The problem as far as I see it is education. If more people know about Binary Options and the blatant scams that erupt like a plague of boils around this niche, then perhaps more people will choose to avoid the allure and stop feeding the affiliates.
The product that has brought my ire this week is Elite Trader App, which is neither, elite nor an app.
As always with this type of “product”, the sales pitch focuses intently on making you greedy.
It puts forward a series of emails from supposedly happy customers who have allegedly made thousands per day from using this app.
Personally, I don’t believe that these are real emails. For sure the voice overs on the video that narrate these emails are actors, but while I cannot prove it, my gut states the written emails are fakes too.
The video states that a whole bunch of highly experienced traders are earning money for people for free. This is a lie. No offence but if you are one of those experienced traders, you will either not be giving away your time and therefore money or at the very least you won’t be doing it on a website like this.
The video is full of stock imagery and video clips, and the lovely Jennifer Meester, apparently an employee, whose face never appears, sounds like a professional voice actress. No standard employee would ever sound as polished.
I love that the video pours scorn on products that offer tens of thousands a day, yet this product still offers over $1000 per day as a “conservative estimate”. The likelihood of even reaching that figure is remarkably low.
It’s interesting to note that the sales pitch suggest they also take a 5% cut as that is unusual for binary option apps like this.
They even contradict themselves by saying that the Elite Trader App will “always be free”, but you have to pay them 5% kickback. That makes zero sense to me.
Moving forward with the Elite Trader App
Unsurprisingly, after providing your name and email address (to an email harvester so expect spam, spam, spam!) you are then forced to provide even more information, including your name and email again.
This then forwards you over to another page where you have been auto registered to a trading broker. In this case it is Option Financial Markets.
Not only is this broker based outside of the US, it is not 100% clear it is even based in the UK as the website suggests. The company doesn’t appear on the Companies House website (a UK government website that lists registered companies), nor does the Option.fm website list a registered company number or VAT number.
The company is apparently relatively new, opening its doors in the early part of 2014. Still, a year later and there are no traces anywhere that would make me happy about their legitimacy.
All those signs would make me very nervous to give them money.
As is typical of binary options products like this, they require you to deposit $250 as a minimum to get started.
Normally the broker offers the affiliate a commission for each deposit (and usually a large one of around $250 a pop).
I couldn’t find an affiliate program, so perhaps that is why the Elite Trader App authors are requesting a kickback from you instead. It seems that they will send you signals every month in return for the kickback.
Bear in mind that as well as this kickback, the broker will also take a cut of 20 to 30% of any winnings you make.
This generally means that you need to win big on each trade in order to make a profit on the trade.
The Bottom Line
I have serious doubts that anything the sales pitch says about this system is true. It reeks of the standard fare that marketers use to make money from people interested in making fast money.
If you are looking to make fast cash, Binary Options is a valid but exceptionally risky way to do it. You could have just as much success betting on horses. And you could lose just as much too.
Looking at some figures dotted about the web, if the broker pays you $70 for every win, you will need to win 55% of all your trades just to break even.
Therefore on a 50/50 chance of winning or losing you need to beat the odds and win much more often in order to actually profit.