The Real Story Behind the Sordid Binary Trading Business
Written by: Shelley Levin
You might have heard about binary options trading in passing, but what you don’t realize is the whole industry is a scam, which has been estimated to steal $10 billion per year from its clients. They present themselves as online investment brokers, with massive return rates, and have managed to rob thousands of people of their life savings.
Their product is binary options, a simple financial instrument where traders have to assess whether a stock, currency or commodity’s value will go up or down in the stock market in a selected period. Unlike real options, you’re not trading against the live market but the broker, who has rigged the whole system.
Wait A Minute – It’s All a Scam?
Yes, the whole system is a big fat lie. No interaction with an exchange takes place. The broker is the house and the charts on the binary options websites are nothing more than a graphic video game with bright colors and flashing numbers.
Everything seems very professional until the account managers can’t convince you to invest more, and then they turn against you. Suddenly all your trades, which were winning before, start going south and you’re on a steady losing streak. When you want to withdraw your remaining funds, you meet all sorts of delays and hidden conditions pop up.
Behind the Scenes: It’s All a Facade
In reality, most binary options holding companies are located in Israel and 95% of the brokers are fraudulent. The brokers are young sales people, usually new immigrants (that’s why they sound native) who want to earn big paychecks in costly Tel Aviv. Operating in a morally deprived environment these young immigrants are trained to lie, use aggressive sales tactics and play on clients’ emotions to get them to deposit money. They use fake names and don’t have any financial training.
How They Evade the Law
At this stage, you’re probably wondering if this large-scale scam has been around for years how come they haven’t been stopped by the authorities. Binary options scammers developed elaborate contingency plans to keep the money they stole. A holding company would be set up in Israel with shell companies abroad so that when users looked up the company name the business would appear to be in their country. Once traders got scammed their local law enforcement agencies couldn’t help them because it wasn’t in their jurisdictions.
Can Something Be Done? Can Victims Get Their Money Back?
Most people scammed don’t realize they have a legal recourse, chalk up the experience to poor judgment and try to move on with their lives. They don’t realize how big of a scam it is and most importantly they don’t know there is something they can do about it.
Wealth Recovery is an investigation firm started by immigrants in Israel, sick of the bad reputation seedy businesses like forex and binary options were casting on the country. The founders of this Manhattan-based business formulated a plan that would help victims get their money back as well as a sense of justice.
Wealth Recovery’s founder, Austin Smith elaborates: “Wealth Recovery International works tirelessly on behalf of the clients that we serve. It is due to the men and women that fearlessly combat this illicit and immoral scam that we owe our success.”
Wealth Recovery’s expertise lies in their team of investigators who dig up the real identities and locations of the criminals behind the companies. Working together with a team of lawyers in Israel who have expertise in asset recovery and financial fraud, Wealth Recovery has been able to recover over $4 million for their clients and they have not lost a single case.
“Wealth Recovery were my white knights, coming in with a plan, attorneys on board and an international network of information” says Steve Koel, Wealth Recovery’s first client.
Tale of Triumph: Money Recovered
Northern California businessman, Koel invested his life savings into binary options broker Binary Book. Initially he saw large returns and he was too busy enjoying the profits that he didn’t pay attention to the warning signs. But after a while, he noticed his personal account managers were making obvious mistakes. Wealth Recovery helped Koel recover his entire investment of $1.5 million.
The firm is presently working on a case with a woman from Hong Kong who lost close to $10 million from OptionsXO, another binary broker based in Israel. The woman explains “It was hard to find someone who understands binary options. Lawyers would say just pay this amount and we’ll figure it out. Wealth Recovery understood my situation right away and were very responsive.”