The Free Money System is a marketing campaign designed to lure people with dreams of easy money (big, easy money!) with no work. You are offered free software that is supposed to alert its users of market fluctuations that ensure successful binary options trading.
In this article I’ll explain:
- What binary options are and how they work.
- Why you are offered free software that is supposed to make ANYONE rich.
- Why you need to be VERY cautious about this offer.
What Are Binary Options?
When you purchase or sell a binary option, you are placing a bet that the the underlying asset will reach a certain price (strike price) by a certain time (sometime that day). There are two components that determine the value of an option;
- The gap between the spot price and the strike price
- The amount of time that must pass for the option to expire
Any binary option trade is either win or lose. You may win $100 or $0. If you spend $40 for an option, that is the most you can lose. If you win, you would be up $60 in this scenario. $100 minus the $40 that was paid for the option.
When you purchase an option, you are really buying time and time comes at a premium. The later the expiration time, the more you will pay for the option since you have more time for the price to move in your favor.
The price gap also determines the option price. Here’s an example;
As I write this, gold is currently trading at $1,162 and change. So, if you were to purchase an option with a strike price on $1,165, it wouldn’t require a very large move for that option to be “in the money”.
You would be required to pay a high premium for such a small price gap which means a very small upside. At the same time, if the price of gold falls, you will end up with $0 at expiration time.
A Millionaire In 90 Days?
The Free Money System makes claims of helping people become millionaires in 90 days. What are the odds of achieving this? Astronomically low! Think about it;
If the most you can win is $100, you would need 10,000 winning trades to make $1 million dollars. Even if you could accomplish that many more winning trades than losing trades (statistically almost impossible!), you still need to “pay to play”.
In other words, to even have a chance of making $1 million dollars in 90 days, you would probably need around $500k to start with!
Are Binary Options A Scam?
Binary option trading is done through real options brokers so no, binary options are not a scam in and of themselves. Although, there are scammers out there promising people easy riches and using some unscrupulous marketing tactics.
Binary Options Trading Is Gambling
You are betting that a certain commodity will reach a certain price by a certain time and it’s simply win or lose. no mater how you look at it, it’s gambling. The Free Money System is supposed to give you an edge and tilt the odds of winning in your favor. Let’s take a look at the sales pitch.
How The Free Money System Works
Below is the sales video to sell you on The Free Money System.
Just so you are aware, there is a disclaimer on their own website that states that this video is fictitious and uses actors. It should be viewed for entertainment purposes only and income is NOT guaranteed!
The Free Software
The promise of free money generating software is a bit of a misnomer. Okay, it’s more than that. It’s a flat out lie! When you fill out the online form to activate your Free Money System, you are asked to choose 1 of 3 possible binary option brokers. Once you are done, you are simply redirected the website of your chosen broker.
What’s The Deal?
Why would anyone invest the money to produce such an elaborate sales video only to send you directly to a 3rd party’s website? Simple. These brokers pay the owners of Free Money System a commission for every customer sent their way.
Is The Free Money System A Scam?
I don’t like to use the word “scam” lightly. What I will say about The Free Money System is that is designed to trick you into believing that a team of people will work to make you a millionaire with no work on your part. Anyone with an ounce of common sense will know that it’s just not realistic.
There is no free money. There isn’t even a system!
I have looked at a number of these binary options trading products and so far, they are all pretty much the same. They promise unrealistic riches with no work but only redirect you to a binary options broker who pays them a commission. I would avoid ALL of them!
If you want to build a real income generating asset, check out my #1 recommendation.
If you have any questions or comments, please leave them in the comment section below,