What is a Binary Options Scam?

This guide will help you understand what are binary options scams, who's behind them and how to avoid falling victim to such scams.
 
There are many definitions to “Scam”, however the best we’ve found is from the Business Dictionary:
 
“A fraudulent scheme performed by a dishonest individual, group, or company in an attempt obtain money or something else of value. Scams traditionally resided in confidence tricks, where an individual would misrepresent themselves as someone with skill or authority, i.e. a doctor, lawyer, investor."
 
As the online world developed, we've seen new forms of scams, including: email spoofing, phishing and lottery scams. 
Here’s an eye-opening video about scams in general:
 
 
 
Over the past 15-20 years, the internet has proven to be an immensely popular hunting ground for scammers, and have bred a new type of scammers – the online marketing scammers.
 
These individuals or groups are marketing wizards. They know the ins and outs of how to convince people to buy things online. It is an art in itself, combining graphics, copywriting and human psychology to effectively sell online.
 
Click HERE to go to our latest posts exposing binary scams
 
 

What’s different about binary scams?

Out of all the scams you could encounter online, one of the most popular is the Binary Options scam. This type of scam is centered around the Binary Options niche of the online trading industry.
 
This industry is based on the idea that anyone can trade financial markets, and do it reight from their PC, laptop or mobile device.
 
There are thousands of online brokers who’s business is to enable online home-based trading. They provide their clients with a website or app, through which the client gets quotes and can execute trades, sometimes even automatically.
 
 

Who’s the target audience?

 
Binary Options scammers target either one of the following:
 
Newbies who just stumbled upon this niche, and get the impression that there’s a lot of money to be made here, and very easily
 
Those who have been trading for a few months or years, but have not been successful in producing satisfactory profits
 

Types of Binary scams

There are several types of scams you’ll find online. It is important to understand that not all binary systems and products are scam – some products and brokers are 100% legit and honest.

It makes sense, because the binary options industry has been active and successful for almost 10 years now. Those who took the time to learn, or had luck to find the right kind of systems, have seen good profits.

Therefore, bear in mind that there are automated robot scams, BUT there are also legit automated robots, which are software that can automatically trade binary options and produce profits for their users.

These are the three types of binary options scams that you’re likely to come across:

1. Automated Robots

An automated trading bot is software designed to analyze and trade financial markets automatically, with either minimal human intervention or completely hands free.

An Automated Robot in itself is not a scam. Rather, it is a well know tool in the arsenal of the biggest banks and hedge funds in the world.
However, scammers have abused this term, and have been producing worthless software which isable to trade automatically, but unable to produce consistent profits for its users.

The marketing wizard do market it as highly lucrative and profitable, but as soon as a user starts using it, they can see their account balance going down quickly.

This is the most common binary options scam these days, and you read below about the latest ones we’ve uncovered here. For a list of automated robots that we’ve found to actually work and make money, see this page as well as our YouTube channel.

2. Signals Software

Binary Options Signals are trade recommendations that you can use to benefit from trades done by pro traders or by profitable automated analysis software.

However, like any good idea, scammers have twisted this type of trading service, and are sending bogus signals that do not produce profits when you follow them.

We have come across many such signals scams lately, and you can find all of them when you scroll down this page.

But…

The scammers have not gotten their way completely, and there are still Binary signals services that are honest and make profits for their users. Many of them operate a robot alongside the signals, which means that you don’t have to manually execute the trades – great for beginners or busy traders.

You can find such reliable signal services by clicking here.

3. Unethical Brokers

The world of binary brokers is divided into two legions – the honest, reliable brokers, and the unethical brokers.

Unethical brokers are almost always un-regulated, and have taken measures to hide themselves, such as not revealing the location of their offices, and not providing their phone numbers.

These brokers usually employ a host of tactics to rob clients of their deposits, or simply close shop one day, taking clients’ money with them.
We’re getting a lot of feedback about brokers from our followers, and it enabled us to hand-pick only the best and most honest ones. You can find the current list here.

 

How to avoid binary scams

Scammers have gotten really sophisticated these days, and it is often not easy to avoid them.

Our mission here at Binary Options Place is to find and expose these scammers, and we do it in a variety of ways.

First of all, we initiate our own scam investigations, and often deposit real money with different signals, robots and brokers. This is the best way to discover whether a service is legit or scam.

Another important source is you, our site visitor. We encourage you to use the contact us page and report if you’ve come across a binary options scam.

All our past scam investigations are available on this page, just scroll down to see the different scams we exposed. Within each scam investigation page, you’re also welcome to share your experiences if you’ve tried that service or software.

Here are the latest binary scams that we've exposed here - avoid these like the plague:

 

Millionaire bot is a total utter scam!

Posted on 22 Nov 2016
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Millionaire bot featured image

Sometimes we’re astonished by how those binary options scam artists produce these low quality scams and really expect people to buy into them.

Today we dissect the new “Millionaire Bot” binary signals and robot service, and show you why we believe it to be a total utter scam.

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Automata Formula is the newest ugly binary scam

Posted on 16 Nov 2016
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automata formula featured image

Today we are issuing a warning against a newly discovered scam called “Automata Formula”.

This is a binary options signals and robot software, that’s been reported to cause nothing but losses to its users.

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Double warning for the Disrupt 2.0 Binary Scam

Posted on 06 Nov 2016
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Disrupt 2 featured image

Today we issue an updated warning about a scam that we’ve already covered in the past, the Disrupt Binary System, which now RETURNS with a new scam called “Disrupt 2.0”


If you haven’t been scammed the first time, now is your second chance to lose all your investment again, if you choose to join this scam system.

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The AlgoMaster scam exposed. Stay away!

Posted on 31 Oct 2016
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AlgoMaster binary options scam - featured image

Today as part of our continued efforts to save as many traders as possible from falling to binary options scams, we are publishing the results of our investigation on the AlgoMaster software.

This is apparently the newest binary options scam, posing as a legit offer. Armed with a sales video which looks polished and professional, this system turns out to be just an online scam that promises you big gains but delivers absolutely nothing.
 

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Another pathetic scam exposed: High Frequency Trader

Posted on 06 Sep 2016
210 views

HF trader binary optins scam featured image

We are extremely annoyed every time we find a new scammer trying to steal people’s hard earned money, promising to make big profits from binary options.


This time, it is a website and app called “High Frequency Trader”, which we have found and exposing in this post as a total scam.

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