Bouncing around the Internet the other day, I came across an advertisement that promised that I would have money chasing me. And that I would forget how much money I made by noon or at least have trouble keeping track. Yeah, it sounded a bit far-fetched to me too. But I wanted to see what they were selling. So I sat through this five-minute presentation. I didn’t believe what I was hearing, they were making some pretty outrageous claims. One of which was that it wouldn’t cost me any money. I have seen many products of this sort in the past and I was not incorrect with this one. They were selling binary options trading.
Eventually, I was directed over to a site that was promoting one thing and calling it something totally different. I was surprised they couldn’t even get their own name right. They said they were the conservative investor, their literature said they were the conserver investor and when I clicked through, it turned out to be cash codes. This did not instill a whole lot of confidence that what they were selling was any good. By drilling down to see what the product was, it was revealed as the Cash Codes scam.
Cash codes is just one more product in a huge volume of binary options trading services. These actually go by a generic name: Binary Options Signals. If you search just a little bit you will find a list of at least 70 binary options signals providers. Cash Codes is just one of many.
How Does the Scam Work
Once you’re suckered in by the promise of free unlimited cash, you find that it does, in fact, take some money. You’ll be directed to invest $250 into your account to set it up. You will be told to use one specific broker. The reason for this is that the creator of this “opportunity” is getting a commission for everyone that he brings in. This commission, of course, will come directly out of the $250 that you are about to lose in your trades. Somewhere along the way, you will have provided a phone number in order to set up your account. This phone number will come into play once the initial investment has been exhausted.
Don’t worry, it gets better, or worse, as the case may be.
Now your phone number is been passed over to the boiler room. This is a group of high-pressure salesmen. They will be calling you to offer to manage your investment for you, all it takes is a higher investment of five to $10,000. If you bite on this one, you’re on the hook.
Read the Small Print
On the scam that I was subjected to, there is a full disclaimer at the bottom of the page. This, of course, is a government mandated disclaimer.
It starts out:
U.S. Government Required Disclaimer – Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors.
And, of course, it gets better from there, eventually, it tells you that you probably shouldn’t do this. Or, you should contact a bona fide financial advisor who will in all likelihood recommend that you stay away from this “opportunity”.
On the sales page that I read, there’s also a second disclaimer that indicates that all of the information in the video that I just watched was simulated and used actors. Well, at least, they’re upfront about that. It also indicates that the trades are simulated and not actual as they cannot legally show actual results without breaking a few other laws.
The bottom line here folks, Binary Options Trading is just like online gambling. You can be pretty sure that the game is rigged in favor of the house.
Alternatives to Online Gambling
You might think that binary options trading is a shortcut that will make you money online, but it’s just another opportunity for you to lose your hard earned cash. Shortcuts rarely will get you where you want to go. There is a way to create an online business that will make you money. It will not provide you with instant gratification, but it can be very lucrative if you apply yourself.
Affiliate marketing when done correctly, can be a good way to create an income that is self-sustaining. You need to do a lot of work up front. Once you’ve reached a certain level of content and earned your traffic, you can sit back and enjoy constant and frequent sales. It becomes a passive way of making a living.