Are Binary Options Robots a Scam? – Honest review

Binary Options trading is based on the prediction of whether a certain underlying asset will rise or fall within a specified period. So-called trading robots now promise more optimal decisions. We have now reviewed these claims and summarized the results.

Based on our experience, we have compiled on this page further recommended providers as well as the most important information about automatic trading systems.

Who belongs to the target group of trading robots?

Many traders have discovered the principle of Binary Options in recent months and years. This is certainly due to the fact that the very simple trading principle allows a very fast and direct entry. But besides the technique, which should of course be mastered, it also depends on the optimal timing. In order to earn continuous profits, the timing of the entry into a certain value or market is crucial. An important prerequisite is therefore many years of experience in the markets for currency pairs, commodities, or shares.

Automatic trading systems, also known as Binary Options robots, promise users to make the best decisions for entering the market. This offers newcomers the opportunity to give up trading completely. But also experienced traders, who are confident in making the right decision on their own, an automated trading system offers the possibility to take advantage of opportunities in the markets around the clock. In principle, the invested capital can, therefore, work 24 hours a day, seven days a week, without the trader having to worry about it himself.

See the advantages and disadvantages of Binary Options Robots:

Advantages Disadvantages
Automated tradingThere are only a few successfully robots
Safe timeNot every broker accepts automated trading
Make constant profitsThere are often scammers on the internet
No need to create your own strategyThe robot can destroy you trading account quickly
You can not check the robot every time

Warning: There are too much scam robots

From my experience, there are too many scam websites with Binary Options robots on the internet. Personally I did not find a profitable trading robot in over 5 years of Binary Options trading. Be very careful if you sign up with an automated trading system. Often it is a fraud and you will lose your money quickly.

Scammers are selling not working robots in order to make a fast profit from you. They promise a high yield and hit rate of their trades. Most time it is the opposite and you will lose your money.

Signs that it is a scam robot:

  • Promises free profit
  • Promises a very high yield
  • You need to sign up with an unknown website
  • Promises guaranteed high returns
  • No reviews on the internet

Recommended: Create your own Robot with Deriv

As I wrote before the number of brokers who accepting Binary Options Robots is very limited. The best way to use an automated trading strategy is broker Deriv. It is the brand of the popular company which exists since 1999 and was the first Binary Options Broker. Deriv is the new name of

Deriv supports automated trading and bots. They got an own platform where you can create a Binary Options Robot with your own trading strategy. Backtesting is possible and the platform will give you all the tools you need for creating an automated trading method.

See the screenshot below for the Deriv Bot:

Set up the sell and buy conditions of a Binary Options. The trade parameters can be changed in any strategy you want. The biggest advantage of Deriv is that the broker accepts every trading strategy. You can do scalping or longterm trading with the bot.

Also, you can implement indicators or chart formations for an exact entry of the bot. The robot is analyzing the chart and then opens trade after the conditions you implemented into it.

1. Choose the market you want to trade:

  • Synthetic Indices
  • Forex
  • Stock Indices
  • Commodities

2. Choose the Trade Type and Contract Type:

  • Up
  • Down
  • Rise
  • Fall

3. Choose the timeframe

  • 1 minute chart
  • 2 minute chart
  • …..
  • Up to 1 day

4. Choose the duration of the Binary Options

  • Ticks
  • Minutes
  • Hours

5. Choose the buy and sell conditions

  • Set up indicators
  • Set up candle analysis
  • Set up chart analysis

6. Choose restart trading conditions

  • When you want to restart the bot

The bot is created with “blocks”. You can add the blocks on the platform and choose the settings. It is very easy to do and there are tutorials that tell you exactly how to do it.

In conclusion, for a Binary Options Robot, I recommend using the broker Deriv. It is a regulated company since 1999 and offers the best conditions for trading Binary Options. From my experience, it is the only trustworthy broker that accepts automated trading and bots.

Advantages of Deriv:

  • Multi-regulated Broker
  • Accept automated trading
  • Create your own bot
  • $ 5 minimum deposit
  • $ 10,000 free demo account
  • Support Metatrader
  • More than 100 assets
  • High yield up to 95%

(Risk warning: Your capital is at risk)

What types of automated trading are available for Binary Options?

Of course, the Binary Options robots that are currently on the market do not all work according to the same principle. Just as human traders use different strategies, robots with different orientations can be chosen. The most important differences are in the weighting of opportunity and risk. In addition, seriousness is also an important differentiating criterion.

Trend analysis as a solid basis

In principle, two different types of automatic trading systems can be distinguished. A large group of robots can be assigned to the category of trend analysis. The software on which these robots are based continuously analyses the charts of the selected underlying and makes automatic trading decisions on this basis. Just like human traders, the software tries to correctly predict how a given price will develop in the future.

These systems are anything but infallible in the face of volatile and highly complex markets. The systems are by no means rigid but can be individually adapted and influenced by the user. Above all, the relationship between opportunity and risk can be balanced in this way.

Mathematical systems are considered questionable

The second group of Binary Options robots claims to work according to certain mathematical systems. On the corresponding provider pages, it is explained that methods like Fibonacci or Martingale, or other progressive methods are used.

Basically these systems are based on the same idea as some strategies in the field of casino games. Losses suffered in one round are to be compensated in the next round by doubling the stake. However, it has been shown time and again that the consequence is primarily a rapid loss of the trader’s trading capital. Such strategies are therefore not very promising and must be considered as fraud.

One reason for this is that the respective amount must be tripled in a subsequent operation to compensate for the loss. In addition, the erroneous assumption is made that the chance of winning is exactly 50 percent in each operation and that the purchase of options is triggered by chance.

A clear strategy for successful trading, on the other hand, is not apparent. In our experience, such robots have the function of luring traders to compatible brokers in order to collect a corresponding premium. However, we do not consider these offers to be serious, as there is no clear strategy to be seen and traders usually lose their stake very quickly.

Conclusion: A closer look is needed on Binary Options Robots

Especially in the segment of Binary Options Robots, it is important for traders to select with a very critical eye. High and continuous profits are promised by all providers, but the implementation is done from very different motives and with different means.

In particular, robots that belong to the category of mathematical systems tend to act on good luck and actually do not make any mathematically reliable predictions for the price development. And even with respectable providers, it is far from certain that really long-term high profits are generated for customers. The recommendation is therefore to start with one of the serious providers mentioned, with as moderate amounts as possible and of course to choose a safe broker for Binary Options.

(Risk warning: Your capital is at risk)

See my other articles about Binary Options:

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