Binary Options – What You Should Know – A Cautionary Tale

About 18 months ago after receiving numerous emails touting Binary Options I decided to try them out. Like most people I had been looking for something to supplement my income something I thought I would have some control over and could do from home.

In simple terms Binary Options are basically a means of determining whether a currency, stock or indices will go up or down within a certain period of time, and trading on your decision on whether it will go up or down.

All the sites offer graphs showing the history of that particular trade from an hour to several days. There are several platforms, Binary, Long Term, Sixty Seconds and Pairs, and depending on the Broker chosen bids can start from $1 to $25. I chose two Brokers that had the $1 options as I wanted to become familiar with the whole process before I started with immediate trades at $25 plus.

Usually the minimum investment is $250 US. Many of the sites offer matching Bonuses on your initial investment, but be careful there are very strong rules on how much you need to trade in order to ever cash out the bonus.

Once you sign up the Broker assigns a trader to you. This is where I need to caution you strongly. The first thing the trader does is to go to some lengths to make a friend of you to garner your trust via phone and Skype. Then the next move is to get you to invest more funds in order to get you into a “VIP” trading group insisting that they can’t help you without sufficient funds to get you into a good trading group where the expert analysts determine the best trades.

They are extremely persistent even when told there are no additional funds. They will suggest they run your credit card with the pretense that it doesn’t matter if any funds are approved or not as they will match it with a bonus if you allow them to try it. They say they will try up to $10,000 knowing that that amount could not be approved. I indicated it would not go through and I made it clear that they should not be trying any lesser amounts. They said that was fine as the purpose was to try so they can prove to their bosses that it had been tried and they could then give the bonus and enter you into a better trading group. However, this is exactly what they do, they start with $10,000 then keep trying your card with smaller amounts until they finally get an approval on whatever your credit card can bear.

In my experience it doesn’t seem to matter how much funds you already have in your account even with your wins, they have a reason that you should add more funds to get you into better trading groups or fund guarantees and they are persistent. They will try this tactic each and every time you connect with your Trader.

When they do give you a trade they give a time frame and amount they suggest you invest. However, it is not a suggested amount. When I made some trades with lesser amounts I received lectures on trust, and indications that they could no longer work with me unless I listened to them and took the advice of their expert analysts and placed the trades as suggested.

Each and every trader assigned to me, used the exact same tactics and when I pointed this out, they insisted they were not like the others and each of them indicated they were only interested in helping me succeed. Baloney, they were just interested in lining their own pockets and obviously plying people for additional funds plays a part in it.

My experience was the same with both Brokers and with all of the traders assigned to me (I think they have a huge turn over in traders as they kept disappearing) Bullying is the only word for what I was put through.

Once your funds are depleted then unless you are prepared to add more funds they have no further interest in working with you with the small amounts you have left in your account. To be honest the suggested Trades were for the main part losers, and I actually did about the same with my own choices.

The moral of this story, is to be extremely cautious when dealing with Binary Options and the Brokers and their Traders. I am sure there are some Investors with large investments that might make good returns, but for the small every day investor, it is a very risky program and know that you will be bullied with the intent of getting you to invest additional funds, funds you likely cannot afford. If you choose to go this route only use funds you can afford to lose – trading is a gamble.