and regardless of if it goes up or down, you make money."

It doesn't work that way.

You are correct, it is a scam and sure looks like a ponzi scheme.

" Deposit $350.00 and we will credit you a bonus of $50.00
-or-
Deposit $1600.00 and we will credit you a bonus of $400.00!!"

So you give them $300 and they give you $50? Who made money?

You give them $1600, and they give you $400. Who made money?

Reported to SEC Enforcement
http://www.sec.gov/complaint/cf942sec957…

Dear Net Advisor,

My name is David Campbell, I am the customer service manager for EZTrader.com I have read your answer, and was quite surprised by it, especially since you are a high standing member of this great community, while your answer is completely un founded or based on experience.
I have decided to respond to your post here, and send you a copy privately – and would welcome a discussion and the ability to answer any of your questions, publicly and privately.

EZTrader is a Binary Options trading platform which is a common high risk, short term investment tool, one that is learned about by every first year economics student. I'm aware from reading your bio that you are well educated in finance, but assume not everyone knows this.

As they teach in economics, every investment is a gamble and every gamble is an investment. No one is offering
free money and when making trades you have to remember that trading involves a high risk - and great rewards. we offer Binary Options - A fair trading tool which is in way controlled by anyone but the market.

we are proud to be able to offer our traders great promotions and have never ever failed to pay any withdrawal, and pride ourselves with great customer service. Forex companies leverage your money and offer a large bonus, Newspaper subscriptions give you free first months --> Are any of these scams or great Ponzi schemes in your schemes? I doubt you would have wrote your answer the same way if you have read The rules and conditions of the bonus available in our F.A.Q. For everyone to see. These can be found at http://www.eztrader.com/FAQ.aspx

Your answer is highly unfounded, and while no doubt each is entitled to an opinion, your writing which Is based solely on opinion disguised as facts is beyond slender. In fact, have you not been such a high standing member of Yahoo Answers, I would have for sure thought you are a competitor.

no where in the site has it been advertised that you make a profit or break even on 'out of money' transactions.
both the demo movie and FAQ explain clearly that in "out of money trades" you lose between the entire investment, or %90 of it. You can profit when the market goes down if you have a 'put' option which does generate a profit when the option expires below the eatery price.

I look forward to answering any questions you have, at any time - privately or publicly.
Source(s):
http://www.eztrader.com

Has anyone recently opened account with EZTrader? I am trying to find out if they ask you do submit lot of paper work or not?

Verde, opening account with EZtrader is kinda straight forward. Its minimal paper work. Click on the "Apply Here" button towards the top of the page here and it will take you to straight on the application page.

I've wondered about the legitimacy and legality of sites like eztrader.com. With traditional standardized options, anyone is able to either buy the option and hold it long, or sell the option short, and this ensures the price will be reasonably fair, as it is governed by supply and demand. If either side had a substantial advantage, traders will take advantage of it, which causes the price to correct. It is similar to the old saying on how to divide a cake in half evenly. One person cuts the cake and the other chooses which half. (The price being the dividing line.)

With eztrader style binary options, eztrader is the only party who can sell an option, and they set the "payout". They are thus able to give themselves and advantage whenever needed so they can guarantee themselves profit. When they say payout up to 75%, it should be safe to say this is if they have even bets on each side. So in this case if $100 is bet on each side $200 is bet total. One side must win and the other must lose, therefore they must payout $175. Therefore taking $25 profit for every $200 bet. Eztrader can do this as they are not selling standardized options traded on a regular exchange.

Another difference between traditional options is they can be sold prior to expiration, so that at any time if the trader/investor does not like the way things are going they can sell their option to another party at the current market value, or if the trader is short the option, they can buy to cover.

The bottom line is that when trading traditional standardized options you are more or less on a level playing field with other traders and market makers. The only real advantages between traders in traditional options trading are commissions, skill, software, and . With binary options the odds are significantly turned against you, which makes binary option trading more similar to betting on horse races than traditional option trading.

As for whether or not they will operate as promised, I cannot comment. I did a small amount of research as to whether or not they were registered with any regulatory body (FINRA), but I was unable to find them. I'm not an expert on regulation, but it seems binary option trading in this style is unregulated.

Note: everything I said applies only to eztrader style binary options. CBOE binary options BVZ and BSZ are nothing like eztrader's binary options.

I just deposited 200 and watched amazon bottom out, then I put my money on call, sure enough it was as low as Amazon was going to go, they finished above and I made money. After, 2 hours I made an easy 350. I am not nieve to say it could have went the other way, but use the line graphs, it helps.

Hey Chuck,

Thats excellent. How long have you held the account with EZtrader?

I am playing with eztrader, looks like very simple and a scam,but maybe not see here.you trade 100 dollar,they pay 80% or 60 % depends what you trading,lets say a 60% payout,if you loose they take 100 box from you if you won they take 40%,this is win xwin situation for the broker but if you play nice if you know about read the charts etc you have a better chance then play in some cassino ,where you have only 10 % chances

One more thing ,just making clear I am not saying it is a scam,Puting all numbers together you trade 100 dollar for a pay out 65% it means you risk reward is 0.65 for 1, very poor risk reward to trade,they can offer bonus anything there is a good chance for the broker,the other side only 5% the trades make money in any trade here is the same,play smart maybe you get some money

I signed up with EZtrader, have not made any money yet. But they did give me a bonus of 100$, well I still need to get that money out of that account to be completely happy but they have not done any wrong with me yet. So I wont call them scam or whatever

I have been requesting a withdrawal from EZtrader since 03 July untill now i am typing this i have not received any part of my withdrawal at all and this David Campbell written on this website that Eztrader have never ever failed to pay any withdrawal,i think he is bullshitting. I am begining to have doubts about this Eztrader and convinced that it is a truly a Scam/Ponzi scheme.

Kenneth,

Email me your account number etc at support@comparebroker.com, I will talk to my contact over there and find out the problem. EZtrader is NOT a scam, period. They are just a different way of trading which people mistake as scam because its really real trading, its betting! It is big money if you play it with your brain because you CAN predict the market direction sometimes, just like last week when market was plunging towards 300 points. That day you could bet it to go down and made ton of money there!

Shennon,

I completely agree with you. People call them scam because they lose money as they try to just "gamble". 90% of the people who trade in the stock market, end up losing money. Does that make stock market a scam? NO. People try to become rich overnight and hence place risky bets and lose! If you plan out your trade and stay disciplined, you WILL make money. I personally lost almost all of my trades in first few months, then slowly I learned the technique and now my winning rate is about 70%, I still lose 30% of of my trades. But overall I make money in the market.

Binary options in themselves are not a scam. The idea behind offering binary options is a little shady however. Binary options are no different than betting on a sporting event. Therefore, in that sense, it's pure gambling... however, with some experience in chart reading and the correct combination of technical indicators, the odds can be increased to the traders' advantage. And of course a trading strategy and proper money management help as well.