Binomo: How Option Trading Scamming You (Open Challenge to Binomo)

Binomo is an option trading platform that has been scamming millions of people and generating enormous profits from their illicit activities. We conducted a 17-day research on Binomo, aiming to expose the platform’s fraudulent practices. Our investigation shed light on how a banned app can still attract millions of users in India, despite its illegal activities.

• After conducting 17 days of research on Binomo, we will be discussing our findings on the potential scam associated with Binomo or Option Trading in this article.
• Option Trading scam is not new at all; it is fully operational, and many people are losing their money.
• These apps are promoted by influencers who have never actually used them. Instead, these companies pay these influencers six-figure amounts to sponsor their apps.
• Their fake stories and high sponsorships make them appear legitimate.
• This is pure gambling, where the payout is either a fixed monetary amount or nothing at all. This is also known as a Binary Option.
• Binomo App and its website have not been authorised by the RBI (Reserve Bank of India) to deal in forex trading. The conduct and operations of forex trading (not being conducted on recognized stock exchange) are illegal and also violate FEMA Regulations.

How Option Trading Scamming You

According to Binomo, it is running in 133 countries. Based on data from the National Police’s criminal investigation, as of March 10, 2022, the total losses suffered by the victims of Binomo platform in Indonesia reached more than 30 billion Rupiah. The value of these losses continues to grow since many victims have yet to report their losses due to this investment.

Trading on Binomo is akin to gambling, and success is largely based on luck. It’s essential to understand that the charts and candlestick patterns are potentially manipulated by their software, they know that middle-class people and students are easily get attracted by their concept.

Most of the youth are attracted to the concept of binary trading because it is one of the simplest way to earn money without any physical work. Most people blame themselves for not getting the correct trade, they think that they are doing some mistake that’s why they couldn’t earn. Unfortunately, new traders often believe that courses and strategies offered by YouTubers can help them achieve success. Some unscrupulous YouTubers take advantage of their followers’ trust and sell courses at exorbitant prices, giving false hope to those who purchase the courses.

Binomo is Owned by Dolphin Corp, Binomo was established in 2014. The trading platform is currently having 887,470 daily active traders from 133 different countries including India with an average of 30,000,000 successful trades per week. This is the report of Binomo.

Binomo Demo and Introduction

This is a demo account of Binomo. We placed four trades, and all of them won except one. This is a trap for new traders: when someone starts a demo account and starts placing trades, they win many times. But when they start trading with real money, the graph starts getting manipulated. When you place a trade for Call, the candles gradually start going down. And when you put a trade for Put, the candles start going upward. However, the platform is smarter than its users. It also helps users win some trades to make them feel that the graph is real, and they need to understand the candlestick pattern.

Here is a big scam – many people start Telegram groups for new traders even though they don’t make money themselves. They charge people who join their Telegram link a specific amount. Actually, they are all scammers who take advantage of innocent people and scam them. They may not make money through it, but they make people feel insecure about being new to trading and use that insecurity to claim they can guide them to successful trading.

Is Binomo Safe / Binomo Scam or Real

Binomo and other option trading applications are manipulating their graphs. Binomo’s demo account offers $10,000 for trading, knowing that users are more likely to trade with real money after testing the demo. When you start trading on the demo account, all of your trades will earn money. However, when you switch to trading with real money, you start losing it. They manipulate the graphs to make it seem like your losses are due to your own mistakes. Binomo claims to offer an 89% return on investment, but this is a trap.

If a platform is used by thousands of users, it doesn’t necessarily mean that the platform is legitimate. On the contrary, it may be popular simply due to heavy promotions and sponsorships. It is an illegal application that should not be operational on the Internet.

Binomo claims that their platform has been awarded by Verify My Trade. However, our question is, who is Verify My Trade? It is neither a government body nor a very well-known name in the financial world.

Point to be noted

• These apps engage in high promotion and sponsorship with big brands to create a good image in the public eye.
• Big news channels cover their stories just to make money. Why doesn’t the government take any action?
• Even Zee News promotes Binomo as an additional source of income (source), What is going on? Are they blind to the hard-earned money and precious time of the youth?
• Binomo offers a 100% bonus on a deposit of a specific amount, but this is also a trap. When you enter the amount into your Binomo account, you cannot withdraw it. Binomo should clarify this issue.
• Why is this company operational in India when it is not registered under any government domain?
• Binomo does not offer any customer care service if you are unable to withdraw your money.
• The real founder of Binomo is unknown.

Companies Headquarter is unknown

According to an article in Outlook India, Binomo’s headquarters are located in Saint Vincent and the Grenadines. However, when we search for it on Google using the keywords “Saint Vincent and the Grenadines Binomo Headquarters,” no results are found. Binomo is a highly popular trading company, and one would expect it to have a physical headquarters, but the lack of information available on Google is concerning.

Saint Vincent and the Grenadines is classified as an upper-middle-income country with a small open economy, despite being one of the poorest countries in the Eastern Caribbean. The country is a chain of islands, and its major economic sectors are tourism and agriculture, particularly banana production. However, it suffers from high unemployment, particularly among women and young people. Binomo claims to have established its headquarters in Saint Vincent and the Grenadines.

If Binomo is right, then they should publicly prove it by sharing photos of the company on its social media handles. According to our research, the economy of the island of Saint Vincent and the Grenadines depends on tourism, agriculture, and banana production, but not on technology and finance. Therefore, if there is only one company in Vincent with knowledge in technology and finance, then Binomo should be popular there.

Paid article for Promotion

Binomo and other option trading platforms usually try to enhance their image in front of users to gain their trust. We have collected a lot of evidence, and here is one example: we have highlighted the “PROMO CONTENT” area of a post that is sponsored by Binomo. This shows that Binomo and other option trading platforms do the same.

News articles often mention when a post is sponsored by a particular company. However, the main problem is that they usually mention it at the end of the article, in small font.

They sponsor their posts on news websites, and no news staff is involved in the creation of the content. They write the article themselves and give it to a trusted website for publication. This is often disclosed in a disclaimer, such as the following: ‘Disclaimer: This content is distributed by Binomo. No TNIE Group journalist is involved in the creation of this content.

This article is distributed by The New Indian Express. The article’s purpose is to give a fake review of Binomo, discussing the trading platform and whether it is safe. However, it does not provide an honest assessment of the Binomo app and instead seems to be focused on presenting Binomo in a positive light.

Even Forbes India promoted Binomo as an extra income opportunity application. But at the end of the article, they warn people with this message “Disclaimer: The views, suggestions and opinions expressed here are the sole responsibility of the experts. No Forbes India journalist was involved in the writing and production of this article.” The problem is that most people don’t read the entire article. News media outlets and Binomo are aware of this fact, which is why they sponsor their articles on a large scale.

Also Read: Learn How to Start Logistics Business in India- Full Guide

Government Rules and regulations

RBI has placed an ‘Alert List’ of entities which are neither authorized to deal in forex under the Foreign Exchange Management Act, 1999 (FEMA) nor authorised to operate electronic trading platforms for forex transactions on its website. In a release, the central bank said that the ‘Alert List’ is not exhaustive and is based on what was known to RBI at the time of issuing the release. (Source)

Reserve bank of India (RBI) issues an alert list, declaring these 34 forex trading online platforms as illegal, Here’s the complete list of the 34 forex trading online platforms banned by RBI.

1. Alpari
2. AnyFX
3. Ava Trade
4. Binomo
5. eToro
6. Exness
7. Expert Option
8. FBS
9. FinFxPro
10. Forex.com
11. Forex4money
12. Foxorex
13. FTMO
14. FVP Trade
15. FXPrimus
16. FXStreet
17. FXStreet
18. FXCM
19. FxNice
20. FXTM
21. HotForex
22. ibell Markets
23. IC Markets
24. iFOREX
25. IG Option
26. IQ Option
27. NTS Forex Trading
28. OctaFX
29. Olymp Trade
30. TD Ameritrade
31. TP Global FX
32. Trade Sight FX
33. Urban Forex
34. XM
35. XTB

Binomo is Banned in these countries (Source)

1. Switzerland
2. Belgium
3. Czech Republic
4. Germany
5. France
6. Netherland
7. Portugal
8. Greece
9. Italy
10. Spain
11. Sweden
12. Iceland
13. Monaco
14. San Marino
15. Cyprus
16. United Kingdom
17. Japan
18. Russia
19. Iran
20. Pakistan
21. Palestine
22. North Korea
23. Hong Kong
24. Syria
25. Turkey
26. Libya
27. Afghanistan
28. Australia
29. Canada
30. USA
31. Saint Vincent and Grenadines
32. Moldavia
33. South Sudan
34. Albania
35. Haiti
36. Jamaica
37. Mali
38. Myanmar
39. Nicaragua
40. Senegal
41. Zimbabwe
42. Cuba
43. Israel
44. Singapore

But Binomo is functional in all of these countries, and Binomo is still working. Government should take strong action on this matter. Youths are getting distracted and frustrated by these Apps. There are many people who belong to middle-class families who are easily trapped in these Apps to become rich as fast as possible without any work.

To prove our research is baseless, Binomo should answer these questions.

• If your graph has not been manipulated, then prove us wrong.
• Show me any articles on Google, that are not sponsored by your company.
• Real address of your company.
• Where is your company’s headquarter?
• Indian government rules and regulations and tax certificate.
• Who controls this company, and where is this company registered?
• Is Binomo approved by the government?
• Which Indian law gives you permission to operate your app here?

Conclusion

Binary trading is akin to gambling, and many young people are wasting their time and money on it. The government should take strict action on this matter. In fact, many young people spend so much time on these apps that they take out loans from banks or borrow money from relatives. When they lose their money on these apps, they become demotivated and may even contemplate suicide. Young people are getting easily distracted by financial apps, so it is imperative that the government and regulators take action to address this issue.