Binary Options had a long way to go. The industry is in a pretty bad shape. Why is that?
The reason is pretty simple. There are just too many affiliates and brokers out there destroying the whole industry. They turned a simple trading tool into a Make-Money-Online-Scam – and a big scam it is! I’m pretty sure you came across these type of offers:
“This is Mark, he earned $15.245 this week alone. He’s a professional trader scam artist. He is showing you (fake) stats and earnings in the following screenshots. You can do it too. He’s showing his hyper-dyper trading secret. Just leave your email address and he will let you know.”
So who is doing all that and why? This fake Mark is just an affiliate, someone who earns commission when he refers traders to brokers. So for example he earns like $250 when you are stupid enough to sign up under him and believe in his trading system. He’s happy with his commission and gives a sh*t if you make money or lose. He also won’t care if you report him or write about this scam. Because he will already have another site and won’t be Mark any more but Tom, Steve or whatever. Mark cannot lose with his scam. His only task is to convince you that he is legit and you’ll be successful with his system. That’s it.
Now you might say that this was also possible before the binary options trend. Yes, sure, but with binary options scamming Mark can make look his scam more legit. As binary options are simple to explain and easy to get started. Good news for him. Binary options are so simple that you can even “sell” simple robots that are trading automatically. So installing a robot, funding your account and make money while you sleep or chill at the beach – how does that sound? Too good to not give it a try for most.
But anyways. We are still talking about affiliates that are exploiting the naivety of novice traders. And what about brokers?
Let’s be honest. Even brokers are running these scams! No kidding. Brokers who claim to have whatever licenses and are supposed to be trustworthy are trying to trick you into some simple make money online schemes. That’s quite incredible to me but it’s a fact. You should be very cautious with these brokers to say the least. And I hate to say that but even highly recognized brokers are operating these schemes – brokers you have heard about.
So, let’s say you are not stupid. You are not naive. You know that these scams exist and you can smell them miles away. Good for you. But that doesn’t mean you are not vulnerable to shady practices. Sign up with any given broker. Chances are at least 1:1 that this broker is not reliable and uses his shady sales tactics. What are those? Simply sales people without a conscience. They have no morale or ethics. They get paid based on your trading activity. So what are they doing? They are not calling you to say hello. They are calling to convince you to start trading. And not only starting trading but trading way above your limits. They claim to have insights or insider information you can use. They tell you buy EUR/USD now with expiry at 14:00. And do so with a lot of money not paying any attention to bankroll management. Not even sure if they heard about that at all.
So what exactly is the scam? To me, having someone with a conflict of interest telling you to make trades above your bankroll requirements is already shady. But that’s not all. They will give you promising trades and even make you money at first. And once you trust them they can do everything with you. They can get you to reload your account because that was just an unlucky losing streak and you will turn it into profits very soon again. This will continue until you had enough. Until you either ran out of money, lose your Internet connection or finally realized what is going on. The sales guy is not paid when you win, he’s paid when you lose.
There’s one very good article that pretty much sums it up what is going on with certain brokers and reveal their shady tactics. It’s called the wolves of tel aviv and trust me, it’s actually not better than the original wolf of wallstreet.
Back to the original question: What brokers are left?
Not many to be honest. There were a couple of promising brokers that really focussed on their traders and their brand instead of trying to squeeze everything out of their traders. Most of them turned to the dark side. And the rest was on the dark side right away as it is just too profitable. But there are exceptions. If there were none I would not be running websites about binary options. How do these exceptions look like? They are brokers with a vision. And this vision is not to make money but to offer a simple trading platform people enjoy using. For example. There can be other visions as well but that’s a good example for a customer centric vision. Customers first, then profit. When you are running a broker like that it’s obvious that you do not annoy your traders. You won’t call them or hire sales people that are stalking them.
Then you will not just use a white label platform like Spotoption. You will develop your very own one. Why? Because these platforms are not perfect for your traders, some of them are even completely flawed. So you have no other choice then developing your own even if that means a lot of work and money. But with this approach you can actually focus on what matters – the trading experience.
Currently, there is only one broker that comes to mind that fulfills these criteria and it is called IQOption. If there’s another one we will be updating this list but currently we do not see any. Let’s hope this changes very soon. Feel free to comment below.
Visit IQOption Website >>
RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK