Is Option Robot a Scam?
Binary Option Robot presents itself as a free browser-based software that will automatically make binary options trades for you. However, is Option Robot a scam and how dangerous is it? Product: Binary Options Trading Software Product Website: Product Cost: Free but there’s a very big catch. Opinion: Not Recommended.
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Is Option Robot a Scam?
At first blush, Binary Option Robot appears to be a free a software that automatically makes binary options trades. It’s even linked to several binary options brokers. However, there is a lot more to this story and it’s not pretty. According to Binary Option Robot, all you have to do is join, deposit your money and start trading. They even claim they have an 83% winning rate. Don’t believe it! Trading binary options is NOT investing. You can choose between three trading systems, the Classic System, the Martingale System and the Fibonacci System. None of this means anything because what Binary Option Robot doesn’t tell you, is that you will lose money regardless of what system you use. It’s all a charade. No licensed financial consultant would ever recommend trading binary options as an investment strategy.
What is Binary Option Robot?
Binary Option Robot is a gateway to binary options brokers. Binary Option Robot is compensated for every sucker they deliver to these brokers. Why do you think they offer their software for free? It’s bait to lure you into a trap. To understand Binary Option Robot, you must first understand binary options and binary options brokers. First, let’s look at binary options brokers. There are registered brokers and unregistered brokers. Unregistered brokers are scams. Registered brokers are scams too but on a higher level. An unregistered broker can promise you anything and do anything because no authority is watching them. Their objective is to get your money. Money only flows one way with unregistered binary options brokers and it ain’t into your pocket. The United States FTC warns that unregistered binary options brokers are suspected of stealing people’s identities, manipulating trading software to force losing trades and freezing trading accounts. In other words, if you open an account with an unregistered broker, you will probably lose your money and possibly have your identity stolen. Most of the binary options brokers linked to Binary Option Robot are unregistered. The only registered broker linked to Binary Option Robot is Opteck, which is registered with CySEC, the Cyprus Securities Exchange Commission. However, don’t expect CySEC to help you if you lose your money with Opteck.
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What is a binary option?
A binary option is nothing more than a bet, otherwise known as speculation. Trading binary options has nothing to do with trading. Nothing is traded. When you place a binary option trade with a legitimate binary options broker or exchange, you are betting that a specific asset will behave in a specific manner at a specific time. Statistically, it’s like trying to hit a moving target with your eyes closed. Good luck! It doesn’t matter how smart your free software is or how many advisors are on your team or what secrets they promise to reveal. Statistically, it is nearly impossible to get a binary options trade right unless you have inside information. The binary options market was NOT created for the small investor. It was created for the very large investor, like hedge funds and pension funds who manage accounts worth hundreds of millions of dollars. Large investors who control massive amounts of stock are the only ones who know when an asset will behave in a specific way. When these big investors dump stock on the market, they know the price will go down, so they place the appropriate binary options trade and reap the rewards. However, for the large investor to make millions with their binary options trades, they need thousands of small investors on the losing side of the trade. That’s where you come in, and that’s as good as it gets with binary options trades. Another thing, the big investors don’t use free software from a questionable website. The big boys use supercomputers that make thousands of trades a second all day long. You can’t win. Learn more about binary options here.
The Curse of the Unregistered Broker.
Now that we have seen the game from the perspective of a registered broker considered the UN-registered broker. The unregistered may not even be in the binary options market at all. There is no way of knowing. In most cases, if not all, the unregistered broker is nothing more than a stranger in a foreign country trying to talk you out of your money. The entire binary options story is just that, a story. The objective of the unregistered broker is to talk you into funding your account. Binary Option Robot recommends you deposit a cool $1000. Remember, money only flows one way with these guys. Money goes in, but it doesn’t come out. If you deposit money with an unregistered binary options broker, the software will show you made a nice profit. You didn’t. The broker is trying to get you to put more money into your account. You’ll never be able to take that money out because it’s not real. If you deposit more of your money with the unregistered broker, they may let you believe you are winning until you try to take the money out of your account. Once the unregistered broker thinks they have as much money out of you as they can get, they will lock you out of your account and keep all the money you put into it. You can’t win.
The Ugly Truth About Binary Option Robot.
The truth about Binary Option Robot is in the Risk Disclaimer. Scroll to the bottom of their website homepage. There you will find the Risk Disclaimer written in tiny print that is very hard to read. I posted an excerpt below.
“Trading binary options is highly speculative, carries a level of risk and may not be suitable for all investors. You may lose some or all of your invested capital; therefore, you should not speculate with capital you cannot afford to lose. Please note if you are from the USA, some binary options companies are not regulated with the United States. These companies are not supervised, connected or affiliated with regulatory agencies . . . We warn US citizens of the dangers of trading with such entities and strongly advise they take legal advice on this in the US.” Risk Disclaimer.
Get Real.
Trading binary options is NOT investing. If you do not have a clear understanding of what it means to invest, I recommend my article “How to Invest.”
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A Better Option for YOU…
Work at Home in Your Pajamas. When you try to find a real way to make money on the web, you are met with a world of lies and misinformation. It’s a minefield of deathtraps for as far as the eye can see. That’s why I’m devoted to helping anyone learn how to make money online the right way. Making money online is a lot like making money anywhere else. It takes skill and sustained effort. Fortunately, the internet permits you to leverage your efforts, so you can make more money faster online. But, this doesn’t mean you can get rich overnight. It means with the proper training and support, and if you take action, you can be financially independent in years instead of decades. And it’s not difficult. I’m convinced anyone who can send an email and surf the web is capable of building a profitable internet business, IF they are correctly trained and supported. That’s why I promote the FREE Starter Level of the Online Entrepreneur Certification Course. The FREE Program shows you the fundamentals of digital marketing and will introduce you to an amazing community of digital marketers who are eager to help you. When you sign up for the FREE Starter Course through this website, I’ll coach you one-on-one at no cost. For More Information, Click Here. If you found this article helpful or have experience with Option Robot, please leave a comment below. Thank you.
13 thoughts on “ Is Option Robot a Scam? ”
Eric says:
Gary, this is very valuable information. There seems to be a lot of pit falls when it comes to finding a trustworthy investment partner on the internet. I guess the old adage “buyer beware” applies here. I wonder if there are any statistics published about what percentage of investment opportunities on the web are legit. Keep up the good work!
Gary says:
Hi, Eric! Yes, indeed, there are a lot of pitfalls when it comes to investing on the internet. The Securities industry has always been focused on helping themselves and not so much on helping the investor. I held a Series 7 Securities License in the 80s. It was quite an education. Most so-called investments online or off are little more than strategies to take people’s money. And, much of what passes for investing is really gambling or a scam. It’s no accident that the Securities Industry is difficult to understand. They might wear a thousand dollar suit, drive a Lamborghini and have the best office on Wall Street, but they make their money from duping the investor. The small investor will never have access to software that can beat the big investor. Most markets, particularly the ones that are promoted to the small investor, were invented for the benefit of the large investor, the banks, hedge funds and pension funds. They needs thousand of small investors to lose so the big boys can make fortunes. It’s a scam of the highest order. True investing in based on knowledge of intrinsic value. In the article How to Invest, I cover this in more detail. Thanks for stopping by, Gary.
Jillian says:
With so many people out there trying to make money online reviews like these are really helpful to avoid those ‘too good to be true get rich quick scams’. Is any site that uses binary option going to be a scam or is Option Robot a scam that uses binary options?
Gary says:
Hi, Jillian! Most binary options websites are indeed scams. The FTC calls them unregistered brokers. This means they operate outside of the law without any oversight by any government agency. If you give them your money you will not get it back. NADEX is a registered binary options exchange in the United States. NADEX has reliable information on their website. However, trading binary options with NADEX is till a gamble and requires luck to win. Trading binary options is NOT investing. It’s speculation. The true purpose of the binary options market is to allow very large traders to dump assets at a profit. The small trader, which is most of us, is only there to keep the market liquid for the large traders. Another way to put this is, the large traders can only make money if there are thousands of small traders losing money. The odds of winning with binary options is very, very, very small. Thanks for stopping by, Gary.
Chris Franklin says:
Wow… I had heard the term Binary Option Trading before in relation to “making money online” but I had no idea what it actually was. Thank you so much for the enlightening article. I now know to stay away from this form of money making strategy. Is it just me, or does it seem like a lot of the stock market is based on these big firms making all the rules and the little guys getting screwed? Just makes me sad…
Gary says:
Hi, Chris Franklin! I appreciate your comment. Option Robot is a total scam, but binary options in any form is a lousy way to try to make money. Unfortunately, most people have been so indoctrinated they think throwing money at gambling schemes and scams is investing. Far from it. The Stock Market is often called the world’s largest casino. Years ago I held a Series 7 Securities License and interviewed to be a broker with Merrill Lynch. They told me I was too much of a Boy Scout and not cut throat enough. This surprised me because I thought the job was to advise clients and help them make money, apparently, it wasn’t. Binary options are derivatives. A derivative is a clever term for something that has no inherit value, but oddly enough, has a market. In other words, it’s a side bet. The Money Masters at the top of the economy are forever creating derivatives backed by nothing. It’s like writing a check for a million dollars when there is nothing in the checking account. As long as people believe there is money in the account, you can get away with it. There are investment opportunities, but you have to search for them. I prefer an investment strategy called “Value Investing.” This is the strategy Warren Buffet followed to create his wealth. You can read about it here. Thanks for stopping by, Gary.
Maxx says:
I have always wanted to earn money online and I am really glad that I did not take the binary option investing as a path because as you said, scams are incredibly rampant and buyers must remain alerted and vigilant. I also liked how you wrote so comprehensively yet really easy to understand so digesting the content is really easy! Thanks for showing me the ugly truth about binary options robot. I have passion in writing a blog. How could I succeed in this and earn money through this? I saw you mentioned about “free one-on-one mentoring”. What is that.?
Gary says:
Hi, Maxx! Thank you for your kind words. Binary options in any form is bad news. You’re just throwing money away. Your passion for writing a blog is very valuable. You absolutely an earn money with a blog. However, usually the income isn’t immediate. I like to compare making money with a blog to farming. Preparations are required before the harvest. You asked about the free one-on-mentoring. I’m happy to mentor anyone who is serious about building an online business. The FREE Online Entrepreneur Certification Course is the place to start. Mentoring is done through emails. Thanks for stopping by, Gary.
Bryan says:
Hi Gary, thanks for a very good article on the hazards of binary trading. What you said is absolutely true. it is nothing but a scam that is devised to defraud people of their money. Care must be given to the fine print when you sign up. The costs of withdrawing your funds are exorbitant and there is usually a month’s waiting period. It is a win lose situation and only you lose.
Harry Warren says:
Hey Gary, That is a deep pool of deceit you described there. I did not realize that binary option “trading” was entirely a way for the huge investor types to manipulate greater gains. Nor did I realize that it was the small investors who are providing the necessary funds to feed these gains. There is a huge amount of binary and forex traders doing all of their prospecting on social media sites, and many folks are unaware of the real game. Is forex trading equally as deceitful to your knowledge? Thanks, Harry Warren.
Gary says:
Hi, Harry! Yes, the decent goes deep. Paul Craig Roberts, economist and former assistant treasure under US President Reagan writes on his website that all markets are manipulated. The only way a small investor can hope to win is to only invest in the things they know and understand. FOREX is just as crooked as binary options. Neither one is an investment. Both lend themselves to dreams of instant, easy riches which the scammers fully exploit. A lot of nonsense is peddled under the name “Forex.” To clarify, here’s an excerpt from Wikipedia defining Forex. “The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies . . .The main participants are the larger international banks, other financial institutions and retail traders.” Wikipedia. Like the binary options market, the big boys are the winners. There is no software available to the small investor that can compete with the supercomputers of the large investors. And, like the binary options market, small investors are fed into the Forex market to fund the winning trades of the mega-traders who will always have the advantage. Thanks for stopping by, Gary.
L7 says:
Boy, can we use a Scamavenger, these days! Scams are incredibly rampant and buyers must remain alert and vigilant. Scammers not only want our money, they also want our personal information. So, we must keep our computer software protection up to date and avoid giving out personal information when possible. Your offer to list, review and report scammers is spot on. I will steer any family or friends who have been scammed to your offer. Thanks, L7.
Gary says:
Hi, L7! I appreciate your comment and kind words. It is my hope that as the internet evolves people will learn to spot scams from a safe distance. The internet is young and many people think of it as a magical place that should be capable of earning huge sums of money overnight. Scammers bank on this misconception. The internet is nothing more than a means of mass communication. Now anyone can step onto the world stage, or perhaps it would be more accurate to say step into the world marketplace. If they offer something of value, they will be rewarded. That is how money is truly made online. Scammers be damned. Thanks for stopping by, Gary.