CopyOP offers a new way to trade binary options since January 2015 – by copying from fellow traders. This sounds like a good news to the newbies, but does CopyOP work? More importantly, is CopyOP a scam?
Name: CopyOP Social Trading
Owner: Linked to AnyOption
Price: $100 min. deposit
Recommended? NO, NOT RECOMMENDED
(full list of all reviewed scams)
Social trading is not a new concept. Other platforms such as ZuluTrade and eTORO have been around for years, but CopyOP is the first platform that brings social trading to binary options, a trading instrument that has been gaining momentum in recent years due to its simplicity.
Essentially, CopyOP is a platform that allows you to “copy” the trading decisions of more successful users in the binary trading circle.
Theoretically it sounds like a sure-fire way to become successful at binary trading, but it is not as simple as it sounds. We’ll get to that in a moment.
How Does Binary Options Work?
Before we continue the review, we want to make sure everyone understands what binary trading is.
Binary options is basically the simplest form of trading. Unlike any traditional trading instruments, you don’t have to read charts or analyze the news with binary trading. All you have to do is select YES or NO for every binary trade.
Every trade lasts a short amount of time, usually between 30 seconds to minutes. Before each trade, you guess if the price of an underlying asset will rise or fall when the contract expires.
Let’s say I guess that the price of an asset will rise 1 minute later, and I bet $50 on it. After a minute, if the price is indeed higher, the option is said to expire in-the-money, and I win a predetermined amount of money, usually between 80% of the amount I bet.
However, if I’m wrong and the price is lower, the option is said to expire out-of-the-money, and I lose the entire sum that I bet.
Note the imbalance of winning vs. losing payout in binary options. Even if I manage to get it right 50% of the time, I’ll still end up losing money.
You also have to understand that market fluctuations in such a short period of time is IRRATIONAL. No one can get it right consistently, and this is one of the biggest problem with social trading as well.
Please note that we do not recommend binary options if you want to make serious money online. There are simply much better alternatives out there that are more predictable than trying to gamble your way to wealth.
What We Like About CopyOP
Unlike most binary trading softwares that make unrealistic claims and empty hypes, CopyOP does nothing of that sort. In fact, CopyOP makes it clear to you that binary options is a risky endeavor, and may not be suitable for everyone.
We definitely appreciate the transparency of CopyOP.
CopyOP has made the effort to make their trading platform more user-friendly by providing the platform in 5 different languages. Although there is no live chat support, you can send emails to CopyOP support team 24/7 in any of the languages.
The minimum deposit of CopyOP and AnyOption is $100, which is a lot lower than the industry standard of $250. We also like the fact that you can use your balance from AnyOption and automate your trades on CopyOP.
Is CopyOP a Scam?
No, we do not categorize CopyOP as a scam, as it does outline the risks of binary trading in a transparent manner and it doesn’t try to hype things up. The facts are presented clearly in their FAQ page, and they are not trying to hide anything.
However, copy trading is not a guaranteed way to make you rich.
Although copy trading can mitigate some risks for binary trading newbies, copying the trades of other traders is by itself very risky. The list of profitable traders changes very frequently, simply because no trader can be profitable CONSISTENTLY.
Often time, when you spot a profitable trader and decides to follow him/her, the winning streak is over and you are left with a series of losses. There is no good way to spot the profitable traders before they hit their winning streaks.
Besides, when you copy trades from other traders (signal providers), you can only earn a fixed percentage of 60% if your contracts expire in-the-money. This is significantly lower than the usual winning payout of ~80%, which makes it a lot harder to get profitable.
Fortunately, you do get a 10% refund if your contracts expire out-of-the-money.
Although the minimum deposit of CopyOP is decent at $100, a single trade will cost you $25 at least. If you are unlucky and get 4 losing trades right off the bat, you will depleted your entire balance in minutes.
This is a highly possible scenario, given the extremely risky nature of binary trading and the unfavorable winning vs. losing payout.
Should I Try CopyOP?
As we’ve said in the review earlier, we don’t recommend binary options as a way to make money online. It’s not that different from gambling, and using social trading platform like CopyOP still puts you at great risk. You are essentially putting your hopes and your entire investment in a different form of gambling.
You are more likely to end up losing all your money than making any significant profit. If you have some cash to spare for entertainment, you may go ahead and try it out. But you’ll be better off spending it on a nice dinner with your loved ones.
If you are determined to make money online, you must use a legitimate program that will provide you proper trainings and help you build your own business. We have tried out many programs, and there is only one program we recommend to our readers:
Have you tried social trading before? Did you have any success with social trading? Let us know in the comments below if you have any personal experience to share!