Given the popularity of binary options trading, it is hardly surprising that a growing number of service providers are constantly throwing out new and apparently ‘improved’ tools, features and entire trading systems. Supposedly designed to make the trading process more enjoyable and improve success rates for traders, the vast majority of brokers these days have their own specific claims to fame. But at the same time, there are also far too many service providers out there who are making the kinds of promises that simply cannot be kept.
One of the more recent arrivals to the world of binary options trading has been the automated trading robot. In the simplest of terms, trading robots essentially take over the entire trading process on behalf of the customer. Rather than being required to carry out extensive research, market analysis and generally working hard to make the right decisions, binary options robots do all of this for you. Or at least, that’s what they claim to do.
Unsurprisingly, this seemingly incredible service is most certainly not made available 100% free of charge. Quite to the contrary, those looking to make use of binary options trading robots are usually charged on a monthly basis – fees ranging from about $100 to $500+ per month, depending on who you work with. But then again, this would appear to be a very small price to pay, if these bots can deliver on their promises of outstanding success rates and thousands of dollars in profits per day.
The only problem being, this simply isn’t possible.
A Common Scam
What makes this subject particularly difficult to understand for newcomers in particular is the way in which not all trading robots are scams. At least to the extent that some of the better trading robots available these days don’t make outlandish promises and offer clear warnings as to the potential risks involved. Quite the contrary to their counterparts, they don’t give the impression that success is guaranteed.
In terms of whether or not it is ever worth working with an automated trading robot, it’s a subject that divides critics and professional traders right down the middle. Nevertheless, one thing they all comprehensively agree on is the importance of proceeding with extreme care, should you wish to work with a bot. Not only this, but traders across the board highlight the extreme importance of avoiding scam service providers at all costs. Which in turn means knowing how to spot them – a process which for the most part is surprisingly easy.
Immediate Red-Flag Warning Signs
In the vast majority of instances, scam trading robots give themselves away in an instant. The reason being that they try to hook new customers with outlandish promises of the kinds of profits that are simply impossible to deliver. For example, they may claim to offer returns in the region of $10,000 per day, $100,000 per week or even claim to be able to make you a millionaire by the end of the month/year.
The simple fact of the matter being that there is no trading system or strategy in existence that has the potential to deliver returns anywhere close to these. They do not exist and they never will. If they did, thousands of professional traders the world over would already be using them. Not only this, but actually putting daily, weekly or monthly returns to a specific figure is also fundamentally impossible as the outcome can never be predicted with 100% accuracy. As such, if you come across any kind of claim regarding how much you could be taking home by working with a trading robot, you can bet your bottom dollar it’s a bum deal.
One immediate method that can be used to separate an honest and reputable binary options service provider from a scam artist is the presence or absence of guarantees. The very nature of binary options trading is such that it never has been and never will be possible to predict outcomes with 100% accuracy. If it was, the entire trading industry would no longer work as in order for trades to operate, there must always be winners and losers. As such, it is uncertainty that fuels the industry as a whole.
Which is precisely why so many automated trading robots give themselves away in an instant. One of the common scam tactics you will come across is that of being lured in with the kinds of guarantees that are simply nonsensical. Guaranteed payout rates, guaranteed income, guaranteed profits within a certain amount of time and so on. But what’s even more ridiculous is that in the vast majority of such examples, the same service providers also state within their own terms and conditions that trading is a fundamentally risky activity and that traders may potentially lose all of their money at any time.
They guarantee results, after which they admit that results cannot be guaranteed. For obvious reasons, these are exactly the kinds of service providers to stay away from at all costs.
Bogus Reviews and Ratings
Another extremely common promotional tool used by scam service providers also happens to be a highly effective means by which their status as a scam operator can be immediately identified. As is the case with the vast majority of reputable and responsible service providers, scam trading bots also like to publish reviews and recommendations submitted by their customers. Needless to say, all such feedback is 100% positive in nature and paints an extremely appealing picture of what’s on offer. Unfortunately, it is pretty easy to determine that all such feedback is also 100% fraudulent and scripted by the service provider itself.
From the quality of the statements to the fact that stock imagery is used or perhaps the profiles have simply been stolen from random social media accounts, it is usually very easy to spot fake reviews and testimonials. Suffice to say, you only have to carry out a quick Google search with on the service provider in question to see what the real public opinion on them is. If it is a scam trading bot you’re looking at, it will become apparent instantly.
Something else you will find commonly used by the vast majority of these bots is something of an introductory marketing video, which apparently shows you both how the System Works and how your life will be changed should you choose to go ahead with it. You will no doubt see either the ‘genius’ behind the scheme or one of the brand’s satisfied customers, perhaps driving around in a Ferrari, sipping cocktails by a pool and generally living the high life. The only problem being that not only will the video explain not a single specific about how the system works, but you can pretty much guarantee that those taking part are actors.
It is once again something you will be able to verify by carrying out a single Google search. There is a certain group of semi-amateur actors and actresses who repeatedly appear in these kinds of videos, pretending to be a different owner of a different trading company every time. Given the fact that they have hired actors to portray fictional characters in the first place, this really tells you all you need to know about their legitimacy and honesty.
Last but not least, one final trait that will tell you in an instant that what you are dealing with is nothing more than a scam system is when you are led to believe that there are only limited places available. The service provider insists that there are perhaps only 100 or even just 15 spots available for the incredible price of say $400 per month, after which either the system will close entirely or the price will go up to say $1,000 or so.
Whatever the specifics, there are two important things to take into account. First of all, if the provider in question really did have a spectacularly effective system, there is no way they would limit it to just a few available spots or make it available for such a low price. Instead, they would invite as many people as possible to join up for a much higher price, throwing spectacular sums of cash their way every month for an incredible service package. On top of this, if the system in question really did work, why would the provider in question need to sell it to others in the first place?
Realistically, if they were able to guarantee 95% or even 100% success rates, surely it would be far easier and more profitable simply to focus on trading for themselves. Indeed, such a system (if it actually existed) could easily transform $10 into a multimillion dollar fortune in no time at all. Which begs the question – why would they bother going into business with others?
The short answer is, they wouldn’t…precisely why it becomes immediately clear that this is an automated trading system to stay away from.