Cedar Finance have ceased all operations. Please visit our recommended trading brokers list.
Recently we’ve been noticing a lot of videos popping up on YouTube and other sites which advertise that you can make money quickly and effortlessly on a site called CedarFinance. One of the most popular videos tells you that you can take $100 and turn it into $250 in just sixty seconds by trading a 60-second binary option on that website. Here’s the video so you can check it out yourself if you haven’t already seen it.
The idea sounds fantastic, but if it were really that easy, wouldn’t more people be doing it and quitting their day jobs? If you suspect something scammy is going on here, you’re right—though we don’t know for sure if CedarFinance is part of it. Let’s break this down.
What is CedarFinance? – Why This Warning
CedarFinance is the name of a binary options trading website, found at cedarfinance.com. It’s one of dozens of different websites out there; many of these brokers are owned by the same few companies, although there are still a fair number of distinctive choices out there. It is a bit similar to more financial related websites, like Cedar Financial which appear to be completely different companies.
At this point we don’t know enough about CedarFinance to tell you whether they’re a good broker or not. They may or may not be a legitimate broker, however there are some warning signs we have uncovered about the broker itself. In addition, this warning is more about the youtube videos claiming how easy it is to make money by utilizing “traders choice” and just betting with the majority of other traders.
If You Have NOT Yet Deposited
Think long and hard about your options and know that there are other time tested, reputable brokers out there you should consider first. Do yourself a favor and research a few select brokers, and research Cedar Finance. The cool thing is that there are other brokers who use the exact same underlying trading platform that CF uses (it’s called the SpotOption platform and CedarFinance is a smaller fish compared to the big brokers like MarketsWorld or 24Option.
If you HAVE Deposited Money…
I wish you the best of luck trading. Make sure you read and copy all of the terms and conditions you agreed to before signing up and making your first deposit. If you accepted a bonus offer then you are likely on the hook for quite a large volume of trading that needs to take place before withdrawal is available. You can contact the customer support and see what is required to process a withdrawal.
If anyone has successfully withdrawn from CF please leave a comment below.
If You Are Considering Trying This – Get The Real Deal
You can risk money every 60 seconds.
You are not guaranteed a win.
You lose money if you pick wrong.
You can not just go with traders choice and make cash long term.
You can not just go against traders choice and make cash long term.
It is not as easy as 1-2-3 to beat the “banksters”. (They are banksters for a reason).
The online binary options brokers, even the legit ones, have the house edge (see explanation).
Before you trade online with any broker, you should research the company and the website thoroughly, and check out third-party reviews and customer ratings and complaints. You should talk to the customer service team on the phone and decide for yourself what you think. Regulation is a big plus too if you can find it.
We don’t know whether CedarFinance endorses or had anything to do with these videos either, or whether they are third-party user-generated content. There is sadly a good chance that they were made by affiliates of the company who make money when you lose money trading. That’s a questionable advertising practice and should make you at least slightly wary of the broker. Now let’s take a look at what makes this a scam. Ultimately the broker is only one part of the problem, and not the main part. No matter what binary website this video were promoting, it would be a scam.
What are 60 Second Binary Options & Can You Really Make Money In 1 Minute?
This is another question we need to answer before we go any further with this discussion. 60 second binary options are not a scam by themselves. You can feasibly make money trading them, just as you can feasibly make money trading Forex, stocks, or anything else. When you trade 60-second binary options, you typically have a scenario like this:
You’re shown the current price of gold, a currency, or some stock or index and asked whether the price will be higher or lower than its current level (as of when you place your order) in sixty seconds.
Once you place your order, the underlying asset does whatever it’s going to do, and then sixty seconds later, you either win or you lose. Usually if you win, you get about 75% as a profit margin, and if you lose you get back 0-15% (these percentages depend on your broker).
Hopefully you can see clearly the house edge without having to think too hard about this. You can’t break even by winning half your trades. You need to win more than half to break even, and an even higher percentage to stay profitable.
So Why is the CedarFinance 60 Second Binary Options Video a Scam?
While you can make a lot of money trading binary options, you can lose a lot of money equally quickly and far more easily. This is particularly true with these 60-second options. They are extra alluring to just the sort of person who is likely to fall prey to a scam in the first place since they promise speed, and hastiness begets failure. Impatient traders don’t make it very long. And even a trader who has good intentions won’t have enough time to catch up emotionally with their situation (acknowledge and accept failure) while trading and losing money with 60-second options. There isn’t as much time to figure out what’s going wrong and to remedy it.
If your strategy is just picking the cedar finance traders choice and trading with the crowd, then you will likely lose your money. Saying that you can make fast cash this way over the long term is where your warning bells should be blaring!
Again, this video was likely put together by an affiliate of the broker. If this is the case then it is also a possibility that the affiliate has a payment plan with the broker called a revenue share. How this works is that the affiliate earns a percentage of any of the traders they send to the brokers losses. This means, if you lose money, the affiliate makes money. The inverse is also true. If you win money, the affiliate loses money. The broker may or may not be aware of the advertising tactics being used—but you can be sure that it’s the broker and the affiliate who are making money here, and not the people who sign up and start trading 60-second options pell-mell.
This is not to say that affiliates are bad, they are not and we earn income through affiliate advertising as well, however we strictly work on a CPA deal and not a rev share deal. CPA means a 1 time cost per acquisition and has nothing to do with how much the traders win or lose. We want you to win!
Final Thoughts About Cedar Finance Hoax
The truth of the matter is that with binary options being so hot right now and the fact that their simplicity of trade is easy to create videos that demonstrate how to easily make money. You can really make cash in 60 seconds with binary options. You can also make money fast playing roulette, blackjack and craps in the casinos too. There are some professional binary option traders who make good money trading but the majority of investors do not put in the time, effort or skill to be a winner.
If you are looking to give binary trading a try, then you should strongly consider trading with a respected, trusted and proven broker like MarketsWorld, 24Option or Nadex. With these brokers you can be assured that if you do win money you will be able to cash it out.
- Binary Options Demo Account – You can practice with fake money in a demo account before risking real cash.
- How To Trade A Binary Option Online – Step By Step guide featuring 24option in the examples.
- The Best Brokers To Trade With – We update this page with latest broker listings
- Our Favorite Brokers With 60 Second Trades available: http://www.binarytrading.org/60-second-options/