Thanks for reading today’s review of Binary Book
BinaryBook.com is a binary options trading website that allows a person to invest in “Yes or No” Binary Options Contracts. Before I get to the point of this review, it is necessary that I explain exactly what a binary option actually is. Many readers may find this investment product confusing, or difficult to understand. And from this confusion, is where you find either opportunity or peril. So let’s jump into a very simple explanation of what exactly is a binary option.
A binary option is quite simply either a yes or no proposition bet. It is a bet that something will either happen, or it will not happen. Let’s take a look at the price of the Euro/US Dollar, which is currently trading at 1.1279 Euro’s to 1 US Dollar. This simply means that if you have a single Euro in your pocket, and you fly to the United States, then you can convert your single Euro into 1.1279 US Dollars. A binary option will allow a person to bet that the price of either currency will go up, or go down.
Looking at BinaryBook.com, a person can trade a binary options contract that allows a person to trade a binary options contract that expires in as short as 30 seconds, and as long 5 minutes. Practically speaking, lets say that you believe that the price of the Euro is going to go up in then next 30 seconds. You can then purchase a binary option that expires in the next 30 seconds. If the price of the Euro rises, then your bet wins. If the price falls, then your bet loses. Its a coin flip bet.
The odds of a coin flip bet
If you flip a coin, then you can expect that over a series of coin flips, the distribution of heads and tails will be equal. This is a simple and indisputable fact of life. Now assume your very best friend approaches you and provides you with a proposal bet (Binary Choice ) which each and every time the coin will be heads, you’ll get .40 pennies and each time that the coin is tails you may lose $1. Consider that a minute, each and every time a heads seems, your very best friend will cover you .40 bucks. And whenever a tails seems, you’re likely to cover your buddy.
Most people would look at this scenario and laugh at these ridiculous odds. Who needs enemies with friends like these? If you start this game with your friend, and you continue this game for a period of time, then eventually the math will swamp you, it will grind you down, and you will lose all of your money.
However, looking at BinaryBook.com, these are the exact same odds that they are offering to binary options investors. Take a look at the following graphic…
So what exactly are you looking at? This is a binary options contract that allows a person to bet that the price of the Euro/US Dollar is going to either go up, or go down in the next 30 seconds. The price is currently 1.12792. If you hit the Call or Buy button, and you wager $100, and the price closes above 1.12792 in exactly 30 seconds, then you will win $60 dollars. However, if the price closes below 1.12776, then you lose $100 dollars.
Think back for a moment on the coin flip bet. A fair coin flip bet would pay you $1 every time you win and you would lose $1 every time you lose. A binary options contract bet is quite simply a coin flip bet. However, the odds are much different. If you win, then you are paid .60 cents, but if you lose then must pay $1 dollar.
BinaryBook.com is not an exchange
When you place a trade at the CME or the NYSE, then you are trading against a great mass of traders in a gigantic pool of opinions and differing time frames. However, with a binary option, you are trading only against BinaryBook.com. The broker is taking the other side of your trade. BinaryBook.com is not in business to lose money, these odds have been created so that even if you are an amazing coin flipper, eventually the math will catch up and drain you dry.
BinaryBook.com is actually an online casino
BinaryBook.com is attempting to masquerade itself as a financial exchange. However, it is nothing of the sort. Rather, BinaryBook.com is actually a casino. And like any casino, they make their money from the differential in odds. BinaryBook.com always calculates a profit margin of between 30% to 45% of every single wager that a person makes. Notice how I use the term wager instead of investment. There is no investment whatsoever in a binary options contract, you are guaranteed to lose over time. Sure you might get lucky on your initial attempt, but over a period of time, you are a guaranteed loser of every single penny that is wagered. Let’s compare BinaryBook.com binary options to odds of winning an assortment of gambling games in Las Vegas, or any casino.
Las Vegas vs Binary Book
I love Las Vegas. Its a fun place. There are amazing lights and exciting games to be played. But lets make no mistake, the very moment you start gambling is the very moment that you start losing. The hotels, the lights, cheap rooms, outrageous fountains, and free booze is paid for by people losing money by playing the various games. The games are designed so that you must lose. They are also configured in such a way that in a short period of time, a person can get lucky and flip the coin “heads 10 times in a row”, and this creates a big payday. However, this same person is also mathematically guaranteed to lose everything, if they continue to play long enough.
Lets take a look at what Las Vegas takes per wager vs. what BinaryBook.com takes per wager. The following table is no joke.
Las Vegas Odds vs Binary Book Odds
|Craps (pass/come with double odds)||0.60%|
|Blackjack - average player||2.00%|
|Blackjack - 6 decks, basic strategy*||0.50%|
|Baccarat (no tie bets)||1.20%|
|Let It Ride*||3.50%|
|Three Card Poker*||3.40%|
|Pai Gow Poker (ante/play)*||2.50%|
|Slot Machines||5% - 10%|
|Video Poker*||0.5% - 3%|
|BinaryBook.Com Binary Options||30% - 45%|
Looking at this table, the Las Vegas odds assume that a person plays perfectly, in other words if a person is playing Blackjack and they are dealt 20, they do not hit (hoping for an ace). They must play these casino games perfectly. Notice the odds of BinaryBook.com? See how much they are taking off of each wager? Let that sink in.
Clearly a Scam
This is quite obviously a scam. It’s not an investment. It’s a gambling wager. And it is a terrible gambling wager at that! However, how does BinaryBook.com pull off this scam? How do they convince people to deposit money and then take these terrible wagers? Well, just like how the day trading educational industry convinces us to purchase magic trading indicators or secret money flow indicators, BinaryBook.com has their own magic that they employ. Take a look at the following table. What you will see are a series of promotional websites. The websites are “feeder” websites that are heavily promoted and entice people into opening accounts with TradingBook.com. Have a peek at a few…
|Promotional Website||Binary Broker|
Some of these video’s are quite outrageous. What is amazing is how these videos are multiple step process video’s. In other words, you first enter your name and email, which then takes you to another page with YET ANOTHER video that prompts yet more information. And then you move to a third page which prompts you for your credit card information. The final step is to hit the “magic button” where your trades start firing off at 30 second intervals. How do I know? Because to fully test how this fiesta a fraud was executed, I had to deposit $250 into an account. Within a day, my entire $250 was wiped out of my account.
But have no worries, because the very moment your account goes bust, you will receive a phone call from a “Fully Licensed and Insured Binary Broker” that reassured me that the magic trading robot still is still working and just this morning a client had earned $14,572 in only 2 days. However, this client started with an investment of $3,000 and that a larger investment was really the key to making the big bucks. I told him that my credit card had only $2,000 in remaining credit and then he said that if I deposited my remaining $2,000, then he would supplement my account with an additional $1,000 in free money. He described it as a deposit bonus and it was a one time thing for only a selected few.
Where was this broker located? The phone number came out of Florida and the person spoke perfect English. Was he in Florida? Who in the heck knows! But I could hear a gang full of other brokers in the background all selling in a cacophony of fraud of deceit. It was pretty amazing stuff folks.
In addition to being pestered by a boiler room salesperson, I next began receiving a diluge of of emails about people that were making “thousands of dollars every single day” and that I needed to hurry before the opportunity for the deposit bonus disappeared.
How much is BinaryBook.com taking in each day?
This is a great question and not easily answered. First, we had to spend a great deal of time tracking down each of the promotional domains that are offering this scam. This took nearly a week of nonstop research. After we tracked down the promotional websites, we then followed the videos to each of the affiliate promotional websites that act as a tracking hub for professional internet marketers. At each of these promotional hubs, there is a list of how many units were sold for each video promotion. Keep in mind that the professional marketers are being paid $250 for each new account that was opened with BinaryBook.com. On one of these videos, there were 2,500 new accounts that were paid to marketers over a 60 day period. This means that BinaryBook.com paid out a whopping $625,000 in affiliate commissions. If the affiliate hubs are correct and accurate in their reporting statistics, then I would estimate that BinaryBook.com is taking in at least $1,000,000 per week.
As you can see, this is a massive fraud, on a scale that most people will find simply incredible. With this much money sloshing around, I really needed to dig deeper. Specifically, what I wanted to know whom is behind this company, the software, the boiler rooms, the infrastructure…how it all works.
Set up your own BinaryBook.com
Setting up your own binary options brokerage is quite simple. You can contact any of the following white label providers.
Each of these providers have set up fee’s ranging for $25,000 to $600,000 each. Each provider takes a cut of the total deposits, as well as monthly maintenance fee’s ranging from $3,000 to $40,000. Pay more and you get more features, etc.
Create promotional videos
If you watched some of these promotional video’s, then you noticed that many are very technical and very well produced. And so, after convincing Hello-Markets.com that I was ready to spend several hundred thousand dollars setting up my very own “brokerage”, they then started giving me the names of the film production companies that will produce the infomercial videos that are used in the promotion. Most are based in Los Angeles, California. The range of these promotional videos was between $15,000 to upwards of $90,000. Why so expensive? Notice in some of these videos that there are some very expensive backdrops. Some videos have upwards of 20 actors all “making millions” trading binary options, some actors are shown driving a $400,000 Bentley, some are on several million dollar yachts, some videos are recorded in mansions. All of this stuff is rented. And it is expensive.
The renting of cars and yachts, and hiring actors is only part of the fee’s. You also need to figure in a camera crew, pre and post production costs. It all adds up.
Hustling the desperate and the elderly
Who falls for these scams? Most people are going to look at these videos and immediatialy see the scam. But the people that are suckered in are the desperate, and the elderly. These are little people. People with only a few thousand dollars available on a credit card, and are desperate to change their lives for the better. Too many are the elderly, they are trusting and their mindset is from another era. An era where people trusted each other, and did not steal from one another. Many of these elderly are easily convinced into these types of scams. They are ripped off repeatedly until they either go broke, or their children finally discover what they have gotten themselves into.
To be perfectly honest, I used to be one of these scammers that preyed on the elderly and the financially naive. I know only too well how easy it is to steal a few thousand dollars from Grandma or Grandpa. All you really need is to call them on the phone and be their friend. Many are lonely and live by themselves. They are closer to the end than the beginning, and so money has a different meaning to them than it does to people that working everyday. There is nothing honorable about stealing from someone, yet many make a business of it. Sometimes the universe evens the score, and some of these scammers are brought to justice.
One of the worst binary options scammers: Oren Shabat Laurent
Oren Shabat Laurent owns Bank De Binary, and you can read how he was recently fined by the CFTC for $9,000,000 for running the Banc De Binary trading scam. You would think that this guy would be out of business, but truthfully, after speaking with several of the film production companies, he is still the largest and most outrageous villain in this shady industry. He base of operations is out of Israel and Cyprus, and his newest angle is to decentralize the scam by spreading it out through several affiliated companies and individuals. I don’t want to make this an issue about Israel, but the simple truth is that nearly all of these binary options companies are being run from Tel Aviv. The Jew haters can now start posting nasty comments, but I have to give some credit to the Israeli authorities, they are now starting to crack down on the scam.
A great article on the size and scope, and allegations of fraud against many Israeli binary options companies can be found by reading the following article. Its a great read. In my opinion, a really big problem is that it is nearly impossible to extradite an Israeli citizen from Israel. Most of the binary options victims are located inside of the United States. However, its just too politically unpopular to mess with an Israeli citizen, even the worst of the worst are left alone to scam as they please. Hopefully Israel will start doing something about it.
Wrapping things up
This was a long article. It took a tremendous amount of time and research to fully understand how these thieves execute the scam. There were several layers that needed to be investigated and researched. Truthfully, I didnt even want to write about this subject because its just too large, cumbersome, and time consuming. But the deeper I digged, the more interesting the topic became.
The research continues. The CFTC did publish an article last year about binary options scams and created something called the “REDLIST“. It lists a few of these binary options scams, but these scammers just pull down their website and create a new website in a matter of moments. In order to combat this, I will be publishing a more up to date and current list of binary options scammers that users can quickly reference.
Thanks for making it this far. A long story that probably gobbled up too much time. But the story needed to be told. Don’t forget to leave your comments below and thanks for reading.