduced by all of them. And only the last installment made him ask questions.
Every time I see this I scream like a wounded moose. Howooo, how? How come? How could it? So much extra money? If so, hand that money over to me, I’ll find a better use for it.
3. We only win if you win
Total nonsense that catches out people who have come to binary options through advertising. Many binary companies pretend to be stockbrokers. They’re even called that – brokers – although de jure and de facto they are not.
A broker is a real intermediary between you and an exchange. In the lesson Real Binary Options, we have already discussed that if you trade real options (vanilla or binary) on the CME – Chicago Mercantile Exchange, created in 1874 – then the company that will give you access to this exchange is a real exchange broker.
For example, Dorman Trading. This is a market maker for CME access. It earns more the more you trade on the stock exchange, as the broker receives its honest commission from each of your trades.
Here’s the official list of brokers to work with CME – good luck finding your “binary broker”. Apart from them, real market binaries are only available on two binary exchanges in the US and that’s it.
By pretending to be stock brokers, most binary companies are simply trying to scam their clients. In fact, they are:
- don’t trade on the stock exchanges and can’t even do so theoretically;
- only gain from what you lose;
- are bookmakers, not bookies;
- pretend to be a real market.
Remember that and don’t fall for the vicar’s tale!
4. We guarantee a stable income for you
Yes, of course. A company that earns only from the money left over will “guarantee a stable income” for you. A more insolent deception is hard to imagine. The wolf promises the lamb protection.
Exactly the same promises are made by countless “teachers”, “schools”, signal services and other scammers, of which there are many. The truth is:
- it’s difficult to predict the market;
- no one can guarantee a stable income here;
- if someone guarantees you certain percentages or amounts, names specific terms of their “success” – you’re in the clutches of scammers, run away quickly.
5. Yes, we got the money within 24 hours
Promising doesn’t mean delivering. Even the best companies in the market rarely invest in this period. Especially when it comes to bank transfers. With e-wallets, the situation is better, but you still usually have to wait more than a day.
Some offer fast withdrawals for VIP accounts. However, if the amount is large enough, you’ll still have to wait a few days – usually at least three.
So you don’t have to believe stories about “instant” conclusions, if you find one it’s already good luck.
Paid teachers and strategies
There are lots of such things on the binary market. On every corner, they promise to teach binary options (“only” for 500-1000 dollars), sell “success strategies”, “guaranteed signals” and other nonsense.
It’s all a scam for morons. You can easily check this yourself. Most of these super-strategies are distributed for free or for a penny in various clubs.
If you pick up some kind of nonsense with the name “Super-efficient strategy, $5,000 a day income”, being sold for several tens of thousands of dollars or hundreds of dollars, on various group-buying forums you can buy it for… 100-200 reais.
And you’ll realize that even if it’s free, it’s garbage. Nobody owns the secrets in the market. It’s like being able to predict the future with certainty. As already mentioned, signals that guarantee 80% will make you a $500 millionaire in just one year.
So don’t be fooled by countless promises and ridiculous advertising. The only paid format worth paying attention to is real live trading with a professional trader. But here you must get clear evidence that the trader is a professional, and not Zeca from the street who has decided to pass himself off as a trader.
Before you give any trader money for training, demand a statement from them – real data about their trading. And this is not a Photoshop screenshot. And, for example, public statistics from Myfxbook. Account statement from the stockbroker. Data that can be verified and cannot be manipulated, as it is confirmed by a third-party resource. So you’ll quickly discover that 99% of paid teachers simply have nothing to show – they only know how to “teach”, but not how to trade.
With a free teacher, there’s no demand – many traders keep personal blogs for their friends, because they want to share results and are looking for like-minded people. There are a lot of these guys on various trading forums, especially Western ones. It’s a pleasure to communicate with them, their blogs are often a place with useful things and practical experience.
Paid scammers will lure your income and say “give me $1,000 and I’ll teach you”. Yes, yes, of course. Learn how to get $1,000 in your pocket.
Investing in crooks
The Israeli company Investing.com is full of paradoxes – technical tools, but at the same time actively promoting… fraudulent Israeli brokers. You get the idea.
As soon as you register to invest, you’re in. God forbid you put real data in there! They’ll start calling you… immediately. The record I witnessed is 3 minutes! Exactly after registering for investment, a scammer called to sell his dull black office.
And there are frozen offices there – a wagon and a small cart. Remember, the Israelis ran scam binary options. They still work according to the old schemes. Investing is your focus, there are dozens of fraudulent Israeli companies on the “best brokers” lists.
Therefore:
- don’t sign up to invest (you don’t have to);
- don’t put anything there;
- and don’t do anything at all.
All your technical tools can be found elsewhere. Or use them, just without… registering anywhere. You’ve been warned.
How to complain about a broker
How do traders do badly? Quite simply. Usually through:
- managers (“personal traders”, “analysts”);
- bonus;
- signs;;
- various stupid temptations, such as “we’ll do the trading for you”.
Over the years, I’ve received many emails from people, thousands in fact. It was the managers who leaked many of them. How can you complain about all of them?
The answer is simple – nowhere. From a formal and legal point of view, you yourself agreed to the consultations you were offered. The manager said – “we offer a strategy” and you signed up for it yourself and agreed. If you give money to a fraudster voluntarily, he’s clean before the law. And you can prove otherwise only through a court of law and in a foreign jurisdiction. Of course, you have neither the knowledge, nor the money, nor the opportunities to do this. As soon as you, with your mouth open, heard at least one offer from a manager on the phone, you were caught.
The price was against me, this is a farce
Sometimes people think that some binary companies deliberately “confuse” the chart in order to mislead the trader.
This is not true. In all of history, only 2 black offices that were frozen in 2013 worked as follows: everything worked for you on a demo account (the results were drawn) and nothing worked on a real account.
However, these manipulations are so primitive that the blackies were taken off the market a long time ago, they only lasted for months. The graphs are easy to compare, over the years people have more or less understood how the interbank market works, and this technique has lost its meaning.
To understand this, you:
- puts up a live chart and a broker chart with the same time frame;
- and compares price movements.
For most brokers, it will be identical. Quote substitution can be detected in 1 second, so companies have not been using this technique for a long time.
From time to time, the candles on the broker and other charts will be slightly different. This is a feature of the foreign exchange market, where there is no single source of quotes and it is a normal situation.
Bear in mind that there will always be a slight difference in numbers:
In the foreign exchange market there is no one source of quotes – there are hundreds – because it is an over-the-counter market. The quotes are different. Always. And numbers and sometimes movement. One candle can be a pinbar, the other a doji.
Therefore, you need to work strictly according to the broker’s schedule or choose a broker where the discrepancies are minimal. In short, it’s not a problem and you don’t have to worry about quotes.
Where and why to complain
In the past, you could open your company’s regulator and make a complaint. However, if you:
- invested in the managers’ council;
- subscribed to the signal service;
- listening to YouTube/Telegram gurus;
- used the “guaranteed” binary robot;
Nobody is going to give you anything back. The only way to prove a manager’s malice is through the courts – guess what, there hasn’t been a single precedent in years.
If the broker is regulated, you need to complain directly to the regulator. But here the nuances begin. In the years since the first edition of this lesson, the world has changed a lot.
Regulators are everything
In 2013-2016, in the glorious era of the binary options heyday, black offices were completely banned – clients were even banned by IP and their accounts were deleted (sic), just so as not to disburse funds. Gray firms acted differently – the client received his jackpot and the account was closed, with or without reason.
In the whites, the risk management systems especially caught out the martingale players from the start, and their percentages were reduced so much that they themselves left the platform. Those who worked (and work) for years were deducted moderately.
In 2020, the situation changed dramatically. In the EU, binary options are now banned – European regulators no longer regulate what “isn’t”. The major black offices have gone bankrupt and hundreds of millions are being actively sued in the United States. There are still cases of cheating – in a small number of old black offices (these are the ones where partners under the guise of “rich traders” show millions on YouTube / Telegram and clients are attacked over the phone), but these are the last of the Mohicans.
Now the world is polarized – either the company pays for everything (you made the right choice), or you’re in the dark and… that’s it. You gave money to YouTube robots, managers, beacons and storytellers voluntarily.
You’ll have to make a chargeback through a bank with little chance of success or contact offices that “return” funds that will be posted twice.
That’s why choosing the right broker from the start is so important – your entire future trading destiny depends on it. Binary Invista has taken one on, but you must learn to choose the right companies on your own and without my help. That’s why, from lesson to lesson, you get a fishing rod and instructions on how to use it – not a caught fish.
Complaints in forums
Complaints through a forum are effective. Sometimes they have a much greater effect than going to a conditional regulator.
So if you have problems, feel free to leave your feedback in threads about brokers, both on our forum and on specialized Forex forums. Public image is incredibly important now and there are official representatives in many forum threads, including here at Binary Invest.
When making a complaint on the forum, be constructive and calm. Often, these complaints are wild cries of indignation, in which it is absolutely impossible to understand the essence of the problem.
Inexperienced traders don’t know how to control their emotions and their complaints are sometimes such that we even feel sorry for the broker for having found such a client. Those who shout like crazy, of course we ban, without wasting a minute of personal time.
There are some binary industry scammers described in the blacklist forum. But it’s already out of date and I’ve stopped using it. It’s just a reminder of how black deals usually happen.
The reason is simple – I’m a stickler for whitelisting and common sense. There are always thousands of companies on blacklists. There are many scammers in the world. Hundreds of them appear and disappear every day. Keeping an eye on all this… I have more interesting things to do in my life. And so do you.
It doesn’t make sense, especially as they’re all similar. Everyone’s on the phone talking nonsense – well, how hard is it not to work with companies that chase customers on the phone? You don’t need a list. Just learn not to listen to them on the phone.
So ignore it, it’ll be your best assistant (for most, however, for some reason it doesn’t help).
How not to fall prey to binary scammers
In a nutshell:
- talk to the manager (if he calls) 1 time;
- if the manager insists and bothers you – run away immediately;
- don’t accept bonuses, signals, “personal assistance” from a binary company, don’t accept anything ever;
- don’t communicate with them;
- invest the minimum amount;
- work with a demo account first;
- rely exclusively on yourself .
Make no mistake
Listen to Uncle Andrey: you should never, I stress never, listen to the manager of any binary, Forex or stock company if he offers at least something related to trading. Don’t talk to them. About anything. Don’t talk to them!
Technical questions – explore the terminal yourself. How to open an account, close it, how to set up a schedule – learn for yourself, this is not higher mathematics! Everything to do with the market and your money, your market risks – don’t even think about talking to them about it.
And remember, they will lie. Managers, strategy salesmen, school and course teachers… with sweet, cheeky, kind voices, will lie. Always lies. Only lies. These are idiots who receive salaries and percentages. Their income depends on the volume of deposits attracted, the volume of business, your funds left in their pockets.
So throw away your rose-colored glasses and work with this market as soberly and cynically as possible.
No one in this world gives money to anyone. Either you cultivate your sober, cynical professional within you, or you’ll be treated like sheep – and then you’ll complain all you want, even at Sportloto.
Gather your courage – in this business, people who listen extremely closely to only one expert make money – themselves. Either you do it or you might as well not even try.
