Internet scams are always on the rise. As people become wise to one scam, a new one will pop up! Scammers are always seeking new and different ways to evade the watchful eyes of internet security systems and to gain your confidence before taking more of your cash than they are entitled to.
When your finances are involved, not least in the world of online trading, being aware of the various binary options scams that are about is essential if you want to ensure that your money stays out of the hands of scammers.
One recent binary option scam that has unfortunately taken in a significant number of people online is The Trading Compass Scam. Here, we explain what this site is, why it is a scam, and how you can protect yourself from such scams like this in the future.
What is The Trading Compass?
Head on over to The Trading Compass website and you will quickly see that you need to log in in order to see their site. If you do not want to engage with this website at all by creating an account, here is a brief description of what it does.
The site offers to match you up with an affiliated binary option broker who can then manage your trades for you. You can decide how much money you work with here, though the minimum deposit amount at the time of writing is $10.
Many of these trades will be automated, and in this way, The Trading Compass claims to offer you a hassle free method of managing your trades: just sit back, relax and let your binary option broker and their complicated software do the work. Or, so, it seems. As we will now go on to show, The Trading Compass has several of the key hallmarks of a financial scam.
Why is The Trading Compass a Scam?
That login detail makes the site seem so safe, doesn’t it? Everything seems carefully protected and controlled, giving the impression that this is a site that will protect the security of your finances. Whilst there is no denying that to some people the site design of thetradingcompass.com might look nice and professional, it is definitely a site to be wary of.
One of the first questions that you should ask yourself with a site like this is: who is getting the profit? And in the case of The Trading Compass, it seems to be the binary option brokers, who claim a commission in order to start making trades on your behalf.
However – and this is where the scam comes in – the binary options brokers will then deliberately run your trades into the ground, so that you end up losing money where they gain. And, in general, the automated aspects of this website are highly dubious: “Why gamble with your finances in this way?”
The best (and also the most thrilling) way to trade is surely to make the decisions about your money yourself. Taking a little financial advice is one thing, and is something that even the most high powered of professional traders find essential. But, letting an automated system take control of your finances is very risky business.
The Trading Compass Scams in short…
The Trading Compass looks slick and official, but it conceals a Scam. Once the site has your money, it will simply run away with it and will not use that money to good effect. Rather than making profitable trades on your behalf and multiplying the payment that you made, The Trading Compass will simply allow your trades to fail consistently until you can make no more. Even if you have only invested the minimum of $10 and the associated commission, it is surely better to keep that money in your money where it belongs: in your bank account!
How to avoid binary options scams like this in the future?
- There are a few simple rules that you can apply to make sure that you do not get taken in by binary options scams again.
The first one, is to always read the reviews of a site before signing up to anything – and certainly before parting with your money. As you will see from a quick search online, there are several negative reviews of The Trading Compass flying around, and these should give you pause for thought.
- The second rule is never to hand your money over to the control of an automated trading system: it is simply too risky.
- Thirdly and finally, do not ever hand your money over to binary options brokers that are not certified, and whose credentials are not apparent.
When you are dealing with a binary option broker who is (for instance) listed as a ‘CBI’ or ‘Certified Business Intermediary’, who who has been officially approved by EU bodies, you can be sure that your money has been placed into safe and experienced hands that have been carefully vetted by some of the highest powers in the trading world.
By contrast, the binary options brokers that you will find yourself matched up with at The Trading Compass are more often that not dubious ones which do not have the necessary accreditation, or which tend to be badly reviewed by people who have worked with them.
Overall review of The Trading Compass
In sum, The Trading Compass can be judged to be a Scam. This is a site that you should avoid if you want to keep your money safe. Not only will this site take your money, it will not even attempt to use that money to make good trades on your behalf.
This site can be called a Scam site because it purports to be a reliable website offering financial services and yet does not provide you with a helping hand in the field of trading. Scam sites all have one factor in common: whilst their apparent goal is to provide a helpful and authentic service in exchange for money, their true goal is simply to take your money without paying any regard to the quality of the service.
And, as the above discussion has shown, in this respect, The Trading Compass is a Scam!