If we were to look at the Pleasure Principle in the online environment, we see all sorts of transactions designed to please new and vast arrays of appetites. When adding the element of both merchant and consumer privacy to the equation, we see an exponentially larger marketplace ⎼ where “users” discover whole new sets of brain cells to tickle. But there is a dark side that everyone is aware of by now.
Since man first walked on two feet scammers have never had a more opportune time to prey on the weak. The scammer-in-training no longer needs to carry any admiration for a James Bond nemesis. The bar has been set far, far lower. The system now allows for almost anyone to obtain the technology to deceive hundreds and thousands of people daily. When opportunity knocks ⎼ when a get-rich money scheme knocks on the door of a smart, driven and money hungry individual, for example ⎼ will they pass it up? The answer, thus far, as has been “no” for many scoundrels who have become world-class online scammers.
Binary Option, Forex and CFD Scams
In the online trading world, binary options, forex and CFD brokerages vary greatly in the quality of their services. As a business model in the world of make-believe, all could be well and fair and brokers and traders could potentially make a lot of money. But in the vast amount of cases found online today, the actual structure is built upon the downfall of the trader. The brokerages are forced to scam for their livelihoods, like a thief who must put food on the table for their children .
One could surely ask if this is unlike any other business or industry? Who hasn’t bumped into a dishonest business or enterprise in his life? Scammers are everywhere, aren’t they?
Yes, it’s true. Those scammers pervade the world at large, but the difference between them and binary options, forex and CFD scammers is that these three cannot function without rabid deceit by their sales teams and the complicity of supporting departments. They know their happy customers today will tomorrow become angry customers robbed of their money. It becomes a zero-sum game of corruption.
- Deception #1: Sales teams are great at convincing people that everyone and their grandma can make money! It’s an easy way to get rich. Just watch and learn the webinar tomorrow. Profitable trading couldn’t be easier.
- Deception #2: We account managers and our owners are not benefiting from your losses (or simply pocketing your deposits). No no, there are no conflicts of interest. I’m your “broker,” not the casino. In fact, the more you trade, the more I profit. I make my money strictly from commissions, not from your losses.
- Deception #3: You lost money? Unlucky trading? No worries ⎼ I’ll refer you to the recovery department where, if you deposit again, we can get you out of trouble fast. Just go further down that rabbit hole, the exit is right around the corner.
Broker Cancer and Survival
Much like a tumor, the greed of the brokerage will eventually kill or at least endanger its own host. Here’s how it works.
With every user deposit, the money goes to feed the “brokerage tumor” structure. More staff, more marketing, more sales, more support. The more users, the more deposits, the more staff, the bigger the tumor grows ⎼ and it always needs to support itself.
But the more it abuses, the greater the effort will be to kill the tumor and, suddenly, doctors get involved. Suddenly there is a fight between the owners. Suddenly the account managers grow restless and steal all the user information. How will structure survive? Well, it’s not hard. Simply create a new brand! Start over again in another part of the internet’s vast ocean.