A Sheep In Wolf’s Clothing: BinaryOptionsMillionaire.com
I recently found what looked at first to be an elaborate affiliate marketing scheme. It is a website advertising a signal service provider with wild claims of profits and high success rates. As a rule I do not recommend ssp’s and I am not recommending this one but I remain intrigued by this one. The language throughout the web page, the web page itself and the lengths the author went to to build up anticipation for the big reveal all pointed to an affiliate marketing scammer. I was pleasantly surprise by what I found out but more on that later. What am I talking about? The BinaryOptionsMillionaire.com trading system and signal service provider.
This is the story and system of a “wildly profitable small town binary options trader” who uses the only “legitimate binary options broker there is”. The signals are delivered by phone, email and text throughout the week and only cost $99 month. This is not a an automated robot trading system, at least according to Matt Morris, creator, founder and marketer of this incredible system. The reason it works so well is because “people love the ease of simplicity”, a really valid point that any serious binary options trader will take to heart. All you have to do is choose the right broker, of course he knows just the one to use, then make a small deposit ($100) and start trading. Sounds like an affiliate right?
There really isn’t a lot about how the signals are generated. You just have to trust him I guess. He does give a little insight into his technique but it’s mighty vague in my opinion. The first thing he does is wait for a high probability scenario to set up. Then he looks for his trades. Sometimes he looks for trend following signals, sometimes he trades on overbought or oversold conditions and sometimes he trades on market moving news. All valid forms of trading but as I said, there just isn’t much meat on the bone. Don’t worry though, he says he never “forces a trade” so you can be sure they’ll all be good ones. He says you can expect to make 1000’s of percentage points in gains to your account in only days and weeks because he has an 80% success rate, but only 70% of the time, whatever that means.
Throughout the page he keeps skipping back and forth between regaling us with tales of success and thumbing his nose at the general run of binary options brokers. He claims that most brokers are frauds and that could be true, but since this service feels a little scammy to me isn’t there a chance he’s a fraud too? He sure didn’t do much to make me think otherwise. In fact, with each step down the page of ad-speak the feeling I was being led to a scam kept growing. It was like the story of Br’er Rabbit when he gets away from the fox by saying “please Br’er Fox, please don’t through me in that briar patch!”. Please, please Br’er Binary Trader, only use the broker I recommend! Turns out that in the end I was right, except for one thing.
What’s The Deal With Binary Options Millionaires?
Turns out he may actually have the best interests of his fellow traders in mind. He recommends using NADEX for U.S. traders and IG Markets for everyone else. These are both binary options markets places but not the kind I expected and not the kind that relies on affiliates to do their marketing. They are also most definitely not the only legitimate brokers and not necessarily the best places to get your binary options. Nadex and IG Markets are places for trading CFD’s, also known as contracts for difference. They are similar to spot binary but not quite the same thing. It doesn’t really matter though, if his signals are good you can still use whatever spot binary broker you like provided they have appropriate expiry.
NADEX options are also known as 0-100 binary options, binary 100 and other names. The basic premise is the same, if the asset closes in the money you get a fixed payout, if it closes out of the money you lose a fixed amount. The difference is that with 0-100 binary options the pay out is always $100 and you have to pick a strike. Anyoptions is one CySEC regulated broker who provides Binary 100 trading, the only binary options that can be bought or sold to open.
This is how it works. Binary 100 options always pay out $100 but they do not always cost the same. Option prices fluctuate depending on market conditions, asset prices and strike. The price will always be more than $0 and less than $100. If you buy an option for $0.50 and it closes in the money you get paid $1.00. The profit is 50%, not great compared to spot binary but wait, there’s more. If you were to purchase a 0-100 option for $0.25 and it closes in the money then you profit $0.75 or 300%, much better than the typical high/low binary options trade. Another advantaged is that binary 100 options can be sold to open, providing a credit to your account. There are a lot of advantages to binary 100 as I have mentioned, but also some disadvantages, such as strike prices. Here is a link to my article on why you might want to trade 0-100 binary options.
