Are Binary Options Robots and Signals Scam?
Despite a widespread move towards regulations, the binary options industry continues to see scams come and go. Binary options scams can take form in a number of ways, such as:
- Unsolicited cold-calling
- Websites acting as brokers to gain money and personal information
- Brokers refusing to process withdrawal requests
- Signal scams (algorithms, robots, etc.)
There are more scams, but this is a focus on binary options signal scams, and more specifically, binary options robots.
Are Binary Options Robots A Scam?
Binary options robots and their signals are not scams, directly.
Robots are basically an automated trading solution using a program to define and make trades. The problem with automated solutions, particularly robots and software, is that they need to be continually maintained and tweaked to adapt to present market conditions.
There is no automatic trading solution that will perform well month after month, year after year. This is simply because a basic piece of software does not understand human elements like market psychology, news events or financial policies.
Robots can work for a short period of time, if they didn’t these companies would have no customers, but long term, binary options robots are not a viable signal investment. This is especially true due to the fact binary options trading is an all or nothing game. Stop losses can’t save your account if a robot has a bad day, week, or month.
Another problem with binary options robots is that their owners advertise significantly high returns. And as most traders soon realize, their actual wins and losses do not match what is advertised. This is what’s considered a scammy binary options robot.
Not all binary options robots are scams, but most of them have a poor reputation. If you feel the need to use a binary robot service, look online for user reviews, look for a robot that gives off a feeling of professionalism, legitimacy and transparency. Binary options is too high risk to put your hard-earned money into a system that works today but will inevitably fail tomorrow.