Binary Broker “Review Sites”
Bottom line most if not all bucketshop binary review sites are marketing sites for affiliate commissions…
Nearly all of these “review” sites are simply marketing sites promoting these binary brokers in order to gain an affiliate commission.
They will not promote nadex in a unbiased and fair way as they can not receive commission for doing so. They literally receive a commission immediately for the funds you are deposited. In many cases even before you place a trade they are paid a percentage of your deposit. Simply hover over the link and you should see the link in the bottom left. If it is not a direct link to the broker they are receiving payment for you opening an account and are therefore obviously biased in their reviews. One can not make a payment for the opening of an account with Nadex and must be a introducing broker to receive and % of the exchange fee. Apex does not receive funds for you opening an account or placing a trader.
Example…
I called out one such review on youtube and he blocked me. When I asked why he blocked me he stated hes an affiliate and Nadex does not pay affiliate commissions:
Granted he was ****ed as i replied to each of his false arguments with like 20 post. But the fact is he should have taken this as an opportunity to counteract me. Instead he deleted them and blocked me. He stated i was spamming to get traffic so I offered to post the post again under a generic name so as to not get any traffic as that was not my intent. He was is no way interested and deleted several other pro nadex comments as well by other users.
Comments dismantling arguments in his video as invalid:
https://www.filepicker.io/api/file/FTe6mVFWSQylFmVvm1pC
Why are you not giving a honest review of Nadex -
https://www.filepicker.io/api/file/yvo8U9RkTwiXBY6MZz9g
this was his response.
He also stated he does “refer his clients to nadex” yet you won’t find the links on his site “at least not easily” as he does not make anything on them. So if your lucky and contact hm he might tell you about them but for everyone else sorry he is just not going to tell you the unbiased truth about the brokers and bucketshops as he needs to get paid.
I am all for affiliate marketing etc… so long as it is honest, reputable and helps everyone involved most importantly the end consumer. Also so long as it promotes being in compliance within regulation. Unfortunately the affiliate model set up by the bucketshops promotes this type of behaviour and investors should be educated so as to not be misled by it. You can right click on links to see if it goes to some off place or has some special versus direct link… right click on the link copy link and paste it in notepad.
The links will look like this or other odd links below… obviously i changed the links up so as to not give them credit…
http://www.NONCFTCBROKERNAME.com/?campaign=EXAMPLE
http://wee.my/BUCKETSHOP
NAME REPLACED
Sign Up | ClickBank
http://LONGCODEREPLACED.hop.clickbank.net/
Mystery Link
http://tiny.cc/NONFCTFCREGULATEDBROKERNAME
Not legal to offer to US Citizens…
In addition, binary brokers not regulated by the CFTC or SEC if they allow US citizens to open accounts then they are violating US regulations mandated by the CFTC.
CFTC Fraud Advisories - CFTC
http://www.cftc.gov/ConsumerProtection/FraudAwarenessPrevention/CFTCFraudAdvisories/fraudadv_binaryoptions
“Further entities that solicit or accept orders for commodity options transactions and accept, among other things, money to margin, guarantee, or secure the commodity options transactions must register as a Futures Commission Merchant. Entities that act as the counterparty (that is, they take the other side of the transaction from the customer as opposed to matching orders) for foreign currency options transactions for customers with a net worth of less than $5 million must register as a Retail Foreign Exchange Dealer.”
Some of these affiliate websites even go so far as to let you know what bucketshops that are illegally taking on US clients. Not only profiting off helping these bucketshops from violating CFTC regulation but also getting paid for it and at most likely at the regret of their US clients.
Promoting brokers that trade against you…
The sites you stumbled upon are promoting bucketshop binaries. (They take the other side of the trade and trade against you). Versus Nadex is an exchange factilitating orders between traders and market makers and not being counterparty to your trade. So the other side of the trade can see limit orders and size but does not know if that person is entering exiting profiting or losing on a trader.
But they state we only win if you win…
In the cases where they state they do not trade against you they are white labeling the platform of the entity that is trading against you. They may state they do not make profit if you lose only the counterparty does. This may be the case and is also the reason for the low payouts ie $70 payout on $100 risk as they are receiving part of that profit of the remaining $30 that is due to you on a 50/50 trade.
We have great bonuses sign up today please please please please please…
They often offer bonuses. No matter what you do stay away from the bonuses.
They will either A) restrict withdrawals until a turnover is met. ie you deposit 1k - you must have a 20k turnover to withdrawal anything. Meaning you must trade 20k worth of binaries before you can pull out a single cent. “Cysec” said they would not allow this yet their biggest brokers still do allow this and the document recently shown as how they where taking it seriously is well over a year old.
or B) they will say hey we have no restrictions on withdrawals even with bonuses. you just can’t have the bonus until you make the turnover…
A few unanswered questions. Note I have asked and they just don’t seem to want to answer me…
"Other question that I’m not clear on. If they are to separate the two then how does the broker determine what money the profits where on amd what money the losses where on.
Would they subtract profits from the bonus side?
Do they subtract losses from the original depoait.
If so and you put in 2k and got say a 2 k bonus. And let’s say you made 2k and then lost 2k.
With whose money did you make money yours or the bonus?
With whose money did you take a loss yours or the bonus?
Could they not state the 2k you made was with the bonus so you have 4k in bonus balance but can’t withdrawal it yet as it has not yet made the turnover. But the 2k you lost was with your deposit so you have nothing you can withdrawal at this time. We are not restricting you its just you have nothing of your money left…?
Or maybe they would give you 2 accounts a deposited account and a bonus account. This being the case why not just trade risk free with the bonus money and if you lose it all withdrawal your original deposit in full. This would seen like a wise choice of this was the case for any trader but would a broker really allow this? If they do just rinse and repeat to trade risk free until you meet the bonus turnover requirement and strike it rich… yeah probably not going to allow this scenario either…"
Poor payouts…
The payout is low on said binary options. ie they are call/put binaries with a 50/50 probability but with less than said payout. For example they will claim 80% payouts but do not highlight that means 100% losses. So on a 50/50 trade you are not obtaining a 1:1 reward to risk ratio.
Also rarely or on very limited markets they do not the ability to close the trade to expiration.
On “touch options” which are often associated with high payout these are usually only allowed on the weekend and then on a day in between entering and expiration it must close (often close not touch but close) beyond said level. One is much better off with doing a OTM binary and exiting when the strike is hit by using a limit order on Nadex which is availble at anytime day or night that that contract is open for trading up until expiration.
We have not bid/ask spread or fees…
They state no bid/offer spread or fees. However paying out 60/70/80% on a 50/50 probability up down trade means that win or lose you will lose 50/30/20%. Therefore they do have a spread its just off the top versus on the entry and exit and is much larger than any of Nadex’s spreads.
Fraud alerts to watch out for that should concern you when dealing with non-regulated binary brokers…
The CFTC and SEC have received numerous complaints of fraud associated with websites that offer an opportunity to buy or trade binary options through Internet-based trading platforms. The complaints fall into at least three categories: refusal to credit customer accounts or reimburse funds to customers; identity theft; and manipulation of software to generate losing trades.
Note CYSEC is not the US SEC regulatory agency and should not be confused as such it is a better business bureau that requires fee payments or it post a don’t trade with this broker message. To many traders dismay they have found cysec can issue penalties but does not have the regulatory power to implement and enforce payment nor legal compliance nor consumer protection.
The CFTC and SEC advise you are not protected using these non-US regulated binary companies and advise you to not open accounts there.
Non-CFTC & SEC Regulated binary issues CFTC Fraud Advisories - CFTC
http://www.cftc.gov/ConsumerProtection/FraudAwarenessPrevention/CFTCFraudAdvisories/fraudadv_binaryoptions
[i]"The CFTC and SEC have received numerous complaints of fraud associated with websites that offer an opportunity to buy or trade binary options through Internet-based trading platforms. The complaints fall into at least three categories: refusal to credit customer accounts or reimburse funds to customers; identity theft; and manipulation of software to generate losing trades.
The first category of alleged fraud involves the refusal of certain Internet-based binary options trading platforms to credit customer accounts or reimburse funds after accepting customer money. These complaints typically involve customers who have deposited money into their binary options trading account and who are then encouraged by “brokers” over the telephone to deposit additional funds into the customer account. When customers later attempt to withdraw their original deposit or the return they have been promised, the trading platforms allegedly cancel customers’ withdrawal requests, refuse to credit their accounts, or ignore their telephone calls and emails.
The second category of alleged fraud involves identity theft. For example, some complaints allege that certain Internet-based binary options trading platforms may be collecting customer information such as credit card and driver’s license data for unspecified uses. If a binary options Internet-based trading platform requests photocopies of your credit card, driver’s license, or other personal data, do not provide the information.
The third category of alleged fraud involves the manipulation of the binary options trading software to generate losing trades. These complaints allege that the Internet-based binary options trading platforms manipulate the trading software to distort binary options prices and payouts. For example, when a customer’s trade is “winning,” the countdown to expiration is extended arbitrarily until the trade becomes a loss."[/i]
Nadex is the way to go. Still have a lot to learn. But my opinion is to stay far far away from those advertised binary betting houses.