In the BinaryXPRT video, Bob Fratelli tells us about his binary options trading formula that can help anyone “make profits of $1000 and more per day”—even those without experience.
Bob calls his formula the “magnetic effect method,” which involves closely monitoring market directions, or trends, for different stocks, commodities, currencies, and indices, using simple charts.
If you see that an asset is on the uptrend, you place one kind of trade. If on the downtrend, another kind of trade. If on the zero trend, you do nothing at all.
Bob claims that BinaryXPRT is an “insanely profitable method” that will never fail or disappoint, so that you can earn the money you need and deserve.
We’ll cut right to the chase and tell you that BinaryXPRT probably isn’t all it’s cracked up to be. To tell you why, though, will take a bit of an explanation.
Binary Options Trading Basics
Binary options trading is a cash-or-nothing proposition. Either your trade is successful and you profit, or you’re unsuccessful and you lose your entire investment. There is no middle ground.
Another simple thing about binary options trading is that you’re only trying to guess if the price of an asset (e.g. a stock, commodity, currency, or index) will go up or down within a certain amount of time. Place a call if you believe it will go up, or a put if you think it’ll go down.
And since these trades execute in a short period of time (as little as one minute), you can quickly find out whether you’ve gained or lost money.
On the flip side, the fact that trading binary options is more about guessing than it is about making informed decisions, means that tried-and-true strategies are hard to come by. Also, the quick turnarounds mean that you could lose your entire investment in just 60 seconds.
But is BinaryXPRT’s strategy a good one?
BinaryXPRT’s Magnetic Effect Method
Here’s the skinny: There isn’t a trading strategy (for binary options or anything else) called the Magnetic Effect Method. It appears to be a marketing term made up by the company behind BinaryXPRT.
There isn’t even a person named Bob Fratelli; at least not one that’s well known within the financial markets. Even the picture of “Bob” on the BinaryXPRT website is a stock image that anyone can buy.
However, there is such a thing as trend trading. As “Bob” noted, this involves placing trades in favor of the overall trend, up or down. It’s actually one of the most basic trading strategies used by any newbie, and not some “secret method,” as Bob claims.
The Problem with Trend Trading
Trend trading takes an overall look at the direction an asset is moving. If the price of gold increased by $5 over the last 24 hours, you would say it’s trending upward.
What trend trading doesn’t account for though—and what the BinaryXPRT video conveniently glosses over—are the hundreds of small “blips” that might have occurred during this same time period. In other words, gold’s value may have increased in the long term (over the course of a day), but during this time, the price may have gone up and down hundreds of times.
And when you’re trading binary options, you’re placing trades against these very small movements. Like we mentioned above, often in as little as a minute.
What does this mean? Trend trading might give you an idea which way an asset’s price is likely to go, but what it comes down to is that you’ll basically just be guessing. A quick and easy way to lose a lot of money, and definitely not foolproof, like BinaryXPRT claims.
This is where the advice of a good broker can come in handy. If you sign up for BinaryXPRT, who will act as your broker?
Who Acts as Your Broker with BinaryXPRT?
There wasn’t any information about BinaryXPRT’s broker on their website, and the Terms & Conditions, Earnings Disclaimer, and Support links (where this information is often found) only redirected us back to the top of the page.
According to IveTriedThat.com though, the broker is Bloombex Options based in Germany. I’ve Tried That gave BinaryXPRT (and Bloombex Options) a 0.2 (yes, you read that right!) overall rating, and claimed that you should stay away.
If you Google Bloombex Options, you’ll come across many other professional reviews that recommend the same.
On a positive note, here at HighYa, we’ve reviewed several of these popular binary options “opportunities,” including Euro Millionaire System, Cash Code, and Quick Cash System. And compared to these other systems, at least BinaryXPRT is (basically) upfront about what the method is and how it works. Also, they fully disclose that you’ll need to open a broker account (although not who this broker is).
BinaryXPRT even gives you the ability to watch charts for different indices, stocks, and commodities, which is a rarity in this industry.
Granted, this doesn’t mean that BinaryXPRT is a legitimate way to make money; only that they’re breaking the trend (at least from this perspective).
Where does all of this leave you?
The Bottom Line about BinaryXPRT
Yes, if you know what you’re doing and are trading through a reputable broker, you can make money with binary options.
Consequently, BinaryXPRT is targeted at beginners (who are most likely to lose money) and doesn’t seem to have a solid online reputation, so that’s 2 strikes against them.
The third strike is that BinaryXPRT isn’t actually a thing. It’s simply a marketing tool for Bloombex Options. Bob Fratelli is a made up person, intended to put a personal face on an impersonal transaction, and to lure you in to opening a brokerage account.
Why would a broker go to all this trouble? Are they having difficulty landing clients using more straightforward advertising techniques? Whatever’s going on, we can’t help but think that BinaryXPRT is more focused on making Bloombex Options money than it is about giving you any kind of financial independence.
In our opinion, you should stay away.