A scheme called Cloud Trader claims to allow people to make $1,250 per day using free auto trading software. The site claimed they are looking for 7 partners to help make this daily income.
Is Cloud Trader legitimate?
We have classified Cloud Trader – that operates from a number of different domains – as a Binary Options get-rich-quick scam. This means the site lures people with the claim they can become rich with a secret system that turns out to be trading with Binary Options.
What is a Binary Options get-rich-quick scam?
This is a scheme that tricks a victim into thinking they can get rich by trading with a particular Binary Options trading platform. The scheme will dress up Binary Options as a “secret” or “underground” way of making money.
Binary Options trading is where an investor attempts to predict whether a specific stock will rise or fall in value over a short period of time. If the investor predicts correctly they get a return on their investment, but if they predict incorrectly then they lose their investment.
It’s an alternative and less popular version of traditional trading, and it is poorly regulated. Additionally, most finance experts agree that Binary Options is similar to gambling. As such, there is no way to “beat” Binary Options or to “game” the system. There is no secret software or methods that can be used to guarantee wealth using Binary Options trading. Binary Options get-rich-quick scams have many similarities to schemes that falsely claim to help you beat online casino games.
These get-rich-quick scams use a variety of deceptive and misleading sales tactics to trick victims into signing up for Binary Options brokers by asserting that they can get rich by doing so. The Get-Rich-Quick scammers are paid a commission for referring victims to a Binary Options broker.
Those who sign up are required to pay an initial deposit into their broker account, and most will ultimately lose that money.
In the case of Cloud Trader, when we signed up we were referred to a broker called Stern Options. However it is possible the scheme uses many different brokers.
You can read more about Binary Options get-rich-quick scams in our article here.
Misleading Sales Tactics…
Like most get-rich-quick scams designed to lure victims to Binary Options trading, this scheme uses a high number of deceptive tactics to trick victims.
The use of paid actors to represent the CEO and other staff
Fake news stories and endorsements from celebrities
Fake claim that Martin Lewis invested in the scheme
Fake “limited spots” available
Grossly misleading expectations regarding how much an investor will earn using Binary Options.
Fake claim of having underground software that can “beat” Binary Options
Cloud Trader is the latest in a never ending strong of get-rich-quick scams with the sole objective of tricking you into signing up with Binary Options. As usual we repeat this advice – most people will lose money with Binary Options. Don’t sign up with schemes claiming they will make you rich with “auto trading software”. They’re scams.