TradoLogic is one of the three big white label brokers that split up most of the binary options market even though most traders are completely unaware of it. Regardless of the name of your broker, you might trade with TradoLogic, too. This article helps explain the white label model, and who Tradologic are.
This article answers these questions:
- What Is TradoLogic?
- Why Do I Have To Know TradoLogic?
- Can I trust TradoLogic?
- How Can I Find A Better Broker Than TradoLogic?
With this information, you will understand TradoLogic, and you will be able to protect your money.
What Is TradoLogic?
TradoLogic is a white label broker for binary options. This means they are what General Motors is to GM, Chrysler and Cadillac. They provide the technology, the basic functionality of the product, and the infrastructure in the background. Then a brand takes these products, puts their logo on them, and sells them to the end customer.
With binary options, this system requires a white label broker and a customer who has its own broker brand. The white label broker provides the trading platform, the banking, and the customer support, the customer provides the name and the logo, and chooses from the different styling options.
This means that all TradoLogic brands are effectively the same broker. They might look different on the surface, but they will always offer the same payouts and same banking options. Under the surface, they run the same technical programs, which is why they will always create the same outcome.
TradoLogic provides white label services for many different trading styles. They have offered CFDs and spot forex for quite a while, and started to offer binary options when the industry began to boom. It is an established company and has been around for quite a while.
TradoLogic is one of the leading providers of white label binary options solutions. Its main competitors are SpotOption and TechFinancials.
Why Do I Have To Know TradoLogic?
As a binary options trader, you will probably never deal directly with TradoLogic. Nonetheless, there is good reason to know the white label broker because you are likely to indirectly deal with them.
Once you form an opinion on TradoLogic, you understand a large part of the binary options world. If one TradoLogic broker is good for you, most others will be fine, too. If one TradoLogic broker is bad for you, you should stay away from all of them.
You can greatly simplify your broker comparisons by understanding the four great groups of brokers:
- TradoLogic brands,
- SpotOption brands,
- TechFinancial brands,
- Brokers with their own trading platforms, for example IQ Option or Binary.com.
You have to do a little research with the last group (take a look at our broker list, for example), but it is well enough to test one broker of each of the first three groups. We would recommend staying away from all of these white label brokers, but more on that later.
For now, the important point is understanding the system. There are three white label brokers, and regardless of which of their brands you use, you always trade with the same system.
Can I trust TradoLogic?
The most popular TradoLogic brand is a broker called Option Bit. When you open the Option Bit website, Google Chrome will issue a warning message that you are dealing with a scam. This warning is well-justified.
There are five reasons why you should be careful to trust TradoLogic. They are:
1. You Are In A Heavily Disadvantaged Position
The problem with TradoLogic is that you are gambling against the house. Regardless of which brand you are using, TradoLogic creates the payouts and the binary options types in which you invest. Just like a casino only offers games of which it knows it will make a profit, TradoLogic only offers payouts that are in their favour.
This system is not inherently bad. There are many gambling games online. Some are based on cards, others on slots or roulette balls. Why not have one based on the financial market? Similarly, the fact that you are investing against your broker would be fine as long as your broker offers fair payouts that only take as much money from you as you would pay in fees with other forms of investing.
In this case, the system would be the same as with other financial investments. Some traders would make money, some traders would lose money, and the broker would take a cut when the money shifts from side to side. This is how every financial market works.
2. Beware Of Scams
There are plenty of reports of scammed Option Bit and TradoLogic customers.
Apparently, one popular method is to deny the traders the withdrawal of their money based on alleged security concerns. The TradoLogic withdrawal process is intentionally complicated, which makes it difficult for traders to do everything right. For some traders, small mistakes meant that they will never get their money back. This behaviour is unjustifiable. Internet security is important but hiding behind its mask to keep a traders money is wrong.
Other traders reported that they were pressured into making large deposits. Once they had put in a little cash, their personal consultant called them, urging them to invest more in exchange for additional bonuses. These and other similar tactics are covered in more detail in our scams page.
3. False Promises
Some traders report that TradoLogic promised them features such as personal account managers that failed to work in their best interest. While their account managers urged them to deposit more money, they became silent shortly after the traders complied with the request.
Similar reports extend to customer support. Traders complain that the staff was either incompetent, overwhelmed, or simply absent. In any case, they were unable to provide help.
Finally, TradoLogic brands often advertise much higher payouts than you can actually achieve. While there are claims of payouts around 90 percent, the average payout in real-life trading is often significantly lower.
This difference is a problem because payouts are the number one factor in your success. Since you get a payout with every single trade, lower values accumulate in the same way as with the rice grain and the chess board. Short-term investments such as binary options allow you to make many trades a day, which is why these effects will accumulate quickly.
4. Israeli Legal Actions Against White Label Brokers
All three of the big white label binary options brokers are based in Israel. The Israeli government has grown so disenchanted with them that they have undertaken significant legal actions to crack down on white label brokers.
Brand owners were arrested on accusations of fraud, blackmail, making threats and operating a false trading system. Decide for yourself whether you want to sign up with a business that faces this kind of trouble.
How Can I Find A Better Broker Than TradoLogic?
Luckily, there are many better binary options brokers than TradoLogic. You can recognize them by paying attention to a few significant characteristics. These are:
- Government regulation. Trustworthy brokers accept government regulation. The government checks the business’s financial legitimacy and makes sure that you always get a fair service. Make sure that your broker is regulated by the European Union or the United States.
- Self-made trading platform. Brokers that created their own platforms have to use much more trader-friendly systems. They are on their own, and trustworthiness is their most valuable asset. Brands of white label brokers are just among many, which is why they are replaceable. When a brand loses the traders’ trust, the broker will simply open a new one.
- Simple process, clear communication. Brokers that use intentionally complicated withdrawal processes do so with good reason. They want to gain the ability to deny you your money. Whenever your broker employs significantly more complicated methods than your bank or your stockbroker, be careful. We all have some experience with online banking, and we understand what reliable online security means. Use your common sense.
Check for these three criteria, and you can quickly separate trustworthy brokers from untrustworthy ones.
Conclusion
TradoLogic is a white label broker for binary options. They provide the trading platform, the payment management, the customer support, and other essential features for their brands. While the white label system is widespread among all types of industries, TradoLogic offers a questionable service that you should avoid.
There are numerous reports of questionable businesses with TradoLogic and other white label binary options brokers, including a large-scale crackdown by the Israeli police. We recommend staying away from all business that have experienced such troubled times.
You can find a better binary options broker by choosing a government-regulated broker that uses its own trading platform. You can find a selection of the best of these brokers in our broker list.